외교부

   
  Check against Delivery

Fourth United Nations Conference on Least Developed Countries

H.E. Mr. Min Dong-seok Vice Minister of Foreign Affairs and Trade of the Republic of Korea
12 May 2011 Istanbul, Turkey

 
Mr. President,

It is an honor and pleasure for me to be here, at the Fourth United Nations Conference on Least Developed Countries (LDCs). I am glad of this opportunity to share Korea’s perspectives on the development of LDCs and our commitment to join the global efforts to support them.

Let me begin by extending my appreciation to the Government of Turkey for hosting this important conference, and to the UN Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries, and Small Island Developing States (UN-OHRLLS) for all the excellent preparatory work and arrangements.

(Development in LDCs: Progress and Continuing Challenges) 

Mr. President,

The LDCs have made considerable progress in terms of economic growth and human development since 2000. However, they continue to face challenges. Over two thirds of the populations in the LDCs are still living on less than 2 US dollars per day. Worse yet, the recent multiple global crises hit the LDCs especially hard, threatening to roll back much of the hard-earned development gains and widening the development gap with the rest of the world.

With only four years remaining until the target year for the Millennium Development Goals (MDGs), accelerated progress in the LDCs is critical in order to ‘keep our promise’ on the MDGs.

In this regard, this conference holds great meaning. We have gathered here to pool our wisdom and knowledge to renew international cooperation for LDCs with ambitious, but deliverable targets and actions, which will guide us toward the MDGs and beyond.

(Korea as a Recipient-Turned-Donor)

Mr. President,

As many of you are aware, the Republic of Korea was once one of the poorest nations in the world and toiled to rebuild itself from the ashes of a devastating war. In the year 1953 when the Korean War ended, Korea’s per capita GDP was 67 US dollars. At that time, foreign aid was virtually the only source of capital to maintain a minimum level of living subsistence.

I myself was a beneficiary of such assistance as a child. I used to drink milk and eat cornbread from the containers bearing the UN or US Government emblems. A half century later, now I see children in developing countries studying with books provided by the Korean Government. On their faces, I see the same eagerness to learn and curiosity about the outside world that we Korean children had in the past.

Korea has transformed from a recipient to a donor within the lifetime of many Koreans today. For 50 years from its independence in 1945 to the late 1990s, Korea received a total of 12.7 billion US dollars in foreign aid. Making good use of this assistance, the Korean Government and its people worked hard to overcome poverty and achieve development. As a result, the economy has grown more than 800 times, per capita GDP has reached over 20,000 US dollars, and Korea has become the first member of the OECD Development Assistance Committee (DAC) to come from the ranks of least developed countries. 

I hope that Korea’s story does send a clear message of hope for many least developed countries. What happened in Korea can happen in other countries as well.

(Messages from the Korean Development Experience)

Mr. President,

As a recipient-turned-donor country, Korea has a deeper understanding of the challenges and structural limitations of least developed countries. We fully recognize that aid can work, playing a catalytic role for development. We also have knowledge and experience of how to eventually exit from aid. We hope to contribute to the world by making the best use of this unique development experience.

Building upon this, I would like to elaborate on the story of Korea’s development, which I believe, may serve as a useful frame of reference for the development of LDCs in the decade ahead.  

Capacity Building

In Korea’s economic and social development, capacity building has played a pivotal role. A serious lack of natural resources, a technological base, and domestic capital had long blocked Korea’s development. Instead, the only abundant resource in Korea was its people. Accordingly, human resource development was a key element in building overall capacity of the country in the process of development.

Korea retained high levels of school enrollment for primary and secondary education throughout the whole period of development. Our priority on education and a well-trained workforce became a driving force for rapid economic growth in the 1970s and 80s.

Economic Growth and Effective Governance

In the early stage of development, strong and sustained economic growth was crucial in eradicating poverty and expediting overall development.

From the 1960s to the 1980s, the Korean economy took off with a high growth rate of 8 to 12% based on an export-led growth strategy. During this period, the Korean Government found that there was a pressing need to build the economic and social infrastructure. Foreign aid served as a complementary resource for the building of hospitals, power plants, communications networks, and highways.

Development was a nationally shared commitment and goal. The spirit of “can do” attitude was widely embraced by people including in the rural areas. The government was firmly committed to setting Korea’s own development priorities based on long-term plans called the “Five-Year Development Plans.” The Korean Government took the leadership and initiative in identifying development assistance projects in order to closely align them with the national priorities. Moreover, the Korean Government has made great efforts towards good governance by improving regulatory quality, strengthening accountability, and reinforcing the control of corruption.

