ID :
115037
Mon, 04/05/2010 - 15:12
Auther :

(EDITORIAL from The Chosun Ilbo on April 5)



Time for Korea to Repay Its Debt to the World

As early as the end of this year, Korea will give aid to developing countries
under a program designed to promote economic growth by providing preferential
duty-free entry for their products. About 150 developing countries are expected
to benefit from the program, including 49 of the world's poorest as designated by
the UN. The European Commission was the first to institute the program in 1971
and the measure is now implemented by 37 countries, including the U.S. and Japan.

Export-driven Korea also benefited from it in the past. In 1987, Korea exported
US$7 billion worth of products under the program, which accounted for 15 percent
of its total outbound shipments that year. But this ended in the EU (then the EC)
in 1988, followed by the U.S. in 1989 and Japan in 2000. Some countries still
give benefits to Korea, but only for a small portion of products -- enough to say
that Korea is no longer among those who need special treatment.
In November last year, Korea became the 24th member of the Development Assistance
Committee of the OECD, becoming an aid donor. Korea used to be a recipient of aid
just a few decades ago. If it starts to help developing countries, it will join
the ranks of the world's advanced countries in the area of trade. Korea also
decided to expand the amount of tariff-free goods it imports from the world's
poorest countries from 80 percent last year to 85 percent this year, 90 percent
in 2011 and 95 percent by 2012.
As the chair country of the G20 Summit, Korea's status is rising on the
international stage. But that position also carries more responsibilities. The
time has come for Korea to repay its debt to the world. It needs to come up with
a unique model of overseas assistance based on its economic development
experience and offer concrete help to developing countries in the areas of
corporate restructuring, foreign currency crisis management and nurturing small
and mid-sized businesses.
(END)

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