Korean telecom policy in global competition: implications for developing countries

United States efforts to open the Korean telecommunications market have been incessant and tenacious, to the extent that Korea is the only country to be twice designated by the US as a priority foreign country (PFC). Through major restructuring driven by the Korean government, the telecommunications infrastructure of Korea has been strengthened and expanded, and in the process has posed a threat to the US telecommunications industry. Thus, since the late 1980s, the Korean telecommunications industry has been monitored and threatened with trade sanctions by the United States Trade Representative, and all internal restructuring has been closely related to bilateral negotiations with the US, and multilateral negotiations in the Uruguay Round. Based on interviews with key Korean telecommunications personnel and analyses of public documents, this research examines the Korean telecommunications market, telecommunications policies relative to the US and WTO, and the recent economic crisis that has affected the stability of the industry. The paper also offers five major recommendations to government and industry policymakers, including a more active and positive stance toward liberalisation, the relinquishing by bureaucrats of their monopolistic power over policymaking, the securing of an open and transparent policymaking process, and, in relations with the US, and the mobilisation of regional and multilateral organisations to ensure fair competition in telecommunications.     

Re-forming the state: telecom liberalization in India

A fundamental problem in the new strategies of telecom development is attracting private investment for network expansion. Following the insights of institutional economists, and from evidence gained through the case study of the telecom liberalization process in India, this paper contends that the success of private investment depends on the creation of a regulatory mechanism that provides ‘credible commitment’—that is, provides both a set of rules and regulations that ensure prospective private investors a reasonable return on investment, as well as a governance mechanism that insures them against the possibility of arbitrary governmental discretion. The problems of the liberalization process in the telecom sector in India reflect the failure to institute such a regulatory regime. Following a process of macro-economic liberalization in 1991, India adopted the New Telecom Policy (NTP) in 1994, opening up the basic telecom sector to foreign investment. The implementation of NTP, however, was marked by a series of conflicts and controversies, resulting in extensive litigation and conflict between the Department of Telecommunications and the private operators, and erosion of investor confidence. These problems of implementation represent a problem of institutional change associated with a fundamental shift in the institutional regime, from one based on a high level of discretionary power on the part of state actors, to institutions based on transparency, accountability, expertise and insulation from the political process.     

Innovation upgrading of local small and medium-sized enterprises and regional innovation policy: An empirical study

The aim of this paper is to clarify factors that promote innovation upgrading of regional SMEs and to analyze why and how policy programs implemented by local government affect their upgrading. This study is based on a firm-level questionnaire survey conducted in 2014 that targeted 1324 SMEs in Hyogo Prefecture, Japan. Innovation upgrading was classified into four stages depending on the novelty of the technology used and products; the novelty is classified according to whether they were existing or new. Measures of upgrading include the ratio of research and development (R&D) investment to sales, open innovation, sources of ideas, problem solving ability, human resource development (HRD), and business development strategies. An ordered probit model was employed. Six policy programs of Hyogo Prefectural Government were analyzed. The Manufacturing Academy was seen to be significant, and how this policy program affects upgrading through factors inside SMEs was examined by introducing cross-terms of policy programs and measures. Estimation results demonstrated that this policy program enhanced upgrading through HRD in SMEs, and it is considered that this was due to the policy programs meeting the necessity that SMEs have to develop the skills and abilities of their engineers and workers.     

Towards regional food security in southern Africa: a (new) policy framework for the agricultural sector

In the southern African Region (SAR) large populations, mainly concentrated in rural areas, face food insecurity and poverty. Food insecurity is intensified by adverse weather conditions and droughts which impact negatively on farm level food production throughout the region. Agriculture constitutes an important economic sector in the majority of countries in the region. This is measured as share of agricultural value added to the GDP and as agriculture's share in employment. Based on these facts alone, it must be obvious that sustained agricultural performance will play a significant role in the improvement of food security and livelihoods in the region. However, food security is not only attained in rural areas and by the consumption of home produced food stuffs. Urbanisation is expected to increase dramatically over the next few decades and feeding the urban masses, at affordable prices, must be considered to be a high future priority for governments in the region. Food security must not be viewed as an agricultural issue per se. The drive to food self sufficiency through domestic agriculture production in many countries in the region did not enable these countries to feed their own population. Food security should rather be defined as the acquirement of sufficient and nutritious quantities of food (Sen, 1981, Poverty and Famines: An essay on Entitlement and Deprivation). An approach, whereby attention is given to the macro level availability of food, access to income streams as well as improved production capacity to acquire food at a household level and the utilisation of nutritious food, should therefore be guiding food security policies (SADC: FSTAU, 1997, A Strategic Framework for Food Security in the Region). This broader view emphasises household level poverty reduction, economic development and growth as important components of a food security strategy (World Food Summit, Rome, 1996). An important issue which therefore needs to be explored is whether agriculture does have the potential to contribute to economic processes, which will support broad based development and food security. This paper is intended to argue the importance of agricultural development for food security in the region and to develop a diverse policy framework to strengthen this new, more comprehensive role of agriculture in the region.     

