1. Introduction Moving directly on from the general overview offered by the first chapter, this chapter looks closely at the issue of the appropriate role sustainable private sector-led economic for government in promoting Defining the role of the government in economic man development agement will depend upon what ine s drawn between the govern ment's role and that of the economy's private sector. This contentious issue is traced back to the discussion over the feasibility of the socialist economic calculation during the early twentleth century(originally initiated by Ludwig von Mises and oscar Lange) and has continued right through to the more recent debate on the strategy in deveiopment economic desirability of a government-led the 1990s. In spite of the innumerable works of economists with rad ically varying viewpoints, the ongoing debate can ultimately be reduced down to the slmple issues of market fallure or government res have been seen as the most failure. Traditionally, inar However, it justifiable reason for active government intervention. should also be emphaslzed that market failures are in most cases a reflection of Institutionai failure which is in essence a form of gov ernment failure The chapter outli es some'lessons' to be learned from the Korean experiences of governmer t-led economic development over the past thirty years by examining the policy patterns, defining their character istics, and suggesting the desirable role of the government in a global This chapter is based on Sung-Hee Jwa(1997) "The Role of Government In Economic Management: Korea's Experlences and Lessons', Korea Joumal, 3(Winter) pp. 5-14