(EDITORIAL from the Korea Times on Jan. 7) - 'Green New Deal'

The just-announced massive development projects are the Korean version of a ``Green New Deal," which is emerging as a catchphrase around the world.

The 50-trillion-won ($37.8-billion) projects have two goals: to realize low-carbon
green growth and to create more jobs. The New Deal plan is attractive as it can
serve as a new growth engine for the Korean economy that is rapidly losing steam
amid the global financial and economic crisis.
Job creation is one of the most pressing tasks for the Lee Myung-bak
administration to revitalize the slumping economy. However, it is ever more
difficult to provide more job opportunities because an increasing number of
businesses are now cutting their facility investment and slashing jobs due to the
unprecedented crisis. There is no question that the nation can never provide more
jobs without such New Deal projects designed to cope with a worldwide crisis
reminiscent of the Great Depression.
At the same time, the mammoth projects should be aimed at promoting eco-friendly
growth in order to ensure sustainable development. South Korea, the world's
13th-largest economy, can no longer delay participating in international efforts
against global warming by reducing carbon dioxide and other greenhouse gas
emissions. Thus, low-carbon green growth is not a matter of choice. It becomes
indispensable to sustaining the nation's industrial and economic development.
In this regard, the Lee government has taken the right path. It plans to invest
39 trillion won in nine major projects and spend 11 trillion won on 27 related
projects over the next four years. Policymakers predict that the projects will
create nearly 1 million jobs by 2012. The Green New Deal policy came four days
after President Lee announced four-point policy directions for this year, which
focus on economic revival.
The government is now in crisis management mode to maintain the nation's growth
momentum at a time when the economy is expected to slip into recession in the
first half of the year. In this situation, the Lee administration is determined
to take the initiative in speeding up economic recovery by carrying out the
large-scale investment projects. One of the projects is to enhance use of the
nation's four major rivers by building dams, reservoirs and other water
management facilities that will require 18 trillion won and create 280,000 jobs.
Also among them are plans to establish ``green" transportation networks,
including low-carbon emitting railways, bicycle tracks and other public transport
systems costing 11 trillion won and creating 160,000 jobs. What's more
eye-catching is to produce green cars, including hybrid vehicles, and to develop
clean energy sources ??? solar and wind power and other renewable energy. The
projects also include plans to expand forests and build two million ``green"
homes and offices.
To ensure the success of the projects, policymakers should tackle several urgent
issues. First, they have to make thorough preparations and map out detailed
action plans. Second, they ought to secure enough cash to finance the investment
projects which need about 12 trillion won every year. Excessive spending will
lead to a huge budget deficit. Third, they should not simply band together
redundant projects under the name of the Green New Deal. This would only lead to
a waste of taxpayers' money. We hope the nation will succeed in the projects to
achieve real green growth and development.
(END)