Telecommunications policy in Turkey: Dismantling barriers to growth

Modern telecommunications technology is now widely seen as a critical driver in economic development. However, the issues involved in the rapid deployment of this technology are complex and frequently highly controversial. While some issues are technical, the most difficult ones involve changing an institutional framework originally designed for different times and different technologies. The process of changing this framework necessarily involves disruptive change for existing infrastructure and service providers as well as substantial benefits for the economy at large. This paper, based on an extensive series of interviews in Turkey in 2005 as well as published sources, seeks to discuss these issues in light of Turkey's progress to date in taking advantage of advanced available telecommunications technology and the myriad productivity-enhancing services that are associated with it.An important element in developing a more competitive and dynamic sector has been Turkey's long-standing desire to become a member of the European Union (EU). This has encouraged changes in the telecommunications regulatory regime following the guidelines set out in Chapter 19 of the EU “acquis” for candidate members. Nonetheless, substantial further efforts are needed to complete and implement the desired regulatory framework, particularly as it affects the former government monopoly carrier, Turk Telekom and the cable companies. A further limiting factor in recent years has been an overall investment climate characterized by a high level of uncertainty for most investors, regardless of size or nationality.Policy recommendations to help accelerate the deployment of telecommunications technology include a clear reaffirmation of the government's priorities for the sector, a reduction in the level of regulatory uncertainty, strengthening the Board and Staff of the Telecommunications Authority, and reviewing policies to broaden the scope and decrease the cost of telecommunication licenses.     

US telecommunications privacy policy : Socio-political responses to technological advances

Deciding on who should know about Americans' private telephone conversations and other forms of telecommunicating has always been an issue fraught with, on the one hand, fear of intrusive government or corporate agents and, on the other, a desire for government and corporations to control crime and vend services respectively. This article looks at how legal and legislative compromises have been reached in order to address differing goals, and what forms future privacy issues may take. The discussion focuses first on the political origins of the USA's current laws governing privacy and the telephone, then on novel privacy issues arising out of new telecommunications technologies.     

The impact of trade liberalization in telecommunications services: The case of APEC countries

This paper examines the impact of liberalizing the telecommunications services sector on investment and output in the Asia-Pacific Economic Cooperation (APEC) countries by estimating a system of four structural equations that takes into account the causal relationship between national income and telecommunications infrastructure. The degree of openness to trade in telecommunications is represented by a carefully constructed index that reflects a country’s trade and investment policy in terms of market access, national treatment and regulatory principles. One interesting finding from the empirical analysis is that the effects of trade liberalization depend on the risk rating of a country. In countries with relatively high risk ratings liberalization reduces investment in telecommunications.     

EU animal welfare policy: Developing a comprehensive policy framework

Many EU citizens are concerned about animal welfare. The policy literature has responded to these concerns by suggesting a variety of policy instruments to policy makers. However, a gap in knowledge exists regarding which instrument should be applied under which conditions in the policy environment. This article presents the results of multiple inductive case studies of eight European countries to better understand the contingencies to animal welfare policy instruments and to further complement the framework of policy instruments available to policy makers. The qualitative evidence from this study is presented in the form of a policy decision tree indicating instruments likely to be effective under given conditions. The findings suggest that a “one size fits all” solution for animal welfare in the EU is unlikely to be effective and that although a market-based policy within the current EU context is in many cases inevitable, the barriers are numerous and require policy instruments tailored to the specific context.     

Applying territoriality to steps in the buyer/seller process

Territoriality is the drive of an individual to stake out, establish, maintain, and defend an area of space for personal use. The “area of space” may be physical or psychological. Industrial buyers and others involved in the buying process, as members of organizations, will act to establish individual territories within the organization and may also act to represent an organization's territorial needs. Because an understanding of the behavior of buyers is important to industrial sales people, and because the concept of territoriality is a mixture of psychological processes, physical behavior, and the space surrounding an individual, a Territoriality Scan System is proposed to assist the salesperson in improving his or her sales communications with industrial buyers. A salesperson can gather important information about an industrial buyer's psychological processes by observing the buyer's physical behavior and surrounding physical space using the Territoriality Scan System. These observational measurements can then be used to enhance the entire sales presentation.     

