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A Study on Promoting New Southern Policy through Analysis of China’s Environmental Cooperation with ASEAN economic cooperation, environmental policy

Author Taekgoo Kang, Sangyun Lee, Changsub Shim, Hoon Chang, and Jeongseok Lee Series 20-03 Language Korean Date 2020.12.30

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   This study has two main research objectives. First, the study evaluates the possibility of cooperation between Korea and China and proposes a number of cooperative projects, based on China’s cooperation with ASEAN, which is mainly strengthened through bilateral initiatives, particularly in the sustainable environment sector. Second, under the New Southern Policy, this study derives cooperation strategies for ASEAN in the field of environmental sustainability. Keeping the COVID-19 pandemic that is sweeping the entire world and the emerging security trend of prioritizing state sovereignty in mind, we actively seek to address human security concerns in major governmental policies, prioritizing human life and dignity. While the New Southern Policy puts an emphasis on humanity, the goal of a sustainable environment – which has a direct impact on human life – has not been properly established in the policy. As Korea’s past ASEAN policy was focused on economic profit and market acquisition, it is now crucial to build trust in the relationship with ASEAN through a human-centered approach, and to expand cooperation across broader areas. The outcome of this study will prepare measures to promote cooperation with ASEAN, which is an important component of the New Southern Policy
   The major content of this study is as follows. Chapters 2 and 3 respectively analyze the overview and outcome of China-ASEAN environmental cooperation, and the overview and outcome of Korea-ASEAN environmental cooperation after 2010. Specifically, Chapter 2 describes China’s strategy with regard to environmental cooperation with ASEAN, and summarizes the overview of ASEAN cooperation and the major cooperation mechanisms. Based on these, this study identifies the outcomes and limitations of China-ASEAN environmental cooperation. The outcomes of China-ASEAN environ- mental cooperation include the launching and operation of the China- ASEAN Environmental Cooperation Center, reaching an agreement and adopting a policy concerning green development, operating the China-ASEAN Environmental Information Sharing Platform, establishing Lancang-Mekong Sustainable Infrastructure and Green Investment and Financing, and fostering active technological cooperation and human resources exchanges with ASEAN. Despite the above mentioned outcomes of China-ASEAN cooperation in the sustainable environment sector, there still remain a number of limitations in this cooperation. First of all, overseas projects based on the China’s Belt and Road Initiative follow low socio-environmental guidelines, or lack mandatory regulations. For these reasons, the lack of environmental consideration in the process of building the infrastructure has caused environmental pollution and destruction in the recipient countries, provoking the continued opposition of local communities. In addition to the complaints about environmental pollution and destruction, overseas projects are funded by Chinese capitals, laborers, companies. This does not bring much in the form of tangible benefits to the governments and nations involved in the China’s Belt and Road Initiative, resulting in a backlash among those recipient countries. In addition, there is a considerable gap between China and ASEAN countries in terms of their views on environmental sustainability, and China lacks the capacity to provide environmental assistance. In addition, the financial assistance required for performing ASEAN cooperation is insufficient in China.
   Chapter 3 presents an overview of Korea-ASEAN cooperation in the area of environmental sustainability, the major cooperation mechanisms, and ODA status in relation to the New Southern Policy. Based on this, it examines the outcomes and limitations of the current status of Korea- ASEAN environmental cooperation. The ROK government has been strengthening the cooperation with ASEAN by hosting 2019 ASEAN- Republic of KOREA Commemorative Summit. The ROK government are also currently operating the New Framework for the ASEAN-ROK Cooperation Fund(2017-2020) and ASEAN-Korea Environmental Cooperation Project(AKECOP) across all ASEAN-Korea sectors including environmental cooperation. However, ASEAN-Korea Environmental Cooperation has limitations. For instance, this cooperation lacks strategies that integrate mid-term and long-term plans, and it is not implemented strategically from a mid-to–long-term perspective. In addition, the foundation for cooperation with individual ASEAN countries is relatively poor. The ASEAN cooperation tends to focus only on a few specific countries, including Vietnam. There are lack of consideration for mainstreaming environmental sustainability in the New Southern Policy.
   Based on this discussion, Chapter 4 presents a SWOT analysis on the current status of ASEAN-China environmental cooperation to explore implementation strategies for Korea-China cooperation and the New Southern Policy. On the basis of this analysis, this study proposes an implementation strategy for Korea-China cooperation and the New Southern Policy in the area of environmental sustainability. Some of the main strengths identify through the SWOT analysis for South Korea are; a favorable public opinion compared to China, ASEAN being our second-largest trade partner and our third-largest investment market (as of 2018), the establishment of the new ASEAN initiative, our active cooperation with ASEAN in the environmental sector, and the relatively richer ODA experience compared to China. The weaknesses are; the lack of organization and a mid-to-long-term plan for the ASEAN-Korea Environmental Cooperation, relatively smaller-scale assistance compared to China and Japan, the relatively poor channels with individual ASEAN countries and unbalanced cooperation and lack of consideration to mainstream environmental sustainability. Opportunity factors have been identified as; the emergence of production and consumption hubs as an alternative to the Chinese market, the agreement of Korea-ASEAN Free Trade Agreement, continued efforts to integrate the ASEAN Economic and Social Community in the region, the government’s strong will for sustainable development following economic growth, and an increased preference for Korea owing to the Hallyu(Korean Wave). Finally, the threats are identified as; intensifying competition due to Chinese expansion to the ASEAN region, high political instability in certain countries, and the lack of governance capacity of ASEAN countries. Based on this SWOT analysis, the environmental sustainability sector for Korea-China cooperation would be the Smart Green City project that combines ICT-based environment and infrastructure. Furthermore, viable strategies under the New Southern Policy are; the human-centered human security approach along with economic consideration, discovering major cooperation priorities in the sustainable environment sector, mainstreaming environmental sustainability in the New Southern Policy, establishing a responsible organization and strategy for the ASEAN-Korea Environmental Cooperation, strengthening Korea’s soft power through environmental cooperation, increasing community awareness through bonding with civil society, and establishing a multilateral environmental cooperation system.
   The final chapter, Chapter 5, describes the main conclusion and limitations of this study. It is crucial to relate the mainstreaming of environmental sustainability with the New Southern Policy. When establishing an upgraded version of the New Southern Policy in the near future, it is necessary to integrate the Sustainable Development Goals (SDGs) with the New Southern Policy in order to mainstream environmental sustainability.
   Due to the unexpected outbreak of the COVID-19 pandemic, unfortunately, oversea field research was not possible. therefore, this study was conducted using only a review of the related literature and domestic expert seminars. In future studies, it is necessary to develop specific projects for all the member countries of the ASEAN cooperation, and to analyze the current status of ASEAN-Japan environmental cooperation.

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