Kissinger interview today states that Korea is not suffering from a slowdown in the economy, but rather from banking related issues:
Per Kissinger: "The Korean economy is essentially healthy. It has a big productive
capacity. It has an industrious population, a big saving population with a
great sense of public service," Kissinger said.
15:16 DJS Kissinger Warns Provisions In IMF Bailout Could Spur Korean Unres
5:16 DJS Kissinger Warns Provisions In IMF Bailout Could Spur Korean Unrest
NEW YORK -(Dow Jones)- Former Secretary of State Henry Kissinger said
Thursday in a televised interview that the requirements of the International
Monetary Fund bailout could potentially cause unrest in Korea if improvements
aren't seen quickly.
Kissinger, chairman of the international consulting firm Kissinger
Associates Inc., told CNBC that the situation amounts to a race between
increasing creditworthiness and declining authority of the government.
"I'm watching most closely the danger of political upheaval, and to see
whether the situation can be stabilized long enough for the underlying
strength of the Korean economy to exert itself," Kissinger said.
"I think one of the problems with the IMF program, as with any IMF
program, is that it promises to make the country creditworthy in two, three,
four years, but in the meantime they impose additional austerity," said
Kissenger, who served as former President Nixon's secretary of state. "Then
it's a race between increasing creditworthiness and the declining authority of
the government."
He said he hopes a way can be found to smooth the reform process. "I
hope some understanding is shown for not depressing the social level to a
point where a social revolution or an upheaval becomes likely."
Kissinger said he has known the newly elected president, Kim Dae Jung,
for 30 years and has seen him move from a leftist association, as a
once-exiled leader of the opposition party, to a more centrist position.
Kim "has accepted the IMF plan. The IMF bailout plan, as all IMF plans,
imposes a recession. Since he has been identified with the public and poorer
classes, it will be harder for him to go against his instincts. But I do think
he will try to be responsible. He has a tricky transition period because he
doesn't take office until Feb. 25," Kissinger said.
Kissinger said he hopes a way will be found to shorten the transition
between presidents. He added that South Korea's is a banking crisis, rather
than an indication of weak economic fundamentals.
"The Korean economy is essentially healthy. It has a big productive
capacity. It has an industrious population, a big saving population with a
great sense of public service," Kissinger said.
Copyright (c) 1997 Dow Jones & Company, Inc.
All Rights Reserved.
12/18 3:16p CSTEOF |
