Thursday, December 23, 2010

Massive military drills carried out in Yeonpyeong

Shim Soo Bin

A few days ago, on December 19th, massive military drills aiming to fully prepare the South Korean army in cases of national emergency were carried out in Yeonpyeong Island amid North Korea's threat to retaliate , heightening the already-existing tension between the two countries.A South Korean Marine Corps unit fired off K-9 self-propelled guns, 105-millimeter howitzers, Vulcan cannons and 81-millimeter mortars into the southwestern sea off Yeonpyeong Island. The Air Force had F-15L fighter jets at the ready while the Navy deployed an Aegis-class destroyer to deter a potential North Korean provocation.

On the day of the drill, as a result, the remaining 116 residents of Yeonpyeong (some decided to stay in Incheon) were ordered to evacuate into bomb shelters hours in advance of the drill and were allowed to leave only after the government deemed the situation safe enough, which became two hours after all the militrary drills have ended.

Despite the security threats that the island is facing, its residents are making efforts to remain calm and continue on with their daily lives. One restaurant owner said “I heard about the upcoming drill but I returned to the island to maintain my freezers and fix water pipes frozen due to the cold waves,” adding, “Though I’m worried, I won’t return to Incheon.” Other residents have also decided to stay in Yeonpyeong for similar reasons, hoping that they could continue on with their ways of living.

In the meanwhile, the North Korean government has responded to the drills by dismissing the drills as a "childish play of fire", as quoted from a communique from the North's Korean People's Army Supreme Command. The official news network of North Korea, the KNCA news agency said "The revolutionary arnmed forces of the DPRK did not feel any need to retaliate against every despicable military provocation.", putting emphasis on the assertion that the drills were not worthy enough to invoke military reactions.

The real reason behind this line of action is not certain, raising concerns that additional attacks may be carried out in the near future. It would be reasonable enough to say, nevertheless, that the Korean peninsula is letting out a small sigh of relief on the very fact that direct military conflict has not risen as a result of the artillery drills.

Wednesday, December 1, 2010

North Korean attack on Yeonpyeong: what it means to Korea and the World

Shim Soo Bin

Yeonpyeong Island Information

North Korea's sudden artillery attack on "Yeonpyeong Island", an island in the South Korean territory of the yellow sea is becoming a hot issue, raising awareness on the possibility of a war in the Korean peninsula. The attack has killed 2 civilians and numerous soldiers. The aim of this provocation carried out amid continued international pressure on nuclear disarmament is thought as a response to the military training in South Korea. The real effect, however, seems to lie somewhere else.

Ever since the truce talks of 1950, and the resulting 50 years of 'peace', many people around the world have been forgetful of the fact that the Korean peninsula is in danger of breaking into a war any day, if only North Korea were to start it. The miraculously developed economy of South Korea (and the resulting prosperity) also added on to this phenomenon, as more and more South Koreans begun to question the threat of war. Just a few decades back, even the smallest military action carried out by North Korea would be considered a signal of war. People would run to the grocery store to buy food and water for survival. Currently, on the other hand, many were in the mistaken belief that the threat of war was either falsified or exaggerated.

Bombed area of Yeonpyeong

The Yeonpyeong Island attack has renewed the view of many pro-North Korean forces, and the country's younger generation, who haven't directly experienced the Korean War. If the Cheonan ship incident (in which 46 sailors were killed) gave a sense of shock, the Yeonpyeong Island is giving us a sense of reality. Awaiting the further actions that the South Korean government is planning to take, I sincerely wish that North Korean government would stop taking provocative measures to catch the attention of other countries. If that was the goal, they have 'succeeded', to be sure, in doing so- but with severe consequences. Such actions will bring about a huge rift between the South and the North, and may even lead to another war, and the dream of peaceful reunification will be broken. For the North, further action means further alienation from the rest of the world and the slow severing of ties with its allies (e.g. China); for the South, it means confusion and fear among the citizens.

P.S. I am welcome to any sharing of thoughts on this issue. I'd love to discuss!! :)

Wednesday, November 17, 2010

The G20's Twenty Agendas

Background - G20 issues

Here is an article that can help you get a knack of international issues discussed in the G20!! It also summarizes the stances of each country. I hope it would be of great help :)

Author:	Roya Wolverson, Staff Writer

June 24, 2010

Heads of state from the Group of Twenty (G20) advanced economies meet in Toronto on June 26 and 27 to discuss policies to balance global growth and strengthen global financial supervision. The meeting follows an early-June gathering of G20 finance ministers in Busan, South Korea, which stressed the need for fiscal tightening and "sustainable public finances." G20 leaders are expected to continue debating the severity of belt-tightening measures in Toronto. They will also discuss a global bank tax to forestall future financial crises and pay for bailouts. It remains to be seen whether the group addresses China's currency policy in light of China's decision to let the yuan appreciate against the dollar. The following is a summary of the major policy issues for each of the G20 members.

