Poverty reduction approach in Korea T he Saemaul Movement in the Republic of Korea

1. ASEAN+3 - 4th Village Leaders Exchange Program, 18-24 Sep, 2016 http://www.iprcc.org.cn/Home/Activity/activity/fid/260.html Poverty reduction approach in KoreaThe Saemaul Movement in the Republic of Korea Do Hyun Han, ecclehan@aks.ac.kr Professor of Sociology, AKS Research Committee, Korea Saemaul Undong Center 10:45-12:15, Tuesday, 20 Sep, 2016, Shanghai Hotel, Shanghai Disclaimer: The views expressed in this document are those of the author, and do not necessarily reflect the views and policies of the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this document, and accept no responsibility for any consequence of their use. By making any designation or reference to a particular territory or geographical area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.

2. The Challenges: Why still poor despite the global effort? Why Not for farmers, villagers ISSUES: Delivery, Corruption, Goal-setting, Governance, Local Ownership, Accountability, Entrepreneurship

3. Inclusive and Grassroots Level Impact Betterment of my family, my village

4. Social and Economic Conditions before SMU Inconvenient, unhygenic kitchen Too narrow village roads and farm road, even for hand-carts Very poor housing quality Nearly 70% of the country’s population had to worry about their daily meals

5. Income of Farmers (IF) increased from 360,000 KRW of 1971 to 3,690,000 KRW of 1981 (more than ten times)

6. Developmentalism at the village • Different from political or ideological campaigns. • The goal is to help farmers become rich • Villages are transformed into ‘developmental village’ • Saemaul village leaders took responsibility of operating the village as a business. • Saemaul village leaders become ‘trained managers’ of village business (Saemaul projects) • Competition, evaluation, performance-based support More supports for better performance: financial support for bigger projects electrification, telephone, (other wish list) •  The Mission of Being Rich Farmers

7. From Chung KW Comprehensive Approach Agriculture development  Non-agriculture development  Agricultural Production Infrastructure  Social Infrastructure  Housing  Building Community Center  Community Beautification  House Cleaning & Beautification  Renovation of Community Institutions  Vitalization of Community Festivals  Supporting Youth Activities  Drinking Water Supply  Kitchen Improvement  Toilet/ Bathroom Improvement Income Generation Infrastructure Building SaemaulUudong Community Building Socio-Cultural Development Health & Sanitation

8. Evaluation, Performance-Based Support: Grassroots level impact

9. The successful achievement: Performance-based support, competition, incentive(benefit) Self-reliant Basic villages improved through policy of 'Preferential support for high-performing village must be a priority.’, Self-help Basic Criteria: Income, farming base, cooperative life

10. Development for Me • Wealth nor for the community, nor for the country, but for me…..”development for me” “For the nation to be rich and powerful, the people just live well. If the people live poorly, that is not a rich and powerful nation. Therefore, we have to live well. ” (X-GyuJeon 2008:7). “When we no longer farm simply to survive, but to create surplus income, we can no longer refer to that as farming for survival. It’s agricultural enterprise.”(Sa-Yong Ha 2004:62)

11. Saemaul Method is not monolithic • 1. Prototype of Saemaul: Saemaul Way(Style) villagers’ land, villagers’ labor + materials by gov’t 2. Chulpori type: Land reclamation without the gov’t support in the 1960s, two businessmen tried, but failed in 1971, villagers decided to do land reclamation as a Saemaul project….with A frame carriers (a coolie rack) and handcarts (no advanced equipments)…3300 square meters for each household 3. Income Reinvestment Project: repeated investment government grant+ villagers’ business operation-->village fund development -->new and repeated investment for income increase

12. The Prototype of The Saemaul Undong 1st Year, Provided with 335 bags of cement for each village (33267 villages) The Evaluation of the outcome by the government More support to the successful villages (1/2 of the villages) No more support to those with failed outcome =>Self-Help(Participation), Cooperation= Local Ownership Performance based support Competition Support and stimulation by the government-> motivation for the development of village infrastructures->participation in cooperative project(labor)->visible achievement->realization of benefit from the achievement->promotion of self-help and cooperation spirit->undertaking of a task on a greater scale. (GohKon 2010) Strengthening of the community efficacy (repetition of success)

13. Chulpori Type: Sometimes, they could not get necessary help from the government –finally, accomplished by them Land Reclamation by villagers No support from outside May 26, 1972 We just recovered the embankment by using a bulldozer (villagers pay for renting the bulldozer,… no government support), but were not able to do further work because of shortage of financial resources (money). “we decided to do by ourselves. Fifteen people worked by using handcarts.”

