G20 Summit and the Change in Global Regional Development Cooperation th Astana Economic Forum

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 agglomeration and concentration of population, and creates surplus of capital, and finally builds infrastructure Mechanism of Regional Development

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 The Case of Regional Development in Korea

The First Comprehensive National Territorial Plan ( ) Maximize the growth potential with limited 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 major industrial estates 3. Develop the depressed regions Per capita GNP in 1972: $ 319 3

2. 2. The Case of Regional Development in Korea The Second Comprehensive National Territorial Plan ( ) 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 prevalent. Also, multilateral infrastructure development as a main goal of Multilateral Development Banks has not been realized into practice Failure of Existing Multilateral Development Banks 5 1) Without consideration of the regional development mechanism

3. 3. Failure of Existing Multilateral Development Banks 6 2) Failure of adopting urban dominant situation Rise of urbanization rate (Urban Population/World Population) % % % 93% of the population increase will be caused by increase in urban population in the developing countries Increase in urban development : Development of the new city : Environmental improvement and regeneration of the existing cities ⇒ People already move to growth pole.

3. 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 Community that carries out currency and political integration European Coal & Steal Community European Economy Community European Atomic Community European CommunityEuropean Union

3. 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 cooperation 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 infrastructure development of the Eurasian Economic Community.

G20 Seoul Summit : Proposal of development cooperation with the developing countries Seoul Development Consensus ‘Support of SOC and dissemination of development experiences to developing countries’ : Selection of infrastructure as one of 9 major fields UN New Millennium Summit: Establishment of Millennium Development Goals (MDGs) HLP (High-Level Panel) Formed for supporting financial resources expansions in the infrastructure investment 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 catalyze 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 coordinated action, including through South-South and triangular cooperation, to create synergies for maximum development impact.” Measures of G20 Infrastructure Development Cooperation

10 First, infrastructure development cannot be accomplished if regional development is not considered. G20 Infrastructure development cooperation must take care of growth pole in the region Measures of G20 Infrastructure Development Cooperation Metropolitan development is the first thing to take care of. Infrastructure concerns inner urban infrastructure 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.