ECONOMIC PLANNING

FOUR FULL-TIME & NUMEROUS SHORT-TERM SPECIALISTS WILL BE CONTRACTED TO ADVISE THE ROKG ON CURRENT ECON CONDITIONS & A THIRD 5-YR PLAN (TFYP). IN ADDITION, 45 PARTICIPANTS WILL BE TRND OVER 2 YRS IN SUCHFIELDS AS ECON, MKTG INT"L TRADE, STATISTICS, PROGRAM PLNNG, BUDGETING, BANKING, TAX ADMIN & OTHERS WHICH DIRECTLY AFFECT ECONPOLICY & PLNNG. WITH THE ASSISTANCE OF FISCAL & MONETARY ECON & CONTRACT SPECIALISTS,THE MIN OF FINANCE BANK OF KOREA & ECON PLNNG BOARD WILL PREPARE & IMPLMNT A PRICE STABILIZATN PROGRAM INCLDG A REPORT ON MONEY SUPPLY & FISCAL RESERVES TO SLOW INFLATION. THEY WILL ALSO DESIGN A PROG TO PROVIDE INCENTIVES TO INCREASE PRIVATE DOMESTIC SAVINGS,MINIMIZE THE ROKG"S ROLE IN CREDIT ALLOCATION & MGMT OF INDUSTRIES & FORMULATE MEASURES OF THE EFFECT OF FOREIGN EXCHANGE RATES & RICE PRICE CHANGES ON GENERAL PRICE LEVELS. AN INT"L TRADE ECONOMIST WILL ASSIST THE ROKG IN COMPILING DATA TO CREATE AN ACCURATE PICTURE OF ROKG DEBT & TO DESIGN PROGRAMS TO REDUCE FOREIGN DEBT WHILE STIMULATING ECON GROWTH. THE TARIFF SYS WILL BE REVISED & SUBSIDIES PROVIDED FOR EXPORTS,AN INTEREST-EQUALIZATN TAX ENACTED & A SYS DEVISED TO EASE THE IMPACT OF CURRENCY DEVALUATIONS. A MORE INDEPENDENT BANKING SYS WILL BE ENCOURAGED TO CREATE AN INDEP CAPITAL MKT TO MAKE DOMESTIC FUNDS MORE COMPETITV WITH FOREIGH FUNDS & TO INCREASE INVSTMT IN PRIVATE SECTOR. TECH"L ASSISTANCE WILL BE PROVIDED TO IMPROVE BANKING & CREDIT ADMIN & TO ENCOURAGE PRIVATE ENTERPRISE. ALTERNATV DEFENSE SYS FINANCING WILL BE SOUGHT IN ANTICIPATN OF TERMINATING US FUNDS. CONTRACT ADVISORS WILL ASSIST EPB"S STATISTICS BUREAU TO ESTAB A COMPUTER-BASE DATA HANDLING SYS & TO IMPROVE USE OF KOREAN INSTIT OF TECHNOL COMPUTR FACIL. AT VARIOUS TIMES THRUOUT PROJ,ADVISORY & CONSULTANT SRVCS WILL ASSIST EPB IN FORMULATN OF TFYP,TO MAKE GOALS CONSISTENT WITH OBJCTVS OF ENTIRE PLAN & TO IDENT OBSTACLES TO TFYP & HELP DEVISE POLICIES TO REDUCE EFFECT OF SUCH PROB