Quality Education Pivotal to Boosting Growth Potential

South Korea's global competitiveness ranking fell two notches to 31st among 55 countries in 2007, according to the IMD World Competitiveness Year Book 2008. The setback was attributed to inefficiency in the government sector and low quality education. The sliding ranking shows that the government has only been talking; doing little to sharpen the country's competitive edge.

What's more discouraging is that South Korea was listed at the bottom among 13 countries in the Asia-Pacific region. The country was behind Malaysia, Thailand and India, which ranked 19th, 27th and 29th, respectively. The United States remained in the top place, followed by Singapore and Hong Kong. Australia was listed 7th, Taiwan 13th, China 17th and Japan 22nd.

Regrettably, the list, released by the International Institute for Management Development (IMD) based in Lausanne, Switzerland, cast a dark cloud over the prospects for South Korea joining the ranks of advanced countries. Pessimists warn that the nation might have to continue to remain in the group of industrializing economies as long as it does not take comprehensive measures to improve its national competitiveness.

South Korea took 37th place in the ranking of government efficiency, down six notches from 31st in 2006. The IMD report attributed the slide to bureaucratic hurdles on business activities and technology developments. In short, the country is not considered a good place for business and investment because of complex government regulations.

Government officials should humbly listen to the IMD's advice that South Korea step up efforts on deregulation, tax cuts and better labor relations to bolster corporate activity. President Lee Myung-bak has committed to pushing for regulatory reform and providing tax incentives in order to create a more business-friendly environment. Thus, we hope that his administration will do its utmost to enhance the nation's global competitiveness.

Also, the country ought to provide better education to cultivate a pool of creative and competent human resources necessary for businesses, research centers and other institutions. The report put South Korea fourth in the college completion rate. But its ranking in the overall competitiveness of the education sector dropped to 35th from the previous year's 29th.

Korea took 53rd place in the extent to which university education meets social and economic needs. This means that the nation's higher educational institutions have failed to provide the quality education required for society and the business community. The future of South Korea, the world's 13th-largest economy, will no doubt depend on education.

What's encouraging is that the country's scientific competitiveness ranking climbed two notches to fifth place, helped by consistent investment in research and development (R&D) on the national level. The nation should go all-out to prop up its competitiveness by lifting regulations, promoting entrepreneurship, attracting more foreign investment and providing better education.