Korea looks to elevate national prestige

Koreans usher in 2010 with renewed hopes and confidence.

The economy is recovering the fastest among rich countries. The nation chairs Group of 20 and may see its global clout grow. Confrontation is giving way to diplomacy in relations with North Korea.

All these are anything but guaranteed, though. Global uncertainty looms large and growth in domestic demand is fragile. Dialogue with Pyongyang is prone to delays, disruptions and reversions. Mid-term elections in June should make political peace elusive.

But overall the nation is in much better shape than it was one year ago and the past year has imbued Koreans with confidence in their ability to overcome ordeals and confront new challenges.

"Enduring today`s pains for lasting prosperity" was the axiom for 2010 chosen by President Lee Myung-bak this week.

The expression, derived from a Chinese literary classic, reflects his firm resolve to push ahead reforms necessary to elevate "national prestige."

"(The expression) is an expression of the determination to fix fundamental faults and structural problems of our society and lay the cornerstone for the nation`s entry into the ranks of most advanced countries," the presidential office said.

Raising national prestige is the Lee government`s keyword for 2010 and beyond.



Its meaning is quite comprehensive; assuming a bigger international responsibility commensurate with its economic power, strengthening economic competitiveness, solidifying the rule of law, reforming perennially wrangling politics, reducing income gaps and ameliorating regional and ideological animosity, to name a few.

Few denied the need to do so but the tasks were put to backburner for the past year as the nation was preoccupied by a triple crunch - the financial meltdown, a paralyzing partisan divide and a renewed North Korean nuclear brinkmanship.

The historic symbolism of the New Year gives a boost to Lee`s agenda. The year marks the centennial of Japan`s annexation of Korea and the 60th anniversary of the outbreak of the Korean War.

After foiled reforms and failed diplomacy, the nation was victimized in the East Asian power politics early in the last century. On Aug. 29, 1910 Korea`s last king was forced to approve the Treaty of Annexation and yield the throne. The nation fell to Japan`s harsh colonial rule that lasted until the end of World War II in 1945.

In the post-liberation upheavals, Korea was yet again not allowed to determine its own destiny. The nation was formally divided in 1948 into two states and the fratricidal war that broke out on June 25, 1950 killed millions of people and devastated the territory.

On a plane returning from a G20 forum in Pittsburg in September, Lee and his aides hurrahed three times. They were celebrating the nation`s right to host the summit of global economic powers in November 2010.

Skeptics derided the excessive jubilancy. Opposition parties billed it an act of political propaganda.

But for many Koreans, especially the older generation historic trauma deep in mind, it meant more than a simple rotating responsibility.

"A hundred years after the historic shame of the forced annexation, the nation takes on a leading role in shaping a new world order," the president was quoted as saying by his aides.

"Korea has now steered itself away from an Asian periphery to the center of the world," Lee said during a new conference later in that month.

After a century of struggles, the world`s poorest country has emerged as the world`s 13th-largest economy. Korea surmounted the imperial yoke and a succession of dictatorship and transformed itself into a vibrant democracy.

But many of the nation`s institutions, practices and culture lag behind the condensed modernization.

State-led growth left behind an oversized bureaucracy, regulations and corruption. Militarism suffocated creativity and diversity in culture, education and people`s way of thinking and resolving problems. Oppressive means of ruling made people accustomed to violence of the multitude. To win votes, dictators and adversaries fed ideological and regional divisions. Schools were required to mass produce identical workers who put speed and result ahead of anything else. The rule of law and toleration of differences were not cherished values.

Lee is one of many who hope to reset the nation and make 2010 the banner year for catapulting Korea closer to the club of the most advanced countries.

"The nation is now at a historic juncture. The country will contribute to the common growth and progress of the world and should take this opportunity to upgrade ourselves, our culture, our politics and our institutions," the president said.

Lee`s political rivals would like to emphasize the other side of history.

2010 will remind Koreans of the nation`s long and turbulent march toward democracy and inter-Korean peace.

