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Policy Tasks for the Development of the Rural Social Economy
Author Gouk, Seungyong
Views 90745 Publication Date 2019.02.14
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Globally there has been a growing awareness that not a particular group but the whole society should share the fruits of economic growth, thereby reducing inequality and conflicts among economic groups and enabling sustainable economic growth. In the agricultural sector, the need for inclusive growth through the vitalization of the social economy has increased, due to the recent stagnant growth of the sector and the relatively high level of income inequality among farmers. For the sustainable development of agriculture and rural communities, economic vitalization is necessary in broad sectors of farming and rural areas. Given the distinct characteristics of rural areas, it is needed to diagnose the areas' need for the social economy and set up plans to develop the social economy in the areas.
The number of head offices of agricultural cooperatives declined from 1,161 in 2013 to 1,131 in 2017. Thirty-four percent of social enterprises are operated in rural areas and 66% in urban areas. 1,514 village enterprises are operated as of the end of 2017. Village enterprises are established and run more actively in rural areas (64%) than in urban areas (36%). In rural areas, 30.5% of general cooperatives are distributed; 69.5% are in urban areas. There was only one social cooperative in 2012, and 100 social cooperatives were founded in 2013. The number increased by 71% on annual average, and 848 social cooperatives are operated as of 2017.
According to the result of the implementation monitoring of the Rural Services Standard, the implementation status of healthcare services, senior care, infant care, elementary school fostering and the provision of transportation to school, business start-up and employment consulting is about 70%, which needs considerable improvement. This means that government or market services are not delivered properly to these areas in rural regions. Rural residents had more demand for expanding health and medical facilities, social welfare facilities, and culture and arts centers compared to urban residents.
As for opinions on "promoting the social economy," one of the Moon Jae-in government's major policy tasks, 10% of respondents answered that they heard the term for the first time, and 53% answered that they had heard about it but did not know its exact meaning. According to the survey result, 11% of respondents do not think it necessary; 27% know about it well and think it a necessary policy. As the most urgent area for improving rural living conditions, medical and health care (31%) was pointed out, followed by culture (22%), a bond with neighbors (18%), education (14%), and public transportation (13%).
When carrying out a project needed by a village, 55% of respondents could not find an institution that provides support. Respondents who can receive help from an institution established by a city/county office account for 37%, and the answers that they can receive help from a private institution are insignificant. On the question, "Who should be the main agent of improving the conditions of the village?," 50% of respondents answered that the local government should take interest and solve the problem. Ten percent responded that the central government should be in charge; 39% responded that residents should solve the problem themselves or through the support of the local or central government.
Recently Korea's social economy has been promoted linked with government policies. However, to strengthen the private sector's leading role, it is desirable to promote the social economy comprehensively by the region's needs, not focusing on individual projects. It is required to expand a consensus on the need for promoting the social economy in agriculture and rural communities. To promote the social economy by reflecting diverse features of the community, the roles of the local government and the private sector in the community are important. It is necessary to draw and implement tasks for the development of the social economy suitable for rural circumstances. Due to the rapid aging and depopulation in rural areas, it is the most urgent task to find manpower for vitalizing the social economy. This manpower can be trained in the region or supplied from outside, but it may be difficult for many rural areas to secure the manpower without outside supply. In Korea, because intermediary support organizations are established and run linked with individual government policies, cooperation among these organizations in a region is not smooth. It is necessary to support creating an integrated regional network of the social economy, and integrate individual intermediary support organizations or expand mutual cooperation among them.

Researchers: Gouk Seungyong, Lim Jieun, Lee Hyungyong
Research period: 2018. 1. ~ 2018. 10.
E-mail address: gouksy@krei.re.kr

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