Transcript IGES- Urban Environment / IHDP-Industrial Transformation

IGES- Urban Environment / IHDP-Industrial
Transformation Open Symposium
The Economic Development and ESSD
- The City of Ulsan in Korea The paper for the Keynote Speech
Prepared by
Deokho Cho (Univ. of Kyongju in Korea, Ph.D)
(http://www.kyongju.ac.kr/urban/cho)
For the Joint Meeting of IGES Urban Environment Group and IHDP
June 24, 1998
The Economic Development and ESSD
- The City of Ulsan in Korea Deokho Cho (Prof. of Kyongju University in South Korea)
(http://www.kyongju.ac.kr/urban/cho/)
Tables of Contents
I. Introduction
II. The Korean Economic Growth Policy and Urbanization
1. The Korean Economic Growth Policy
2. The Process of Urbanization in Korea
III. The Building Processes of Industrial Complexes and the
Environmental Problems of Ulsan Metropolitan City (UMC)
1. Processes of Industrialization and Urbanization of UMC
2. The Environmental Problems in UMC
3. The Environmental Policies of Central and Local
Governments
IV. Lessons from the Korean and Ulsan Experiences
V. Conclusion
•
References
I. Introduction
Desperate Poor Country until the 1960s
- Korean War
- Poor Resource
- Japanese Colonization
Korean Economic Development - Jump to Developed Country
- Rapid Economic Growth
- Industrialization
- Urbanization
It had creates its negative impacts
- Environmental Problems: Air and Water Quality, Coastal Water, and so on.
- limitation of Economic Growth
Building of a New Paradigm for the Economic Growth of Asian Developing
Countries
- Sustainable Development
- Environment Friendly Industry and Consumption
- Government Policy for the Economic Growth and Environment
II. The Korean Economic Growth Policy and Urbanization
1. The Korean Economic Growth Policy
Military Coup in 1961
Adaptation of Five Years Economic Development Plan
Factors of Economic Growth
-
Strong Government Policy
High Skilled Labor and Low Wage
Individual's Willingness to overcome poverty
The "Can Do Spirit for Economic Growth- A New Town Movement
Industrialization
-
Building of Industrial Complexes
Heavy -Chemical Industry
Urbanization- Low Price Policy of Agricultural Products
Urbanization Rate: 39 Percent in 1962, 82.9 Percent in 1991
Negative aspects
-
Social Unrest
High Price of Commodities
Unbalance of International trade
Income Inequality
<Tabel .1> The Goal and Policy Issues of Economic Development Five Years
First Plan
(62-66)
Economic
Growth Rate
7.8
Goals of Economic Development Policy
Policy Issues
Fix of a Vicious Cycle of SocioSupply of
Economic Circumstances
energy
Building
of
Self-Supporting
Economy

 Investment of
Base
SOC
Modernization of Industrial Structure Self-sustaining
of
Self-Supportingof foods and
Acceleration
Economy
green forest
Second Plan
(67-71)
9.6
Third Plan
(72-76)
9.7
Fourth Plan
(77-81)
5.8
Fifth Plan
(82-86)
8.6
Stabilization of Economy
Renovation of Technology
Renovation of Government Function
Sixth Plan
(87-91)
9.8
Harmonization of Autonomy,
Stabilization, and Welfare
Autonomy of Economy and Equity of
Society
of
Economy
Opening
Internationalization
Balances of Growth, Stabilization,
Selfand Balance
Sustaining of rice
of
Self-Supporting Growth of
Implementation
Economy
heavy-chemical
industry
Attainment of self Growth Structure
 Increase of Equality by Social
development
of
Technology
Improvement
Efficiency
Balance of
International
accounts
and
Investment to

technology
development
 Energy saving
policy
 Building of a
new relationship
between labor and
capital
Emphasizing the
economic equity
Control to land
speculation
and
Source: This table (Kim, p.170, Table 7-1) is revised by author, following the direction of this paper
III. The Process of Urbanization and the Environmental Problems of Ulsan
Metropolitan City (UMC)
1. Processes of Industrialization and Urbanization of UMC
UMC is one of the fastest industrialized cities within the country or in the world since
1962 when she became a city.
She is a symbolic city of Korean development in terms of industrialization,
urbanization, and even environmental problems.
The Korean government
nominated Ulsan as a special industrial area and established an industrial center by
the 'Special Law of National Industry Site Development.'
Based upon this law, Ulsan National Industry Complex was constructed.
