ID :
211890
Mon, 10/10/2011 - 01:57
Auther :
Shortlink :
https://oananews.org//node/211890
The shortlink copeid
Fears about contraction time to adopt new economic paradigm
The Korea Times
(Yonhap) - Pessimism prevails over optimism about the economy as the country is struggling to cope with the fallout from the eurozone debt crisis and a looming recession in the United States. What's more irritating is that there does not seem to be a recipe to avoid the brunt of the global economic gloom.
The current situation reminds Koreans of a saying that if the U.S. economy sneezes, the Japanese and Korean economies come down with a cold and pneumonia, respectively. Many Korean would like to forget this saying especially when the country is showing a stronger performance.
Of course, the nation's dependence on the American economy has steadily declined over the past decade, mainly thanks to rapidly increasing trade with China and other emerging market economies. But, what has not changed is Korea???s export-oriented economic structure. For this reason, the nation has no other choice but to run the risks of external shocks such the U.S housing debt debacle and the European fiscal maelstrom.
Korea is feeling stronger pressure from the ongoing global financial and economic turmoil. Many local and international think tanks have already revised down the nation's 2011 growth projection to the 3-percent level, while the government hopes for over 4 percent growth. The projection may become worse next year. Some pessimists predict the economy may contract in the first and second quarter.
Policymakers have repeatedly vowed to curtail the nation's heavy reliance on foreign trade in a bid to cushion external shocks whenever a worldwide crisis takes place, to little or no avail. They have stressed the importance of expanding the nation's services sector to stimulate domestic demand, create jobs and reduce dependence on foreign trade. But, they have been long on words and short on action.
It is safe to say that bureaucrats have employed the east way ??? finally the poisonous therapy ??? to boost the economy by supporting large export firms affiliated with a small number of family-run chaebol. They have shouted empty slogans of beefing up small- and medium-sized enterprises. It is wrong to expect the government to generate more jobs and narrow the income disparity between the rich and the poor.
Now, it's time to change. Policymakers are required to adopt a new paradigm for economic growth that will be less affected by external factors and bring real benefits to the middle and lower classes. Only then can the country maintain sustainable growth.
(Yonhap) - Pessimism prevails over optimism about the economy as the country is struggling to cope with the fallout from the eurozone debt crisis and a looming recession in the United States. What's more irritating is that there does not seem to be a recipe to avoid the brunt of the global economic gloom.
The current situation reminds Koreans of a saying that if the U.S. economy sneezes, the Japanese and Korean economies come down with a cold and pneumonia, respectively. Many Korean would like to forget this saying especially when the country is showing a stronger performance.
Of course, the nation's dependence on the American economy has steadily declined over the past decade, mainly thanks to rapidly increasing trade with China and other emerging market economies. But, what has not changed is Korea???s export-oriented economic structure. For this reason, the nation has no other choice but to run the risks of external shocks such the U.S housing debt debacle and the European fiscal maelstrom.
Korea is feeling stronger pressure from the ongoing global financial and economic turmoil. Many local and international think tanks have already revised down the nation's 2011 growth projection to the 3-percent level, while the government hopes for over 4 percent growth. The projection may become worse next year. Some pessimists predict the economy may contract in the first and second quarter.
Policymakers have repeatedly vowed to curtail the nation's heavy reliance on foreign trade in a bid to cushion external shocks whenever a worldwide crisis takes place, to little or no avail. They have stressed the importance of expanding the nation's services sector to stimulate domestic demand, create jobs and reduce dependence on foreign trade. But, they have been long on words and short on action.
It is safe to say that bureaucrats have employed the east way ??? finally the poisonous therapy ??? to boost the economy by supporting large export firms affiliated with a small number of family-run chaebol. They have shouted empty slogans of beefing up small- and medium-sized enterprises. It is wrong to expect the government to generate more jobs and narrow the income disparity between the rich and the poor.
Now, it's time to change. Policymakers are required to adopt a new paradigm for economic growth that will be less affected by external factors and bring real benefits to the middle and lower classes. Only then can the country maintain sustainable growth.
