[Reporter's View] Ruling camp's pointless rhetoric

A keynote speech delivered by Rep. Rhee In-Jae on behalf of the ruling Millennium Democratic Party (MDP) was full of rosy views on the current situation. He contended that although the external economic situation is volatile, Korea`s economic structure is becoming stronger, predicting that the economy would make a favorable turn from the latter half of this year. He stated that there are some shortcomings in the structural reforms in four major sectors, but the reform measures have been successfully carried out.

However, the financial market plight on that day was dismal enough to betray his assertion. Despite the government`s announcement of emergency steps to boost the stock market, the composite stock price index fell below the 500 level for the first time in two years and four months.

The won-dollar exchange tumbled to 1365 won against the greenback, a 30-month low, while the bond market was overshadowed by a sense of financial crisis. In view of ever-worsening economic indices, rising commodity prices, the high unemployment rate and the lackluster exports, Rhee`s insistence that the economic structure was becoming healthy is no more than rhetoric.

The government`s views of the current economic plight and potential countermeasures are little different from those of the ruling MDP. A look at the official advertisements that are now being aired by local broadcasting stations, which are little more than propaganda underlining that ``self-confidence will change the economy.`` Of course, psychological factors are important when it comes to economic conditions, but there are few experts who would say they have the power to turn the economy around.

The people are sick of the ``contingency plans`` that the government puts forward whenever unfavorable economic conditions arrive, like the insolvency of Hyundai Engineering and Construction and economic downturns in the United States and Japan. Despite the government`s announced preparations for these economic incidents, no concrete countersteps have been taken.

At this juncture, the government and the ruling party are urged to make a precise analysis of current economic conditions, plagued by internal and external woes, and come out with clear-cut policy priorities. Otherwise, few people will be receptive to the government`s unwarranted views and rhetoric regarding its economic policies.

Kwon Soon-Hwal shkwon@donga.com