[Opinion] Bitter Memories of ‘747’ Pledge

When he was a presidential hopeful of the then main opposition Grand National Party on March 13 last year, Lee Myung-bak held a party to celebrate the publication of his essay collection. At the party, he said, “I will make Korea grow 7 percent a year, have a per capita income of 40,000 [U.S.] dollars and become the world’s seventh-largest economy.” In his first move toward the presidency, Lee announced his “747” strategy to strengthen his image as an “economy president.” His promise was very enticing to Koreans, who had suffered low growth of about 4 percent a year and a weakening economy under then President Roh Moo-hyun. The strategy of using three figures instead of a complicated economic explanation played a critical part in Lee’s victory in the presidential election.

Technically, however, Lee did not create the strategy. His rival Park Geun-hye in February last year had promised annual growth of 7 percent, per capita income of 30,000 dollars, and a rise to the world’s 10th-largest economy. Lee simply raised his targets to use a slogan utilizing the name of a famous Boeing airplane. Certain experts, however, doubted Lee could deliver on his pledge since the country’s economic growth potential is between 4 and 5 percent. Nevertheless, Koreans, eager for rapid economic growth, cast their ballots for Lee.

On Sunday, President Lee said, “Korea’s economy might not grow 7 percent in 2008 or 2009, but we must build the foundation for the country’s future economic growth. It’s important to pave the way for higher growth even when we cannot make it happen within one or two years.” The implication is that the government will not strive for its original target of 7-percent growth since his administration now recognizes that the target is unfeasible. Government sources critical of the plan had said early this month that Lee’s promise cannot be realized. Strategy and Finance Minister Kang Man-soo, who came up with the strategy, once confessed that the “747” pledge was a political slogan.

The government announced yesterday that the economy has begun slowing down. After lowering its forecast for this year’s growth from 6 percent to 5 percent, the government even said growth might not even reach 4 percent this year. It is time for the government to give up its unrealizable ambition and deal with pending difficulties. The Lee administration should nurture the nation’s economic potential via deregulation and investment promotion to appease the people, who might feel deceived by Lee’s “747” pledge. Koreans apparently have bitter memories of his promise. The government cannot satisfy the people if its promises keep ringing hollow and bear no fruit.

Editorial Writer Park Won-jae (parkwj@donga.com)