The year 2011 witnessed unprecedented political change in the Middle East. Citizens took to the streets in mass protest against deepening poverty, high youth unemployment rates, corruption and longtime dictatorship. Tunisia, Egypt, Libya and Yemen underwent regime changes, while there is an ongoing full-fledged civil war in Syria.
It remains to be seen whether such political changes in the Middle East will bring about significant social and economic transformation. The Arab Spring seem to have shaken the deep-rooted patriarchal and Islamic authoritarianism that has long been rampant in the region. The civilians of the Middle East could too question the legitimacy of the State and demand political change. The governments in turn are actively addressing issues causing social discontent, raising wages, and increasing investments for social infrastructure in the areas of housing, road construction, education and health and medical care.
This book summarizes the changes in the Middle East since the Arab Spring from an economic cooperation point of view and draws implications for Korea. More specifically, we look at how Saudi Arabia, Egypt and Libya have fared since the Arab Spring and how their major economic partners, the US, China, Japan, and France have reacted to circumstantial change. We then examine the nature of economic cooperation between Korea and each of the three middle eastern country,
Four prominent political and economic features seen currently in the Middle East as of 2012 are identified: contention among preexisting and newly emerging political forces, increased public spending, strengthened protections for domestic labor force and firms, high unemployment and corruption, and rising regionalism. We suggest that the Korea focuses on strengthening non-governmental linkages, reevaluate and revise trade and investment agreements with middle eastern countries, and reinforce development cooperation.

This study aims to explore some specific characters based on the involution of diplomatic relations comparing each regime after independence in Myanmar. Furthermore, it needs to seek some probabilities in the previous and present diplomacy each. Finally, it prospects future and its features of foreign policy which has been propelling by the new government. This study is based on the three crucial diplomatic policy factors, such as individual level by ideas and norms of political leader, inter-state level composed with sociocultural factors, and intra-state level which deals with international order.
The basis of foreign policy of Myanmar is nonalign neutralism, which has been decide from the individual and intra-state level, including political idea of independentista, geopolitical situation surrounding independent Myanmar. Especially, political ideas of leaders, such as Buddhism, humanitarianism, socialism had absorbed inter-level.
Before the end of the Cold War, Myanmar had pushed ahead a bandwagon strategy, not to be dragged into the Western and the Eastern sides but accepted outer assistance in order to national reconstruction and economic development. But super powers like the U.S., USSR and China assisted various physical aid and exported political ideology in order to put Myanmar under their influence.
As China, which is the most important state toward Myanmar’s foreign policy, had expanded Cultural Revolution to Myanmar in 1960’s, tension was building up between two countries. USSR had took advantage of confusion so that she realized the expanding strategy into Myanmar. There was a lot of competition among the super powers surrounding Myanmar in the Cold War era. On the contrary, Myanmar responded to strengthen nonalign strategy, withdrawing the Nonalign Movement in 1971.
After the end of the Cold War, the U.S. and the EU clearly declared against the neo-military regime and started the comprehensive sanction to Myanmar since 1993. The neo-military, setting up a taking political power as their first purpose, has chosen to cooperate with China to penetrate to pressure from western countries. On other side, the neo-military pursued a loose solidarity establishing or reestablishing diplomatic relations with non liberal countries which might stand on the side of Myanmar.
Regardless of diplomatic scope expanding, Myanmar’s dependency toward China intensified. ASEAN which agreed to Myanmar as a member country with Constructive Engagement in 1997 dispersed on the case of Myanmar take ASEAN chairmanship in 2006. On the other side, China always protected Myanmar whenever Myanmar’s problems stood in the international stage, then Myanmar gave lots of natural resource to China as returning thanks for favors. Therefore China could make a structure her sustainable economic development with policy for separating politics from economics.
