[Editorial] Building a cornerstone for inter-Korean economic cooperation

Posted on : 2007-11-17 11:04 KST Modified on : 2007-11-17 11:04 KST

The North-South prime ministers’ meeting held for three days in Seoul saw a better atmosphere than at any previous inter-Korean talks. The meeting was supposed to be about developing plans for implementing the 2007 North-South Summit Declaration, so there were no points of contention, and furthermore, the North assumed a flexible attitude. The result was that they were able to produce an agreement that has substance, with 49 points. Seoul and Pyongyang have entered the real implementation stage for the summit declaration.

The two sides decided to hold prime ministers’ talks and meetings of the deputy prime minister-level “North South Economic Cooperation Joint Committee” at regular six month intervals. They will hold the “West Sea Special Peace and Cooperation Zone Committee” every quarter. The defense ministers’ talks, the newly agreed ministerial-level “North South Social and Cultural Cooperation Committee,” and other high-level formats, will be a system for putting the summit declaration into specifics and advancing its implementation. Concrete points of agreement were reached in various areas, in addition to the establishment of this format.

What is most notable is the progress made on issues relating to passage, communications, and customs for the Gaeseong (Kaesong) Industrial Park. Shipping by train between Munsan Station in the South and Bongdong Station in Gaeseong is about to commence, and that combined with the Internet connection and phone services soon to begin in Gaeseong will contribute significantly to the area's development. The expressway between Gaeseong and Pyongyang, the rail link between Gaeseong and Sinuiju, and the construction of a shipbuilding facility will become a cornerstone of the improvement of logistics and inter-Korean economic integration.

The pragmatic approach the Northerners assumed at these talks is connected to Pyongyang's recent efforts to intensify its economic diplomacy and actively cooperate in nuclear disablement and the reporting of its nuclear facilities.

One is able to look ahead toward the resolution of the North Korean nuclear issue see a sure policy shift toward things of an economic nature. Fearing instability the North does not use the words “reform” and “openness,” but that is essentially the direction being taken. The points agreed to in this latest document are indeed part of reform and openness. What the North needs to be doing now is show that it has changed in the areas of military issues and politics, so as to produce results that make this new trend settle in smoothly. The first test will be the defense ministers’ talks. The topic of discussion will be the mutual assurances between militaries that will be essential for the establishment of the West Sea Special Peace and Cooperation Zone Committee as well as train operations, and, in addition, to produce comprehensive agreement on promoting mutual confidence.

According to one recent study, the economic benefit the South stands to gain from carrying out the summit declaration could be US$38.26 and 57.95 billion. In other words, intensifying economic cooperation is the way to go about co-prosperity. The premise, however, is that North and South have clear determination and are proactive about making things happen. This is why responsibly carrying out this latest agreement is as important as what it actually says.

Please direct questions or comments to [englishhani@hani.co.kr]

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