Inadequate policy analysis is to blame

Comprehensive policy analysis and public policy communication on emerging issues involving food, agriculture and natural resources are the objective of a newly established programme at Resources for the Future, an independent, non-profit research group based in Washington DC. Initiated in October 1981 with a start-up grant from the Ford Foundation, the programme is under direction of Kenneth R. Farrell, former administrator of the Economics and Statistics Service of the US Department of Agriculture. The following comments prepared by Farrell express his views on food and agricultural policy in the USA and goals of the new policy programme.     

Evaluation of import substitution strategy in Indian telecom sector: Empirical evidence of non-linear dynamics

The Indian telecom sector, post-liberalization, is characterized by the heavy dependence on the imports of telecom products, even though several policy initiatives have been taken by the government during the last three decades to reduce import dependence. This study investigates to what extent the policy measures adopted after 2012 have impacted the import, Foreign Direct Investment (FDI), and domestic manufacturing performance in the telecom sector. A series of non-linear time series techniques are employed to capture the complex dynamics among these variables. The outcomes of the study suggest that the import, FDI, and Index of Industrial Production (IIP) in the telecom sector share non-linear relationships that exhibit regime shifts, time-varying behavior, and asymmetry. The study highlights that the FDI drives the import and, in normal circumstances, FDI and imports have the potential to influence IIP in the telecom sector in the long-run. The findings indicate that the policy measures adopted by the government are justifiable as the import substitution strategies have the potential to get transmitted to the telecom sector in the future. Based on the empirical findings, the study proposes a set of policy measures, which should help the sector to grow intrinsically while lowering the import dependence.     

Rejoinder : Food, agricultural and trade policy to the year 2000

This article, partly in response to Fred Sanderson's article (pp 363–73), challenges the narrow approach of forecasting the future food situation by extrapolating current trends, and the view that little can be done to improve the predicament of the ‘poorest of the poor’. This article argues that we must look for ways of breaking out of the vicious circle of low income, low economic demand, low productivity and low levels of resource utilization.     

Satellite broadcasting to homes: Service options,policy issues and costs

Comsat's proposal to launch a direct-to-home broadcast satellite (DBS) service has stimulated a vigorous policy debate on a wide range of issues. The authors examine briefly the economic and technological factors that seem to favour new DBS services, suggest a panoply of services that could be provided via DBS, and relate the policy issues to specific potential services. They also present a financial analysis of a hypothetical firm's DBS pay-TV service, enabling them to suggest the possible shape of a new DBS industry.     

Electronic money: understanding its use to increase the effectiveness of policy

Policy on electronic money and electronic commerce would be more effective if there was a better understanding of the use of electronic money. The users’ perspective would complement the supply-side, economic and technological understanding of money with an understanding that emphasises the use of money in its social and cultural context. Mistaking the partial story for the whole can lead to costly misjudgements for providers and regulators. It also leads to an incomplete understanding of communication, innovation and social change.This article presents a methodology for exploring the users’ perspective, drawing on case studies on the actual use of electronic money. The user and his/her activities are placed at the centre. This leads to three shifts: the questions change, language and key concepts alter and the adoption and use of innovations is seen as a social activity. The users’ perspective presents three challenges for providers and policymakers. The first is to collect qualitative and quantitative data not only on the diffusion of innovations, but how innovations are used and not used in particular social and cultural contexts by different users. The second challenge is to find a language that will connect the economic analysis of supply and demand, cost and price with the study of use, trust and meaning. The third challenge is to acknowledge the interrelationship between the economic and non-economic aspects of our lives.     

Norwegian nutrition and food policy: Consumer information and price policy aspects

In 1975 the Norwegian government approved a formal national nutrition and food supply policy. The author examines two aspects of the policy, consumer information and food prices, by discussing what actions have been taken to achieve the goals set out. Some reasons why they have not been fully reached, including conflicting interests with food producers and political trade-offs, as well as the implications for the future of the policy are also discussed.     

An equilibrium approach to international merger policy

I treat international merger policy as a repeated veto game. I show that there exists a unique efficient equilibrium within a particular class of trigger strategy equilibria. I then consider a series of comparative statics and extensions: (a) if for some exogenous reason one of the countries becomes more lenient towards mergers, than the other country becomes more lenient as well; (b) merger remedies increase the probability that a merger is approved and increase total welfare; (c) the effects of a merger wave are magnified by the equilibrium approval policy.     

An integrative approach to information policy research

The decentralized nature of the evolution of information policy in the USA has resulted in a fragmented approach to both policy development and analysis. A significant problem for information policy research is therefore to provide an integrative outlook for policy analysis. Three models are used to construct a research framework which provides this integrative element. This article presents an example of this framework in a research agenda to examine privacy, software protection and transborder data flow.