The Roles of Korean Development in the Mekong Region
| Jakkrit Sangkhamanee | |
| |
| Name in Latin Alphabet: | Jakkrit Sangkhamanee |
|---|---|
| Nationality: | Thailand |
| Affiliation: | Assistant Professor and Deputy Dean. Faculty of Political Science, Chulalongkorn University |
목차
- 1 Introduction: A Brief Overview of Development in the Mekong Region
- 2 The Role of Korea in Mekong Development
- 3 The Roles of Korean Development in Mekong Region
- 4 EDCF Policy on Mekong Region
- 5 KOICA Policy on Mekong Region
- 6 Korean Development Paradigm on Mekong Region
- 7 Comprehensive Partnership for Mutual Prosperity.
- 8 Conclusion
- 9 Conclusion
- 10 References(The Roles of Korean Development in the Mekong Region)
- 11 발표문 목록
Introduction: A Brief Overview of Development in the Mekong Region
Mekong region has been one of the main target for development since the colonial period especially the late 19th century. The British and French had sought their trade routes along Mekong River in order to access to the mainland China (Osborne 1996). As a transnational major river, Mekong flows down from southwestern China to today Myanmar, Thailand, Laos, Cambodia and then discharges into South China sea from its rich delta in Vietnam. It is served as a travel route, linking the cultural values, and integrating social relations among the several groups of people along the river through trade (Jakkrit 2006). The present regime of development, Greater Mekong Subregion or the GMS, is based on the interlinkage that the river provides. Under the regionalization of the GMS, the development agenda and implementation of several transnational development infrastructures are designed to facilitate the mobility of resources, products and people (Jakkrit 2008). In addition, within the ASEAN framework, the new development paradigm in Mekong region is reinforced by the idea of cooperation and mobilization.
After World War II under the predecessor of Economic and Social Commission for Asia and the Pacific (ESCAP), and the Mekong Commission (MC) as the central entities, detailed investigation and planning for the basin had been promoted. According to the success of the Tennessee Valley, a product of the New Deal by U.S president Franklyn Roosevelt, the development of dams and waterways in the downstream of the River would reduce flood damage, promote the irrigation cultivation, and develop hydropower in the basin. In 1992, by ADB, the projects under GMS moved from the planning to implementation stage. This came about the reformation of the Mekong River Commission (MRC), TAR (Trans-Asia Railway) which had been discussed in ESCAP from 1967 and has been promoted through financial aid from the UNDP since 1970, the formation of the ASEAN-Mekong Basin Development Cooperation (AMBDC). Also, the MRC was reorganized in 1995 with the participation of Thailand, Laos, Cambodia, Vietnam, the UN and the ADB for the priority of construction of roads, bridges, and hydropower projects after that China and Myanmar have joined the MRC as dialogue partner since November, 1996 (Jae-Wan 1992).
During the period of 1980s, Cambodia, Laos, Myanmar and Vietnam were ready to open up and engage their economy more with international trade. As a post-colonial and civil war countries, however, logistics infrastructure to boost up the rise of international trade and investment in the region were very lacked. One of the priority in taking an active part in regional trade and development has been to boost up their communication and transportation facilities in order to empower their competitiveness and attract more foreign direct investment (FDI) (Fawcett et al. 1995). In other words, the lack of and inability to manage a region's logistics infrastructures, domestic trade regulations and customs procedures are the main factors limiting their roles in regionalization.
As part of ASEAN countries and as part of the wider global engagement, the development in Mekong region is undeniable affected by the international regime of development, assistance and cooperations. With about about 326 million people and diverse ecological features, the region is a rich source for skilled and non-skilled labors, natural resources, production as well as consumption. In 1992, the Asian Development Bank (ADB) launched a scheme of subregional economic cooperation under the banner of the Greater Mekong Subregion (GMS) Program. It was aimed at economic integration and poverty reduction. The program covered wide range of issues such as agriculture, energy, environment, human resource development, investment, telecommunications, tourism, transport infrastructure, and transport and trade facilitation. The GMS program was also aimed as a stepping stone for the GMS countries to achieve the Millennium Development Goals through the improvement of regional connectivity, competitiveness and a greater sense of community (the three Cs), namely:
- Connectivity is being achieved through the development of subregional transport infrastructure such as roads, bridges, railways, the formation of trade corridors, the establishment of electricity grids and water conversion as well as telecommunications networks.
