Although the country's economic situation is quite different from five years ago, President-elect Roh Moo-hyun is taking over an economy that looks healthy, but is not so in reality. The economic situation outside the country is also not very positive and friendly to the new administration. There are many concerns on contraction in domestic expenditure, as a result of snowballing household debts and relatively slow recovery of the world economy than earlier expected. In addition, a possible war in Iraq is a significant variable making the future economic situation unclear.

Based on this, the economic team of the new administration must prepare a soft landing of the economy in a very disadvantageous situation, rather than realizing Roh's promise of seven percent economic growth. Recognizing the situation, President-elect Roh should hastily make provisions for next year's economic management. Especially, it will be necessary to review and reconsider all of the economic promises that Roh made during the presidential race, since those promises can be future obstacles, hindering the new administration’s economic management.

Many experts also predict the national economy will have a weak growth rate and in this negative situation, it would be impossible to keep Roh’s promises to increase the budget for education, research and development, farming and fishing industry, and social security. In addition to the seven percent growth rate, ambitious numerical goals such as creating 500,000 new jobs each year and constructing 2.5 million houses for households should be reshuffled in order not to hurt economic policy.

Of course, there are some reasonable economic promises that shouldn't be aborted. Putting up with some criticisms, the new administration should make a clear decision on what to choose or to abort among the promises, while establishing priorities in its work. The basis of selection should be upon appeasing economic burdens while not destroying our economy’s growth potential. Society should assist by releasing the newly elected president from the burdens of his promises.

December 25, 2002