Recently, the South Korean government has been showing its strong willingness to take the lead in the economic integration of East Asia. However, the South Korean government would need to have various kinds of capacities for the job. This article stre...
Recently, the South Korean government has been showing its strong willingness to take the lead in the economic integration of East Asia. However, the South Korean government would need to have various kinds of capacities for the job. This article stresses the importance of these capacities on the part of the South Korean government, especially in the arena of domestic polities (as opposed to international politics). Domestic political capacities, which are necessary for the government to carry the integration policy forward, can be summarized as the capacity to successfully pursue the structural adjustment of existing governmental policies and the capacity to create and successfully pursue compensation policies that are necessary for increased economic integration, Structural adjustment and the derivative losses of certain socio? economic groups in each participating nation are unavoidable in the process of regional economic integration. Therefore, in the process of enforcing structural adjustment in its policies, each government should not neglect to supply the losers with appropriate and sufficient compensation. Otherwise it would be difficult for the government to smoothly execute its integration policy due to the social opposition and resistance of those deprived from the gains of economic integration.
In order to enhance the above?mentioned domestic political capacities, the article argues that the government needs to set the objectives and direction of its domestic negotiation with interest groups as follows: (1) maximize social support for the integration policy; and, (2) minimize social opposition.
For support maximization, it is important for the government to try to form a grand policy coalition with the public as well as with organized interest groups, such as big businesses. However, it is much harder to mobilize and get support from individuals, who are part of the general public, than from organized groups. In this case, the role of the government is especially important. The level of support will be determined by the performance of the government as a political entrepreneur.
The most important mechanism to minimize opposition is, of course, compensation. However, South Korea has not yet prepared a systematic system for compensation. Among the various ways in obtaining a systematic approach, the organization of a 'national council' for social deliberation in which both the losers and the winners participate along with the government, appears to be the best method under the given socio-political conditions of the country. The question of how to raise funds for the compensation system is another issue that must be addressed. Governmental budget should be fundamentally allotted to the fund. Still, seeking a new source of revenue abroad by raising common funds (e.g. European Structural Fund) could also be considered. If that should be the case, the South Korean government may expect the compensation money to come, let's say, from the "Northeast Asian Common Fund."