Progressive and reformist forces meet to chart economic alternatives

Posted on : 2008-12-12 13:59 KST Modified on : 2019-10-19 20:29 KST
Lee Myung-bak’s trickle-down economics no longer viable for S. Korea’s underprivileged populations
 progressive and reformist forces gathered to discuss alternative solutions for improving social welfare. From right: Shim Sang-jung
progressive and reformist forces gathered to discuss alternative solutions for improving social welfare. From right: Shim Sang-jung

Editor’s note: Progressive and reformist forces stepped forward on December 4 to launch the Conference for Overcoming the Economic and People’s Welfare Crisis, a coalition of political parties, civic and social groups and prominent individuals from various fields to overcome the crisis in the economy and public welfare, urging the immediate preparation of a special countermeasure for ordinary citizens in next year’s budget plan, but the government and the Grand National Party are closing their ears.

The Hankyoreh organized a forum at which progressive and reformist forces, including civic and social groups and the Democratic, Democratic Labor and New Progressive Parties could discuss what to do in this situation. The discussion was initiated by Kim Min-yeong, co-director of the policy planning committee for the Congress for Public Welfare and Democracy and secretary-general of the People’s Solidarity for Participatory Democracy, while Kim Hyo-seok, director of the Democratic Party’s Institute for Democracy and Policies; Kwon Young-ghil, National Assembly member, Democratic Labor Party; and Shim Sang-jung, co-chairman of the New Progressive Party, participated in the discussion, which took place over two hours Wednesday in the 8th floor conference room of The Hankyoreh Shinmun. The following are the starting points from the discussion led by Kim Min-yeong.

The focus of the solidarity and cooperation between progressive and reformist forces is on overcoming the economic crisis and rescuing public welfare. For progressives and moderate reformists alike, the life or death issue is whether they can visualize a persuasive “people’s economic alternative” that differs from the Lee Myung-bak administration’s economic policy.

President Lee’s economic policy can be summarized as: cutting taxes for the wealthy, easing financial regulations, strengthening the monopoly of conglomerates and large companies, privatizing public enterprises, maintaining the real estate bubble and diverting money into floundering construction companies. This policy is based on a “trickle-down theory” stating that the increased investment arising from concentrated tax cuts and support for the wealthy, conglomerates and large companies will lead to an increase in jobs and the achievement of economic growth. But this can no longer be a viable alternative.

The Civil Society Organizations Network in Korea, including the Democratic, Democratic Labor, Creative Korea and New Progressive Parties, launched the coalition on December 4 and announced three courses and 10 policies to overcome the crises in the economy and public welfare. It is important that these 10 policy directions be fleshed out further. First, it is important to ensure jobs, develop measures for smaller businesses and small-scale merchants, make small loans available to the working class, reduce education expenses, reduce household burdens such as child care, medical expenses and housing expenses, and expand support for the livelihood stability of disadvantaged classes.

Particularly urgent tasks include: the creation of one million public service jobs with annual salaries of 20 million won through 20 trillion won in financial investment; the payment of unemployment wages for the young unemployed and the self-employed who are out of work; unit cost indexation for delivery of goods for smaller businesses; the lowering of credit card transaction charges for smaller-scale merchants; increasing the number of loans to first-time home buyers, the extension of loan repayment terms for tuition loans, and the lowering of interest rates; as well as the establishment of a “no-collateral state-run bank exclusively for ordinary citizens.”

In order to strengthen solidarity between progressives and reformists, a prior condition is the surmounting of the Democratic Party’s continued “politics of distrust.” The Democratic Party pledged at the launch of the coalition on December 4 that it would do its best to block the bill for cutting taxes for the rich, but a few days later the party agreed to pass the most of the GNP’s tax cut bill.

Before discussing policy solidarity, it is first necessary to examine whether the Democratic Party really intends to join the coalition and put the contents of its agreements into practice.

The fact that a difference in perspectives exists between political and social forces is not problematic. Because this difference exists, plans are being made for political activity through solidarity rather than individual forces. But even within that difference in perspectives, it is important to designate joint tasks and join forces based on an investigation of the contemporary situation and the demands of citizens.

Please direct questions or comments to [englishhani@hani.co.kr]

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