In April 1960, a wave of protests toppled first President Syngman Rhee`s dictatorship. Democracy was short-lived, though, and Army general Park Chung-hee seized power that lasted for 18 years. After his assassination, a new generation of politically ambitious elites mounted a coup and crushed an armed pro-democracy uprising in Gwangju in May 1980, killing nearly 200 civilians.

Kim Dae-jung, who was sentenced to death for instigating the insurgency, later succeeded the two junta leaders as president in 1998. Opening a new era of reconciliation, Kim had the first-ever inter-Korean summit, which turns 10 years this year.

Kim`s political heirs criticize Lee for undermining democracy, human rights and economic justice.

Lee`s market-oriented reforms - from lowering the entry barrier to the broadcasting business, to cutting taxes on real estate and corporate earnings, and to easing regulations regarding business and development - met with fierce resistance form the liberal opponents throughout last year.

Parliamentary approval of the 2010 budget plan was delayed due to differences over Lee`s costly project to clean up four major rivers. The opposition demanded that the government divert the fund toward welfare for the poor.

Liberals have also denounced Lee for what they regard as an antagonistic position toward Pyongyang that threw inter-Korean ties into the lowest ebb in a decade. They have been concerned that his hard-line stance will dampen a newly emerging mood for dialogue between Pyongyang and Washington.

Political fighting is expected to simmer ahead of the June 2 local elections, the result of which will have substantial impact on the president`s leadership well during the remainder of his term until February 2013.

Most of mid-term elections have been won by the opposition parties, thrusting an incumbent leader to an early lame-duck quandary. Indeed, Lee`s Grand National Party, which had been unbeatable for five years, suffered two by-election defeats last year.

But the governing camp is cautiously optimistic. Lee`s approval ratings have surged to more than 50 percent as of late 2009 due to his successful economic performance and much-publicized policies of "centrist pragmatism" launched last June.

Lee pushed a series of policies to enhance the social safety net for the poor and unemployed hit hardest by the slumping economy.

He pledged to continue to give priority to stabilizing their livelihood until the economy fully recovers and the benefits spill over to the bottom rung of the society.

The president`s top concern is social cohesion. Lee appointed Chung Un-chan, one of the most outspoken critics of his economic policies, as prime minister in September.

A presidential advisory committee to heal economic, ideological, regional and generational divides was launched last month with a number of former liberal officials on board.

His centrism proved politically successful. The conservative embraced a traditionally liberal agenda and offered practical solutions of his own. The opposition was left with less room for competing with alternative policies and with the possibility that their objection will look like foot-dragging.

Opposition parties have focused their attacks on Lee`s river-renovation projects and his cancelation of a plan to build an administrative city in South Chungcheong Province.

To the embarrassment of the main opposition Democratic Party, the four-river projects are popular in provincial areas, even in its stronghold of southwestern regions.

Lee`s reversal of Sejong City plan enraged local residents. But the government is confident that they will finally accept the merits of a well-crafted alternative option, which is likely to be a business and science-centered city, and that there remains enough time to persuade opponents. The government plans to announce the plan in January.

In addition, the government will accelerate its new territorial policies emphasizing economic agglomeration, regional interconnection and specialized competitiveness.

The biggest backing for the Lee government comes from his achievements in economy and diplomacy.

Korea is recovering the fastest among the member countries of the Organization for Economic Cooperation and Development, thanks to the government`s stimulus spending and surging exports.

The government expects the economy grow five percent this year after an estimated 0.2 percent expansion last year.

The OECD and the International Monetary Fund recently raised their forecasts for the nation`s 2010 growth to 4.4 percent and 4.5 percent, respectively.

But the government will maintain expansionary policies due to internal and external uncertainties and to relieve the pains of low-income households and the jobless.

Delayed recovery in the global market, high oil prices and stronger won may dampen Korea`s export-driven growth. High unemployment and household debt are still weighing down domestic consumption.

The government plans to frontload 60 percent of this year`s budget in the first half. The administration will maintain its economic emergency mode through the first six months.

