[Reporter’s Notebook] Support Needed for Ministry of Economy and Finance’s Challenging Leadership Path

The Ministry of Economy and Finance, now separated from its budget function, and the newly established Ministry of Planning and Budget have officially launched. The authority that was previously concentrated in a single ministry has been divided, and the two organizations will now operate independently. More attention is being paid to whether these new organizations will be able to fulfill their roles smoothly than to the launch itself. Within the Ministry of Economy and Finance, there are considerable concerns that the road ahead will not be easy.

The Ministry of Economy and Finance has launched with a structure of two vice ministers and six directors-general. The organization has expanded under the banner of strengthening policy functions, and new departments, such as the Office of Innovation and Growth, have been created. In the latest personnel appointments, department heads born in the 1980s have been assigned, signaling a generational shift. However, the size of the organization does not necessarily correlate with its policy-making capabilities.

Frontline staff feel differently. One department head lamented, "With more departments and bureaus, it may appear that our role has grown, but some department heads are now struggling to devise measures with insufficient personnel." This means that, during the process of creating multiple new departments, it has become difficult to assign enough key staff to each. Since the department has been established, they must produce some form of 'measures' to report to the Deputy Prime Minister, but there is little human or time resources to support this.

The loss of the budget function is a burden for the Ministry of Economy and Finance. Until now, the ministry coordinated with other ministries using the powerful tool of budgetary authority. Now, it must develop economic policies and coordinate inter-ministerial interests without the leverage of the budget. As a result, some believe that the status of the Deputy Prime Minister for Economic Affairs will not be the same as in the past.

However, there is no need to underestimate the capabilities of the Ministry of Economy and Finance, even after its separation from the Ministry of Planning and Budget. There is a strong sense of pride among those who have worked on economic policy in the field, and I have seen many competent bureaucrats who wrestle intensely with these issues. The concern lies in a system that relies solely on the individual abilities and dedication of these people. Without mechanisms to reduce the burden on frontline policy staff and empower their decision-making, the title of 'lead economic policy ministry' could become hollow.

Ultimately, the key issue is how much support the Ministry of Economy and Finance receives within the government. Now that the ministries have been split, the role of the presidential office has become even more important. If the perception is not established that the ministry's decisions reflect the will of the head of state, inter-ministerial coordination is likely to devolve into wasteful power struggles. This is why there are calls to institutionalize regular direct communication channels between the President and the Deputy Prime Minister, sending a clear signal that the presidential office supports the Deputy Prime Minister's decisions. The Ministry of Economy and Finance, having relinquished its budgetary authority, is undoubtedly facing a difficult path ahead. It cannot be expected to endure this solely through individual overwork and sacrifice. Only when the presidential office supports the Deputy Prime Minister's decisions and coordinating role will the Ministry of Economy and Finance be able to truly fulfill its mandate as the 'lead policy ministry.'