[Editorial] Roh’s Leftist Policies

On the defeat of the ruling party in this round’s local elections, President Roh Moo-hyun announced yesterday that “I understand it to be the trend of popular sentiment.” But instead of reflecting upon the policy failures as the main reason of the defeat, he gave an assessment that “we will continue to pursue our policies.” It was a statement that seemed designed to go against, instead of reflecting, popular sentiment.

According to surveys conducted by the broadcast media, half of the voters cited “the president’s inability to conduct state affairs adequately” as the reason for the change of public opinion. The leftist populism that “destroys 20 percent for the good of the 80 percent” has resulted in a loss of jobs and increased the rate of poverty, which was reflected in the votes.

But the president continues to voice statements inappropriate to the situation, and the ruling party is busy corroborating his statements. Cheong Wa Dae announced that the current line of state policy will continue. By restricting the Seoul metropolitan area, heavy taxation in real estate policies, and more equalization in education that ultimately points downwards, they aim to continue the policies that would result in a loss of national competitiveness and the impoverishment of public welfare. The Ministry of Finance and Economy will pick up on its tax reform policies, which point to an increase in taxes, stalled by elections. In other words, they will continue their populist policy by extracting more taxes.

If President Roh really aims to reflect public sentiment, he should abandon empty words and change the direction of his policies to aim at practical efficiency and growth. Extracting more taxes in order to remedy the polarization of society, and establishing anti-market policy that stifles the market in order to stabilize housing prices will only further strain the public`s livelihood. Calling for balanced development between the regions and strengthening regulations around the Seoul metropolitan area will increase the number of those out of jobs. Forcing companies to contribute financially to the society and to the reduction of social polarization will stifle investment and industry hollowing out will gain momentum.

The government should thus introduce practical policies that are in line with market principles. Common experience worldwide shows that this is the only way to improve distribution. It is not enough for heads of the ruling party such as Chung Dong-young of the Uri Party to quit. They should also assume responsibility in the failure to manage the state affairs appropriately, and alter the national policies accordingly.

It is also the responsibility of the president and the ruling party to aid the local election nominees in the pursuit of economic development. Even if local governments try their best, should the central government continue to restrict the market through its regulations and threats, the economy will not recover. By investing the power for regulation to local governments, the central government should provide an environment to boost economic development through the competition between local governments. These policies would have a much greater effect in revitalizing regional economies than moving a number of public companies to provincial areas.

President Roh may think that he is free from the constraints of elections. But the responsibility to conduct the state of affairs for the next one year and nine months is still with the president. By recalling the lessons from the defeat of this election, the president should stop going against the tide of public sentiment.