http://english.hani.co.kr/arti/english_edition/e_editorial/303779.html
Public sector reforms require public consensus
The Lee Myung-bak administration announced its plans for turning state-run companies into “advanced” ones. This would involve merging the Korea Land Corporation and the Korea National Housing Corporation and privatizing Daewoo Securities and Korea Real Estate Investment Trust and 25 other companies. Much about the privatization plans were downscaled, compared to the aggressive preparations that went into the plan.
Reforming state companies to make public institutions more efficient is something that has needed to happen for a long time. No Korean would oppose the idea itself, so it becomes a matter of how. This administration has always talked as if privatization is everything when it comes to reforming state companies. It calls it “finding state companies their proper owners,” talk that sounds nice indeed, and it has pushed for massive privatization accordingly.
It is at least fortunate that the government scaled back its original plan due to all the public sentiment as expressed through the “candlelight.” The administration is privatizing few of the companies it had wanted to initially and says it is not going to privatize the “Big Four” public services areas of power, gas, water and health insurance, even in the “second and third stages of privatization.”
Foreign examples demonstrate well enough how privatization of public services leads to increased fees, and therefore a bigger burden for private citizens, this while fattening the private business concerns involved. There must be no further push for privatization in these areas within the administration. Otherwise people will just doubt the motives of the administration when it says it wants to make state companies more “advanced.” It should set the right example by withdrawing its “parachute” appointments to positions of leadership at corporations owned by the government.
What is of the greatest importance in the course of reforming the public sector is making sure there is ample consensus through public discussion. Even the best of methods cannot be pursued vigorously if the country’s citizens do not support it, and it is in that sense one invariably feels the administration is pushing its “advancement” plan too hurriedly. It says it is working on having public debates and hearings, but there is not ample time for that ahead of submitting the relevant legislation to the National Assembly in September. The discussion must not stop at just being a formality, and the National Assembly must engage in ample debate without setting a pre-determined deadline.
The views of those involved, the unions included, must also be reflected. While plans should not be determined by any organizational selfishness, indiscriminately forcing mergers and closings and personnel restructurings because of political goals is not the way to go about it. Going ahead without the cooperation of those who are direct parties to the reforms would not mean increased efficiency at state companies, it would only exacerbate social discord.
Please direct questions or comments to [englishhani@hani.co.kr]
Questions
1>What is the concept of privatizing under 2mb administration?
2>What do you think 2mb regime's plans for turning state-run companies into "advanced" ones?
3>This administration has always talked as if privatization is everything when it comes to reforming state companies. Don't you think that reforming state companies is different from privatization? What is your opinion?
4>2mb regime says it is not going to privatize the "Big Four" public services areas of power, gas, water and health insurance, even in the "second and third stages of privatization." Do you trust them?
5>Every state-run companies have their own reasons when it set up. State-run companies should think the public interest first! They are not interest-pursuer. If there are public interest, they should be run!! power, gas, water and health insurance are not for business. plus train fee!!! but 2mb regime say that there are no interest, no reason to remain!!! what do you think of that?
6>People say that if 2mb like privatizing, privatize blue house first. isn't it good idea?
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