Ex-Ministers Warn Candidates of External Negatives
By Lee Hyo-sik
Staff Reporter
A group of former finance and economy ministers are calling on presidential candidates to stop their ongoing futile political wrangling and instead start discussing ways to deal with a range of negatives facing the Korean economy.
Former Primer Minister and Economic Planning Minister Nam Duck-woo and 16 other former economy-related ministers said in a statement Monday that presidential candidates should debate various economic issues in earnest to let voters know who is better qualified to help manage and advance the world's 13th largest economy.
The country's six major presidential hopefuls, including Lee Myung-bak of the main opposition Grand National Party (GNP), held their first policy debate on politics, inter-Korean relations, foreign affairs and national security last Thursday. But candidates mostly engaged in a war of words over Lee's alleged involvement in a financial fraud scandal.
They are scheduled to hold a second debate today on social affairs, education, culture and gender issues, followed by a final one on Dec. 16 on the economy, labor, welfare and science. But the debates are expected to be similar to the first as candidates will most likely focus mainly on defaming their rivals rather than discuss policy issues and visions.
``High oil prices and other external negatives are increasingly driving the export-driven economy into a corner,'' the group said, pointing out that the country is grappling with low economic growth, high consumer prices, high interest rates and a worsening current account balance.
It said among many others, heavy-handed government regulations and militant labor unions have worsened the business environment here; failing to attract foreign companies and investors, as well as a talented workforce. `` The Korean economy has expanded below its growth potential and the average global gross domestic product (GDP) growth over the past five years.''
The group suggested the country ease regulations and establish a rule of law to create a better corporate environment to encourage companies to expand investment and generate new jobs. ``To ride out the ongoing internal and external difficulties, it is also important to advance the services industry and overhaul the education system.''
The economy has recently begun showing signs of a rebound on strong exports and reviving private spending over the past year, but economists worry that the much-awaited expansion may be short-lived.
Also, the rising potential for inflation at home and abroad is posing a risk for corporate Korea as the high prices of goods and services cut consumer spending, while forcing the central bank to tighten its monetary policy, which could negatively affect business activity.