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Seoul's view of global summit: Time to act on reforms
By Ni Tao |
November 11, 2010, Thursday
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Print Edition
Print Edition
EDITOR'S note:
Shanghai Daily reporter Ni Tao interviewed Kim Jeong-kee, Consul General of the Consulate General of the Republic of Korea in Shanghai, on the eve of the G20 summit, to be held in Seoul from today to tomorrow.
Q: What will be discussed at the Seoul summit?
A: The agendas at Seoul are twofold: First, the summit will cover issues already addressed at the Washington, London, Pittsburgh summits, which include coordination in macroeconomic policy and reform of global financial mechanisms and institutions.
To avoid a repeat of the 2008 financial crisis, G20 has set forth and reviewed 47 specific policy options to restrict the over-indebtedness of financial institutions. The stability of banks' capital structure and beefing up the regulation of "too big to fail" financial corporations thus should figure center stage in Seoul.
The crisis also was a rude awakening to IMF and World Bank, which failed utterly in predicting and managing the crisis. Their reform, therefore, must focus on rearranging their functions and enlarging their capital base. The reform should also assign more seats to developing countries, which are under-represented in these organizations.
The summit's agendas must have a bearing on the economic development of developing and underdeveloped countries.
Q: As the host country, how can South Korea help amplify the voice of developing countries and also show it's a fair broker?
A: As an OECD member and also a poster child of the "rags-to-riches" story, South Korea is well placed to bridge the gap between the developed and developing world. We have vast experience in poverty reduction and crisis management, such as the 1997 foreign exchange crisis, and know better than any other G20 country the problems confronting the developing world. Hence, we can better represent it.
By sharing its development experience, Seoul can do its bit to tackle poverty and sluggish growth, the two malaises besetting developing nations. It needs to allay their misgivings about being snubbed and left out the grand bargain. Only in this way can they understand that this summit poses no threat to them, but presents a new opportunity.
Q: How can the summit benefit South Korea?
A: For a long time South Korea was an outsider to the elite group that sets rules governing the world economy. During its spectacular emergence from the depths of the crisis, South Korea took over the G20 presidency from Britain and joined the ranks of countries and entities responsible for the institutionalized running of the world economy.
Its role has shifted from a "rule observer" to a "rule setter." As one of the 10 largest economies, it can finally speak with a voice commensurate with its economic clout.
Nevertheless, South Korea was a backwater and recipient of international aid in the 1960s. Its metamorphosis over the past three decades into a member of the Development Assistance Committee (DAC) in OECD - a club of rich donating countries - is exemplary for the rest of the developing world.
The summit can lift the profile of South Korea, whose national brand, and the value of its products, were not duly recognized in the past.
For instance, the intrinsic value of Korean-made goods used to be considered one percent lower than what they were actually worth.
This stereotype no longer fits, as South Korea embarked on a series of PR campaigns to change its image from "Korea Discount," which connotes the message of being cheap and inferior, into "Korea Premier," which appeals to high-end consumers.
With Korean brands' recognition increasing, the one percent "lost value" is recovered in export profits. South Korea has set its exports target this year at US$410 billion, up one percent from last year.
Q: Will previous negotiations over reforming the global financial system come to fruition at the Seoul summit?
A: When the 4th G20 summit was held in Toronto in June this year, its original agenda was to review the progress made at the preceding three summits and forge a consensus on future sustainable and balanced growth through cooperation.
But the sovereign debt crisis in southern Europe stole the spotlight and the summit's focus shifted to fiscal austerity. The topic of stimulus wind-down was postponed till November.
According to extensive media coverage, Toronto can be seen as a prelude to Seoul, in that its declaration has underscored the need to "make final decisions in Seoul" at least eight times, which was without precedent in the summit's history.
South Korea believes that this consensus of "making final decisions in Seoul" should be converted into genuine efforts without further delay. I think this message has resonated well with world leaders.
Q: Will China-South Korea cooperation be discussed at the summit?
A: Close cooperation is required for ASEAN, China, Japan and South Korea to achieve common prosperity. With their different power and status, China, Japan and South Korea have different roles to play in this drive.
Since our country will try to mediate the differences between developed and developing nations and coordinate their action, China's support and understanding is key to the summit's success. During President Lee Myung-bak's meeting with Chinese president Hu Jintao in June, both sides agreed to honor the resolutions passed at previous G20 summits and work closely for the Seoul summit to succeed.
Meanwhile, both leaders had expressed satisfaction at the continued progress in bilateral ties and resumed trade momentum, which was damaged by the financial crisis, since our official relationship was upgraded to "strategic partnership" in 2008.
They also reached a consensus on deepening the "strategic partnership" and expanding our trade volume to US$200 billion by 2012 and US$300 billion by 2015. These dimensions will likely be addressed at the summit.
