Competitiveness Panel Steals Limelight
By Jane Han
Staff Reporter
The Committee for National Competitiveness, a special presidential team with an ambitious name, makes people wonder how it exactly plans to sharpen the country's edge. Some ask, isn't the idea too abstract?
Skepticism may rise after reflecting upon the most recent failure of former President Roh Moo-hyun's special transition unit, dubbed the People's Policy Recommendation Center. It was a team intended to accept suggestions on policy and human resource management.
As Roh championed to have his government ``go to the public,'' he established such a body as part of efforts to demonstrate his policy.
Although citizens' feedback rushed in at first, the move ended up in vain. People recognized that the committee was more for show than actual hands-on delivery.
Like the former progressive president's showoff of his agenda, can the competitiveness committee also be the new head of state's doctrinal representation?
Such possibilities are lingering in the minds of some critics, but President Lee Myung-bak moved forward to prove the doubters wrong by adding more weight to the team's responsibility.
Prior to his inauguration, Lee said he would align the special council directly under the presidential office.
He tapped finance experts with extensive international experience to be the masterminds behind the team's agenda. And he appointed veteran economist Sakong Il to oversee the work in a vast role never seen before.
As the chairman of the committee, which will include senior presidential secretaries, Sakong will report directly to the president on ways of honing national competitiveness in all economic areas. He will also coordinate all economic issues vital to sharpening national competitiveness. All of this means that the panel will take up a significant role deep inside Cheong Wa Dae.
Expectations are already centering on Sakong, as he boasts a fancy resume both in the public and private sectors. The 68-year-old was a former finance minister; a professor at New York University; a founder of the Institute for Global Economics, a non-profit economic thank tank; and a returning economic adviser for previous administrations.
Although his well-rounded experience gave him the job, many say that the winning factor was Sakong's global-minded vision, similar to Lee's.
The Question Is How
Stepping up the game is always a plus, but the question is how to work out the details.
Sakong emphasizes that multiple changes must be made in Korea, all of which will improve living and business conditions for foreigners.
He said Seoul should benchmark London if the country's financial market wants to advance forward through deregulation.
Sakong explained to his team last month that Korea should adopt a principal-based regulatory system rather than continuing to supervise the financial market by the book or a rule-based system.
The financier stressed that it is also necessary to tear down business barriers between the securities and banking sectors to increase efficiency, adding that the overhaul will create a market with less commission fees and more competition.
Sakong said such changes are imperative in order for Korea to successfully attract foreign direct investment (FDI), which is currently declining. In 2007, FDI fell for the third straight year to around $10.5 billion. This is a drop of 6.5 percent from the amount attracted the year before.
Speaking to a group of European businessmen earlier this month, Sakong also addressed the issues of Korea having a lack of foreigner-friendly facilities, including hospitals and schools.
Asked when businessmen can actually benefit from these proposed plans, he said the competitiveness committee is working hard to materialize these initiatives at the earliest possible date.
``We're thinking of ways to pass numerous bills at once, so that we won't spend much time waiting for one bill to pass after another,'' he said, assuring his audience that the committee is going to hold a monthly meeting with the president in attendance. ``You'll see changes.''