Time Factors in Policy Performance: The Korean Governments Economic Crisis Management in 2008

Abstract

This paper assesses the Korean governments management of the recent economic crisis by focusing on time factors. The events that occurred from March 2008 to October 2009 and the governments corrective actions are interpreted through a time lens that accounts for the temporal constraints in terms of objective time as well as perceptive time. These two time domains have significant effects on the management of public policies, especially economic policies that require government interventions that affect the complex interactions of economic factors from both the fiscal policy and market perspectives. In order to illustrate the importance of long-term strategy, this study reviews the evolution of the economic situation following the onset of the financial crisis. Our retrospective analysis does not find that the Lee Myung-Bak government deployed strategies relevant for the long term, but rather that President Lees authoritarian attitude itself may help him fuel the economy for a long time. Regardless of the causes, this case emphasizes the need for consistency in policy making, especially when the policy areas particularities require it.