- Competitiveness is being facilitated through increased connectivity, transport and trade facilitation and the development of logistics systems, regional power trade, harnessing of information and communication technology (ICT), expansion of cross-border agricultural trade, and the promotion of the GMS as a single tourism destination. The GMS countries have signed an agreement to facilitate the cross-border movement of goods and people, which is being implemented on a pilot basis at key border crossings, and is being prepared for full implementation in the GMS corridors.
- A sense of Community is being fostered as the GMS countries jointly address shared social and environmental concerns, such as the prevention and control of diseases, illegal trade and smuggling of illicit goods and the protection of the subregion’s rich biodiversity and ecosystems (ADB 2012).
In 1998, ADB put forward the idea of “economic corridor” to promote and materialize the Mekong regional trade and cooperation. The basic infrastructural projects and the new trend of production networks supported rapidly increasing freight transport for international trade. In 2015, the Association of South East Asian Nations (ASEAN) became a single market under the promotion of the ASEAN Economic Community (AEC). These regional transformation have magnified the level of economic integration that might be encouraged greater economic engagement and reduced the economic and social gaps among ASEAN member countries. ADB’s take on the GMS development reflect such perspective:
Increasingly, modernization and industrialization are emerging from a process of transition and transformation. The Mekong countries are gradually shifting from subsistence farming to more diversified economies, and to more open, marketbased systems. In parallel with this are the growing commercial relations among the six Mekong countries, notably in terms of cross-border trade, investment, and labor mobility. Moreover, natural resources, particularly hydropower, are beginning to be developed and utilized on a subregional basis. The rich human and natural resource endowments of the Mekong region have made it a new frontier of Asian economic growth. Indeed, the Mekong region has the potential to be one of the world's fastest growing areas (ADB 2014a).
According to the ADB, cross-border relations have been considered as crucial means driving regional integration among the diversified countries in the region. In addition, the prospect of regional development is to emphasize a multi-sectorial perspective, spatial development options, and practical infrastructure, human resource, policy, trading regulatory and institutional management, investment, and the movement of goods and people (Ungul 2007). However, having economic integration alone within the GMS is not enough for the need to sustain its growth. Suffice to say, GMS has been benefitted greatly from being part of the ASEAN. Being an important regional bloc in Asia, ASEAN has been attracting China, Japan, South Korea, the European Union, the United States for its sources of natural resources, market, labor as well as sites of productions and transportaions. Therefore, analysing the development of the GMS also involve with great extent with the transformation and cooperation of ASEAN with other countries and regions.
In understanding the GMS, and to certain extent the ASEAN, development in relations to the external actor and cooperations, this paper focuses on the roles of Korea terms of economic and infrastructure development of the region. After the Cold War, since 1992 nations along Mekong River started to incorporate the idea of regional development initiated by the ADB under the name of Greater Mekong Subregion (GMS). The countries share the common resource as Mekong River running through their territories. Riverine resources were at that time under-developed and managed effectively. The regional cooperation therefore was a means to enhance the effectiveness and mutual benefits among the riparian countries focusing on some crucial activities such as agriculture, energy, environment, human resource development, investment, telecommunications, tourism, transport infrastructure, and transport and trade facilitation. To Korea, GMS is considered as one of the most potential economic development areas due to the plenty of resource endowments, laborintensive, and new emerging market sphere. Furthermore, this region is still lack of development activities particularly in CLMV countries so that the concept of regional development could reduce regional disparities, poverty, and income inequalities among the people in Mekong countries. The first priority of this regional development goes for infrastructure projects cost approximately USD 11 billion for the members especially in road constructions and development.
The Role of Korea in Mekong Development
Before the concrete formation of GMS, Korea had already established its relationship with each country in the region. In term of diplomatic relations, Thailand firstly established its relations with South Korea since 1958 after the Korean War. Myanmar and Korea began the relations by 1975. Significantly, after the Cold War, South Korea started normalizing its diplomatic policy with Vietnam and China in 1992, with Laos in 1995, and Cambodia in 1997. During 1980s, the first establishment of Korea relations in terms of development with Mekong countries began at the meeting of the Mekong Commission (MC)—Cambodia, Laos, Thailand, and South Vietnam—by providing its assistance to the Mekong countries (Mekong River Commission 1995).
