"Korean Economy Trapped by Egalitarianism”

Jwa Seung-hee, head of the Korea Economic Research Institute, harshly criticized the direction where the policies of the current administration are headed on August 10, saying that “the Korean economy is trapped by the political theory of egalitarianism and is suffering from it.”

At the International Conference on Recent Issues of the Korean Economy held at the Korea Development Institute that day, Jwa said, “Egalitarian democracy is the cause of the economic difficulties,” and claimed, “In order for economic development to rebound, we have to adopt differentiation and concentration theories.”

“Reforms that go against the way of the world (differentiation) and that are based on an unrealistic ideology (egalitarian ideas) are bound to fail,” said Jwa. “The egalitarian democracy, which produces failing people, works as a barrier to Korean economic development.”

He also pointed out, “Economic development is only possible when the vertical ladder in the political-economic system is stabilized,” and added, “If individuals can assume their roles with their capabilities and efforts on one point of the ladder and obtain some results, and if they are given a chance to change their positions on that ladder, one cannot say that the disequilibrium of income is necessarily a bad thing.”

“It is too early a stage for Korea to be working with all its might on distributing wealth rather than on working on growth,” he also added. “The egalitarian ideas are sugar coated, but they can dull our economy’s capability to differentiate and knock over the ladder of growth.”

“Reforms will be accomplished by establishing principles of a market economy, which acknowledges democracy of equal opportunities and the differentiation in the results,” Jwa pointed out.

Yong Park parky@donga.com