Let ministers take initiative in decision-making
Policymakers should keep consistency and coherence in setting and executing policies if they really want successful results. However, the Moon Jae-in administration seems to have forgotten this basic principle. This is all the more evident in the economic policymaking process, raising the ire of the people.
For starters, Strategy and Finance Minister Kim Dong-yeon deserves criticism for zigzagging on some important economic issues. One of the most notable policy flip-flops is property tax. Kim, concurrently deputy prime minister in charge of economic affairs, floated the idea of raising property tax this month to curb runaway speculation in apartments in affluent southern Seoul districts.
The idea, however, contradicted his earlier stance against a tax hike. Last September, Kim made it clear that his ministry was not opting for collecting more property taxes from homeowners. This was in repose to remarks by Choo Mi-ae, chairwoman of the ruling Democratic Party of Korea, who called for a higher tax.
To some degree, his policy U-turn might be inevitable, given that a series of anti-speculation packages have so far failed to cool the overheated housing market. But we have to question why Minister Kim changed his position without giving a sufficient explanation to the public. One plausible reason could be that he capitulated to pressure from Cheong Wa Dae to increase the property tax for high-priced homes.
If that is right, we have to express deep concern about the decision-making process of the liberal Moon government. President Moon has repeatedly promised to delegate more power to the prime minister and other ministers so that they can take the initiative in policymaking.
His promise has garnered public support especially since the impeachment of former President Park Geun-hye, who monopolized power and made almost all decisions often without having consultations with government ministries. Her unilateral leadership style made ministers henchmen who only followed her orders and instructions. It plunged her into an unprecedented corruption scandal surrounding her longtime friend Choi Soon-sil, eventually leading to her ouster.
Now some critics have begun to question Moon's promise, as the President is showing signs of sidelining Minister Kim and other Cabinet members in making crucial decisions. Another example was the presidential office's recent repudiation of an announcement by Justice Minister Park Sang-ki that his ministry was drafting a bill to shut down the cryptocurrency trading market. This sparked policy chaos not to mention strong protests from investors.
There are many other cases of policy flip-flops which prove a lack of coordination and consultations among different ministries. If such cases continue, the Moon administration will have no other choice but to see a loss in confidence and trust of its policymaking process. This could pose a serious threat to the leadership of the chief executive.
Policymakers should keep consistency and coherence in setting and executing policies if they really want successful results. However, the Moon Jae-in administration seems to have forgotten this basic principle. This is all the more evident in the economic policymaking process, raising the ire of the people.
For starters, Strategy and Finance Minister Kim Dong-yeon deserves criticism for zigzagging on some important economic issues. One of the most notable policy flip-flops is property tax. Kim, concurrently deputy prime minister in charge of economic affairs, floated the idea of raising property tax this month to curb runaway speculation in apartments in affluent southern Seoul districts.
The idea, however, contradicted his earlier stance against a tax hike. Last September, Kim made it clear that his ministry was not opting for collecting more property taxes from homeowners. This was in repose to remarks by Choo Mi-ae, chairwoman of the ruling Democratic Party of Korea, who called for a higher tax.
To some degree, his policy U-turn might be inevitable, given that a series of anti-speculation packages have so far failed to cool the overheated housing market. But we have to question why Minister Kim changed his position without giving a sufficient explanation to the public. One plausible reason could be that he capitulated to pressure from Cheong Wa Dae to increase the property tax for high-priced homes.
If that is right, we have to express deep concern about the decision-making process of the liberal Moon government. President Moon has repeatedly promised to delegate more power to the prime minister and other ministers so that they can take the initiative in policymaking.
His promise has garnered public support especially since the impeachment of former President Park Geun-hye, who monopolized power and made almost all decisions often without having consultations with government ministries. Her unilateral leadership style made ministers henchmen who only followed her orders and instructions. It plunged her into an unprecedented corruption scandal surrounding her longtime friend Choi Soon-sil, eventually leading to her ouster.
Now some critics have begun to question Moon's promise, as the President is showing signs of sidelining Minister Kim and other Cabinet members in making crucial decisions. Another example was the presidential office's recent repudiation of an announcement by Justice Minister Park Sang-ki that his ministry was drafting a bill to shut down the cryptocurrency trading market. This sparked policy chaos not to mention strong protests from investors.
There are many other cases of policy flip-flops which prove a lack of coordination and consultations among different ministries. If such cases continue, the Moon administration will have no other choice but to see a loss in confidence and trust of its policymaking process. This could pose a serious threat to the leadership of the chief executive.