Argentina

International monetary system reform tops Argentina's G20 agenda, since the country is heavily dependent on exports. Argentine authorities support reforms that will tame international capital flows and boost demand (PDF) for the country's exports, writes Esteban Kiper, an economist at the University of Buenos Aires. More flexible IMF lending practices are also a priority, since Argentina believes its economy suffered from harsh austerity measures imposed by the IMF following its 2006 debt crisis. The debt crises of Greece, Spain, and Portugal have given new urgency to these demands, says Dr. Miguel Kiguel, an economic consultant for Latin American governments.

Australia

Australia's treasurer Wayne Swan says his country wants to work with the G20 on financial regulation and reforming international financial institutions. But he opposed a global bank tax (Australian) at the early June meeting of finance ministers, arguing that Australian banks do not need increased regulation, since they took less risk before the financial crisis than troubled banks in the United States and Europe. Australia hopes to "portray itself as a shining example of an already well-regulated financial system and a prudent fiscal manager," says Roubini Global Economics analyst Mikka Pineda. The country will also "tout its new mining tax as a clever tactic to both close the budget deficit and prolong the economy's gains from the mining boom," Pineda says.

Brazil

Brazil will argue against (GlobeandMail) proposals for a global bank tax and trade protectionism. The country will also use its relative economic strength to assert its leadership potential, says Council of the Americas Vice President Eric Farnsworth. Brazil's central bank president, Henrique Meirelles, says Brazil wants emerging economies to wield more power (WSJ) in governing international finance institutions. The summit "will test the ability and willingness of the newcomers to actually help share the burden of global governance," says CFR Visiting Fellow Matias Spektor. But whether "the Brazils of this world put their pockets where their mouth is" remains to be seen, he says.

Britain

Britain's new coalition government signals a dramatic shift in the country's G20 agenda. Unlike Britain's former Labour government--which supported U.S. calls to continue global fiscal stimulus--Prime Minister David Cameron prefers drastic spending cuts (DowJones) and tax hikes to avoid a debt crisis like Greece's. Britain included Europe's plan for a global levy on banks (WSJ) in its new emergency budget, with Germany and France pledging to follow suit soon, but it will face opposition (SydneyMorningHerald) from Canada, Australia, and developing countries. Cameron is also more skeptical than the previous government of Prime Minister Gordon Brown about Britain's future involvement in the struggling European Union. He prefers strengthening ties with South Korea (AFP), Saudi Arabia, Turkey, India, and China.

Canada

Canada's G20 agenda (PDF) will focus on promoting stimulus spending, strengthening financial regulatory reforms, resisting protectionism, and promoting trade and investment. In March, Canadian Prime Minister Stephen Harper called for countries to continue stimulus programs (DowJones) to boost the economic recovery. Canada has resisted proposals for a global bank levy, since its stable banking system emerged from the financial crisis relatively unscathed (AFP). Harper said the bank tax would trigger a "lively debate" (GlobeandMail) in Toronto, since he and Britain's Cameron failed to overcome their differences on the proposal at a London meeting. Canadian Finance Minister Jim Flaherty said the bank tax would "increase moral hazard, rather than preventing excessive leverage." It could also distract Canada from its other G20 priorities (Roubini Global Economics). Flaherty has proposed an alternative "embedded contingent-capital" (GlobeandMail) plan to promote market discipline, and he visited India, China, and South Korea in May and June to garner support for this proposal.

China

China hopes its June 21 decision to end the yuan's U.S. dollar peg will placate critics of its currency policy. Chinese Foreign Ministry spokesman Qin Gang warned countries (VOA) to stop accusing China of currency manipulation ahead of the G20 and requested a more cooperative spirit. But the significance of China's currency gesture remains to be seen. CFR Adjunct Senior Fellow Steven Dunaway says the pace of exchange rate appreciation will depend on economic conditions in China and the rest of the world. European governments are hoping (WSJ) China's currency shift will make China less reliant on exports and that it will increase domestic consumption, alleviating U.S. demands on Europe to stimulate domestic demand. Tensions will also persist after the Toronto meeting, says Dunaway, since the United States and Europe want a "faster pace of appreciation in the yuan than China is likely to deliver." In the Financial Times, UBS' George Magnus writes that excessive focus on China's exchange rate deflects attention from other pressing issues in China, including the country's excess savings rate, paltry social services, and weak financial sector.