However, there happened some different views including bring up the Myanmar problems into UNSC led by the U.S., China’s tepid response and the visit to China of Maung Aye who was an ex vice-chairman of military council. Those factors could changed Myanmar’s standing toward China. In other words, China has taken priority in economic benefit than internal problem of Myanmar, also has been changing to tepid stand on pressure and criticism from western countries against Myanmar.
It made changing of ruling strategy of junta that they felt piled fatigue from long lasting military rule and crisis of regime setback, which succeeded into unpreceded reform and opening when the new government launched. As one of reform programs, foreign policy changed from bandwagon to hedging strategy. Myanmar will pursuit national interest, trying to balance of power between two power countries, the U.S. and China under the uncertain regional circumstance. The U.S. will check China’s power, strengthening engagement to Myanmar, while China will also keep the U.S.’s power, keeping her original policy toward Myanmar.

The aim of this working paper is to examine economic policies of Iran's leading political factions around from Mousavi to Ahmadinejad, which are based on characteristics of political and factional structures of the country, suggesting some policy implications for South Korea.
A hybrid political structure combining Republican and Islamic institutions was established after the 1979 Islamic Revolution. Guardianship of the Islamic Jurists, a core ideology of Iran, has forced political factions to devote themselves to the Supreme Leader and values of the Revolution such as Islamic governance under Sharia and economic independence from foreign powers. This unique system has constrained Iran from moving into the global economy from current economic isolation imposed by international sanctions.
As a republican state, however, Iran has experienced political coalitions and conflicts through presidential as well as parliamentary elections by the direct vote of the people every four years. Policy differences by major political leader are as follows. During the Iran-Iraq war in 1980s, the Mousavi administration controlled economy with austerity policy and highlighted the Revolutionary spirit. The Rafsanjani administration attempted to win traditional merchant-elite classes (bazaari) and industrial capitalists, as well as to improve foreign relations with the West in order to promote post-war reconstruction. The Khatami administration continued Rafsanjani’s pragmatic economic policies, but put greater emphases on foreign direct investment than the predecessor. Contrary to Khatami’s economic reform program, the Ahmadinejad administration has increased government involvement to reduce social inequality, providing subsidies for food and fuel.
Despite current political uncertainties and economic sanctions, Iran has huge potential for economic growth with large construction sectors, huge consumer market of 75 million people and abundant hydrocarbon resources. Given its strategic significances, U.S., EU, and Japan can expand economic relations with Iran in the long term. Thus Korea also should prepare for more cooperative economic relations, which will be necessary in the post-sanctions period of Iran.

The pharmaceutical industry in India is the world’s 12th-largest in terms of sales, approximately 16 billion dollars in 2011. It has shown double-digit growth in the last ten years and this exceeds the Indian economy’s growth as a whole. Compared to the Korean pharmaceutical industry, its size was smaller until 2008 but became larger and the gap between Korea and India keeps increasing.
  India has been in trade deficit with Korea, especially in the manufacturing sector but in surplus in the pharmaceuticals since 2000. In terms of generic drugs, India holds 20% share in the world and has the highest number of the U.S. FDA approved manufacturing plants except the U.S., which implies high competitiveness in the world pharmaceutical market. India’s high competitiveness causes constant trade surplus with Korea and Japan in the pharmaceuticals and this led to opposition of Korean and Japanese pharmaceutical firms against FTA with India.
  In this report, we analyze and evaluate the Indian pharmaceutical industry and compare it with the Korean pharmaceutical industry. We provide current market situation, structure, institutions as well as its history since the 1950s.
  In chapter 2, we present a brief summary of the pharmaceutical market in microeconomics perspective before introducing the Indian market because the pharmaceutical industry has several distinct characteristics that are different from other industries. Next, we provide recent trends of the world pharmaceutical market.
  In chapter 3, we show the history, market situation, characteristics, government policies and institutions of the Indian pharmaceutical industry since the 20th century. We expecially pay attention to the differences before and after the enforcement of TRIPs in India (The Agreement on Trade Related Aspects of Intellectual Property Rights).
