period of pause in a long expansionary path.

The uncertainty gives rise to analysis of economic policy, in the direction
of either state guidance or further doses of market liberalization. All sides of
the issues get an interesting airing in this volume.

Of all the fresh possibilities that will shape the next phases of Korean
development, none is more fascinating or challenging to politicoeconomic
analysis than the matter of unification of the Korean peninsula. There are
excellent discussions of the economy of North Korea, about which little is
known to outsiders. Obviously, North Korea's economic situation has been
drastically affected by changing events in the former Soviet Union and in
China.

Also there is an instance of unification taking place right before the eyes
of Korea and the world, in Germany. There is much for Korean economists
to learn from that case, in order to avoid the troubles that have befallen West
Germany, now faced with recession, current account deficit, fiscal deficit,
social disruptions from immigration, and other problems. Scenarios of
unification and subsequent economic performance figure importantly in this
volume.

The title suggests that Korean economic thinkers are deliberating about
which road to take in the future. Admittedly, many of the choices are
extremely difficult to make, but the impressive track record of the Korean
economy leads me to think that present difficulties are temporary and that a
very promising future lies ahead for Korea. A careful reading of the pages
that follow should be very rewarding for all students of the world and the
Pacific economies.

Lawrence R. Klein

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