14. An Example of business contract between the local government and Village Development Committee • Contract for Village Project • contract number 2 • Name of Project: improvement of Anmal creek • Project site (Address): • Date of starting • Date of completion • Years of guarantee: two years Accountability Responsibility Capacity *Ownership: Village Project

15. Income Reinvestment Project (Compound Project) Income Reinvestment Project Profit The growth of the village fund Distribution of Profit (50 %) Increases income Village fund (50%) Repetition Leads to greater independence, as intended by the self-help principle ★ Individual returns were determined by the amount invested ★ The division of profit associated with the Income Reinvestment Project method

16. The Framework: Savings and Income Reinvestment Project

17. Village Meeting for Deciding on the Next Compound Project in Chulpori • Secure 20% of the total budget for the fund of Compound Project • Save 25% of labor income for the fund of compound project • The compound project fund is to be reinvested in income-generating projects and the item is to be decided by the general assembly of the village

18. 03 The Role of the Government: Invest, R&D, technology Land reform and land-to-the-tiller policy Land ownership helping farmers get the fruits of their labor Bureaucracy(administration) for development =Transparency, Capacity, Incentives Investment in Agricultural infra, research and extension services Irrigation, electrification, farmland rearrangement, etc The development of agricultural extension service centers Price Support for Rice (government’s buying vs selling) The Nationwide network of agricultural cooperatives low interest loans,purchasing agricultural tools/fertilizers Helping Farmers in improving farm products The Education of Saemaul Village Leaders Supporting The Saemaul Leaders Training Institute

19. Coordination of ministries:Concerted effort and collaboration B H (President Office) The Central Committee for SMU (Related Ministries) Province, County, Subcounty The Cabinet Meeting for SMU  overcoming bureaucratism Monthly Economic Trend Review Meeting “My cabinet ministers and I listen once every month at the Economic Trend Reports to the excellent success stories from the Saemaul leaders. When I listen to these vivid experiences, sometimes my eyes fill with tears and sometimes I feel a lump in my throat. There are countless times that I become solemn.” • “January 14, 1975 New Year News Conference”, The Presidential Secretariat. President Park Chung Hee’s Speeches. 1978.

20.  Local Governance and Administrative Reform 2 Local government was critical in implementation of Saemaul Movement. • Local officials advised, oversaw, and monitored Saemaulprojects. • Indeed, local officials made frequent and periodic on-site visits to projects. • This led to cooperative partnership between local government and villagers, and thus, greater mutual accountability. • Performance of villages was directly linked to the evaluation of local officials (i.e. job promotion).

21. The role of village leaders

22. The Role of Saemaul Village Leaders : Empowering Women Not in the public →Transformational leader Agent for the village innovation -eradication of gambling -abolishing village taverns Leading family planning campaigns Leading savings and village fund Operating income generating business *female SM Leader becomes President of a village fund (credit union)

23. Example of Saemaul Leader: Female Leader, JeongMun-Ja Women were involved in multifarious projects. Nutritional development projects Communal kitchens Village-rice-savings schemes Sanitary improvement measures Running cooperative shops Daycare centers Improving the status of women Also involved in and took advantage of the government’s family planning project, which promoted women’s right of choice. Public deliberation An integral role in establishing credit unions By effecting attitudinal change in their husbands, who were often addicted to drinking and gambling

24. Devoted Village Saemaul Leaders, unpaid, elected from villagers by villagers Transformational leadership Business capacity • Saeamuleducation and training • Agricultural technology for farming • Business cooperation, accountings Social skills: how to operate meetings, how to persuade people, to manage conflicts Effective Education case studies (success stories): Peer teaching, Community of Practice, Storytelling The Training Institute • Central: The Saemaul Leaders Training Institute. In additin, many provincial and local training institutes

25. The Saemaul Leaders Training InstituteCommunity of Practice Methods of Saemaul Education -Dormitory style (14 days to 10 days), secluded from ‘the secular’ (No TV, No Radio, No alcohol, No phones, etc) -Story telling: empathy -Sharing Life Stories -Singing and Ceremonies -Mutual Learning: Community of Practice Success Story Presentation Group Discussion -Study trips to advanced villages (in Korea or abroad) Stimulation, Challenges, Bench marking

26. Educating Saemaul Leaders in 1970s Korea Ch 1: the Ideas of the SMU Ch 2: Production Income Based Project, Ch 3: Saemaul Income Increase, Ch 4: Cultivating the Land, Ch 5: Urban SMU, and Ch 6: What You Need to Know to Implement the SMU A total of six chapters and around 1100pages The Handbook of the Saemaul Undong 1975 Textbook for female leader class, 1975

27. Effective Education, from Letters of Saemaul Leaders I am a fresh piece of charcoal that has changed to never change again” (a Village Leader) During the education process I’ve had a lot of feelings. It’s like a blast furnace, but with people instead of iron. The Saemaul Leaders Training Institute is a kind of blast furnace where we were reborn” (X-GyuJeon 2008:18). Even though the period of 10 days was short this was my first ever recognized education and it has been a major event in my life. I will never forget this. (K, Chunbuk) When presentations were made of successful exemplars, I cried and regretted my past actions” (J, Kyungnam)

28. Letters of Saemaul Leaders : their hardship, internal conflicts, prides, bureaucratism of the governments, non-cooperation of villagers (48 volumes)

29. Conclusion: Lessons • Consistent focuse on Income Increase • Competition and Performance-based differentiated support • The supportive partnership: the government- farmers • Capacity Building: Education and training • Community failure should be prevented: technial support, consulting, on-site advice, reviews

30. Thank You for your kind listening.감사합니다. Do Hyun Han, ecclehan@aks.ac.kr Professor of Sociology, AKS Research Committee, Korea Saemaul Undong Center