By Kim Jae-kyoung
Staff Reporter
Korea's senior economists have become critical of President Lee Myung-bak's growth-oriented external economic policies, known as MBnomics, believing these policies have in fact derailed the world's 13th largest economy.
At a seminar by the Korea International Economic Association in Seoul Friday, renowned economists and professors joined in criticism of Lee's key economic policies.
A weak won policy, rash drive of free trade agreement (FTA), and resumption of U.S. beef imports are cited as three key mishandled policies under the Lee administration.
These were once employed to boost exports and back up MBnomics, but they are now surfacing as major stumbling blocks, and preventing the Korean economy from moving forward.
One of the main targets under attack was a weak won policy. Since the new economic team took office in March, the government has been trying to keep the won's value low so as to boost exports and economic growth.
However, this policy has become a big headache for the Lee administration, as it has played a major role in pushing up prices, instead of its intended goal of bolstering exports.
In particular, the prolongation of a weak won policy amid rising inflation has had a negative effect on domestic demand, deteriorating the employment situation.
The government's stance on free trade agreements (FTAs) was another area of pungent criticism among economists.
The Lee administration is a big fan of FTA s, believing they will help achieve his so-called ``747'' plan, promising an annual growth of 7 percent; an average individual income of $40,000; and the nation's economy becoming the world's 7th largest.
However, the government's audacious drive for multiple FTAs has done more harm than good to the economy so far.
The Lee administration has drummed up its efforts to form FTAs with multiple countries at the same time. But while pushing for these, it did not listen to the Korean people and follow proper procedure.
The government belittled the importance of public consensus and procedures, which triggered a strong backlash from the public. In particular, it did not secure transparency in proceeding with resumption of U.S. beef imports.
The U.S. beef import issue has broken up the nation into several factions, which has caused astronomical social costs for the economy. A key factor behind this mishap is the Lee administration's lack of communication and expectation management skills.
Economists participating in the seminar stressed that forming FTAs with multiple countries is not a panacea as it can instead cause the country to become beset by numerous regulations created by multiple international deals.