Korea’s development experience shows the importance of targeting development resources towards enhancing productive capacity. In the earlier stages of development, Korea exerted great efforts to increase agricultural productivity. As the economy gradually advanced, however, the government strategically focused on the service sector such as information technology to effectively bridge the development gap. An equally important factor was making full use of the favorable international trade environment. Along with the effective export promotion policies, we were able to make a shift in Korea’s export commodity profile from agriculture to manufacturing, from light industries to heavy and chemical industries.

Effective Use of Development Resources

As I explained earlier, foreign aid was an important resource for development in Korea, occupying over 50% of the government revenue in the late 1950s. However, the share of aid in the government revenue and total imports were gradually reduced and replaced by other development resources such as domestic savings and trade earnings.

We should bear in mind that aid is only one part of the equation in development. There are other development instruments that help developing countries realize their potential for growth and development. Aid should be used as a catalyst to complement and leverage other development resources including trade, private investment, and domestic resources.

Mr. President,

Let me underline here that the Korean model is not something that should be repeated by every country. In an increasingly globalized and complex world, there is no one-size-fits-all solution. In order to be successful, it is important to reflect the diversity and particularities of the national context as well as the changes in the global environment. I hope that Korea’s story may resonate, serving as a source of inspiration.

(Korea’s Contribution to the Development of LDCs)

Mr. President,

The success of the new Programme of Action to be adopted in Istanbul hinges on honoring our development commitments in support of LDCs.

Although our resources for development assistance are modest, the Korean Government is fully committed to its pledge to increase the ODA budget in the next four years to around 3 billion US dollars or 0.25% of GNI.

I am glad to affirm that development cooperation with LDCs is one of Korea’s priorities. Korea’s ODA to the LDCs has quadrupled over the last decade. And we are determined to ensure that the momentum is maintained. Korea will increase the share of assistance to LDCs and fragile states from the current level of 15% to 40% by the year 2015.
As part of the efforts, we will increase ODA to Africa where the majority of LDCs are located, and support the health sector by utilizing innovative financing for development such as the air-ticket solidarity levy. We have also set a target of significantly increasing the untying ratio of ODA to LDCs. According to the plan, we will fully untie grant aid to LDCs by next year.

Moreover, Korea has made concrete plans to expand the market access for LDCs by gradually increasing the duty-free and quota-free ratio and to build their capacity to tackle future global challenges.

Last year, Korea established the Global Green Growth Institute (GGGI) to support the international community in proactively responding to climate change and to share our experience of green growth strategies with developing countries. In addition, Korea will expand the support for food security by contributing 150 million US dollars including the financial contribution to the Global Agriculture and Food Security Program (GAFSP).

Mr. President,

In addition to the bilateral and multilateral assistance, Korea has recently played an active role in increasing the global momentum to create an enabling environment for the development of LDCs.

I firmly believe that the Seoul Development Consensus for Shared Growth and its Multi-year Action Plan adopted at the G20 Seoul Summit last year serve to promote sustainable, resilient, and inclusive growth in LDCs. In particular, the G20’s commitment to promoting infrastructure investment and regional trade integration, reducing vulnerability to food price risks, and mainstreaming knowledge sharing, will strongly support the LDCs in realizing their full potential for development.

At the 65th UN General Assembly last year, Korea also played a leading role in the adoption of the UN Resolution on Sustained, Inclusive, and Equitable Economic Growth. All these efforts were part of our going endeavor to help the LDCs escape the poverty trap.

(Busan HLF-4)

Mr. President,

The challenges LDCs are facing are formidable. By the year 2020, we may succeed in some endeavors, and may not in others. Building inclusive and effective partnerships will be essential in order to maximize our chances of success. 

In late November this year, the Republic of Korea will host the Fourth High-Level Forum on Aid Effectiveness (HLF-4) in Busan, the second largest city in Korea. Busan is a port city where humanitarian goods were unloaded during the Korean War. This was also a hub of Korea’s industrial development in the 1960s and 70s. Now Busan has become the world’s 5th largest port. The story of Busan showcases how much we can achieve through development cooperation.

Korea is indeed delighted and honored to have the chance to host this global event. This is part of our efforts to contributing to eradicating poverty and promoting sustainable development in developing countries. We believe that Korea offers a perfect setting for discussing development issues and bridging partnerships between traditional donors, emerging economies, and developing countries.

Bringing together over 2,000 participants from all stakeholders in development, Busan will present a unique opportunity to define a new vision and strategy for aid and development. I look forward to your active participation in and support for our collective efforts to make this event a milestone in achieving the MDGs and opening a new chapter of broader and deeper global development partnerships. 

(Closing)

Mr. President,

It is my sincere hope that the Istanbul Conference, building upon the new dynamics of global development environment, will pave the way for an inclusive partnership for LDCs.

I would like to bring my remarks to a close by taking this chance to reaffirm that the Government of the Republic of Korea remains fully committed to playing a valuable part in this important global endeavor.

Thank you.  /End/


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