ABSTRACT
The state's capacity tor sound policy formulation and implementation has the effect of raising living standards to the degree that people begin to demand political development as well as economic development. The inability to resolve competing societal concerns regarding deregulation generally, reinforced the internal divisions concerning foreign investment deregulation in particular. The domestic and international political and economic environment confronting policy makers underwent a major shift. During the Roh era there is little progress towards a more market oriented foreign investment policy. The incremental nature of changes in policy in the area of the approvals system, sectoral opening and reduction of tax incentives highlights this. The period of Roh Tae Woo's presidency is characterises by cross currents of internal societal demands and external pressures for change, The institutional arrangements proved to be inadequate in resolving the conflicting viewpoints on the issues raised including that of deregulation generally and liberalisation of foreign investment in particular.