Based on Korea's ODA policy, Mekong region was considered a priority. This is because of its geographical proximity and, to certain extent, cultural closeness. The aim was mainly to promote private sector's development, long-term cooperation and poverty reduction. Furthermore, Korean government has expanded its involvement into six areas of development, namely: infrastructure, information and communications technology (ICT), green growth, the development of water resources and the development of human resources.
Korea's ODA has three types of development-support activities, namely: 1.) bilateral grants; 2.) bilateral loans; and 3.) multilateral assistance. These are done through two vital institutions: Economic Development Cooperation Fund (EDCF) and Korea International Cooperation Agency (KOICA). Various types of development programs have been implemented through technical cooperation and various types of transfers (made in cash, goods, technology or services) with no obligation for repayment, concessional loans, and financial subscriptions as well as contributions to international organizations and institutions. Significantly, the International Development Cooperation Committee (IDCC) was established in March 2006 in order to coordinate Korea’s ODA policy. In addition, Korean government has set up a so-called Country Assistance Strategy (CAS) in 18 countries focusing on the idea of effective provision of development assistances. Within two decades between 1987 to 2006, ASEAN, including the GMS, had been one of the largest destinations of Korean ODA accounting for USD 1.13 billion.
Korea has focused on sharing its experiences and technical transfer by extending aid and assistance to ASEAN and Mekong Region under the concept of regional cooperation in terms of development activities for the mutual benefits. Hence, EDCF and KOICA are the important actors for dealing with development cooperation from Korean government towards developing countries. KOICA has been active in managing the Korean government’s funds in terms of grant aid and the technical cooperation program. Currently the programs have been extended significantly in Cambodia, Laos, Indonesia, the Philippines, Thailand, and Vietnam. Likely, EDCF has been responsible for loan management in developing nations for example, CLMV countries in Mekong region, Indonesia, and the Philippines (Jea-Wan 2010).
In this paper, we examine the role of South Korea towards Mekong countries by focusing on three major regimes of operation namely: institutions; investment; and physical infrastructure and human resource. Since 1980s, Korea has initially brought its own development paradigm to Mekong region though the above-mentioned regimes. It can be said that, during the past few decades of Korean engagement with the region, these three core regime have materialised their impacts in many areas of economic, political, and social development. Let we now turn briefly to discuss the initials markers to understand such regimes.
1. Institutions: Korean has brought the concept of development cooperation and activities by its institutions. The institutions of Korea towards regional development in Mekong Region, as for this study, it recognized as the beginning actor for the establishment of its relations with those countries in Mekong area since without any institutions, the history of Korean development in Mekong Region would not happen. Korean government has been one of the institutions which has been playing a key role for development practices and ideas in developing countries from bilateral and multilateral aids. Korean government started launching its policy with Mekong countries by bilateral relations and then by Mekong regional development such as MC or MRC, GMS, and ASEAN. Furthermore, the cooperation between Korea government and Mekong countries' government could facilitate the launch of the relevant institutions in order to deal with the activities from those nations and Korea in terms of economic, political, and social development such as KOICA, EDCF, and investment.
2. Investment: According the establishment of relations between Korea and Mekong Region, the investment of Korea is the priority for normalizing its policy to China, Vietnam in 1992, Laos in 1995, and Cambodia in 1997. The Korean investment in Thailand has begun since 1980s due to the same ideology of political system and emerging of middle class in Thailand. Korean investment in Myanmar is increased due to its recently open door policy for economic development and the progress of Myanmar political activities
3. Physical Infrastructure and Human Resource: The role of Korean development has taken the concept of infrastructure and human resource for its first priority for poverty reduction and well-being of Mekong people. Referring to the cooperation between Korean and Mekong nations' government, Korea has assigned the two important institutions for its development cooperation namely, EDCF and KOICA to the development practices in Mekong Region. Both institutions have put its intention on least developed areas particularly in CLMV countries. Korean government has separated these two institutions this is because Korea needs to focus on different development agendas. EDCF is the institution for financial management under the Ministry of Trade and Finance. This aims for granting or giving concessional loans to developing countries. While KOICA under the Ministry of Foreign Affairs, this institution enhances the basic needs and infrastructure for poor people in the Mekong Region such as development projects for the villages, dispatching the experts, setting the educational center, launching the training programs, technological and human exchange and so on.
