President Roh Moo Hyun held his New Year's press conference Thursday. He gave his thoughts about government personnel management and the fiasco over the most recent choice for Deputy Prime Minister of Education and Human Resources Development, the lack of progress in intra-Korean relations, the National Security Law (NSL), and other issues of state. Most of what he talked about, however, related to the economy. It would seem that was because as the economy continues to be stagnant, there are an increasing number of people having a hard time making ends meet.
According to Roh, one big problem with our economy is the polarization between sectors of the economy, and he invoked the need for a policy of "accompanied growth" in which all areas of the economy would move together. He said he would place mid-sized companies at the center of economic policy and renovate policy for those companies. His assessment of the situation and prescription are aimed in the right direction as far as the larger framework is concerned. The gap between industries, between companies, and between workers is so great it could eat away at growth potential and destroy the basis for social unity.
The question is whether how to apply his assessment and prescription in the current situation. The economic plans for this year announced by the government and the comments Roh made at his press conference did have a lot that was related, particularly about how the government will foster the growth of 30,000 mid-sized companies that have innovative technology and the parts and materials industry. That will be far too insufficient to achieve the effects the government is promising. There have to be major improvements if its pledges are going to mean something.
There can be no further delay in improving the quality of life for the poorer of the common people. Along with long-term strategies, there has to be, as Roh said, "measures that will have immediate effect in lessening their hardship." Making sure there is substance to the government's plan for reducing the number of people with bad credit – something soon to be made public – will be most basic. There also has to be an increase in welfares spending. Only by doing that will the effort lead to an increase in domestic consumption and there be renewed growth and wealth distribution. Increased average per capita income does not make you an advanced country.
The Hankyoreh, 14 January 2005.
[Translations by Seoul Selection (PMS)]
[Editorial] Making Economic Policy Effective |
