At a meeting supervised by President Roh Moo Hyun, the government announced plans to make Korea an "advanced trading nation." Put simply, the idea is to get rid of the "fence" between the domestic and international economies. A "global network" will be constructed by encouraging companies as well as individuals to go overseas, while "global standards" are supposed to be met in all areas, including finance, labor, and currency exchange, so as to encourage foreigners to come to Korea. The government says that overcoming domestic problems such as social disparity and the pressure of globalization to become an "advanced nation," the shortcut will be integration with the global economy.
It is hard for a country heavily dependent on trade to go against the tide of market liberalization. Still, going too fast could easily lead to a situation that is hard to manage. Korea has already opened up a lot. The country has still not overcome the aftershocks to the rapid liberalizations that came after the financial crisis of 1997. The government expects that if it sends domestic production resources overseas it can build a "global network" and enjoy the synergy from that and that if international standards settle in there will be active foreign investment. But one worries that the vacuum left by departing production facilities will be much larger than the contributions of foreign investment.
Many experts say that "global standards" are game rules created by supranational capital to make it advantageous to make money on the international stage. The government's explanation that globalization is needed to overcome the current state of "jobless growth" and social disparity is a contradiction. It is not just a few economists who cry out claiming that in most countries globalization has intensified social disparity. "Global networks" are not built by the appearance of a few multinational companies. It must be backed up by national strength, including political and military strength.
Even if going in that direction is ultimately unavoidable the pace should be modulated so as to better meet domestic conditions, and you suspect the government is being too hasty. The government announced that its plans "must be reflected in concrete domestic policy immediately." The fact that deputy prime minister for finance and economy Han Duck Soo is a leading proponent of liberalization also makes you concerned.
The Hankyoreh, 8 April 2005.
[Translations by Seoul Selection (PMS)]
[Editorial] Go Slow With 'Advanced Trading Nation' Plans |