European Union

The European debt crisis and lingering recession have pushed economic and financial reforms to the top of the EU agenda. EU leaders have agreed to push for a financial transactions tax on bank trading, despite IMF and U.S. opposition (Euractiv). Tensions between the United States and EU have risen (Bloomberg) in the run-up to Toronto, with President Barack Obama stressing the need for medium-term fiscal stimulus and European leaders like German Chancellor Angela Merkel and European Central Bank President Jean-Claude Trichet urging spending cuts (FT). The financial transactions tax has also drawn mixed reviews from some EU members. Britain, for example, remains defensive (Reuters) about increased EU regulations that threaten Britain's national sovereignty. EU President Herman Van Rompuy has stressed (InternationalBusinessTimes) that Europe is willing to implement the bank levy and transactions tax even if international cooperation falls through. France and Germany are also pushing the EU to crack down on tax havens and increase competition among credit rating agencies.

France

French President Nicolas Sarkozy and German Chancellor Angela Merkel met to iron out differences (AFP) on how Europe should address its debt crisis. Sarkozy agreed to support Merkel's proposals for tougher sanctions on EU budget deficits and a ban on naked short-selling, and lost his bid to establish a eurozone central bank. In a letter to G20 host (Reuters) Stephen Harper, the two countries pressed for international agreement on a global bank levy and a financial transaction tax. "We know [a transaction tax is] unlikely to fly at the G20, but France has always been keen to find innovative ways to fund development or climate change," (DowJones) said one French official. The letter to Harper also calls for more regulation of over-the-counter derivatives and credit default swaps. Despite the call by G20 finance ministers for more austerity in heavily indebted countries (Guardian), the "only big European economy yet to spell out an austerity plan is France--a country badly in need of one," notes the Economist.

Germany

Merkel, with the backing of Sarkozy, renewed her support for a global bank tax and a financial transaction tax that is opposed by the United States and much of Europe. "We will prepare for the G20 and G8 meetings so that we can go with as united a European position as possible that also covers a bank levy and taxation of financial markets," Merkel said following the European Summit (Euractiv) held a week before the G20. German officials opposed President Barack Obama's call to boost global growth with continued spending, and instead called on the United States to join Europe in cutting back. The country's budget cuts aim to save an estimated $80 billion euros over the next four years.

India

India will oppose a global bank levy and is concerned about the timing of global fiscal and monetary exit strategies. "While we should not rush to fiscal exit (BusinessStandard),"said Finance Minister Pranab Mukherjee, "those countries that have market compulsions may need to start the consolidation now." India also wants to "shore up a supportive atmosphere for trade," given its dependency on exports, writes Rajeev Deshpande for the Economic Times. Indian Prime Minister Manmohan Singh will also emphasize India's commitment to increasing IMF resources, so the country can play a bigger role in global policymaking, says Arpitha Bykere, an analyst at Roubini Global Economics.

Indonesia

Indonesia wants to keep investment flowing into its economy, reduce currency volatility, and protect the Indonesian economy from external financial shocks (Bloomberg). Indonesia's new finance minister, Agus Martowardojo, is concerned about tightening credit and illiquidity, though he still predicts the economy will grow 6.1 to 6.4 percent in 2011 (Bloomberg). Martowardojo has proposed loosening requirements (JakartaPost) on IMF loans for emerging countries. He also said France and Germany's proposed global bank tax "is going too far" (Reuters) and would be ineffective, considering that earlier G20 proposals to limit bank pay never materialized (FT). Indonesian policymakers are expected to support German Chancellor Merkel's proposed financial transaction tax (Xinhua).

Italy

Italy will call for more fiscal restraint, since its budgetary reforms already include public sector pay freezes and salary cuts (Guardian) for the top 10 percent of earners. Italian Foreign Minister Franco Frattini threatened recently to withdraw support (EUObserver) from the EU's G20 communiqué unless new EU fiscal rules accommodate for public and private aggregate debt. (This would benefit Italy since its private debts are lower than other eurozone countries.) Italy also opposes IMF reforms that could decrease Italian voting rights (PDF) within the institution. At a recent IMF meeting, Italian Finance Minister Giulio Tremonti supported stronger European integration to save the euro, but stressed that export-heavy European economies such as Germany also need reform (FT). Italy opposes the French- and German-backed bank levy, which Prime Minister Silvio Berlusconi has refused to discuss in Toronto (Repubblica). Bank of Italy Governor Mario Draghi (who chairs the G20's Financial Stability Board) wants more transparency among European banks to restore investor confidence (Repubblica).

Japan

Japan's export industry has suffered from the eurozone debt crisis, as the yen climbed 2.9 percent in May against the U.S. dollar. Japan's new prime minister, Naoto Kan, is hoping his efforts to spur job creation (Bloomberg) will ease the country's "mild deflationary phase" and has called for painful tax increases (NYT) to fix Japan's rising debt. The government plans to announce its fiscal reforms (Reuters) in Toronto, which are expected to include corporate tax cuts and sales tax increases; Kan aims to increase growth to 2 percent by 2020. Japan also wants international consensus on financial regulation, but it opposes a global bank tax and argues that country-specific financial regulations will suffice (Reuters). Japanese officials are concerned about the impact of Germany's unilateral ban on naked short-selling, which shook Japanese markets.

