Dear editor,
I read a June 17 article, “Lee stresses overseas energy development,” with great curiosity and empathy of an Indian economist for a friendly nation sharing not only common Liberation Day (Aug. 15) but similar challenges in terms of energy requirements as victim of the Organization of Petroleum Exporting Countries (OPEC).
As Seoul is the soul of Asia ― the peace loving nation and victim of foreign rule like us, it is not appropriate and in good taste on the part of President Lee Myung-bak to call securing stable energy sources a “war.” No right thinking person can approve the terminology and language of “war” of any kind, although there is a strong case to make sincere honest, whole-hearted efforts by all stakeholders to conserve and develop sources of energy.
To achieve the objectives of “inclusive growth” in India which is equal to the “fair society” of South Korea, we certainly should strengthen energy sources.
It is pertinent to observe that OPEC with 12 member nations create crisis after crisis in terms of volatility of international oil prices without understanding, analyzing and interpreting economics of demand and supply of the petroleum products, and play politics without any logic and rationale.
To make the economies of Korea and India resistant to price and exchange rate fluctuations, we have to assess and forecast our energy needs and search out alternative sources in terms of solar energy which comes in abundance and requires innovation and imitation of environmental friendly technology from the best performing countries of the world.
To enhance the energy security of Korea and India, we should accept the challenge with a concrete plan of action for fossil fuel and not a war which is disturbing to humanity calling for peace. We need to reduce the energy intensity of GDP by rationalizing energy prices and non-price measures to improve energy efficiency with increased domestic supply and intra-sectoral shifts like road to railway transport.
There is a strong case for high rates of total factor productivity growth which is a combination of pure technical progress, efficiency in use of factors with economic and institutional reforms.
Dr. M.M. Goel
Professor of Indian economy
Seoul