Let us now take a little further step to analyse the role of Korean government in Mekong regional development. We employ the lens of regional integration and regional proximity to frame our analysis toward the relationship between Korean development assistance and the geographical closeness of ASEAN and the GMS with Korea. ASEAN is a work-in-progress collaboration and institution with its focuses on economic, political, and social integration by the end of 2015. Through this regional integration process, all of the member countries will become a single market under ASEAN Economic Community (AEC). This will enhance the level of economic integration that will encourage transborder economic activities and, hopefully, reduce inequality gap among its members.
Since 2000s, after the recovery from 1997 Asian Financial Crisis, Mekong countries have been developing steadily. However, the inequality of income per capita and gross domestic product (GDP) were still very high (Ikumo 2010). Poor of infrastructure and then lack of logistics system were the major obstacles in integrating and harmonizing economic activities especially trades between member countries, not to mention the incompatibility to compete in the world market. As a consequence, North-South and East-West economic corridors were initiated by the ADB to tackle this fundamental problem. The long-term prospect of development is also to emphasize a multi-sectorial perspective, spatial development options, and practical infrastructure, human resource, policy, regulatory and institutional barriers to trade, investment, and the movement of goods and people.
Besides the GMS and its relations with ADB, the government of Yunnan province in China has emphasized export-oriented economy as a prior strategy to develop the economic zone along the border areas of Laos, Thailand and Myanmar. China’s role in the GMS is to promote the economic relations through the regional integration particularly on transborder trade, foreign direct investment, tourism and turning the land-locked country like Laos into a land-link area. With such concern, China has invested in infrastructural development in northern Laos and Thailand as well as initiated a scheme to turn Mekong river into a main trading route all year round (Jakkrit 2006).
By the time of the inauguration of the GMS Economic Cooperation Program in 1992, most of the region’s infrastructure was underdeveloped. In response to this obstacle, the GMS adopted the Transport Master Plan in 1995, which identified priority transport linkages. Transborder road construction designed to improve connectivity on land and port cities. This was an important step in economic development. With the improvements in transportation infrastructure, many more economic opportunities throughout the region could be enhanced, for example, by significantly reducing travel times and costs. As the countries have moved away from a former strategy of self-subsistence to liberalization, major efforts have been made to develop the infrastructure linking the GMS and beyond, particularly through the identification of ambitious economic corridor projects. (Susan Stone et al. 2010).
As for Korea, the establishment and improved linkages of GMS and ASEAN is considering a good path for investment in industrial sectors, businesses, infrastructures, and development projects as well as providing loans, project assistance, knowledge exchange, technological transfer and educational support. Korea as an investor and donor country could also benefit from regional advantages such as cheap and extensive labor forces, the abundance of natural resources, the emerging new market, the locations for industrial production. In turn, the Mekong countries will be opened up for greater opportunities for development cooperation from Korea not only interns of production and infrastructural construction but also from trade and tourism. As a consequence, Korea government promptly take a leading role in supporting the integration and cooperation activities among the Mekong countries. For example, during the 1980s, Korean government attended the meeting of the Mekong Commission for supplying the assistance to the member countries of Mekong Commission. Also, after the establishment of GMS in 1992, MRC in 1995, and ASEAN, Korea has actively participated and observed the events of regional development in both regional and individual country.
The Roles of Korean Development in Mekong Region
Korea has played a significant role for poverty reduction and rural development in Mekong Region. EDCF and KOICA are the two institutions under Korean government which have managed and provided the assistance and fund to developing countries especially in Southeast Asian countries. Since Korea has joined OECD members, the government has significantly put its effort in order to expand and increase oversea development assistance (ODA) disbursement to developing countries especially in Mekong Region. According to EDCF Annual Report 2014, Korea has provided about USD 1.8 billion ODA making the country the 16th biggest donor among 29 Development Assistance Committee (DAC) members. Since 2011, Korea has enhanced its development cooperation for increasing its global status by putting its aid volume as it hosted the 4th High Level Forum (HLF-4) in Busan in November. Korea's 2013 ODA has reached approximately USD 1.3 billion. Under this ODA, it was delivered as bilateral loan around USD 500.6 million accounting for 38.2%, while bilateral grants totalled of USD 809.0 million, amounting for 61.8% of total ODA. In addition, in 2013, Korea' multilateral ODA has increased significantly from 2012 by USD 446 million to regional development and other international organizations.
