Some more about the G20 Seoul Summit

For a very long time, Korea has never been given a chance to establish international structures or frameworks. It had a challenging time just acquiring a membership to international organizations such as to the UN and the OECD. But with the hosting of the G20 Seoul Summit coming November, Korea has now opened a new diplomatic horizon for itself. Korea can now add its own voice to the global economic order as a rule-setter, not as a mere rule-follower; has moved from the periphery to the center of the global stage. 
To view an introductory video clip on the G20 Seoul Summit, click the following link : 

http://www.koreabrand.net/kr/pcnb/pcnb_news_view.do?SEQ=300  \

G-20 tasks lying ahead for Korea

By Moon Woo-sik
Professor, Graduate School of International Studies
Seoul National University

* Great chance to consolidate rule-setter position
When the financial crisis swept the globe following the bankruptcy of Lehman Brothers, the leaders of the G-20 nations - comprising not only advanced economies such as the United States, Japan and European countries, but also emerging ones including China, Russia and India - gathered in Washington, D.C. to plan a new global economic structure. Korea also took part and played an active role. In the third G-20 meeting held in Pittsburgh in September 2009, the global leaders proclaimed the G-20 summit to be a "premier forum" that will lead international economic collaboration and agreed to hold the summit annually from 2011. It was further decided to hold one of the summit meetings in Korea, the G-20's 2010 chair nation. Korea opened a new diplomatic horizon for itself by seizing a chance to host the meeting of the world top economic leaders.

Throughout the history of Korean diplomacy, the country has only taken part in the existing international order as exemplified by its gaining membership in the United Nations and the Organization for Economic Cooperation and Development. It has not been given a chance to establish any of the international structures or frameworks. The only choice left for Korea was either to become a member of international organizations or to just watch without membership while more advanced countries behaved unjustly against it.

Efforts in the past to become a member of international organizations were rarely successful. Even when it acquired a membership, Korea had to accept unfavorable regulations and practices as they were. But by hosting a G-20 meeting, the country now can add its own voice to the global economic order as a rule-setter, no more as a mere rule-follower.

Korean people do not yet seem to appreciate the country's heightened status as a rule-setter. A just society is propped up by law and order. Inappropriate or unfair practices of law and order will directly affect people's lives. The victim mentality often seen in Korea is the result of such unfair practices. Put differently, fair and just law and regulations will raise people‘s quality of life.

The world is being globalized at an astounding pace. Labor and capital, not to mention products, transcend national borders in their movements. That being said, we are governed by two different orders - domestic and international. When Korea had only few exchanges with foreign countries, the behavior and activities of its nationals were largely regulated by domestic laws, and these laws were also enacted and amended in a way that was conducive to the convenience of the people living in their jurisdiction.

However, international norms play as important a role as domestic ones in this globalizing world. But unlike domestic norms, international norms are carved out through discussion among international parties. Those discussions have so far largely been commanded by a few advanced nations and Korea has rarely had the chance to represent its interests. Small nations have had to bite the bullet when becoming a part of international organizations or treaties, resulting in their developing a victim mentality.

Korea's participation in the G-20 meeting will lay a stepping stone for overcoming that mentality and voicing its interests to be reflected in new international norms and regulations.

* Korea should actively play as mediator between advanced and developing countries
The 19th century was an era marked by the rule of power, while the present is dominated by rule of law and order. As in the process of European integration, each individual state acts voluntarily when it understands and agrees to an international norm. We should bear in mind that international norms and regulations are not meant to be in favor of powerful states, but to protect weaker states. Powerful states possess a variety of compulsory measures, which will move small states into action without resorting to international standards. Smaller powers often have no choice but to suffer from this.

Albeit not widely known, European currency integration does not favor economically stronger nations such as Germany, but weaker nations like France. The Deutschmark had been used as a European currency before the introduction of the Euro and Germany didn't initially bother to use the new currency. Neither did it need to establish the European Central Bank (ECB).

Meanwhile, the French franc had been continuously depreciating and the country lost its autonomy in currency management, leading to the establishment of the ECB. With this, France regained its independence over currency management. The current head of the ECB is French, which demonstrates well that the beneficiary of the presence of international organizations or regulations is not stronger but weaker countries.

There are many international regulations established that work in Korea’s favor. When Korea and the United States were engaged in trade disputes regarding the opening of the Korean auto market, the United States resorted to the forceful use of the "Super 301" provision in retaliation. No legal measures were taken, but the case informed the World Trade Organization of unfair trade practices by the United States and it rectified the situation. This shows the effectiveness of international regulations in protecting the position of weaker states.

Korea's membership in the United Nations is another example. Although very unrealistic, if the United Nations could function as a real united entity, as the United States does, it would clearly benefit Korea. Were it not for the United Nations, it would be tough for Korea to represent its interests in Korea-U.S. dialogue.

Korea should take advantage of its G-20 membership to actively partake in mapping out international regulations. In fact, smaller countries are in a better position at global forums or discussions than the United States or China, because stronger nations often face objections when developing agenda items and implementing the plans, whereas smaller countries like Korea don't.

Also, Korea seems to be placed in a favorable mediating position between advanced and developing countries. Korea is the only G-20 member who joined the ranks of advanced nations after coming out of the era of colonization. It also has the invaluable experience of achieving brilliant economic growth after the 1950-53 Korean War.