Mexico

Mexico's strong foreign investment flows and limited dealings with the euro have sheltered it (Reuters) from Europe's sovereign debt crisis. Still, Mexico's finance minister Ernesto Cordero Arroyo says Mexico needs to shift away from short-term stimulus toward stabilization (PDF). CFR Fellow Shannon O'Neil says Mexico plans to push for international financial institution reform, including easier access to IMF credit lines (Cronica) for countries in financial distress. Mexico will tout the benefits of its access to the IMF's Flexible Credit Line, which has shielded its economy from global market volatility. Mexico will also join Canada, Australia, and Brazil in opposing the global bank levy. The G20 must also address climate change (NationalPost), President Felipe Calderon has said, rather than waiting for the United States to move first.

Russia

Russia is "unlikely to have a particularly ambitious agenda," says CFR Adjunct Fellow Jeffrey Mankoff, since it "is a relatively minor player in global finance." Still, Russian officials are concerned about the country's slow growth and its difficulties in attracting new investments. Russian President Dmitry Medvedev will continue his push to change how international financial institutions are governed, says Mankoff. Russia will echo other BRIC countries (Brazil, Russia, India, and China) in pushing for more power (Reuters) in international financial institutions like the IMF and more coordination with IMF, World Bank, and G20 policies. Russia will join Canada and Australia in opposing France and Germany's global bank tax proposal (GlobeandMail). Russia's ongoing joint ventures with oil giant BP are driving its calls for a fund to insure against large-scale environmental disasters and a new international legal framework to respond to those disasters (Reuters).

Saudi Arabia

Saudi Arabia, the only OPEC representative at the G20, "will continue to keep a low profile," as they did last year, says University of Vermont political science and international affairs expert F. Gregory Gause. "Anything agreed to by the core G7 and the BRICs would not be opposed by the Saudis," he says. But the Saudis might weigh in on energy issues and financial stability, which have major implications for the Saudi economy, says Ibrahim A. Warde, an international business professor at Tufts University. Saudi Arabia is also concerned about the impact of global financial instability on sovereign wealth funds and fellow Arab countries like debt-riddled Kuwait, and the United Arab Emirates. Saudi Arabia wants stronger banking regulations (Reuters) and more conservative lending policies, but opposes creating a global financial regulator.

South Africa

South Africa will focus on increasing capital flow to the region through aid, investment, and trade. The country is also concerned about the fragility of the global economic recovery (AfricanDevelopmentBank), given its impact on South Africa's mining and manufacturing sectors (BusinessDay). South African Finance Minister Pravin Gordhan has supported Canada, Australia, and India's calls for country-specific financial reforms. Gordhan agrees with the United States that fiscal austerity measures should be "growth friendly" (Bloomberg). The country strengthened ties with India and Brazil, which share South Africa's position as a "leader of, not the developing world, but the next tier up," according to CFR Senior Fellow John Campbell. These ties, along with the country's hosting of the 2010 soccer World Cup, should boost South Africa's bid for "greater influence and recognition on the international stage," he says.

South Korea

South Korea is interested in stabilizing and nurturing developing economies' growth in the wake of the financial crisis, and wants a global financial safety net (Dong-a Ilbo) to protect these economies from volatile capital markets. South Korea will push for developing countries to follow its example in reducing income inequality, fighting corruption, and increasing government and business transparency, says Kongdan Oh, an East Asian specialist at Brookings Institution. Also on the agenda are energy and industrial reforms to preserve the environment and efforts to promote Korea's higher-quality exports, says Oh.

Turkey

Turkey will emphasize its rising global profile. The country is reluctant to ask wealthier G20 countries for economic support despite its high unemployment rate (Bloomberg) of 13.7 percent, fearing its "credentials as both [a] good economic steward and good nationalist" would suffer, says CFR Senior Fellow Steven Cook. The country will focus on boosting trade ties with developing countries like Africa, and avoid lobbying "for economic handouts," says Cook. It is also pleased about its "new stature among the world's most important economic powers," he adds. Turkey hopes its G20 stature will be further increased by its recent involvement in Israel's Gaza blockade (Stratfor) and diplomacy with Iran over its nuclear program.