EDCF Policy on Mekong Region
In 1987, South Korean government has set up the Economic Development Cooperation Fund (ECDF) under the management of the Export-Import Bank of Korea (Exim Bank), Ministry of Finance and Economy (MOFE). EDCF is one of the most important Korean development outreach institutions, playing an active role of Korean development agency in offering concessional loans to developing countries. This position has been explicitly express, ccording to EDCF 2014 policies and directions:
In line with the international development discussions on economic growth and poverty elimination as well as development demands from partner countries, EDCF has steadily increased its ODA volume and successfully carried out major activities to enhance development effectiveness. For example, EDCF focused its efforts on establishing systemic project identification mechanism through Country Program Mission and Policy Dialogues to offer customized aid packages that reflect both the development needs of partner countries and Korea's strengths. Moreover, EDCF has enhanced the evaluation of social and environmental impact of its projects to improve the sustainability and quality of ODA projects. It also applied the lessons learned from ex-post evaluation to new projects through a feedback system in an effort to improve the quality of its projects. EDCF has also put in place an institutional framework to promote private sector participation in development cooperation projects. It has actively identified public-private partnership (PPP) projects, upgraded EDCF guarantee programs, and expanded overseas networks to increase support for large-scale infrastructure projects (EDCF Annual Report 2013).
EDCF has made loan commitment in 2014 to 28 projects in 13 countries which is amounted approximately to USD 1,273 million. Due to Korea's close economic relations and geographical proximity, Asian countries were the biggest recipients for EDCF's loan commitment taken up to 74.9% of overall fund. In this respect, the Mekong countries were also part of the main destination for Korean loan. Vietnam is the largest recipient receiving USD 2 billion from EDCF. Also, regarding loan disbursement, EDCF has also shared its disbursement to Asia as the first priority, counted for 54.6% in 2014. Vietnam remained the biggest recipient in disbursements by USD 129 million.
While EDCF has established since 1987, it began to establish relationship with Mekong countries, except Thailand, almost a decade after. In 1992 it reached Myanmar in Telecommunication Network Expansion Project which fund provision of USD 7.80 million. It relations with Vietnam commenced in 1995 with its support of No.188 Highway Improvement Project and Thein-Tan Water Supply Project, amounted to USD 24 and 26 million respectively. With Cambodia counterpart, Korean government began in 2001 through its support of Capacity Expansion of Government Administration Information System Project, amounted to USD 20 million. Lastly, with Laos in 2014, Korean fund was provided to Luang Prabang National University Establishment Project costed USD 22.7 million. Based on these provided figures, EDCF has proved to act as a main donor dispersing its loans to CLMV countries. According to table below, when looking at the overall projects supported by EDCF since 1987 to 2014, Vietnam has ranked the largest recipient country through 55 projects. Vietnamese government took up 19.4 % of overall EDCF project fund of USD 2 billion in 52 countries. Cambodia has ranked the 4th place by having 18 projects under EDCF supports, amounted to USD 602.61 million. Myanmar is the 8th in the rank launching its 10 EDCF-supported projects based on the budget amounted to USD 423.40 million. Lastly, Laos ranked 13th getting the loans for 10 development projects, totalled USD 206.70 million. While the paper seeks not to explore the portion of loan provided for Chinese projects there are cooperations between EDCF and China in the projects located within the Mekong region. For example, in 1997 Korea government provided financial assistance to Kunming City Elevated Highway Construction Project which amounted to USD 5 million.
| Rank | Country | Projects | USD Million | Percentage |
|---|---|---|---|---|
| 1 | Vietnam | 55 | 1,996.24 | 19.4 |
| 4 | Cambodia | 18 | 602.61 | 5.8 |
| 8 | Myanmar | 10 | 423.40 | 3.9 |
| 13 | Laos | 10 | 206.70 | 2.1 |
KOICA Policy on Mekong Region
In April 1991, Korea government has established the Korea International Cooperation Agency (KOICA) which is the institution in charge of Korea’s official development assistance (ODA), in order to provide grants, technical assistance and strengthen cooperation with developing countries. Its mission is to address global development issues and encourage socio-economic development of partner countries. With Southeast Asian countries, KOICA emphasizes development cooperation with Mekong countries and ASEAN based on its cultural and geographical closeness:
Proximity and cultural affinity made Asia and Pacific a priority region for KOICA’s assistance packages. KOICA is offering and implementing targeted assistance programs that reflect partner’s income level and specific demands in Southeast Asia, Southwest Asia, Northeast Asia and Pacific Region. To support the national development of the members of the Association of Southeast Asian Nations (ASEAN), targeted programs designed to address the specific needs of each partner country are put in place (KOICA Asia 2015).
