[Editorial] `The Worst Economic Freedom after 1994`

Korea recorded the worst performance since 1994 in the Index of Economic Freedom issued by the American Wall Street Journal and the Heritage Foundation – a fact that is not at all surprising when one considers how the administration has operated things. The news that Korea dropped nine places in rank from last year`s index might as well have been forecast.

Even the village idiot knows that the principal reason why Korea had to accept the IMF structural adjustment program during the 1997 financial crisis was the insolvency in financial organizations created by the government-led loans to weakened businesses. `The People`s Government`s` promise to discipline finance and relax various regulations was itself based on years of experience of economic struggle.

Where are we now after four years? Although the administration continually bragged that finance was disciplined and multiple regulations were relaxed to an unprecedented degree, this report objectively shows how false all these claims were. What have we been doing all this time to get the worst ranking by an internationally respected newspaper and think tank? If the administration could not eliminate the negative cause after undergoing all that toil but actually made the situation worse, how should we assess the competence and ability of the administration?

The administration announced in May that it will relax regulations on corporations and even put on a show of forming a task force with civilian representatives, but they actually did not accomplish a thing. Government departments fought with one another and shut down operations when the ruling party insisted that it may damage conglomerate reform. Now the administration is saying, ``We will investigate the matter after three years.`` which makes one seriously question whether it really has the intention to relax regulations.

The thing especially to take note about the report is the negative assessment of government interference in the economy and financial liability. In other words, the one responsible for making things worse for economic freedom in Korea is the government. May be if we were in a developing economy, it may be excusable. But the government will have to fully accept the criticism that its meddling has compromised economic freedom.

The President`s term is now less than a year away from coming to an end. There is not much time left to change things for the better and avoid the `worst` index ranking. President Kim Dae Jung has promised to concentrate on restoring the economy for the remainder of his term. He will have to carry out this promise by maintaining the discipline of the financial overseers and relaxing the regulations under government jurisdiction.