지방공기업의 성장과 대리인 문제

Growth of Local Public Enterprises and Their Principal-Agent Problems : Policy Measurements to cure them in the viewpoint of NPM.

The number of local public enterprises in Korea increased remarkably, in spite of that of national ones decreasing in the mega-trends of privatization in public sector since 80 s. This paper found out that downsizing of local government departments meant growth of local public enterprises. Outward appearances of the organizations were changed: from Department or Agency to Local Governmental Corporation. This means that political judgement surpasses rational decision-making in establishing local public enterprises. The growth of local public enterprises by such political-decision making deteriorated relational problems between local governments: principals of local public enterprises and agent; managers of them. This paper insisted several policy measurements to cure these kinds of principal-agent problems in the viewpoint of New Public Management which emphasized rational marketability rather than political artificiality. First, managerial responsibility system of local public enterprises managers should be secured, instead of managerial autonomy by Negative System being given to them perfectly. Second, thorough managerial evaluation by new Supervisory Steering Committee should be strengthened. Besides them, the new Price Cap Regulation System in rate making of the Korean local public enterprises should replace the current Rate of Return Regulation System in accordance with market oriented destination which NPM insist.