KOICA has cooperated with countries in the Mekong region in various kinds of assistances. This ranges from infrastructural improvement, aids in kind and in cash, emergency reliefs, development studies institutions, collaborations of experts, medical practitioners, Taekwondo instructors, volunteers, NGOs, administrative training, international organization cooperation, and global Saemaul Undong program (SMU). Below shows the annual budget of KOICA provided to Cambodia, Laos, Myanmar, and Thailand in 2013 and its accumulated provision of financial assistance from 1991 to 2013.
| Rank | Country | USD | Percentage |
|---|---|---|---|
| 1 | Vietnam | 26,984,718 | 6.35 |
| 5 | Cambodia | 21,693,536 | 5.11 |
| 12 | Myanmar | 11,254,698 | 2.65 |
| 21 | Laos | 6,517,198 | 1.53 |
| 44 | Thailand | 2,563,081 | 0.60 |
| Rank | Country | USD |
|---|---|---|
| 1 | Vietnam | 210,909,343 |
| 2 | Cambodia | 132,118,185 |
| 3 | Laos | 74,601,625 |
| 4 | Myanmar | 53,800,261 |
| 5 | Thailand | 26,366,729 |
At the beginning of 1990s, Myanmar received the largest share of KOICA among Mekong countries taken up to USD 231,282. Thailand was then the second biggest share with estimated amount of USD 194,355. Cambodia, Vietnam, and Laos received less with financial assistance totalled USD 28,908, USD 20,797, and USD 4,917 respectively. Between 1991 - 1993, Myanmar and Thailand continued to receive a large portion of KOICA assistance. After the normalised policy between Korea and Vietnam in 1992, however, Vietnam has become the largest partner with KOICA among the Mekong countries and other regions that cooperate with KOICA which accounted approximately USD 210 Millions between 1993-2013. During 1995-1996, Cambodia received the assistance from KOICA amounted to USD 31,123 (1995) and USD 246,653 (1996). Laos received USD 68,942 in 1995 and USD 436,694 in 1996. Myanmar received USD 628,898 in 1995 and increased to USD 894,636 in the year after. From 1996 onward, CLMV countries have been the main target of KOICA’s assistances shifting the cooperation from Thailand where market economy has already well established.
Korean Development Paradigm on Mekong Region
If we are to find some makers to identify the nature and agenda of Korean government in extending development programs in the Mekong region, some crucial turning points can be made to identify such trend.
| Timeline | Korean Development Agendas in the Mekong Region |
| 1980s | Overseas Direct Investment |
| 1990s | Bilateral Aid and Overseas Direct Investment |
| 1992-1997 | Normalised Policy |
| 1998-2008 | Intensive on Bilateral Aid and Overseas Direct Investment |
| 2009-now | New Asia Policy |
| 2011-now | Han-River Declaration |
Here we distinguish Korean development extension into Mekong region roughly into 6 periods. The first period starting from 1980s when Korea government and investors attempted to cooperate with individual Mekong countries by adopting overseas direct investment policy. The aim of this initial period was to build a firm ground for country's economic development by focusing on transportation and market-based infrastructure with the early projects being implemented in Thailand. The second period is referred to during 1990s. Post Cold War climate opened up opportunities for advanced countries to establish relationship as well as extend their assistance to stimulate liberalisation process in many part of Asia. Within this time frame, Korea began its relations with Vietnam, China, Laos, and Cambodia whereby bilateral aid for physical infrastructure, operational management as well as overseas direct investment for economic development were gradually established. The third period, 1992-1997, covered the overlapping years with the previous term. Under this period, relations between Korea and Mekong countries have been increased significantly due to the normalized policy. This, in turn, brought the CLMV countries to become the biggest partners in terms of Korean ODA.
