The purpose of this study is to figure out the actual state and problems of the Revitalization Project and the Promotion Project for Local Assets Based Industry, and suggest a new operation system and an evaluation system for the Promotion Project for Rural Vitalization. Its contents consist of (1) finding the state and problems of rural industry policy, (2) analyzing the state, problems and effects of the revitalization project, (3) figuring out the promotion project for local assets based industry, and (4) developing the evaluation and outcome index of related projects under the Promotion Project for Rural Vitalization as a new rural program. The methods of the study are literature reviews, secondary data analysis, and questionnaire surveys of experts and central and local government officials.
The results are that first, the endogenous rural development strategy based on natural resources is an important alternative to promote the secondary and tertiary industry in rural areas. The policy to increase the secondary and tertiary industries in rural areas has been considered as a powerful instrument for a long time, but the effectiveness of the Agricultural Product Processing Promotion Program(APPP) and the Rural Industry Park has been reduced due to decreasing rural population, lack of labors, and increasing labor cost and land price. On this situation, the Revitalization Project and the Promotion Project for Local Assets Based Industry introduced recently are pertinent because they are based on local natural resources, improve the local renovation system, have a good relationship with local universities and experts, and promote local specific industries.
Second, the revitalization project focuses on building a local renovation system and improving regional innovation power. That is different from others. It is at a very early stage to evaluate the outcomes of this project, but it has contributed to local residents who try to find their capacities by themselves and develop the local industry. However, the project has had some problems that a leading business under this project is unsatisfactory and the outcome of inviting experts as "family doctors" or innovative local committee members is unclear.
Third, the Promotion Project for Local Assets Based Industry is a kind of new policy from a new perspective of using local natural resources by local residents and finding new ways to improve their industry foundation. This project is very related to Special Production Park Program, Agricultural Product Processing Promotion Program, Local Special Production Park Program, and Regional Agricultural Cluster, but there have been no discussions on coordinating them. For the coordination among related projects and programs, it is necessary to have discussions on coordination between central government departments: Department of Agriculture and Forestry; Department of Government Affairs and Home Affairs; Department of Commerce, Industry and Energy; and Small and Medium Business Administration.
Fourth, the Department of Agriculture and Forestry has a plan to launch "the Promotion Project for Rural Vitalization" that contains all projects related to the promotion of secondary and tertiary industries in rural areas. This plan is for local governments to make promotion plans for rural vitalization and improve the relationship between similar projects. The important thing is to make a legal base for the plan.
Finally, the "native locality" that is a source of the Revitalization Project and the Promotion Project for Local Assets Based Industry consists of native ingredients, unique production methods, and local intellectual property rights. The protection of the uniqueness is the key factor to sustain the local industry. Therefore, local native resources have to be items that are to be protected by the Protected Geographical Indications. Or, the local government should make a rule to register the local uniqueness, like local products, native ingredients and unique production methods, and manage them through a certification system.
Researchers: Dong-Phil Lee, Yong-Lyoul Kim, Kyung-Eun Choi, Min-Soo Kang
Research period: 2007. 5 - 2007. 12
E-mail address: ldphil@krei.re.kr