Wednesday, September 28, 2005

Korea has a form of democratic government based on the separation of powers and a system of checks and balances - Mr. Park Sang-hoon, Ambassador, Republic of Korea in Nepal

TGQ1: Your Excellency! Please be kind enough to tell our readers as to which factors contributed immensely to the transformation of the Republic of Korea into a modern, vibrant economy and highly developed Information and Technology country? We know that you began from the ruins. Also tell us about how democratic system took roots in your country in the recent years and where ROK stands today in the comity of fully democratic nations?

Your comments please.

H.E. Park: It is true that Korea has transformed itself from one of the poorest countries in the early 1960s to the 11th or 12th largest economy now in the world. For the sake of convenient explanation, I could divide Korea’s modern history into three different development stages: “industrialization”, “democratization” and “informatization”. Though these three stages are not clearly divided but overlapped partly with one another, this division can help explain the general trend of Korea’s national development.

In the 1960s and 70s, Korea focused its attention on developing its economic competitiveness with an outward-looking strategy emphasizing the growth of exports. It was a period in which the country escaped from poverty by achieving “industrialization”. A few factors were instrumental in achieving Korea’s phenomenal record of economic growth. The first and foremost factor was patriotic and strong leadership combined with the people’s spirit of self-affirmation, diligence and drive.

Korea adopted democratic system of government when the first independent government was established on August 15, 1948. Since then, liberal democracy has been arduously pursued by the Korean people. However, Korea could move toward genuine democratization and achieve meaningful outcome only in the 1980s and 90s. Today, Korea has a form of democratic government based on the separation of powers and a system of checks and balances.

Sovereignty is vested in the people, the source of all state authority. In fact, “industrialization” in the 1960s and 70s created a broad socio-economic basis for the subsequent growth of democracy in Korea.

Korea recognizes that the 21st century is the era of the information industry in which social and economic progress is brought about by high-tech science and information technology. The Korean government is attempting to fundamentally change the national development paradigm so that it can increase national wealth and competitiveness through an open door policy and innovation-driven developments based on knowledge and technology. Korea’s growth strategy for a knowledge-based society in the 21st century is to convert to an innovation-driven economy that increases productivity dramatically through technology development.

TGQ2: Talks about the reunification of the two Koreas have apparently taken a back seat, it appears. The six party talks to bring the North to the negotiating table and make the North a non-nuclear state too appear distant.

Given this scenario, do you hope still that the unification is possible? Also tell us what is the fate of the now postponed six party talks and of the North’s attitude vis-à-vis the non-nuclearization of that country?

Your remarks please!

H.E. Park: Although the road towards unification appears to be long and bristling with obstacles, the Korean people are convinced that this goal will eventually be achieved. The ROK’s unification formula envisages a gradual approach from ‘de facto unification’ of peaceful co-existence to ‘de dure unification’ through a political agreement between South and North Korea. The unification process of the two Koreas can be pursued through continued economic cooperation, dialogues, confidence-building and mutual exchanges in various areas.

In the recent six-party talks, the six nations signed an accord in which North Korea agreed in principle to dismantle its nuclear weapons program, return to NPT, abide by the treaty’s safeguards and admit international inspectors in exchange for economic and energy aid, security assurance and diplomatic recognition. I believe that the North Korea nuclear issue can be resolved through the six-party talk process if all six parties sincerely strive to realize the common goal of the denuclearization of the Korean peninsula.

TGQ3: The presence of foreign forces in and around Korean peninsula has been a matter of concern for some countries in the region.

What is the rationale behind having foreign forces in the ROK territory? How do you take this? What you say of this: a compulsion or a supporting hand in order to balance the tension that might come to the surface in the absence of such a presence?

H.E. Park: The U.S.-ROK strategic alliance was built during and after the Korean War. In the aftermath of that war, U.S. forces were stationed in Korea, with a firm commitment to protect the ROK if necessary.

Therefore, the alliance between the ROK and the U.S. was based on the cold war. Yet, the end of the cold war had the least effect on the ROK-U.S. alliance because the Korean peninsula remained the war’s “last glacier”. North Korea’s nuclear issue, for instance, reaffirms the importance of the alliance, as new cold-war like peninsular tensions continue to emerge.

Since 2003, the ROK and the U.S. have held the Future of the Alliance Policy Initiative (FoTA) Talks to address issues related to the current and future security relationship between the two countries, including the realignment of U.S. forces in Korea, transfer of military missions and enhancement of combined capabilities and etc.

The ROK and the U.S. share strategic interests in fostering a stable Northeast Asia power balance. Virtually most of the regional states favor the role of the U.S. as a “stabilizing force” in crafting Northeast Asian Security arrangements and as a “balancer” which could prevent destabilizing rivalry among regional powers.

TGQ4: Recently Nepal’s Crown Prince Paras made a short visit to Korea. Could you highlight some significant events that could have contributed in enhancing our bilateral ties?

We would also wish to know as to which were the projects wherein your country has been assisting Nepal and of your country’s future plans, if any, or in the pipeline, in order to support Nepal to become a self-reliant nation? Your comments please.

H.E. Park: The visit of Their Royal Highnesses Crown Prince Parash Bir Bikram Shah Dev and Crown Princess Himani Rajya Laxmi Devi Shah was a milestone in the bilateral relations between the Kingdom of Nepal and the ROK. First of all, it was the highest level visit ever made in the history of our bilateral relations. The visit not only reflected the growing bilateral relations but also contributed towards further promoting and consolidating bilateral understanding and cooperation between the Kingdom of Nepal and the ROK.

Korea has been providing grants as the economic and technical supports to Nepal through Korean International Cooperation Agency (KOICA). Besides, the bilateral soft loan or Economic Development Cooperation Fund (EDCF) is extended to Nepal by the Export-Import Bank of Korea. Korea’s assistance to Nepal is focused on the areas where it has comparative advantages such as the promotion of human resources development and bridging digital divide in order to transfer appropriate technology that we have acquired during our development process to Nepal. At present, the Korean government is discussing some projects with the Nepalese government, for which it could provide assistance in the near future.

TGQ5: Korean media says that your government has set its new “economic policy direction” for the country with special emphasis on returning the economy to its potential growth path and maintaining solid ground thereafter.

Could you tell us the major points that the ROK government has taken towards this end? Your opinions please.

H.E. Park: Deputy Prime Minister and Minister of Finance and Economy Han Duck-soo announced in July the new economic policy direction for the second half of this year. Despite the improving economic trend, the first half growth in the ROK stayed in the 3 percent range due to external conditions such as oil prices and foreign exchange rates. Therefore, the government has set its new economic policy direction with special emphasis on returning the economy to its potential growth path and maintaining solid growth thereafter.

Some of the major points of the economic policy direction are:

a) Spending of funds and state-owned enterprises will be expanded while maintaining the existing accommodative macroeconomic policies and gearing fiscal policies towards preventing fiscal austerities.

b) Policy efforts will be focused on regulatory reform and removal of investment difficulties to promote private investment. Similarly measures to foster SME’s as the new growth source will be pursued.

c) The government will focus on producing tangible results in the social service areas, such as medical service, education and childcare. In education, for example, efforts to bring in foreign educational institutions will be increased.

d) Efforts will be exerted in the mid-to long-term perspective to lay the groundwork for an advanced economy. Regulation reforms in the financial sector, for instance, are being pursued from a zero base and plans for consolidating capital market related laws will be mapped out. Similarly, as for labour relations, dialogue will be normalized and advancement measures involving laws and institutions will be wrapped up.

e) Leaving no one behind in economic growth is another focus of the second half policy direction, including increased support for low-income families.