  In chapter 4, we study trade pattern of the pharmaceutical sector between Korea and India, analyze the chapters and clauses of the pharmaceutical sector in the agreement of the Korea-India CEPA, and show the differences in the contents of the pharmaceutical sector between the Korea-India and the Japan-India CEPA.
  In chapter 5, we analyze the competitiveness between the Korean and Indian pharmaceutical industries with various trade related indices as well as a simulation method. In the simulation, we test a situation of no tariff after the Korea-India CEPA. Moreover, we perform the SWOT analysis for both markets and compare the results to see how these two markets share common or different factors. Through these analyses, we suggest co-petition strategies for both countries in order to achieve win-win outcome.
  In chapter 6, we provide the case studies on Korean firms that have entered the Indian market and Indian pharmaceutical firms that are interested in the Korean market.
  Lastly, in chapter 7, we summarize the previous chapters and provide policy implications for the Korean pharmaceutical firms as well as the Korean government in relation to the Indian pharmaceutical market.

 Georgia is a small country with a population of 4.47 million and 69,700㎢ of territory (1/3 of the Korean Peninsula). However, its location on the ancient Silk Road, mid-way between Europe and Asia and along energy transit routes, increases the value of the country. Now surrounded by major economic blocs such as the European Union(EU), Black Sea Economic Cooperation(BSEC), Gulf Cooperation Council(GCC), and the Commonwealth of Independent States(CIS), Georgia holds great potential to become a foothold for Korea in entering those markets. 
After its independence from the Soviet Union, Georgia suffered through years of economic hardship. The Rose Revolution in 2003, however, provided a catalyst for change. The country immediately implemented massive reforms including tax reforms and anti-corruption measures, which lead to astounding economic success. Its annual economic growth rate in 2004-2008 exceeded 10%. Although hit by the global financial crisis and the "Five-day War" with Russia, the economy recovered quickly and continued to grow at a fast rate.
This study seeks to analyze Georgia's two major industries - transport infrastructure and ICT. The transport industry is significant in order for Georgia to become the center of transport and logistics among neighboring economies. Recently, the Georgian government undertook a number of projects for modernization and expansion of railways, roads, ports and airports. However, difficulties arose with respect to financing the projects. One way to improve the current situation would be to prepare relevant regulations and laws, perhaps through a revision of the concession law.
One of Georgia's major goals is to realize a "digital modernization" through introduction of digital technology. The government plans to adopt related laws, narrow the digital divide between cities and rural areas, and train IT specialists. In addition, it is recommended that the government design and implement industrial policies through cooperation with international organizations and other countries, and provide institutional and financial support. 

This research, the follow-up to ‘the Mexico’s Industrial Research’ published by KIEP in 2007, provides some suggestions for Korean government and private sector in order to enhance cooperation and advance in Mexican petrochemical and renewable energy industry after in-depth analysis of the industries.
At the government level, strengthening of communication channel such as summit meetings, interchange of industry cooperation delegation, and resume of FTA negotiation with the recently inaugurating administration are proposed as the policy direction for petrochemical industries. At the private level, this research suggests the followings: foothold strategy that considers Mexico as a center for advancing in the Latin American petrochemical market, the small and medium sized companies centered investment, high-tech fine chemistry sector investment, petrochemical plant market entry, the import market entry with the specialization in high value-added products, and the enhancement of technical cooperation in petrochemical field.
Meanwhile, in order to strengthen the cooperation in the renewable energy industry sector, the basic government policy suggestions are not so much different from those from petrochemical industry: improvement of the communication channel. In the private sector, encouraging entry into the self-generation business, establishment of renewable energy parts factory, winning a power plant construction contract, and lastly cooperation with Mexican companies and existing foreign companies in Mexico are suggested.