* Law-abiding and orderly culture

We should, however, build up a domestic system in which people faithfully abide by laws and regulations. We are in a favorable position to create international standards, and to strengthen that position we should at the same time create a law-abiding culture nationwide. We cannot expect other people to accept the international standards we suggest when we don't follow our own regulations.

Put simply, whether or not Korea leaps forward as a global leader depends on our ability to make a society which respects democracy and complies with principles.

For this, people should raise their consciousness more than anything else, but laws should be implemented in a just and fair manner as well. Special and full attention should also be given to the vulnerable in our society. This globalizing society in particular will inevitably produce underprivileged classes by introducing international norms and regulations. And if we can't embrace those in need, there is no room for those fair and just regulations.

* Source: Gov't online portal website Gonggam (www.korea.kr)

The G20 has achieved much over the last year and a half to stabilize the global financial system. International 
policy development to strengthen financial stability has been proceeding according to the timetables agreed by 
the G20, and implementation at national level is taking place across a broad front.

While good progress has been made, 2010 and 2011 will be critical years for the most 
important pieces of global financial regulatory reform. They will largely determine whether 
we meet the reform objectives of creating a financial system that is more resilient and less 
prone to a crisis. The role of the G20 will be vital to address these remaining challenges.

The Government of Korea is exercising strong and effective leadership as the Chair of 
the G20 at this important stage. A key milestone for much of the financial reform agenda is 
the Seoul G20 Summit in November. The world is grateful to the Korean people for hosting 
the Summit and many other preparatory meetings.

This publication, prepared by the Presidential Committee for the G20 Summit, 
provides readers with deepened understanding of the role of the G20 as the premier 
forum for international cooperation and policy development in economic and financial areas. 
It provides useful information on the main issues of the Seoul G20 Summit under the Korean presidency.

The Financial Stability Board (FSB), which I chair, is working closely with the Korean Government to coordinate 
and monitor progress on the G20 financial reform agenda. This publication therefore provides information also on 
the current work agenda of the FSB. Working in close co-operation, I am confident that the G20 and the FSB will 
be able in 2010 to put in place the basis for a much stronger and more resilient financial system for the future. 

Mario Draghi
FSB Chief

The economic upheaval over the past two years is unprecedented in our lifetime, and yet it could have been 
even worse. Thanks to the G20 members’ massive macroeconomic support, coordinated response to the dec-
line in global activity and the swift actions to stabilize markets, a depression was averted and a recovery is 
now underway.

The crisis was a catalyst that accellerated the urgency at which the global 
governance architecture had to be updated and revamped. Within this space, 
the G20’s capacity to deliver has been outstanding, and it rightly established 
itself as the premier forum for international economic co-operation.

The G20 now needs to deliver on its commitments and prove its value 
not just in a time of crisis, but in the recovery phase and beyond. 
In particular, G20 countries need to face the twin challenges of 
implementing stimulus exit strategies and ensuring that a strong, 
jobs rich recovery takes hold and that growth can be restored and 
maintained over the longer term. If successful, that would be a major contribution of the G20 to the world economy.

The G20 process is thus at a critical moment. But I am convinced that under the leadership of the Korean Presidency the G20 and the Seoul Summit will be successful. The Korean Presidential Committee for the G20 Summit has brought together a formidable team, uniting the best talent in each policy field. Korea’s own development story and its rapid recovery from the mid-1990s Asian financial crisis are also remarkable, and serve to help and inspire us all.

No single country or group of countries will succeed on their own, however. We will only address the challenges we face successfully if we work together. The OECD has a responsibility to offer its expertise and knowledge in support of the G20 process. We are already doing this with substantive contributions on core issues such as tax evasion, open investment markets, employment, environment, fighting corruption and promoting development that will help countries build a stronger, cleaner and fairer world economy.

I wish Korea a very successful G20 Presidency and Summit. The OECD looks forward to continue supporting you in every way possible. 

Angel Gurría
OECD Secretary-General

The eyes of the world will be on the Republic of Korea this year as it assumes the presidency of the G20. This is 
a critical time for the global economy and a major test of the G20’s credibility. With the recovery still uncertain, 
it will be vital to move towards rebalancing global growth and recognizing that developing 
countries can play an important part in the emerging mulipolar world economy. 
Support for developing countries is not charity. It is self- interest. 
They can become new poles of growth that will make the world economy more stable 
and create jobs in a developed world mired in slow growth and high debts. 
I would like to thank and commend the leadership of President Lee Myung-Bak in 
the G20 process. Korea has helped ensure that development issues are on the 
G20 agenda. This is important for the G20’s credibility with the rest of the world. 
Korea’s history qualifies it for a leadership role in this changing global economy. 
Korea is one of the world’s great development success stories successfully 
advancing from a receiver of development assistance to a provider. Korea is 
ensuring that the voices of those outside the G20 are heard. Nothing less is 
needed if the world is to achieve inclusive, sustainable and balanced growth. 
To that end, the World Bank Group stands fully behind Korea as it negotiates 
the path ahead for the G20. 

Robert B. Zoellick
World Bank Group President