Implications from International Experiences of Reunification: Lessons from Vietnam’s Experience David Dollar Senior Fellow, Brookings Institution Seminar on Korean Reunification: Prospect and Global Implications February 2017 Follow me on twitter @davidrdollar See my blog and papers at https://www.brookings.edu/experts/david-dollar/
Implications from International Experiences of Reunification North-South gap in Korea is unprecedented Vietnam provides some lessons Challenges of macroeconomic stability Importance of realistic currency value Benefits of foreign investment and aid Economic reform in DPRK is key
Characteristics of China, DPRK, ROK and Vietnam
(Log Scale) Figure 3.1
Vietnam’s inflation, GDP deflator, 1990-2014 (percent per year)
Growth rate of money, M2, 1996-2014 (percent per year)
Vietnam, deposit interest rates and CPI inflation 1993-2014
Vietnam’s real effective exchange rate,1989-2013
Vietnam: FDI liabilities and Net Foreign Assets 1995-2011
Implications from International Experiences of Reunification North-South gap is unprecedented Vietnam provides some lessons Challenges of macroeconomic stability Importance of realistic currency value Benefits of foreign investment and aid Economic reform in DPRK is key