Shanghai Daily reporter Ni Tao interviewed Kim Jeong-kee, Consul General of the Consulate General of the Republic of Korea in Shanghai, on the eve of the G20 summit, to be held in Seoul from today to tomorrow.
Q: What will be discussed at the Seoul summit?
A: The agendas at Seoul are twofold: First, the summit will cover issues already addressed at the Washington, London, Pittsburgh summits, which include coordination in macroeconomic policy and reform of global financial mechanisms and institutions.
To avoid a repeat of the 2008 financial crisis, G20 has set forth and reviewed 47 specific policy options to restrict the over-indebtedness of financial institutions. The stability of banks' capital structure and beefing up the regulation of "too big to fail" financial corporations thus should figure center stage in Seoul.
The crisis also was a rude awakening to IMF and World Bank, which failed utterly in predicting and managing the crisis. Their reform, therefore, must focus on rearranging their functions and enlarging their capital base. The reform should also assign more seats to developing countries, which are under-represented in these organizations.
The summit's agendas must have a bearing on the economic development of developing and underdeveloped countries.
Q: As the host country, how can South Korea help amplify the voice of developing countries and also show it's a fair broker?
A: As an OECD member and also a poster child of the "rags-to-riches" story, South Korea is well placed to bridge the gap between the developed and developing world. We have vast experience in poverty reduction and crisis management, such as the 1997 foreign exchange crisis, and know better than any other G20 country the problems confronting the developing world. Hence, we can better represent it.
By sharing its development experience, Seoul can do its bit to tackle poverty and sluggish growth, the two malaises besetting developing nations. It needs to allay their misgivings about being snubbed and left out the grand bargain. Only in this way can they understand that this summit poses no threat to them, but presents a new opportunity.
Q: How can the summit benefit South Korea?
A: For a long time South Korea was an outsider to the elite group that sets rules governing the world economy. During its spectacular emergence from the depths of the crisis, South Korea took over the G20 presidency from Britain and joined the ranks of countries and entities responsible for the institutionalized running of the world economy.
Its role has shifted from a "rule observer" to a "rule setter." As one of the 10 largest economies, it can finally speak with a voice commensurate with its economic clout.
Nevertheless, South Korea was a backwater and recipient of international aid in the 1960s. Its metamorphosis over the past three decades into a member of the Development Assistance Committee (DAC) in OECD - a club of rich donating countries - is exemplary for the rest of the developing world.
The summit can lift the profile of South Korea, whose national brand, and the value of its products, were not duly recognized in the past.
For instance, the intrinsic value of Korean-made goods used to be considered one percent lower than what they were actually worth.
This stereotype no longer fits, as South Korea embarked on a series of PR campaigns to change its image from "Korea Discount," which connotes the message of being cheap and inferior, into "Korea Premier," which appeals to high-end consumers.
With Korean brands' recognition increasing, the one percent "lost value" is recovered in export profits. South Korea has set its exports target this year at US$410 billion, up one percent from last year.
Q: Will previous negotiations over reforming the global financial system come to fruition at the Seoul summit?
A: When the 4th G20 summit was held in Toronto in June this year, its original agenda was to review the progress made at the preceding three summits and forge a consensus on future sustainable and balanced growth through cooperation.
But the sovereign debt crisis in southern Europe stole the spotlight and the summit's focus shifted to fiscal austerity. The topic of stimulus wind-down was postponed till November.
According to extensive media coverage, Toronto can be seen as a prelude to Seoul, in that its declaration has underscored the need to "make final decisions in Seoul" at least eight times, which was without precedent in the summit's history.
South Korea believes that this consensus of "making final decisions in Seoul" should be converted into genuine efforts without further delay. I think this message has resonated well with world leaders.
Q: Will China-South Korea cooperation be discussed at the summit?
A: Close cooperation is required for ASEAN, China, Japan and South Korea to achieve common prosperity. With their different power and status, China, Japan and South Korea have different roles to play in this drive.
Since our country will try to mediate the differences between developed and developing nations and coordinate their action, China's support and understanding is key to the summit's success. During President Lee Myung-bak's meeting with Chinese president Hu Jintao in June, both sides agreed to honor the resolutions passed at previous G20 summits and work closely for the Seoul summit to succeed.
Meanwhile, both leaders had expressed satisfaction at the continued progress in bilateral ties and resumed trade momentum, which was damaged by the financial crisis, since our official relationship was upgraded to "strategic partnership" in 2008.
They also reached a consensus on deepening the "strategic partnership" and expanding our trade volume to US$200 billion by 2012 and US$300 billion by 2015. These dimensions will likely be addressed at the summit.
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