United States

The United States has two main goals: first, to extract some commitment from China on its currency appreciation, and second, to combat German pressure for steep government budget cuts, says CFR Senior Fellow Benn Steil. In a letter to G20 leaders, President Barack Obama urged countries to maintain domestic stimulus spending, arguing for flexibility "in adjusting the pace of consolidation." Obama vowed to reduce the U.S. deficit--which constitutes roughly 10 percent of 2010 GDP--by half over three years, and to 3 percent of GDP by 2015. But his delay in making major deficit cuts indicates a reluctance to make politically unpopular moves until after midterm elections (AFP). Still, the United States is pushing for sweeping domestic financial reform (Reuters), including the so-called "Volcker Rule" (PDF) to ban banks' proprietary trading. EU reluctance to follow those measures has raised concerns about uncoordinated financial reforms, which could distort international capital flows and render the G20 ineffectual. CFR Senior Fellow Stewart Patrick writes: "The G20 has shown great resolve as a global crisis committee. But this 'fellowship of the lifeboat' is proving hard to sustain as the crisis ebbs."

--Additional reporting by Jennifer Ching, Toni Johnson, William Saborio, and Michal Toiba

Source: cfr.org

G20 Communique, November 2010

The G20 leaders' declaration from the G20 Summit in Seoul, Korea was released on November 12, 2010. This copy is provided by the Guardian (UK).
1. We, the Leaders of the G20, are united in our conviction that by working together we can secure a more prosperous future for the citizens of all countries.
2. When we first gathered in November 2008 to address the most severe world recession our generation has ever confronted, we pledged to support and stabilize the global economy, and at the same time, to lay the foundation for reform, to ensure the world would never face such upheaval again.
3. Over the past four Summits, we have worked with unprecedented cooperation to break the dramatic fall in the global economy to establish the basis for recovery and renewed growth.
4. The concrete steps we have taken will help ensure we are better prepared to prevent and, if necessary, to withstand future crises. We pledge to continue our coordinated efforts and act together to generate strong, sustainable and balanced growth.
5. We recognize the importance of addressing the concerns of the most vulnerable. To this end, we are determined to put jobs at the heart of the recovery, to provide social protection, decent work and also to ensure accelerated growth in low income countries (LICs).
6. Our relentless and cooperative efforts over the last two years have delivered strong results. However, we must stay vigilant.
7. Risks remain. Some of us are experiencing strong growth, while others face high levels of unemployment and sluggish recovery. Uneven growth and widening imbalances are fueling the temptation to diverge from global solutions into uncoordinated actions. However, uncoordinated policy actions will only lead to worse outcomes for all.
8. Since 2008, a common view of the challenges of the world economy, the necessary responses and our determination to resist protectionism has enabled us to both address the root causes of the crisis and safeguard the recovery. We are agreed today to develop our common view to meet these new challenges and a path to strong, sustainable and balanced growth beyond the crisis.
9. Today, the Seoul Summit delivers:
• the Seoul Action Plan composed of comprehensive, cooperative and country-specific policy actions to move closer to our shared objective. The Plan includes our commitment to:
- undertake macroeconomic policies, including fiscal consolidation where necessary, to ensure ongoing recovery and sustainable growth and enhance the stability of financial markets, in particular moving toward more market-determined exchange rate systems, enhancing exchange rate flexibility to reflect underlying economic fundamentals, and refraining from competitive devaluation of currencies. Advanced economies, including those with reserve currencies, will be vigilant against excess volatility and disorderly movements in exchange rates. These actions will help mitigate the risk of excessive volatility in capital flows facing some emerging countries;
- implement a range of structural reforms that boost and sustain global demand, foster job creation, and increase the potential for growth; and
- enhance the Mutual Assessment Process (MAP) to promote external sustainability. We will strengthen multilateral cooperation to promote external sustainability and pursue the full range of policies conducive to reducing excessive imbalances and maintaining current account imbalances at sustainable levels. Persistently large imbalances, assessed against indicative guidelines to be agreed by our Finance Ministers and Central Bank Governors, warrant an assessment of their nature and the root causes of impediments to adjustment as part of the MAP, recognizing the need to take into account national or regional circumstances, including large commodity producers. These indicative guidelines composed of a range of indicators would serve as a mechanism to facilitate timely identification of large imbalances that require preventive and corrective actions to be taken. To support our efforts toward meeting these commitments, we call on our Framework Working Group, with technical support from the IMF and other international organizations, to develop these indicative guidelines, with progress to be discussed by our Finance Ministers and Central Bank Governors in the first half of 2011; and, in Gyeongju, our Finance Ministers and Central Bank Governors called on the IMF to provide an assessment as part of the MAP on the progress toward external sustainability and the consistency of fiscal, monetary, financial sector, structural, exchange rate and other policies. In light of this, the first such assessment, to be based on the above mentioned indicative guidelines, will be initiated and undertaken in due course under the French Presidency.
