[보도] Contradicting Statistics

When it comes to stinging criticism of its economic policies, let alone the lack of political popularity, the Roh Moo-hyun government may well feel a sense of regret given such varying statistics. The bullish stock market, robust exports, and steady economic growth rates are all proof of its economic performance. Cheong Wa Dae, for instance, cited the KOSPI, which after lingering around 500 in 2003, has more than tripled to surpass 1,800 points, despite the recent worries over the U.S. subprime mortgage crisis.

But experts snub such an assertion. ''The rise seen in the KOSPI is similar to the world’s average and it is very hard to find any evidence that this has been due to successful government policies. There are some countries whose markets grew faster than ours,’’ said Kang Suk-hoon, a professor of Sungshin Women’s University during a debate organized by the Citizens United for a Better Society, a civic organization, Monday.

Although the government has been boasting of the rise in account profits, this is mainly a result of contracted investment amid haunting anti-business sentiment and expanding regulations. Exports have steadily increased but the portion of the nation’s products in major overseas markets _ to the contrary _ has dwindled.

The Free Enterprise Center under the wing of the Federation of Korean Industries (FKI) earlier noted the country has registered the lowest economic growth rate among Asian nations, calling on the government to make a turnaround from its current policies to help revive the sagging economy. The nation’s gross domestic product (GDP) fell to 13th place from 11th four years ago and it has yet to recover the sovereign rating experienced before the financial crisis in late 1990s.

Despite the government’s self-claimed emphasis on equality and distribution of wealth, the so-called bi-polarization between the haves and have-nots has continued to widen. In the debate, Choi Chang-kyu, a professor of Myungji University, noted that the people’s tax burden and national debt have continued to increase, prompted by the rapid increase in the number of public servants and governmental spending in accordance with its pursuit of bigger government.

Another problematic point is that the government has been hectic in efforts to strengthen regulations, thus hindering investments made by businesses. Data released by the Board of Audit and Inspection (BAI) Monday demonstrated how serious the problem has been. It found that the number of newly enacted or beefed up regulations during this administration has reached 1,102 compared to 468, which were either abolished or eased.

The BAI pointed out that the presidential commission on deregulation has failed to do what it is supposed to: prevent the creation of new rules while abolishing existing ones. We need to learn a lesson from Japan, which has been taking a series of measures to do away with various regulations with the goal of promoting an environment favorable to businesses. Deregulation is the only way to ensure economic prosperity, create more jobs and narrow the gap between the upper and lower classes.