At the initial stage of industry complex development, its population and size were
respectively 85 thousands and 176.04 km2. However, its population and size are
separately 991 thousands and 1,055.55 km2 in 1996. The number of population has
increased about 12 times and urban size six times during 34 years
The development process of UMC is lined up with the building process of industry
complexes. The stages of development of industrial complex are as follows:
The first stage (1962-1966) focused on the building of an industry site and
infrastructure such as port, road, and water provisions for the Ulsan Industry Site.
The second (1967-1971) made an effort to construct the heavy chemical
industrial complex. A refined oil industry along with chemical fertilizer
industries was built in the water front areas such as Jangsengpo and Yeochun.
In order to support these facilities, social overhead capital such as port, road,
and steam power plant also was installed in this era.
The third period (1972-1976) was a leaping stage in the development of Ulsan
industry. Ulsan's representative industries such as automobile and
shipbuilding were constructed in Yumpo and Mipo industry complexes during
this period.
In the fourth stage (1977-1981), agglomeration and scale effects of these
industries was gradually generated and several industries such as iron,
automobile, and lumber were located in order to enjoy these side effects.
An industry belt was established in the fifth period (1982-1986) because
existing industry complexes were continuously grown in terms of productivity
and scale, and new industry complexes like Unyang and Yongyun were built.
And then Ulsan has grown the biggest heavy-chemical industry complex city in
South Korea in terms of amount of products and scale.
In another aspect, Ulsan has tried to reduce environmental problems through
changing the structure of industrial base from petroleum chemical plants to
automobile and shipbuilding plants, which are relatively a low pollution
industry. Eventually, main industries gradually has changed from the
petroleum chemical industry to the automobile and shipbuilding since 1987
(UMC, 1997).
As a result, two national industrial complexes and several local industrial
complexes were located in UMC as the Figure 1. The productivity is
corresponded to 18.9 percent in that of nationwide manufacturers and 21.1
percent in amount of nationwide export customs (UMC, 1997). Finally, Ulsan
Figure 1. The Location of Ulsan Industry Complexes
<Table 2> Economic Status of Ulsan Metropolitan Area in 1996
Category
Population
Area
Number
of
Manufacturers
Number
of
Employees
Amount
of
Products
Export
Import
Marine Cargo
Unit
1,000
Person
Km2
1,000
Person
Million
($)
Million
($)
Million
($)
1,000
Ton
Nation
45,545
UMC
991
Ratio to Nation(%)
2.18
99,268
101,934
1,055
1,022
3,242
150
4.63
429,556
46,000
10.71
129,715
16,079
12.40
150,339
20,001
13.30
719,792
128,435
17.84
Note
1.0
Source: Ulsan Commercial Chamber (1998), The Economic Status of Ulsan Metropolitan City
in the Circumstances of Ulsan Commercial and Industrial Sites (p.2).
1). Each number is extracted from the Korean Census Survey on the Mining and Manufacturing Industry
2). 1 US dollars ($) = 900 Korean Won
Five Employees or more
2. The Environmental Problems in UMC
These explosive urbanization and industrialization however created several
environmental problems such air quality, sewage water, soil, and river and
ocean pollution in UMA. Especially, Ulsan's environmental problems are
serious more than that of any other city because most manufacturing plants
are pollution-related industries such as petroleum-chemical or automobile
and shipbuilding industries.
Source industries of environmental pollution are like Table 3.
<Table 3>. Source Industries of Environmental Pollution in 1998
35
Automobiles
289
Soil
248
Poison
209
Bad Smell
791
(286)
Specified
Waste
Materials
Water
770
(330)
Noise
Air
Sub Total
2,018
(616)
Dust
Number of Source industries
170
(122)
448
262,394
Source: This data is provided by the Department of Environmental Protection in UMC in 1998
( ) is the number of source industry of two national industry complexes (Ulsan and Onsan)
Main pollutants of national complexes are air and poison pollution because major
factories in these areas are petroleum chemical or heavy industries. More specifically,
two major environmental problems in the UMC are air quality and water pollution. Air
pollution can be summarized as Table 4.