• a modernized IMF that better reflects the changes in the world economy through greater representation of dynamic emerging markets and developing countries. These comprehensive quota and governance reforms, as outlined in the Seoul Summit Document, will enhance the IMF's legitimacy, credibility and effectiveness, making it an even stronger institution for promoting global financial stability and growth.
• instruments to strengthen global financial safety nets, which help countries cope with financial volatility by providing them with practical tools to overcome sudden reversals of international capital flows.
• core elements of a new financial regulatory framework, including bank capital and liquidity standards, as well as measures to better regulate and effectively resolve systemically important financial institutions, complemented by more effective oversight and supervision. This new framework, complemented by other achievements as outlined in the Seoul Summit Document, will ensure a more resilient financial system by reining in the past excesses of the financial sector and better serving the needs of our economies.
• the Seoul Development Consensus for Shared Growth that sets out our commitment to work in partnership with other developing countries, and LICs in particular, to help them build the capacity to achieve and maximize their growth potential, thereby contributing to global rebalancing. The Seoul Consensus complements our commitment to achieve the Millennium Development Goals (MDGs) and focuses on concrete measures as summarized in our Multi-Year Action Plan on Development to make a tangible and significant difference in people's lives, including in particular through the development of infrastructure in developing countries.
• the Financial Inclusion Action Plan, the Global Partnership for Financial Inclusion and a flexible SME Finance Framework, all of which will significantly contribute to improving access to financial services and expanding opportunities for poor households and small and medium enterprises.
• our strong commitment to direct our negotiators to engage in across-the-board negotiations to promptly bring the Doha Development Round to a successful, ambitious, comprehensive, and balanced conclusion consistent with the mandate of the Doha Development Round and built on the progress already achieved. We recognize that 2011 is a critical window of opportunity, albeit narrow, and that engagement among our representatives must intensify and expand. We now need to complete the end game. Once such an outcome is reached, we commit to seek ratification, where necessary, in our respective systems. We are also committed to resisting all forms of protectionist measures.
10. We will continue to monitor and assess ongoing implementation of the commitments made today and in the past in a transparent and objective way. We hold ourselves accountable. What we promise, we will deliver.
11. Building on our achievements to date, we have agreed to work further on macro-prudential policy frameworks; better reflect the perspective of emerging market economies in financial regulatory reforms; strengthen regulation and oversight of shadow banking; further work on regulation and supervision of commodity derivatives markets; improve market integrity and efficiency; enhance consumer protection; pursue all outstanding governance reform issues at the IMF and World Bank; and build a more stable and resilient international monetary system, including by further strengthening global financial safety nets. We will also expand our MAP based on the indicative guidelines to be agreed.
12. To promote resilience, job creation and mitigate risks for development, we will prioritize action under the Seoul Consensus on addressing critical bottlenecks, including infrastructure deficits, food market volatility, and exclusion from financial services.
13. To provide broader, forward-looking leadership in the post-crisis economy, we will also continue our work to prevent and tackle corruption through our Anti-Corruption Action Plan; rationalize and phase-out over the medium term inefficient fossil fuel subsidies; mitigate excessive fossil fuel price volatility; safeguard the global marine environment; and combat the challenges of global climate change.
14. We reaffirm our resolute commitment to fight climate change, as reflected in the Leaders' Seoul Summit Document. We appreciate President Felipe Calderón's briefing on the status of the UN Framework Convention on Climate Change negotiations, as well as Prime Minister Meles Zenawi's briefing on the report of the High-Level Advisory Group on Climate Change Financing submitted to the UN Secretary-General. We will spare no effort to reach a balanced and successful outcome in Cancun.
15. We welcome the Fourth UN LDC Summit in Turkey and the Fourth High-Level Forum on Aid Effectiveness in Korea, both to be held in 2011.
16. Recognizing the importance of private sector-led growth and job creation, we welcome the Seoul G20 Business Summit and look forward to continuing the G20 Business Summit in upcoming Summits.
17. The actions agreed today will help to further strengthen the global economy, accelerate job creation, ensure more stable financial markets, narrow the development gap and promote broadly shared growth beyond crisis.
18. We look forward to our next meeting in 2011 in France, and subsequent meeting in 2012 in Mexico.
19. We thank Korea for its G20 Presidency and for hosting the successful Seoul Summit.
Essential Documents are vital primary sources underpinning the foreign policy debate.

Trade imbalances; G20 at Seoul, South Korea

Currently I had the opportunity to research in-depth on the several financial issues to be discussed in the G20 Summit-level talks held in Seoul, Korea. Trade imbalance is one of the key issues among several other agendas such as IMF reform, stabilization of currency rates, and the creation of a global safety net.

Enjoy!! :) This is an article on trade imbalances.

