The Role of State on the Process of Market Economic Institution Improvement: Korean Experience and Implication to Vietnam

Abstract

Among actors participating in market economic institutions, State is an important one that can set out and monitor the implementation of the “rules of the game”. In the different models of market economic institutions, the role of state also manifests itself not only at the scale of the state, but more importantly, at its objectives, tools and ways of participation into economy. Korea is an East Asian country that has achieved phenomenal growth during the second half of the twentieth century. The process of improving the market economy in Korea through different periods of development clearly demonstrates the role of a strong state, while being very flexible in regulating the economy according to market signals. This paper focuses on the role of the state in the market economic institutions of different stages of development in Korea, thus drawing implications for improving the market economic institutions in Vietnam.