Economists call FTA with US hasty
Korea Times, Seoul
Economists Call FTA With US Hasty
By Yoon Ja-young, Staff Reporter
8 August 2006
Seoul National University President Chung Un-chan, who is also a prominent economist, has criticized the government’s handling of the free trade agreement with the United States as hasty application of theory.
Chung aired his views at the start of a speech text prepared for the international seminar by the Korean Economic Association, scheduled to be held today and tomorrow under the theme Prosperity for All.'' An economics professor at Seoul National University, Chung is also president of the association.Government policies used to fall prey to standardized thinking and hasty application of theory. The Korea-U.S. FTA is a good example.’’
He criticized both supporters and opponents of the free trade agreement. Those who believe in the ideals of free trade hurry the signing of agreement, neglecting side-effects, while those familiar only with difficulties in the real world do not fully appreciate the most basic strengths of free trade.''
Chung demanded that the government strike a balance, harmonizing ideals and reality and pursuing long-term benefits, while never belittling short-term side effects.
Kyunghee University professor Kim Joong-soo said in a handout distributed in advance that reform of the system is essential for a successful free trade agreement between Korea and the U.S.
He said one of the reasons why Mexico's economy failed to grow after the signing of North American Free Trade Agreement (NAFTA) was a failure to reform structure while pursuing liberalization.
The case of Mexico has raised controversy among supporters of the Korea-U.S. FTA and its opponents in Korea, with pessimists arguing that things have worsened in Mexico after the signing of NAFTA.
He said people will be doubtful if the government pursues a competition oriented FTA, while seeking equalization in education and nationalistic protection in culture. Kim cited leadership and people's agreement to share burden, and unification of negotiation table as crucial priorities for a successful FTA.
Seoul National University professor Jwa Sung-hee raised criticism in a handout that equalitarian policy that places more focus on the fair distribution of wealth over growth made the Korean economy less dynamic.Unfortunately, the middle and low income classes are more seriously affected by stagnant economic and corporate growth than the higher ones,’’ Jwa said. He added that too much distribution pursuing egalitarian results and attempts to democratize the economy hamper the society’s development engine.
Jwa also argued that the balanced development among regions, and deterring concentration of economic power in conglomerates’ hands, are against development theory.