The Mirage of Lower Trade Imbalances

By FLOYD NORRIS

WHEN the going gets tough, governments complain about trade.
The meeting of the G-20 in Seoul, South Korea, this week was dominated by concerns about world trade, which has rebounded after falling sharply during the credit crisis and global recession. With the rebound, trade deficits and surpluses, which had appeared to be falling, have begun to rise again, setting off complaints from numerous countries that others are trying to hold down the value of their currencies to gain a trade advantage.
The apparent shrinkage of trade imbalances, usually presented as a percentage of gross domestic product, was in significant part a mirage caused by the plunge in trade. After all, if world trade went to zero, so would surpluses and deficits.
Looked at in another way, by comparing the value of each country’s exports with its imports, the declines were not nearly as sharp, and in some cases vanished altogether. Germany’s balance of payments — a figure largely made up of the trade balance — fell from 8 percent of G.D.P. in late 2007 to 3.8 percent in early 2009, for example, only to recover to 4.4 percent in the latest data. But, as the accompanying charts show, its total exports were about 20 percent larger than its imports throughout the period.
Similarly, the United States’ balance of payments deficit fell to as low as 2.4 percent of G.D.P., less than half what it was a few years earlier. But the improvement was far more modest when looked at in terms of trade. The country exported 41 percent less than it imported in 2007, compared with 34 percent less in the most recent 12 months.
As can be seen in the charts, Germany may have benefited over the last decade from the fact that other members of the euro zone were becoming less competitive in exports. France was exporting more than it imported when the decade began; now its exports are running 12 percent behind imports. Italy went from relatively small surpluses to relatively small deficits.
Not shown are some of the peripheral members of the euro zone, which have been robbed of competitiveness by inflation. Greek exports are 60 percent lower than imports, and that ratio has improved lately only because it is less able to afford imports. The figures for Portugal and Spain are 36 percent and 23 percent, respectively. Had there not been a euro, it is probable that the value of the German mark would have risen relative to that of other European nations, reducing the competitive advantage Germany now enjoys.
There were some significant changes in trade ratios during the downturn. Japan’s trade surplus briefly vanished, although its export/import ratio has recovered in recent months. China’s gap did narrow, although it now seems to be rising again. India’s substantial trade deficit widened, and its ratio of exports to imports is now lower than that of the United States.
There has been little talk of that, however. In part, it is because the figures shown are for trade in goods, not services, an area where India is strong. But it also reflects the fact that India has been importing capital as it grows, offsetting the trade numbers.
With much of the developing world now growing more rapidly than the developed countries, there has been a rush of capital into many of them, touching off worries that their currencies will become overvalued and their terms of trade worsen. That appears to have happened in Brazil, where the rising value of the real has been accompanied by a sharp reduction in the export-import ratio. Some countries are beginning to impose various forms of capital controls in an effort to keep that from happening to them.

source: NY times

Sunday, October 17, 2010

Foreign Language High Schools @ KOREA!!

Today I would like to introduce you to the lives of foreign language highschool students!!
(Yes, indeed, I am a student at one of such schools.)

Korea has a unique school system of its own- there are high schools called "specialized high schools", which are similar to the elite prep schools in the United States. Such schools are well-known as the nest of thousands of elite students, who later on grow up to be some of the most prominent members of the Korean society. Many middle school students prepare to pass the entrance exam to such highschools (science highschools, foreign language high schools etc.).

Now, moving on to the seemingly tedious but rather exciting life of foreign language highschool students.

The alarm bell rings. It is 5:30 AM.

Most students ride the shuttle bus to school, which leaves at about 6:30 in the morning. (Though it depends on where you live, this is usually the case) You wake up, with puffed-up eyes, running around the house to prepare for school. Then after a desperately needed moment of sleep in the school shuttle bus, you find yourself at school- at last!

Hanyoung Foreign Language High School

The day begins as the bell rings the start of school at 7:30 AM. All students are by this time in their own classrooms, except the few latecomers who accidentally were too deeply immersed into the art of sleeping and woke up far too late to make it on time. Just like any other school in Korea, about 30 minutes are spent as time with the homeroom teacher- cleaning up the dusty classroom, reading books or newspapers, and listening to the announcements of the day.

After this period, school classes start. All students take at least 7 mandatory classes that are required for all students. 2 extracurricular classes are left up to the choice of the individual. After all the classes end, we also have a mandatory self-studying period until 10 o'clock.

The end of the self-studying perod marks the end of a long school schedule, and most students excitedly return to their shuttle buses to return home, with the hope that they would arrive home before eleven.

During exam periods, however, many students choose to stay at school until midnight to study.

During Break TIme- Asking questions!
[Source: Facebook]

Exam periods are indeed the most strenuous time periods of the year for foreign language high school students. This is the time when you see students eagerly discussing academic issues and bombarding each other with questions during the precious 15-minute break time in between classes.

Lunch and dinner is skipped to save time, and sleep becomes a luxury. Break times is used for studying, questioning, or sleep replenishment.

