This is simple explanation of public goods which is essentially important to understand economic policies and phenomenon.  

Public Goods can be defined as Goods that simultaneously provide benefits to more one individual at the same time (joint consumption) . This type of goods has distinct characteristics as follows.

(1) Non rivalry. It means that there's no competition (rivalry) to get a similar quality of certain services. In other words, once the good is provided then additional cost to consume is zero.
(2) Non excludable. It means that it is almost impossible or very costly to exclude particular consumers (free rider problems).

Therefore, we can plot the two characteristics as x-axis and y-axis as follows.It is shown that goods cannot define clearly whether it is public or private. In the end, we can fine other types of goods i.e. club goods and common property.

Public vs Private Goods

or it can be explained by using following diagram.

Public vs Private Goods

Few examples of public goods are services of defense, public broadcasts (radio and TV services), flood control, law enforcement, etc.

To define public or private goods, we can use simple method as follows.

Public vs Private

Sources:
(1) Hyeon Park. International School of Urban Studies, Lecture materials

(2) Our Lovely Uncle Google

It's great opportunity to have insightful lecture from Mr. Lee about what Korea has been through towards its industrialization era. This is first article about Korean experience shared to followers of SiBernas Blog.

Korean Flag

Understanding Korean History of industrialization may give us a better picture that inspire many developing countries to cope with their problems. Korea shows tremendous  successes especially in economic development. Data tells us that in terms of GDP per capita Korea (104 USD) performed well below Mexico (369 USD), Phillipines (157 usd), and Srilanka (140 usd) in 1960. However, it only took 41 years for Korea to flip the position. In 2013 GDP per capita of Korea (25,977 usd) was far above those three countries (10307 usd, 2765 usd, and 3280 usd respectively).

The question is what are key factors leading to current result?

In short, there are three (3) aspects underpinned Korea development up to current stage: (1) Good Government; (2) Friendly Market Environment; and (3) Supporting Condition (internal and external).

Good Government  involved continuation of reforms as well as promoting coherent bureaucracies. During 60s to 70s, President showed commitment through chairing monthly Trade and Export Promotion Meeting. Reform was also being done through transparent and competitive selection processes for government employees. In the past, government had experienced to layoff 1/8 of its employees.

Moreover, Korean Government set friendly environment for market in few ways. (1) it changed policy from import substitution to export promotion even though it's primarily because Korea was lacking of domestic fund.; (2) Government provided necessary infrastructure (energy, transportation) in timely manner; and (3) government was set currency exchange such that it promoted export policy. It is also worth to noting that Korea government set export policy that focus on few industries that grouped in heavy and chemical industries. In 1970s government decided to focus on 5 industries: (1) ship building; (2) electronics; (3) automobile; (4) steel; and (5) chemical. The focus was decided based on three criteria: (1) a chance to be very successful; (2) backward linkages; and (3) generate employment.

Finally, Government set up necessary condition to support industrialization era in two directions human and social capital. Government promoted equal education to all people which 'created ' more egalitarian people. In terms of social capital, the well known program that changed the whole story is Sae Maul movement. It succeeded to encourage citizens to change their habit to superior work ethics (competent and competitive). In fact, Korea was also gifted by external condition that bolstered economic development. China was sleeping when Korea started its development.

In case of Indonesia, the key factors above can be adapted or adopted for its own good.



Sources:
(1) Lecture materials; Mr. Siwook Lee (Executive Director of KDI
(2) Our best uncle Google