[Contribution] Strengthen economic structure now

Of late, the board of directors of the International Monetary Fund recognized Korea`s graduation from the IMF regime with its successful overcoming of the financial crunch and the recovery of its economic stagnation. However, in view of the fact that Mexico and most countries that underwent the IMF bailout programs were obliged to enter the IMF system unable to sustain three years after their graduations, it would be premature for the jubilee for the early IMF graduation.

It is true that various economic indexes such as the growth rates, commodity prices and balance of international payments, and that amount of the foreign exchange holdings -- the main culprits in the financial crisis -- have reached some US$90.4 billion, the largest volume in history. Nonetheless, worries about the economy have been lingering, and in this context IMF senior vice president Stanley Fisher asked the Seoul government to curb the inflationary spiral tightly and implement economic reforms resolutely.

As we cannot determine our health merely from the good results of partial physical checkups, it is difficult for us to evaluate the economy merely with its visible indexes. Therefore, it is necessary to assess the framework and structure of the whole economy.

When the Japanese economy was booming in the 1980s, a British economist described the Japanese economy as a "2 p.m. economy" in the midst of burning sunshine, while calling the British economy a "6 p. m. economy" in the declining sun. But at that time, the Korean economy might be called "10 a.m. economy" under a rising sun.

In other words, the Japanese was the adult economy, the British an elderly economy and Korean was the youthful economy. Yet many years have passed since then, and the Korean economy cannot be said to have re-entered its youthful stage, despite its successful graduation from the IMF program and attainment of 8.5percent economic growth for the year. This could be an illusion and a mistake.

We must understand that the Korean economy is not fast growing every day as in the past but has entered the adult age. During the adult stage, man will only become fatter but not taller, even though he eats much delicious food and has ample recreational time. Likewise, we are not in a position to rejoice because of the present economic growth, as it could be a symptom of obesity and bubble.

If bodily size becomes larger, its nature will change, and finally reduce physical strength. In the past, we were obliged to undergo the IMF austerity as a result of the massive introduction of foreign loans and excessive investments. And during the course of the IMF system, we realized the importance of economic structure and frameworks, as well as the paradigm shift in the economy. Hence, now is the time for us to endeavor to improve the economy.

It is anachronistic thinking to aim at high economic growth with the mobilization of massive funds. Therefore, the government, enterprises and the entire population should exert utmost effort into managing well the economic structure and character, so as to preclude obesity and a bubble, while casting off the practice of clinging to the economic growth only.

Lee Chong-Hoon, President of Chung-Ang University