Entering a New Phase
ADB Review [ July - August 2004
]
The Republic of Korea, one of ADB’s first borrowers, is now a
success story and a major donor
By Graham Dwyer
External Relations Specialist
JEJU, REPUBLIC OF KOREA
"As liberalization of trade and financial flows had greatly reduced the meaning of borders, the world will sink or swim together on the tide of the global business cycle"
Hun-Jai Lee, Deputy Prime Minister Republic of Korea
The Republic of Korea represents a remarkable success story that
offers lessons for the rest of Asia, ADB President Tadao Chino said
at the opening of a seminar in Jeju.
Speaking at the Korea Day Seminar, held on the eve of the opening
of the 37th Annual Meeting of ADB’s Board of Governors, Mr. Chino
said the Republic of Korea’s economy had transformed from one that
was agriculture-based, with per capita gross domestic product below
$100 in the early 1960s, to among the most advanced economies in
the world.
“After the Asian financial crisis struck in 1997, the Republic
of Korea recovered quickly, thanks to strong structural reforms,
especially in the financial and corporate sectors,” he said. “Now
building on its success to date, it strides to develop its economy
further.”
The seminar presented an excellent opportunity not only to assess
the factors behind the Republic of Korea’s development success,
but also to discuss the challenges facing the country and the rest
of Asia in striving for “dynamic and sustainable growth,” Mr. Chino
added.
Hun-Jai Lee, Deputy Prime Minister and Minister of Finance and
Economy of the Republic of Korea, told the seminar that as liberalization
of trade and financial flows had greatly reduced the meaning of
borders, the world will sink or swim together on the tide of the
global business cycle.
“More than ever before, the world’s policy makers must be appreciative
of this symbiotic relationship when contemplating their policy actions,”
said Mr. Lee, Lee, also Chairman of the ADB’s Board of Governors.
“In this symbiotic era, greater economic cooperation among Asian
countries will be essential. In this context, it is quite encouraging
to see that Asian countries are making some progress in the area
of financial cooperation.”
Mr. Lee added that without a clear vision for long-term growth,
high economic performance in Asia will not be sustainable.
“We are placing the highest priority on building an advanced market
economy, where efficiency, transparency, and accountability reinforce
one another,” he said.
“The role of the government will be to ensure free and fair competition
among market participants.”
The Korea Day Seminar, with the theme “Dynamic and Sustainable
Growth in Korea and Asia,” brought together distinguished participants
in six sessions from academia, private sector, and international
agencies.
“Much has changed in Asia and the Pacific since I first started
work on the establishment of ADB 40 years ago,” said Mr. Chino.
“One of the most impressive developments is that the Republic of
Korea, one of our founding members and one of the first borrowing
countries, has become a donor...I hope our partnership will now
enter a new phase—as we work together to assist other countries
in the Asia and Pacific region develop their economies and reduce
poverty,” he added.
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