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Earmarking in Theory and Korean Practice

In the first part of this paper we present a non-technical analysis of earmarking. We then briefly review some international experience with earmarking and its apparent results. The main new contribution of the paper is the concluding description and evaluation of the nature, efficacy, and effects of earmarking in Korea. Earmarking – assigning revenues from designated sources to finance designated expenditures – is an old and popular practice in many countries around the world. In Section 1, we set out a taxonomy of earmarking to set the stage for discussion in Section 2 of the reasons why countries might decide to earmark particular revenues. In Section 3 we review briefly some international experience with earmarking and its apparent results. Against this general background, in Section 4, the main new contribution of the paper, we describe the perhaps surprising amount of earmarking in Korea and present a preliminary evaluation of its efficacy and effects. A brief Section 5 concludes.

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Paper provided by International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University in its series International Center for Public Policy Working Paper Series, at AYSPS, GSU with number paper0515.

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Length: 47 pages
Date of creation: 02 Jun 2005
Date of revision:
Handle: RePEc:ays:ispwps:paper0515
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