Korea Lauded As Model for Developing Nations

Korea Times

Korea Lauded as Model for Developing Nations

1 June 2006

By Kim Sung-jin

World Bank President Paul Wolfowitz said South Korea has presented a ``valuable model'' for global economic development and served as a catalyst for the growth of other developing countries.

At a seminar jointly organized by the state-run Korea Development Institute (KDI) and the Korea Trade Investment Promotion Agency (KOTRA) in Seoul Wednesday, Wolfowitz praised Korea's economic development and its emergence as a world leader in technology and education.

``The demonstration effect from Korea's economic advances helped build momentum among countries in East Asia and around the world (that) wanted the same success,'' Wolfowitz said.

Korea is a compelling example of the importance of the private sector to promote economic growth, create jobs and offer more opportunities for poor people to transform their lives.

Korea successfully made itself not only a strong exporter but also a leader in the information technology field, the World Bank chief said.

Wolfowitz noted that the most important resource that Korea brings to the table is not simply donation, technology, or capacity building, but its ability to extract lessons from its own successes and share them with other countries.

``Africa is making great strides in addressing its numerous challenges and I'm pleased that the World Bank Group has had the opportunity to work with them in building a more stable future for their citizens,'' Wolfowitz said.

``We need more bilateral involvement, and not just from traditional donors. We need the valuable experience of emerging donors like Korea,'' he said.

Wolfowitz said he is confident that African countries such as Ethiopia, Niger or Burundi, which are still where Korea was 40 years ago, will prove that the Afro-pessimists were wrong, but the international community still has 40 years of hard work ahead before getting to that point.

``And we urgently need Korea to be part of that effort,'' Wolfowitz said.

Ties With KOTRA

Wolfowitz and KOTRA president Hong Ki-hwa also signed a Private Sector Liaison Office (PSLO) agreement at the Hotel Shilla.

Under the agreement, KOTRA can appoint a PSLO to the World Bank to liaise with the World Bank Group _ the World Bank, the International Finance Corp. (IFC) and the Multilateral Investment Guarantee Agency (MIGA) _ to deepen bilateral collaboration in order to achieve common objectives to promote both trade and investment in the World Bank's developing member countries.

Finance and Economy Minister Han Duck-soo reportedly requested Wolfowitz to jointly examine ways to support North Korea's battle with poverty.

On Tuesday, prior to Han's request, Wolfowitz hinted that the World Bank may consider offering support to North Korea.

Prior to the seminar, Wolfowitz said the World Bank could potentially play a role in North Korea's economy although it is not yet ready to do so.

Noting that the World Bank played a valuable role in China when the country embarked on economic reform, Wolfowitz said ``the same thing could happen with North Korea.

``But there's a lot that has to happen to get there,'' he said.

Wolfowitz said any World Bank role in North Korea would ultimately be up to the institution's donor countries, who are likely to focus on progress in international efforts to persuade the country to abandon its nuclear programs.

Wolfowitz left Seoul Wednesday after an overnight stay.