Thursday, January 22, 2009

[LUNAR NEW YEAR SPECIAL]Lee faces daunting challenges







President Lee Myung-bak has set overcoming the economic crisis and protecting the poor and vulnerable as his domestic priority this year.

His government will also focus on formulating "green growth" plans, easing economic regulations and reforming the education and the public sector.

On the diplomatic front, coping with rising tension with North Korea and aligning partnership with the new U.S. administration pose a tough challenge for the president`s second year in office.

Lee recently conducted a partial Cabinet reshuffle to enhance his economic team and consolidate his grip on the administration.

He also restructured his secretariat and launched new special committees to implement policies more effectively.

But the president is still struggling with simmering domestic political tension and deepening public distrust of his government.

Opposition parties threatened to block his initiatives to ease regulations on the financial industry, media, large-corporate investment and capital-zone development.

They also challenge the government`s bid to enhance the crackdown on street protests and online libel.

Public anger is boiling again over what liberals regard as policies aimed to benefit the wealthy and oppress freedom of expression.

His public approval ratings are sliding again. Lee faces pressure from all sides to cancel his nomination for a top police job in the wake of a violent crackdown on protesters that left six killed and a score injured.

The conservative rose to power last February with promises to shake up the economy, bureaucracy and education.

Hopes were high that his professed pragmatism and market-centered policies would put the nation on a new path toward growth and overall advancement.

But Korea became disenchanted quickly amid a series of policy blunders and a chain of unfortunate events including resumption of U.S. beef imports and the shooting death of a South Korean at Mount Geumgang resort in the North.

He was once rated the least popular leader in the nation`s history. He apologized twice, fired top aides, and even dropped his most cherished project.

In the second half, he began to regain confidence pushing aggressive reforms and promptly setting policies to cope with a financial crisis generated by the United States.

His supporters are confident that his economic prowess and characteristic drive will guide the nation through economic hardship more quickly and less painfully than any other leader.

They expect public projects such as renovating major rivers and visible effects of some industrial deregulations will give hope to people and help Lee regain public confidence.

But critics noted despite last year`s crisis, he changed little. He sticks to his belief in an unregulated market and still ignores bipartisanship, communications with the public and politics of persuasion.

If he fails to turn things around before the 2010 local elections, he may fall into lame-duck status early, they said.

Priority policy goals

In his New Year`s address earlier this month, Lee laid out four major goals for this year.

He promised to ride out the economic crisis by putting the administration into an "emergency economy rescue mode."

He vowed to enhance the social safety net and implement programs to assist poor, vulnerable and unemployed people.

His reform drives to "make Korea an advanced, leading country" will continue despite the economic slowdown.

The government will push a "green growth" strategy and other long-term projects to prepare for future prosperity.

To fight a recession-bound economy and create jobs, the government will spend more than 60 percent of this year`s budget in the first half.

He pledged to supply sufficient liquidity to help struggling small companies and debt-ridden households.

The government, which has already injected more than 20 trillion won ($14 billion) into banks, will continue to take all available measures to facilitate borrowing from the bank by businesses and households.

State credit guarantee funds will raise their capital to expand support for small and medium-sized enterprises.

To help revitalize investment and boost consumption, Lee promised to speed up tax cuts, deregulation and advancement of service industries.

Job creation is a top concern for the government. Lee is encouraging businesses and workers to cooperate in job-sharing schemes in which jobs are maintained and salaries are cut.

Government bodies plan to offer up to 70,000 paid internships for unemployed youth. The administration will introduce new occupational training programs and launch the Work, English Study and Travel Program that will give youngsters chances to work and learn in the United States for 18 months.

The government will assist small companies financially to encourage payroll compliance and new hiring.

For those SMEs which allow their workers to take temporary leaves of absence instead of laying them off, the government plans to provide subsidies of up to three quarters of those workers` wages. For those SMEs that hire unemployed young people as interns, the government will shoulder half of their wages.

He also promised to take measures to relieve households` burden stemming from high interest rates.

The government will subsidize low-income, working families with up to 1.2 million won a year through the Earned Income Tax Credit to be introduced this year.

The government will further expand the social safety net, including an emergency support system, under which the government will shoulder living and medical expenses for six months in case those families suffer from unemployment, suspension or closure of business.

Upholding the rule of law is top priority in his social policies. He vowed to double efforts to fight crimes, root out corruption and to crack down on illegal street protests.

He also will push education reforms more aggressively to enhance public school education and make universities more competitive.

The president recently appointed Lee Ju-ho, the key brain behind his educational policies as vice education minister.

The government will begin to establish 150 public boarding high schools in farming towns and small and medium-sized cities. Around the country, it will also build 50 Meister high schools within this year that offer technological training free of tuition.

English education will be enhanced, school information will be made public, and teacher evaluation systems will take root. In every region, a hub university will be fostered and R&D; investment in science and technology will be expanded.

As part of plans to cope with an aging society, the government will carry out drastic reforms in job training and occupational retraining.

On future growth engines Lee pointed out three sectors encompassing green technological industries, hi-tech fusion industries and high value-added service industries.

The nation`s drive for a "Green New Deal" is being ignited in earnest, including technological development of new and renewable energy sources, projects regarding recycling and energy efficiency for buildings and vehicles.

The major thrust will be on developing original technology in the field of new and renewable energy involving solar power, wind power and fuel cells. Projects regarding recycling as well as energy efficiency for buildings and vehicles will be carried out on a large scale.

The government will install a green growth council directly under the president while pushing for a basic law for green growth.

He will also push projects to revitalize the country`s four major rivers as a key project for an environment-friendly development.

The areas surrounding the four rivers will be turned into large environment-friendly parks, which in turn will be linked by bicycle paths.

The multi-purpose project is conducive to preventing natural disasters, responding to climate change, preserving the environment, improving water quality and assuring abundant water.

He expects the project will help create 280,000 new jobs.

As a new future growth engine, the government will strive to combine the nation`s strong information technology and infrastructure with the broadcasting, communications, new materials, robotics, biotechnology and food industries.

In addition, high value-added service industries involving the medical, tourism, educational and financial sectors will be nurtured strategically.

The president will also strive to enhance Korea`s role in the global community. The country will carry out its duties as a co-chair of the G-20 nations from this year and the chair of the 2009 Ministerial Council Meeting of the OECD.

The president also pledged to push ahead with free trade agreements with more countries and enhance ties with four major power countries directly involved on the Korean peninsula and Northeast Asia.

By Hwang Jang-jin

(jjhwang@heraldm.com)






[출처 : 코리아헤럴드]

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