The first Korea-Myanmar Joint Committee for Economic Cooperation was held in Naypyidaw, Myanmar on June 19, 2013. Korea’s Deputy Prime Minister Hyun Oh-seok led the Korean delegates of high ranking government officials from 15 related ministries, while Myanmar’s Minister for National Planning and Economic Development, Kan Zaw and Korean delegates’ counterparts from 20 related ministries participated in the committee along with those from related institutions.
Major Outcomes of the Committee
1. Korea plays a role of a navigator for Myanmar’s economic development through the establishment of the Myanmar Development Institute (MDI), a think tank, and new Saemaul Undong*, which will be a main pillar of regional economic development.
* The New Community Movement, South Korea’s successful rural development project in 1970’s
The Korean government will provide a cooperation package which covers the provision of information and knowhow as well as physical support, in order to enhance cooperation efficiency.
1) MDI
Korea’s KSP (Knowledge Sharing Program) will be a hub for information-based support, through which the MDI establishment plan and national development blueprint will be drawn up, and education opportunities will be given to Myanmar public officials. The Korean government will also provide physical support for MDI construction, such as construction materials and facilities.
2) Rural Development
Developing rural areas are extremely important in Myanmar, since 80 percent of population lives in the country. The Myanmar government has shown great interest in rural development because it directly leads to regional and national economic development, and there has been huge demand for rural development.
The Korean government’s rural development support package, the New Saemaul Undong, will include information-based support such as training programs for rural leaders as well as physical support to strengthen infrastructure, such as agricultural product processing factories, schools and social overhead capital (SOC).
2. The Korean government will help build industrial complexes in Myanmar, which will serve as a basis for Korean companies entering into the Myanmar market, and will generate the ‘economic Korean-wave’ by facilitating the development of infrastructure/energy/resources and broadcasting/communications/IT sectors, the industries in which Korea has advanced technology and experience.
1) Founding a Basis for Korean Enterprises
Dala is considered a best place to locate industrial complexes. The Korean government has been examining the appropriateness of the place as a location for industrial complexes housing Korean enterprises. The Korean government will prepare basic infrastructure systems, such as electricity and water supply, and roads, before Korean enterprises move into the complex. Korean enterprises will be given priorities when they want to move into the complex, and will receive administrative support regarding permits, regulations and other difficulties, along with financial support and other incentives.
The Korean government will also help draw up the development plan for the southwest region of Yangon, a less developed area. Projects utilizing Korea’s Economic Development Cooperation Fund (EDCF) will start again in Myanmar as Korea will help build the 500kV power supply network, through which electricity generated by hydraulic power in the central region of Yangon will be supplied to the south region of Yangon and other industrial regions.
The Korea and Myanmar Friendship Bridge will be constructed, which will be the first bridge crossing the Yangon River with automobile access.
2) Establishing Institutional Infrastructure for Korean Enterprises
The two countries agreed to sign a bilateral investment guarantee pact at the earliest possible time, which is expected to minimize risks Korean corporations have to take and to provide legal protections for Korea enterprises. The two countries will also sign an MOU for financial cooperation as early as possible, and Korea will help establish Myanmar’s stock exchange by providing technical support and necessary infrastructure.
3) Increasing Cooperation in Promising Next Generation Industries
Korea will reinvigorate bilateral cooperation in industries which Myanmar thinks are promising next generation industries, such as energy/resources, broadcasting/communications/IT, education and environment sectors, while having advanced Korean systems and technologies broadly accessible. This will enable Korea to become a most important cooperation partner for Myanmar. There will be enhanced cooperation to explore and develop mineral resources rich in Myanmar using Korea’s capital and advanced technologies, build an industrial technology university, convert Myanmar’s analog television broadcasting system to a digital one, and carry out environmental and water-supply projects.
Committee Evaluation and Future Plans
The committee was the first bilateral government-wide high-ranking official meeting. The two leaders of the committee assessed that the launch of the joint committee is a historical leap-forward in terms of both qualitative and quantitative economic relationship of the two countries. The bilateral economic cooperation is expected to reap fruit as the joint committee will work together for tangible outcomes, unlike past cooperation full of researches and discussions without visible outcomes.
The two countries agreed to aggressively cooperate in order to realize the Miracle on the Han River again in Yangon, and make it the Miracle on the Yangon River.
*Government press release (Jun 19)