G20 Summit and the Change

in Global Regional Development Cooperation

2011. 5. 4.

4th Astana Economic Fo-rum

1. Mechanism of Regional Development

2. The Case of Regional Development in Korea

3. Failure of Existing Multilateral Development Banks

4. Measures of G20 Infrastructure Development Cooperation

The Table of Contents

1

• Growth pole strategy ⇒ unbalanced development

⇒ infrastructure development ⇒ backward effect

⇒ increase the unbalanced development

• But, the current regional development can not avoid

the unbalanced development.

• Why? The growth pole development accrues economic agglomera-

tion

and concentration of population, and creates surplus of capital,

and

finally builds infrastructure.

1. Mechanism of Regional Develop-ment

2

• Growth pole development

⇒ Connecting those growth poles by selection and concentration

strategy

• Unbalanced development but spread effect for all the nation

• National Territorial Plan in Korea

2. The Case of Regional Development in Korea

2. The Case of Regional Development in Korea

The First Comprehensive National Territorial Plan

(1972- 1981)

Maximize the growth potential with lim-

ited resources

1. Develop large industrial estates and

metropolitan regions

- Southeastern coastal industrial belts

- Seoul Metropolitan Area

2. Priority Investment in Infrastructure

(Expressways, Ports) and link to ma-

jor industrial estates

3. Develop the depressed regions

Per capita GNP in 1972: $ 319

3

2. The Case of Regional Development in Korea

The Second Comprehensive National Territorial Plan

(1982- 1991)Per capita GNP in 1982: $1,824

4

Spread the growth effect to the nation

1. Suppress over-concentration in Seoul

Metropolitan Area (Capital Region)

2. Develop multiple growth poles in the

nation

- Foster metropolitan regions as

growth engines

3. Consider environmental aspects on

territorial development

• Urban development is minor component during 60 passing years.

• So to speak, growth pole was neglected.

• Without demand, infrastructure development was executed.

• As a result, inefficient infrastructure development has been preva-

lent.

• Also, multilateral infrastructure development as a main goal of Multi-

lateral

Development Banks has not been realized into practice.

3. Failure of Existing Multilateral Development Banks

5

1) Without consideration of the regional development mechanism

3. Failure of Existing Multilateral Development Banks

6

2) Failure of adopting urban dominant situation

Rise of urbanization rate (Urban Population/World Population)

200549%

203060%

2008 50%93% of the population increase will be caused by increase in urban population in the developing coun-tries

Increase in urban devel-

opment

: Development of the new city

: Environmental improvement

and regeneration of the

existing cities

⇒ People already move to growth pole.

3. Failure of Existing Multilateral Development Banks

7

3) Neglecting regional economic community

• Enhancing cooperation with countries that are geographically close

and have similarities with cultures and languages

• Creation of Regional Economic Communities between countries

that have deep economical interest with each other

• Through this, it could promote trade boost, poverty reduction and

infrastructure support. → creation and support of the regional

banks

• Example) European Union (EU) : Political and Economical Commu-

nity that

carries out currency and political integration

European Coal & Steal Community

European Economy Community

European Atomic Community

European Commu-nity

European Union

3. Failure of Existing Multilateral Development Banks

8

4) South to South Cooperation and Sub-Regional Development Bank

• After the global financial crisis, South to South development co-

operation has been increasing.

• Due to this matter, importance of regional economic community

and regional development banks has been also increasing.

• Sub-Regional Development Banks: Represents smaller regions and regional economic community than the Regional Development Banks (WB, ADB, AfDB, IDB, EBRD) cover West African Development Banks, Bank of South America, East African Development Bank, Eurasian Development Bank etc.Eurasian Development Bank (EDB)- Formed under the lead from the two major countries of Eurasian Economic

Community, Russia and Kazakhstan- Scheduled to be expanded to all of the member countries of the Eurasian

Economic Community, and has purpose of regional integration through infra-structure development of the Eurasian Economic Community.

2010. 11. 11-12 G20 Seoul Summit: Proposal of development cooperation with the developing coun-tries

Seoul Development Consensus ‘Support of SOC and dissemination of development experiences to developing countries’ : Selection of infrastructure as one of 9 ma-jor fields

2000. 9 UN New Millennium Summit: Establishment of Millennium Development Goals (MDGs)

2010-2011 HLP (High-Level Panel)Formed for supporting financial resources expansions in the infrastructure investment

2011 . 11 HLF-4 (The 4th high level forum for the effects of aid)

Scheduled to be held in Korea 9

“Prioritize actions that tackle global or regional systemic issues such as regional integration where the G20 can help to cat-alyze action by drawing attention to key challenges and calling on international institutions, such as MDBs, to respond. Focus on systemic issues where there is a need for collective and coor-dinated action, including through South-South and triangular co-operation, to create synergies for maximum development im-pact.”

4. Measures of G20 Infrastructure Development Coopera-tion

10

• First, infrastructure development cannot be accomplished if regional devel-

opment is not considered.

• G20 Infrastructure development cooperation must take care of growth pole in

the region.

4. Measures of G20 Infrastructure Development Coopera-tion

• Metropolitan development is the first thing

to take care of.

• Infrastructure concerns inner urban infrastruc-

ture and also between Urbans in Metro area.

• Finally, Metro and Metro infrastructure should

be considered.

• Financial assistance from G20 should focus on

Sub-regional Development Banks based on

regional economic community.

Thank you.