Singapore has achieved a high level of economic growth in spite of disadvantages which come from the limitations of city state, limited land space, natural resources, and population. On the base of advantages in the field of service industry, Singapore could develop to be a representative hub-state in Asia. Service industry accounts for over 70% in GDP, and retails, finance & insurance, business service sectors are occupying the large share of the industry. Recently, the growth engine of Singapore have extended its field from the traditional service industries, finance and logistics, to convergence and integration like MICE and medical tourism.
 Singapore has emerged as world top MICE country by the rapidly growing number of holding international meetings. According to the statistics of UIA(Union of international associations), Singapore ranked on top in 2011 by holding 919 international meetings. The MICE promotion policy of the government took a great role to develop as the world leading country in the field of MICE. By establishing a BTMICE(Business Travel + MICE) department, Singapore Tourism Board has been implementing a series of MICE promotion policies. In addition, SECB(Singapore Exhibition and Convention Bureau) has played important roles like supporting to hold conventions, meetings, exhibitions, conferences and to develop the business Tourism.
 Building the strategic cluster is also one of the major MICE promotions policies. The strategic cluster means the strategic grouping among the business partners in the field of national core industry. Singapore has been trying to improve the national image by holding conferences in the high-tech and value added industry. Lastly, Singapore has promoted its MICE industry by opening the giantic integrated resorts, Resort World Sentosa and Marina Bay Sands.
 Accoring to the SWOT analysis about MICE industry of Singapore, superior infrastructure and the aggressive MICE industry promotion policy shall be the srengths. On the other way, the high price level, lack of the asian traditional image would be the weaknesses. The sustainable economic growth of east asia and abundant potential demand of china region shall be the opportunities. The threats shall include the rising cost for luxury facilities and the excessive competition against neighboring countries would be the threats.
 Medical tourism industry has achieved a sustained growth as one of the major growth engines of Singapore. The arrivals of medical tourists to Singapore has increased 730 thousands in 2010 from 200 thousands in 2002. By this rapid growth, Singapore government expected that Singapore shall achieve one million medical tourism arrivals and 3 billion dollar in revenue in 2012. In order to promote medical tourism industry, Singapore has implemented a policy called 'Medical Hub in Asia', which include seven policy recommendations as the policy framework. For the 1st policy recommendation, Singapore has launched a native brand, SingaporeMedicine, and founded an integrated organization. In addition, Singapore simplified the immigration procedures and hosted international medical conferences for the internationalization policy. Singapore has also encouraged greater transparency on pricing and clinical practice norms as the second policy recommendation, and on reducing rigidities in the supply of doctors, nurses and paramedical manpower as the third policy recommendation. For the fifth policy recommendation, Singapore has supported clinical research in healthcare institutions.
Major hospitals in Singapore has tried to attract the medical tourists by operating the international patient center. For profit hospitals, Glen Eagles and Raffles, providing the customized and best service to the medical tourists by aggressive marketing.
According to the SWOT analysis about the medical tourism of Singapore, diversified marketing activities of for profit hospitals and one-stop service of SingaporeMedicine shall be the strength. High cost and lack of native medical work force would be the weakness. The opportunities would include the increasing demand and high-income class in southeast asia which maintain strong economic growth even during the global financial crisis. Synergy effect from the development of bio-medical industry also can be utilized as the opportunities. However, the level of medical service in the neighboring countries has been improving. Thus, Singapore has to cope with the threats like the concern on the demand decrease from the fierce competition.
 A few implications for Korean government can be found as follows; Korea can benchmark the aggressive MICE promotion policy and government organization of Singapore. MICE related organizations in Korea should break out of their general PR and convenience function and extend their function to mid-long term marketing under the public-private cooperations. Integrated resort with symbolic image like Marina Bay Sands also shall be good point to benchmark. Korea also has to improve the level of medical workforce by building the education and training institutions. In addition, case study on Singapore MICE industry also provides good sources to benchmark, for example, internationalization of mutual marketing system, inter-industry clustering strategy, connectivity with other type of tourism, etc. In the case of medical tourism, Korea has to build the integrated organization like SingaporeMedicine, and to improve the education and training institutions for the higher medical serve quality. Korean government needs to consider limited approval of for profit hospital. In addition, public-private marketing and detailed information system for better medical tourism marketing shall be additional points to be considered.