"There will be no letup until ordinary citizens recover from the consequences of the global financial crisis," Lee said on Monday.

Lee added the government will make job creation top priority.

The government aims to create 200,000 jobs this year by boosting service sectors, public works and diverse job finding programs. The nation lost 70,000 jobs last year.

A monthly meeting of ministers will be launched to coordinate employment policies. Job finding officers will be installed at colleges and universities, and a government-run internet database will be established to connect new graduates with small and medium sized companies.

The government will also continue to ease regulations and improve business environment to encourage corporate investment and to enhance long-term growth potential, officials said.

Economic improvement will serve as a political capital for Lee`s strong drives to reform elections, the local administrative system, education, labor unions, law enforcement and other various fields.

As soon as he took office in February 2008, Lee pushed for drastic shakeup of political, economic and social systems. But his reforms were delayed by his political crisis - caused by massive protests against his decision to resume import of U.S. beef - and the ensuing global economic crisis.

On the diplomatic front, Lee is poised to expedite his Global Korea vision, which promises to more actively engage in issues the world faces including security, development, poverty and climate change.

Korea will co-chair the fourth G20 summit in Canada in June and host the fifth edition in Seoul in November.

The meetings will be the first since the G20 summit emerged as the premier steering forum for the global economy in Pittsburg in September.

As its chair, Seoul will have a significant say in setting the agenda. Exit strategies, international financial reforms, and a balanced and sustainable growth of the post-crisis world economy will likely top on agenda, according to officials. Lee also vowed to speak for the underdeveloped world in the forum.

The summit is likely to draw 35 heads of state and international organizations and more than 10,000 officials, businessmen and representatives.

The event is expected to give an opportunity to rebrand the nation, which is one of Lee`s top policy goals.

The government is also striving to bridge gaps between the industrialized and developing worlds in global efforts to fight climate change and promote green growth.

In November, the government announced that it will aim at a 30 percent cut from its forecast greenhouse gas emissions in 2020, equivalent to a reduction of 4 percent of 2005 levels.

Korea is not bound by the Kyoto treaty, which requires industrialized nations to set emissions cut targets.

Through the voluntary commitment, Korea hopes to show its resolve to fight climate change and set an example for other countries to follow.

The government plans to establish the Global Green Growth Institute in the first half of this year to help countries share their experiences and know-how with each other to promote green growth and fight global warming.

He expects that scholars, scientists and civil society leaders from around the world will join the international think tank to study workable climate change solutions and bridge between advanced and developing countries.

The Lee government seeks to increase its development assistance and provide Korea`s growth experience to poor countries. The Lee administration has pledged to increase its official development assistance from a meager 0.09 percent of gross national income in 2008 to 0.15 percent by 2012 and 0.25 percent by 2015. On the pledge, Korea became the member of the Development Assistance Committee of the Organization of Economic Cooperation and Development in November.

The government is also stepping up its participation in global security efforts. The Defense Ministry plans to dispatch about 320 troops to Afghanistan in July to protect some 140 Koreans working to help rebuild the war-torn country.

Key to Global Korea vision is broadening the nation`s diplomatic horizon especially in Southeast and Central Asia, Latin America and Africa.

In the first year in office, the Lee government focused on the United States, Japan, China and Russia - Seoul`s traditional partners deeply involved in Korean Peninsular security. After successful consolidation with the four powers, Lee began spurring his efforts last year to enhance ties with developing countries through summit talks, cooperation forums and economic deals.

These countries are emerging as new growth centers of the world economy, offering ample opportunity to Korean builders, manufacturers and telecom firms. Energy and resources are the top concern for Korea, as the country is striving to diversify supply sources beyond the volatile Middle East.

In addition, Seoul`s aspirations to make a bigger contribution to the world and thus raise its national prestige compliment those poor countries` needs to learn from Korea`s industrialization, agricultural reforms and territorial development.

(jjhwang@heraldm.com)



By Hwang Jang-jin