|
The government is running on empty while the Korean economy hurtles toward crisis. An impending Cabinet reshuffle has paralyzed ministries in charge of economic affairs at a time when they need to curb inflation. Cheong Wa Dae is adrift as massive protests against the import of U.S. beef continue to undermine confidence in the Lee Myung-bak administration and its will to implement promised economic reforms. A boycott of the National Assembly by opposition lawmakers, meanwhile, is delaying urgent bills that would scrap regulations and mitigate economic hardship.
One high-ranking government official called the situation ¡°a total paralysis of the administrative and the legislative bodies.¡± Experts warn of serious consequences from the leadership vacuum at a time when action is long overdue.
The ministers in economy-related fields are still at work after the whole Cabinet tendered their resignation. But Strategy and Finance Minister Kang Man-soo¡¯s leadership is in question after a series of policy blunders lost him the confidence of the market. The government¡¯s policy of keeping the won low against the U.S. dollar to boost exports only resulted in inflation. ¡°It is vital that the government comes up with ways to solve economic problems before it is too late,¡± said Hwang In-seong, an economist at the Samsung Economic Research Institute. ¡°But as the fate of some economy ministers is yet to be determined, the ministries are being unable to decide what policies to take.¡±
Consultation between ruling party and government is also going badly. Some say the Grand National Party started interfering in the decision making process when beef protests threatened political stability, but it has gone too far. The GNP and the government¡¯s views on privatization still diverge. The GNP wants to postpone privatization -- a core part of Lee¡¯s reform program -- citing unfavorable economic conditions and public opposition, but the government wants to announce the schedule this month.
More than a month since the 18th National Assembly was supposed to open on May 30, parliament has yet to convene amid a boycott from opposition lawmakers, let alone elect the speaker. The government laid several urgent bills before the assembly, including to lower corporate income tax to encourage investment, and to alleviate mounting financial pressure on ordinary people by investing W10.5 trillion (US$1=W1,045), and they have yet to be tackled.
¡°If the bills are not passed by the Assembly, it will only add to insecurity in people¡¯s lives as the government is unable to implement measures against soaring oil prices,¡± an official at the Strategy and Finance Ministry said. Lee Seung-chul, vice president of the Federation of Korean Industries, said the beef issue cannot be more important than managing an economy at risk. ¡°The government needs to restore its leadership as soon as possible and tackle the situation,¡± he said.
Prof. Oh Yeon-cheon of the Graduate School of Public Administration at Seoul National University said record-high oil prices must be dealt with at the national level, and ¡°the functions of the National Assembly, the government, and Cheong Wa Dae must be restored.¡±
(englishnews@chosun.com )
|
