(EDITORIAL from the Korea Times on Dec. 16) -Economy and Democracy

``Now that the budget battle is over, we have to brace for a legislative battle on a war footing." So said Rep. Hong Joon-pyo, floor leader of the governing Grand National Party (GNP), last week. Party Chairman Park Hee-tae echoed this, welcoming and praising GNP lawmakers who railroaded the 2009 budget bill as ``triumphal generals." Park also proposed President Lee Myung-bak to form a
``commando cabinet" to break through difficulties.

Expatriates might ask whether Korea has declared war against some outside
adversaries. True, some foreign governments have set up ``war rooms" to tide over
global economic turmoil. The problem with the Korean government and its party is,
their enemies are not economic hardships but opposition parties.
There was even not much of a budget battle Hong mentioned at the National
Assembly, as the main opposition Democratic Party (DP) boycotted the voting in
protest to the majority party's one-sided proceedings. Young members of the
ruling party even dragged five Democratic Labor Party lawmakers occupying the
rostrum out of the conference room to draw a bye.
Korea's National Assembly turns into a shoving match between governing and
opposition parties whenever they vote on important bills, including governmental
budget. The only difference this year from last was the GNP and DP changed their
positions.
The time has long past since the Assembly turned the budget settlement committee
from a special ??? or seasonal ??? committee to a standing one to enable
legislators to debate budgetary issues all year round.
As problematic as the way the Assembly passed the budget were the contents of the
yearly plan on revenue and expenditure. The expansionary budget itself was
somewhat inevitable, as most governments are working out fiscal stimulus to head
off the looming recession, but detailed outlays were hardly so.
For instance, we can agree with the increase in spending on social
infrastructure. A deeper look at the outlay, however, shows the considerable
share of the additional spending is for improving the water systems of four major
rivers widely suspected as a harbinger for President Lee's pet project of
building a cross-country waterway. Another big portion goes to ``earmark for big
brother," in reference to infrastructure expansion in Pohang, North Gyeongsang
Province, from which Rep. Lee Sang-deuk, the president's elder brother, hails.
Even more worrisome is a series of bills accompanying the budget, such as those
easing regulations on the wayward expansion of family-controlled conglomerates as
well as allowing chaebol to own banks. This should cause extra caution, as the
ongoing financial meltdown in the United States points to the danger of reckless
deregulations to such extent as to leave little disciplines in the market.
The governing camp should listen to economists at home and abroad, who say for an
economy to get out of the recession it should bolster workers' income in the
short term and enhance public education in the long run as a means of narrowing
gaps in income and wealth. Painfully missing or nominally existent in the
governmental budgets is investment into the two areas.
President Lee and his administration are even pushing through non-economic ??? or
``backpedaling," as their political opponents call them ??? bills, including
those limiting the freedom of assembly and demonstration and restricting
communication privacy, riding on the crisis mentality prevalent among the people.
Lee often stresses the need for ``turning crisis into opportunity." We just hope
it does not mean using ``economic crisis" as an ``opportunity to railroad
undemocratic agenda."

(END)