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Tuesday, 27 March 2007

Dr. Su-hoon Lee, Chairman Presidential Committee on Northeast Asian Cooperation Initiative Republic of Korea. Tuesday, 27 March 2007. Table of Contents. I. Global Presence of EU and Lessons from European Integration 1. Global Presence of EU 2. Lessons from European Integration.

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Tuesday, 27 March 2007

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  1. Dr. Su-hoon Lee, Chairman Presidential Committee on Northeast Asian Cooperation Initiative Republic of Korea Tuesday, 27 March 2007

  2. Tableof Contents I. Global Presence of EU and Lessons from European Integration 1. Global Presence of EU 2. Lessons from European Integration II. Implications to NE Asia 1. Experience of European Integration and Unique Situation in NE Asia 2. Implication from EU case on NE Asian Community III. Role of Korea and Missions Ahead

  3. Global Presence of EU and • Lessons from European Integration

  4. 1. Global Presence of EU New Status and Presence Politics/Security ㅇ Emergence of EU as a political powerhouse ㅇPotential alignment in international political arena, centering around EU after successful political integration of EU ㅇ Growing bargaining power in the global market leveraging its position as the largest economy in the world ㅇPotential improvement in industrial competitiveness with regional economic boom after EU expansion EU ㅇIntroduction of EU’s economic success as model case for integration of other regions, increasing EU’s soft power Economy ㅇ Continuous efforts to unify social and labor standards among member nations since the foundation of EEC ㅇ Currently high level of overall social safety programs and labor standards in EU vs. rest of world ㅇ Potential contribution for improvement of social/labor policies of rest of the world Society Culture ㅇ High competitiveness in cultural industries such as movie, publishing and music ㅇ Expansion of cultural presence with active promotion of cultural policies based on the belief that ‘Culture is indeed competitiveness’

  5. 1. Global Presence of EU Change in US relationship and emergence as mega power house ㅇ Decline in benefits of common security efforts with the end of Cold War. Potential rise in conflict of economic interests - Opposition on issues such as opening of agricultural market, Iraq war, Kyoto protocol and Iran nuclear weapons ㅇ Growing EU opposition on US unilateralism after 9.11 terrorist act Emerging as A compatible counterpart to US ㅇ Participation into global issues arising after Cold War - Ethnic conflict, terrors, disease, international crimes and weapons of mass destruction, etc ㅇAlthough conflicts exist over cooperation and resolution method, general consensus on overall objective is maintained Transforming into a partner on equal standing ㅇ Greater voice and influence at international negotiation as EU than as individual nation’s status ㅇ Advocating regional integration using EU as a success model (Exerting soft power) - ASEM: contributing cooperation between EU and East Asia - NTA(New Transatlantic Agenda) and TAFTA(Transatlantic FTA): leading to foundation of cooperative body between EU/US and EU/America ㅇExpanding impact on global experience by taking leadership in building regional cooperative bodies among different regions Single entity in global political arena

  6. 2. Lessonsfrom European Integration ㅇ Multi dimensional integration efforts concurrently encompassing economy, diplomacy/security and socio-cultural areas - However, early launch of a diplomacy/security cooperative body failed due to conflict of interests Institutionalization of integration from the economic segment –easier to integrate than other areas Multidimensional + Neo functionalist approach ㅇ ‘Balanced distribution of benefits from integration’ has been the key objective of EU. Policies to achieve the objective induced participation of minor nations ㅇ Enhancing cooperation by accumulating mutual trust and learning the gains from cooperation ㅇ Consensus from US comes only with alignment with its national interest Development of mutually beneficial cooperative business cases ㅇ Rise of political leaders assuring importance of European integration and presenting clear roadmap and alliance between leaders sped up integration ㅇ supra-national leaders such as Delors played a critical role Clear internal focal points And strong leadership West Germany reflected on past wrongdoings and dedicated to integration to build foundation for German unification ㅇ West Germany gained back the trust of neighboring countries by reflecting on its past wrongdoings ㅇ With strong economic power and dedicated leadership, west Germany shed the shameful name of war criminal and gained support on German unification by taking leadership in European integration ㅇ Initially, European integration fixated German division, but through European integration, west Germany built up its economic power and built foundation for national unification ※ Neo-functionalism: To effectively and quickly spread functionalism, the government intervenes and creates institutional foundation

  7. II. Implications to NE Asia and Missions ahead

  8. 1. Experience of European Integration and Unique Situation of NE Asia Limitations and constraints on applying EU case to NE Asia Mercantilism and domestic conflict of interests ㅇ In spite of high growth potential and mutual interdependence, deep-rooted mercantilism generated profound concern over integration of individual markets ㅇ Lack of conflict resolution process in case of colliding of interests among member nations Security instability and wide gap between regional nations ㅇ Existence of diplomatic/security instability and wide gap in political and ideological perspectives ㅇ Co-existence of wealth/poor nations due to different stages of economic development within the region Attachment to national sovereignty and exclusive nationalism ㅇSince most NE Asian countries secured national sovereignty at the end of 19C, strong objection against transfer of national sovereignty and exclusive nationalism exist Lack of internal focal point and potential conflict among members ㅇ No strong focal point as Germany-France and potential conflict and confrontation between regional nations - Potential deepening of rivalry between US/China, China/Japan with rapid Growth of China