The later period covered a decade between 1998 and 2008. During this time Korea government shifted its focuses from infrastructure and training programs to building more relationship based on development cooperation and investment. As a consequence, Korea had provided the largest share of bilateral aid and investment destination to CLMV countries especially to Vietnam and Cambodia. This also created a firm ground for the later period which can be identified as starting from 2009 to present. This latter period is referred to the New Asia Policy of Korea began in 2009 and reenforced by its joining the DAC in 2010. As stated early, Korea considers cultural and geographical proximities as the main factors in establishing and tightening its relationship with other development partners. Its focus is thus can be identified in the nearby regions such as ASEAN and GMS. While the New Asia Policy is still undergoing, the Han-River Declaration has yet to create another platform that emphasizes the more specific scope and focus of its development assistance to the Mekong region. The first Korea-Mekong ministerial meeting focusing on sustainable and people-oriented development resulted in Han River Declaration of the Mekong-ROK
Comprehensive Partnership for Mutual Prosperity.
The Flow of Korean Development Assistances and Cooperations
Conclusion
The paper has shown the role of Korean government in the development of Mekong region since dating back to 1980s. The authors also highlight the changing factors and agenda in Korean development extension based on its level and nature of cooperation. During the past several decade of development relationship with Korean institutions and programs, however, Mekong countries and the region itself still lack appropriate institutions in order to effectively manage the find and technical knowledge transferred from its Korean counterpart. Though Korean development agencies—EDCF and KOICA—have launched projects and provided subsidies and loans to many development activities in the region, the impacts of its implementation are yet to be widely perceived by general publics within Mekong country. In addition, the lack of key institution in recipient countries and in the regional level also hinder the effectiveness of assistance distribution and systematic evaluation. Looking back to the history of Korean development in the Mekong region since 1980s, there is no specifically assigned institution at GMS regional level to manage and cooperate with Korean institutes like EDCF and KOICA. The existing Mekong River Commission and the ASEAN, while active on its own ground, are not well prepared to tackle on regional development issues. Korean government agencies might have been working quite extensive within each individual countries in the region, but the lack of regional institution slow down the role of Korean at the regional level.
The main factor behind Korean development in Mekong region can be captured as driven by economic reason. After the political situation in some of the Mekong countries such as Cambodia, Vietnam and Laos have been normalized, Korean government was optimistic in getting more involvement with the hope that market-led economy and the rich in resources will provide mutual benefits to both donor and recipient countries. Recently, Vietnam has become the largest destination for Korean investors and at the same time the largest recipient country from Korea. As Mekong region is an important part of ASEAN economic community, the marketplace, the production resources as well as the room for improvement will be there for the external counterparts to share this opportunity the region has to provide.
Conclusion
The paper has shown the role of Korean government in the development of Mekong region since dating back to 1980s. The authors also highlight the changing factors and agenda in Korean development extension based on its level and nature of cooperation. During the past several decade of development relationship with Korean institutions and programs, however, Mekong countries and the region itself still lack appropriate institutions in order to effectively manage the find and technical knowledge transferred from its Korean counterpart. Though Korean development agencies—EDCF and KOICA—have launched projects and provided subsidies and loans to many development activities in the region, the impacts of its implementation are yet to be widely perceived by general publics within Mekong country. In addition, the lack of key institution in recipient countries and in the regional level also hinder the effectiveness of assistance distribution and systematic evaluation. Looking back to the history of Korean development in the Mekong region since 1980s, there is no specifically assigned institution at GMS regional level to manage and cooperate with Korean institutes like EDCF and KOICA. The existing Mekong River Commission and the ASEAN, while active on its own ground, are not well prepared to tackle on regional development issues. Korean government agencies might have been working quite extensive within each individual countries in the region, but the lack of regional institution slow down the role of Korean at the regional level.
The main factor behind Korean development in Mekong region can be captured as driven by economic reason. After the political situation in some of the Mekong countries such as Cambodia, Vietnam and Laos have been normalized, Korean government was optimistic in getting more involvement with the hope that market-led economy and the rich in resources will provide mutual benefits to both donor and recipient countries. Recently, Vietnam has become the largest destination for Korean investors and at the same time the largest recipient country from Korea. As Mekong region is an important part of ASEAN economic community, the marketplace, the production resources as well as the room for improvement will be there for the external counterparts to share this opportunity the region has to provide.