<Table 4>. The Circumstance of Air Pollution in UMC
Criteria
Unit
Category
SO2
TSP
O3
NO2
CO
Acid
Rain
Average Levels of Air Pollution by Year
PPM/Y
μ g/m3/Y
PPM/8h
PPM/Y
PPM/8h
0.03
150
0.06
0.05
9
1991
0.038
96
0.013
0.022
1.7
P.H
5.6
5.5
1992
0.031
95
0.012
0.027
1.3
1993
0.032
97
0.014
0.028
1.4
1994
0.031
95
0.013
0.026
1.2
1995
0.028
98
0.015
0.023
1.3
1996
0.022
106
0.015
0.023
1.0
1997
0.018
75
0.015
0.023
0.9
1998.4
0.016
69
0.017
0.022
0.8
5.7
5.3
5.4
5.4
5.6
5.7
5.9
Source:Department
Ulsan Commercial
Chamber (1998),
The in
Economic
of Ulsan
Metropolitan
City in the Circumstances
Source:
of Environmental
Protection
the UMCStatus
(1998.5),
Circumstances
of Environmental
Preservationofin the
Ulsan Commercial and Industrial Sites (p.2).
UMC.
1). Each number is extracted from the Korean Census Survey on the Mining and Manufacturing Industry
2). 1 US dollars ($) = 900 Korean Won
Water quality can be noted in Table 5. Water pollution exceeds the environmental
criteria in most areas except coastal water. In other words, the UMC is experiencing
serious water pollution. However, water quality has improved since the middle of the
1990s due to the same reasons which account for the improvement of air quality. Other
environmental problems such as noise, soil, and poison also became better as the result
of the effort of the local government and the public (UMC, 1997). In a broad sense, the
environmental quality of the UMC has been improved but that of specific industrial
IV. Lessons from the Korean and Ulsan Experiences.
Everything in Korea has been changed dramatically except human species
during the last 40 years. In a broad sense, Korea has become a better society.
However, this rapid growth created a serious negative result. In other words,
'environmentally,' "Samcheunri Gumsu Gang San" is altered to a serious
polluted country. More specifically, the environmental problem of Ulsan is
very serious like the above descriptions even if she has played the role of
engine to promote the Korean economic growth. The reasons can be
summarized as follows:
1) In order to promote economic growth, the Korean government adopted the
growth strategy of heavy-chemical industry that is a pollution-related
manufacture. Ulsan is a symbolic city of economic growth and environmental
problems. Ulsan's economic growth indicated the deterioration of urban
environments. It was a trade-off relation. Therefore, the government should
adopt the environment friendly industry to stop the trade-off relation of
economic growth and environmental problems. It is a sustainable
development strategy.
2) The second is that the central government did not consider the
environmental impacts of heavy-chemical industrial complexes. However, if
the environmental problems occur once, it is very difficult to cure them by
3) The third is the management of environmental problems. In terms of
political structure, the local autonomy was not established until 1995 and
environmental policies were controlled by the central government. It
resulted in the inefficient correspondence on the local environmental
problems. Until now, national industrial complexes are regulated by the
central government and local complexes are controlled by the local one but
both complexes are located within the UMC. Two different organizations
involved in the management of Ulsan environmental problems and it
caused several problems on the management of several industrial
complexes.
4) The non-profit organization and citizens must participate in the
improvement of environmental problems because it is impossible to do it
without their helps. Many environmental organizations and citizens and
even some factories recently involved in the improvement of environments
in the central and local level. The public concerns on the environmental
issues increased explosively because the environmental problems such as
fresh water, air quality, bad smell and so on are directly related with the
quality of their lives.
In summary, in the beginning stage of economic development, Korea made
a mistake that did not consider negative impacts of rapid economic growth
which are environmental problems. As a result, she has paid a lot of costs
to cure these problems and still is undergoing. Very recently, the central
and local government, citizens' organizations and even plants begin to take
into consideration on the environmental issues. As a result of these efforts,
V. Conclusion
East Asian rapid economic growth, urbanization, and industrialization have
placed increasing demands on air, water, and land resources. Much of the
region, particularly major urban areas, are plagued with unacceptably high
air and water pollution levels. Urgent steps are needed to reverse this trend
and to foster a more efficient and environmentally friendly growth in years
ahead.
In order to challenge this demand, East Asian countries must prepare a new
paradigm on the economic development strategy. A new policy approach is
clearly needed in order to handle the global environmental issues and
challenges posed by rapid changes in social structure. An environmentally
friendly consumption patterns and business management system must be
fostered.
The ideal of "Environmentally Sound and Sustainable
Development (ESSD)" for the economic growth must be promoted.
The developing countries must consider the environmental issues when they
establish economic development strategies, based upon the Korean
experiences. They must induce low-pollutant factories. Moreover, in order
to solve local environmental problems, each local government must make a
plan on the protection of urban environments and implement it, considering
socio-economic situations of planned areas. Her citizens and organizations
also must voluntarily participate in protecting urban environments. If other
Asian developing countries obtain lessons from the Korean experiences, they