As you read over these schedules, you may think- "Why do they live that way"

Well, to give you a simple answer, we just study because we each have our own goals for the future.

But although we do study hard when it is necessary, we also play!! We enjoy life after the exams, just like any other high school students. We relieve stress by going to karaokes or shopping. We go to the movies. We go to amusement parks. We start reading all the books we restrained from reading during exam periods. In other words, yes, we know how to enjoy life! We are NOT studying machines, after all!! ;D

School yard

After the exams end, there are many mini-sports tournaments held by the students, such as soccer, volleyball, and basketball. OSP(Overseas Program) students even play lacrosse! We cheer for the department we belong to. Departments are divided according to which foreign language you measure in- there is English, Chinese, Japanese, French, Spanish, and German.

At dinner time, students come out of the school building to watch and cheer for their team, releasing all the stress they received from the exams. The peak of this is in May, where we go on a 3-day trip to conduct a sports festival!!

Foreign language highschool students are awesome, they know how to enjoy their lives while studying hard!! We are NOT studying machines, we're the coolest nerds who know the joy of living a hard-working yet pleasant life!!! :D

Sunday, October 10, 2010

Germany-Korea cooperation for the reunification of Korea?!

World Briefing | Asia

South Korea: Looking to Germany for Lessons on Reunification

By VICTOR HOMOLA

Published: October 1, 2010

Germany and South Korea agreed to set up an expert group to examine how the German reunification model might be applied to the Korean Peninsula, the German Interior Ministry said Friday. A memorandum of understanding signed by Christoph Bergner, Germany’s deputy interior minister, and Kim Chun-sig, South Korea’s deputy minister in charge of reunification affairs, said Seoul would get access to historic and government documents on Germany’s 1990 reunification. “We are willing to share our insight and experience gathered with regard to the resolution of the German question, the economic reconstruction of eastern Germany and the development of the new federal states,” Mr. Bergner said.

Source: NY Times

Wednesday, September 15, 2010

Hangeul, the scientific phonetic system of Korea

HANGEUL is a unique phonetic system of Korea, created by King Sejong in the mid-15th century (Choseon Dynasty). It is a phonetic system not seen in any other parts of the world, and is considered one of the most scientific among all the phonetic systems that exist.

Hunminjeongeum(훈민정음)

The Hangeul was created by King Sejong of the Choseon Dynasty, in his effort to achieve social equality in a society where people where treated according to the social class they belonged to. It was created to help all people, regardless of social class, to have easy access to the records which were at the time the privilege of the upper class.

Hangeul has been highly praised for its design- most notably, the shapes of the graphs are related to the phonemes they represent. The shapes of consonant letters are based on the shape of the mouth and tongue in the production of that sound, sometimes with extra marks to indicate a different sound. Furthermore, vowels are built from vertical or horizontal lines so that they are easily distinguishable from consonants.

For its scientificness, Hangeul has been referred to by many linguists as being "remarkable," "the most perfect phonetic system devised," and "brilliant, so deliberately does it fit the language like a glove", attracting worldwide attention. It is because of this scientific design that Korea is able to maintain one of the lowest illiteracy rates in the world, with an astounding near-zero illierate population. In response,some ethnic groups without a phonetic system such as the Ittai-Ittai tribe (an indigenous tribe in Malaysia) have decided to adopt the Hangul as a means to protect their own native language.

Hangeul as a universal design

Currently, designers are starting to create products that utilize the beautiful line of the Hangeul, attracting much public attention. In fact, many Hollywood celebrities were seen wearing Hangeul-designed clothes, showing the beauty and style that the Hangeul has.

Bonus!! Hangeul Wallpaper :)

Saturday, September 11, 2010

Dokdo, the small but invaluable island of South Korea

DOKDO is a small island situated in South Korea, with an abundance of natural resources and a wide variety of marine life. It has been Korean territory since the 1950s, after Korea gained its independence from Japan. but the Japanese government is attempting to take it as Japanese territory, and hot controversies are arising between the two countries.

Dokdo

Historical evidences, however, clearly shows that Dokdo is in fact Korean territory- records, for example, ancient historical records that show that a King had sent his soldiers to keep the Japanese from secretly sailing to Dokdo to catch fish.

In a more commen-sense point of view, Dokdo is also twice as far from Japan than it is from Korea, and has long been considered a part of the Korean geological scape together with Eulleungdo, a slightly bigger island very closely located to Dokdo.

The Korean cyber diplomatic agency VANK has been making to reverse unfair claims about Dokdo, and has been making efforts and has made significant progress. Many international geographic sites have now altered their information to mention the name as "Dokdo" along with the more conventionally used name "Liancourt Rocks".

Dokdo at sunset

Many Koreans seek to settle this matter as soon as possible, as continuing controversies may foster the growth of currently existing anti-Japanese sentiments in Korea.