[Viewpoint] Meritocracy, Market Economy, and the Outcry of the 2030 Generation

Professor Kim Hong-beom, Department of Economics, Gyeongsang National University

"We must be cautious of the logic of market fundamentalism that emphasizes ability and competition," the president's remark was widely reported in the media recently. Coincidentally, the newly elected leader of the main opposition party had just advocated "meritocracy" under the banner of "fair competition." South Korea is a market economy (Article 119 of the Constitution). Ability and competition are core values of a market economy. It is not something to be dismissed as market fundamentalism.

Ten years ago, Luigi Zingales, a professor at the University of Chicago, presented a clear perspective on meritocracy. In his symbolic essay titled "Who Killed Horatio Alger?" he argued that while traditional societies distributed power and rewards based on "lineage," modern societies do so based on "ability." Ability is a broad concept encompassing an individual's qualities and efforts. This criterion must be "efficient, resistant to arbitrary manipulation, and ... fair." The only system that fits this well is a competitive market. If everyone becomes athletes, doctors, or chefs through competition according to their abilities, it benefits all members of society. In this regard, meritocracy and a market economy are two sides of the same coin.

However, "in a democratic society, it is not easy for the majority to agree to grant significant power and rewards to a capable minority." Nevertheless, meritocracy can coexist with democracy. Professor Zingales identified two key conditions for this coexistence. First, a "culture that views rewards for effort as just." Second, "the benefits of meritocracy must be large enough and widely distributed enough to address inequality." How does our society measure up?

First, the belief that those who work hard should live better than those who loaf around still holds strong. The fact that the majority of the public agrees with experts criticizing the current political debate on "universal" disaster relief payments is precisely in this context. Despite the Moon administration's strong anti-market regulations (such as the fragmented speculative regulations that reduced real estate policies to tatters and the steep minimum wage hikes that drained economic vitality rather than fostering growth through income-led growth), our economy has managed to endure with difficulty. Even under the current egalitarian framework, where policies like the abolition of autonomous private high schools are rampant, the coexistence of democracy and meritocracy can still be anticipated, which is a great relief for the national economy.

Meritocracy also has its problems. It contributes to the inheritance of wealth and poverty. This should be actively supplemented by guaranteeing quality educational opportunities through regional balanced selection for talented students from disadvantaged backgrounds. Egalitarianism cannot replace meritocracy. Whenever merit-based criteria disappear, corruption, nepotism, and clan-based favoritism fill the void seamlessly. The recent scandals involving Cho Kuk, Incheon International Airport Corporation, and LH are no coincidence. Under the Moon administration's anti-market approach that disregards ability and competition, equality, fairness, and justice are all difficult to expect.

The cries of the 2030 generation demanding fair competition have recently grown loud. Why particularly the 2030 generation? They possess an "animal instinct" to face the future head-on. This is because the main actors responsible for our society's tomorrow are not the 4050 or 5060 generations but the 2030 generation. Their outcry is an urgent expression of ownership, insisting that meritocracy and the market economy must function properly today for themselves and, ultimately, our society to survive tomorrow. The entire nation, especially the political sphere, must immediately heed the cries of the 2030 generation.

Kim Hong-beom, Professor of Economics, Gyeongsang National University

This content was produced with the assistance of AI translation services.