  9. 2. Implications from EU case on NE Asian Community 1. Start off from the areas where tangible results can be achieved in the short run ㅇ Focus on economic integration given the complexity of pending issues in NE Asia - EU shifted to prioritize on economic integration after mid-1950’s ㅇ Recognize FTA as a practical medium in realizing NE Asian Economic Community - FTA as an diplomatic vehicle, not just a trade mechanism Utilization of FTA as an intermediary for foundation of Economic Community ㅇ Alleviation of regional gap is pre-requirement for integration of NE Asia - Efforts to establish “NE Asia Development Bank” and “NE Asia structural Fund” Alleviation of regional gap ㅇ Put priority on issues of common interest such as energy and environment as discussion agenda - In Europe, integration efforts started, centering around ECSC Strong cooperation in areas such as energy and environment 2. Approach NE Asia Community from the context of East Asia ㅇ Develop NE Asian Community as a core group of East Asian Community - In case of EU, European integration naturally became the agenda through OEEC ㅇ Focus NE Asian Community discussion around common areas of interest for East Asia as a whole Leveraging East Asia Community

  10. 2. Implications from EU case on NE Asian Community 3. Timely institutionalization based on phased neo-functionalist approach Foundation of integrated community based on phased approach ㅇ Pursue phased institutionalization of regional integration, started by a group of countries with similar political system, income level and objectives - FTA, currency balance and structural fund, etc ㅇ Push for timely launch of steering committee for foundation of regional community - In case of EU, pace of integration doubled after launch of EU council ㅇ Establishment of NE Asian multi-party security cooperation body building on 6-party talks Timely launch of steering committee for creation of regional community 4.Inducing participation and contribution of US ㅇDesign cooperative initiatives reflecting US’s interest and gaining momentum from US side - In case EU, EU continuously reminded US of the fact that revival of European economy through economic integration positively contribute to the interest of US - Highlighting open regionalism of NE Asia and securing transparency in the process ㅇ Support US’s participation in regional security cooperation and solidify Korea- US alliance Acquiring US support on integration of NE Asia

  11. 2. Implications from EU case on NE Asian Community 5. Presenting a vision for NE Asian Community ㅇ Solidify support and consensus from intellectuals and civic groups in the region - In Europe, efforts by intellectuals and civic groups spread to general public - Host regular discussion sessions under the theme of alliance in NE Asia Solidifying support from intellectuals and civic groups in NE Asia ㅇ Proactively present cooperative initiatives and vision on NE Asian Community - Although it wasn’t immediately materialized, Werner Report served as a blueprint for European currency integration ㅇImpact of the vision can multiply through thorough review and analysis on the reality – In case of EU, high-level foresight reports contained specific steps and procedures Presenting clear vision with substance 6. Acknowledging FTA as a practical intermediary for foundation of NE Asian Economic Community ㅇ Conclusion of Korea-Japan and Korea-China FTA is the first step toward NE Asian economic integration - With successful bilateral FTA, China-Japan FTA and triple FTA can be sought - In case of Europe, economic integration started off from Customs Union by Benelux countries Building Korea as a key pillar of FTA mechanism

  12. 2. Implications from EU case on NE Asian Community 7. Participation of North Korea and Formation of NE Asian Community Development of cooperative initiative contributing to regional peace ㅇ Induce NK’s participation in NE Asian cooperative initiatives in business cooperation, energy, railway, agriculture and environment areas - Facilitate NK’s reform and market opening and create positive sentiment for NE Asian integration Drawing NK’s attention on NE Asian integration ㅇ Encourage NK’s participation by granting observer status or membership in regional meetings for integration ㅇ As Korea isn’t a war criminal as Germany, it will be easier for Korea to justify its unification - In the process of leading integration, emphasize that unification will positively contributes to regional integration ㅇ Secure support from neighboring countries for unification through its commitment and leadership in NE Asian integration Building foundation for unification by taking leadership in NE Asian integration ㅇ Make efforts to acquire universalism of international law in uniqueness of intra- racial transaction ㅇ Extend indirect support for NK’s participation in regional integration through international organization - Development of Dooman River, environmental cooperation and international power network synchronization project, etc Securing international support by institutionalizing cooperation between South and North

  13. III. Role of Korea and Missions Ahead

  14. Role of Korea and Missions Ahead ㅇ The president should take strong leadership as a pioneer of integration of NE Asia - role model: Monnet (Pacifism ) + Adenauer (Unification leader) ㅇ Nurturing “Delors of NE Asia” who will lead the integration based on peace and prosperity ㅇ Supporting NE integration movement of civic society based on well-developed democracy ㅇ Proposing and spearheading NE Asia-related researches such as ‘NE Asia Vision Group’ Proactive leadership ㅇ Foundation of specialized research institute for creation of NE Asia community - Historic issues, integration roadmap, NE Asian governance and supra-national organization, etc ㅇ Establishment of “Jeju Peace Research Center”, etc and development of Korea as “Brussels of NE Asia” – hub for peace and prosperity of the region Leading research on NE Asian issues Foundation of NE security cooperative mechanism building on 6-party talks ㅇ Building on outcome of 6-party talks, taking the leadership in building up the framework for NE Asian security cooperative mechanism ㅇ Need to develop strong partnership as Germany-France to serve as a focal point for integration - Urging Japan to change its position jointly with other victims of Japanese aggression ㅇ Keeping stable relationship with US is the key for solidifying the voice within the region Strategic partnership to realize integration of NE Asia

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