Vision and Courage to Address a New Paradigm

Since initiating the project "Conditions for Presidential Success" in 2002, the East Asia Institute (EAI) has explored institutional measures for the desirable role, authority, and responsibilities of the president in a democratized society through projects such as "Conditions for Successful Presidential Transitions" (2007) and "Conditions for Presidential Success in 2013" (2012). On June 13, 2016, the EAI hosted Kim Dong-yeon, former Minister of Government Policy Coordination, for the seventh roundtable of "Conditions for Presidential Success in 2018," marking the presidential election year of 2017.

Pointing at the Finger, Forgetting the Moon (見指忘月)

When the government presents means to solve various socio-economic problems, society is told to look at the moon, but the government looks at the finger instead. Issues such as youth unemployment, long-term low growth, and polarization can be considered the 'fingers.' Policies like lowering the benchmark interest rate to the maximum level or specific fiscal measures to address these problems are instances of looking at the finger, not the moon, which is the root cause. Therefore, we must identify the fundamental causes, which are broadly twofold: human issues and social structural issues. Human issues refer not only to the talent needed for social development but also to individuals' failure to grow into people who pursue their own values and happiness. Narrowly defined, this is a problem of socialization, including institutional education. In other words, we are mishandling human issues.

The second issue is that of social structure. One of the major problems in our society is the severed ladder of social mobility, where educational opportunities are determined by wealth, and social status is inherited, creating a closed structure. A society where polarization intensifies and social mobility is severed becomes ossified and cannot be called healthy. If this continues to worsen, a revolution will occur in 20 or 30 years. Another problem is the entrenched vested interest cartel prevalent in our society. Today, the structure of vested interest cartels is becoming too rigid. The social rent or excess profits enjoyed by those within the cartel are becoming excessively large, and the desire among insiders to further increase these profits is rampant. Meanwhile, fierce competition rages outside, which is a problem of social structure. These social structural problems are the 'moon,' yet no one points to them. Solutions like 'let's increase aggregate demand' or 'let's create youth unemployment policies' by only looking at the 'fingers' have limitations.

Responding to the New Paradigm

Our society has already entered a paradigm entirely different from the past. However, because we are within it, it is difficult to understand the paradigm itself. Only by completely breaking away from past perceptions, successful experiences, and path dependencies can we say we have entered a new paradigm. People living during the Industrial Revolution were unaware of the meaning and impact of the Industrial Revolution. In retrospect, it was a groundbreaking turning point in human history, economy, and civilization.

The development of production technology during the Industrial Revolution led to an expansion of aggregate demand and a groundbreaking transformation of the monetary economy. On this quantitative economic growth, the wealth of society and the nation as a whole accumulated. New phenomena such as the acceleration of urbanization due to the migration of rural populations to cities and the creation of new jobs due to the development of new industries occurred simultaneously, ushering humanity into a new modern era. However, the people living through it did not recognize that the changes they were experiencing were part of the process of forming a new paradigm that would define a significant portion of human history. We have already taken a step into a new paradigm. The principles and standards of the past no longer apply. Historically, humanity has continuously grown and expanded its economy. This trend persisted even during wartime. However, recently, we are seeing a different pattern than in the past. Just as during the Industrial Revolution, we fail to properly recognize the new situation because we are living within this era. In the meantime, we are entering an entirely new paradigm, different from the past.

Tasks of a Leader

First is vision. A leader must have a clear vision of what kind of nation to aim for in five, ten years, and beyond. Regarding welfare, much of the political sphere, bureaucracy, and academia debate whether to pursue universal or selective welfare. This is akin to looking only at the finger while the moon is elsewhere. Before debating universal versus selective welfare, we must ask what the ideal welfare system looks like, what its underlying philosophy is, what the priorities are based on that philosophy, and how childcare should be addressed. No one is discussing the welfare state or welfare philosophy.

Second is courage. A president must be willing to accept unpopularity during or after their term to achieve the vision they articulate. Courage and self-execution are necessary for this. We rarely see such courage around us. If a minister, entrusted with public office, were to serve with conviction and courage, resolving to make their tenure their last, much would change. Change would occur if leaders possessed vision and shed the desire to be popular during their time.

Third is communication. Many people are thirsty for communication from leaders. Conversely, leaders often believe they are communicating extensively. However, simply delivering one's own message unilaterally and deriving self-satisfaction is not communication. Communication does not occur without meeting others at their level and opening one's heart.

Fourth is competence. This can be divided into two aspects: people and understanding the essence of issues. One must have the ability to recognize and utilize talent. Furthermore, when pursuing a policy goal, one must understand the core issues and know where to intervene. Without this precise understanding, policies and actions often yield distorted effects. Therefore, the ability to recognize and utilize people, and the competence to grasp the essence of issues are necessary.

Finally, problem-solving ability, or practical wisdom. Without practical wisdom, even if the intentions are good, the policy goals are valid, and the decision-making process is optimal, leading to the best possible alternatives, the problem will not be solved.

Integration, Selection and Concentration

Ultimately, regardless of who becomes president, the most crucial ability in this era is the capacity to elicit concessions from various societal members, particularly from vested interests, and to achieve social consensus. This requires not only leaders but also the sacrifice of those with more resources and education, and sincerity in resolving these issues must precede. Efforts toward social integration are necessary.

Rearranging policy priorities within the current framework of state administration and policy will yield little effect. Agenda setting must be approached from a completely new angle, with a focus on selecting and concentrating on fundamental causes and principles through historical consciousness. A leader is needed who can present a vision to meet these demands, possess unwavering courage, accept any criticism, and demonstrate sincerity and competence without pandering to popularity. ■

Kim Dong-yeonPresident of Ajou University, Kim Dong-yeon previously served as a civil servant in the Economic Planning Bureau of the Economic Planning Board, a senior policy specialist at the World Bank, Director of Fiscal Policy Planning at the Ministry of Planning and Budget, and Senior Secretary for Economic and Financial Affairs at the Presidential Office, before becoming Minister of Government Policy Coordination.

ModeratorLee Sook-jong, President of EAI, Professor at Sungkyunkwan University

Discussion

Kang Won-taek, Professor at Seoul National University

Kim Seok-ho, Professor at Seoul National University

Kim Jae-il, Professor at Dankook University

Kim Tae-young, Professor at Kyung Hee University

Na Tae-jun, Professor at Yonsei University

Park Won-ho, Professor at Seoul National University

Park Hyung-joon, Director of EAI Governance Center, Professor at Sungkyunkwan University

Lee Nae-young, Director of EAI Public Opinion Analysis Center, Professor at Korea University

Han Gyu-seop, Professor at Seoul National University

Han Seung-joon, Professor at Seoul Women's University

Han Jeong-hoon, Professor at Seoul National University

Bae Jin-seok, Senior Researcher at EAI

Kim Bo-mi, Senior Researcher at EAI