The promotion of small and medium enterprises (SMEs) is an effective policy measure to facilitate the functioning of markets by increasing the number of market participants. Moreover, the increase in the market participants expands the sources of tax to increase tax revenue. The majority of recipient countries with aid dependency experience difficulty achieving self-sustaining growth and development due to the shortage of revenue. Therefore, the expansion of sources of tax through the development of SMEs is a necessary condition in order for developing countries to move toward a better future. Thus, the nurturing of SMEs is important for developing countries.
The purpose of this study is to analyze the roles of Korea in the promotion of SMEs in Ethiopia as a means of development cooperation. SMEs in Ethiopia are experiencing the following barriers: low infrastructure, business-related policies and regulations, constraints to access credit, and the lack of government-led technical supports. We show that those constraints are linked and affect each other.
To remove those interlocking constraints hindering the development of SMEs, this study presents two policy suggestions. The first is the use of micro-finance. The constraint to access credit causes the lack of capital to block the accumulation of human capital and technology so that the SMEs cannot grow. Korea can provide ODA to the micro-finance institutes as a form of public-private partnership (PPP) projects to support the development of SMEs in Ethiopia.
Since most micro-finance institutions (MFIs) are owned by a local or central government, The Korean government can provide a provincial or central government with either a grant or credit assistance to improve the financial status of MFIs. They provide financial services to SMEs. Private partners of Korean government also donate expertise and technology to MFIs. Since MFIs provide small businesses with non-financial services such as management counseling or technology, private partners in Korea and small businesses in Ethiopia are naturally co-operated under these structures. This support program increases the likelihood that SMEs in Ethiopia buy raw materials or equipment from firms who transfer technology to them. By doing so, this program can work as a strategic expansion plan for Korean SMEs.
The second policy suggestion is to provide a comprehensive aid program. Before establishing the program, Korea must join the Development Assistance Group (DAG) in Ethiopia. Korea has to avoid making the decision that Korea alone will support the project the recipient country requests. Instead, Korea in consultation with major donor countries should select proper projects. Through this consultation process, we can clearly identify effective aid areas and achieve the harmonization of aid. First, each donor country proposes projects in the sectors of comparative advantage. Combining the proposed projects in consultation with other donors establishes a comprehensive program. This program could provide a means to untangle the tangled constraints. That is to say, interlocked constraints could be overcome through this program.

The Green Growth policy, which is the policy to improve the environment  and to foster economic growth of a country, has earned general acceptance as a policy not only for advanced economies but also among developing economies. Advanced economies have greater opportunities for the development of green industries based on their high technology and large energy consumption. However, developing countries, which have much energy resources, are paying increasing attention to green growth. The reason being that changing their energy dependent economies to industrialized ones with accumulated wealth by energy resource export is one of their economic policy key goals. Green growth policy is being considered as one of the better options for sustainable growth and economic diversification.
Green growth policy is an industrial policy applicable under the WTO regime. However, the green growth policy of developing countries as an industrial policy would be different from that of advanced countries. Developing countries would rather focus on the improvement of their energy efficiency and the development of renewable energies appropriate for their individual circumstances, than the reduction of greenhouse gases. In addition, developing countries must utilize fully the opportunity for industrialization through the green growth policy. To this end, they must establish their master plans for basic infrastructure such as electrical grid installation, reflected in demands of green industries. It will be the ground for industrialization by green industries.
Kazakhstan, an energy-rich developing country, has yet to enact an economic growth policy that includes green growth. However, the industrial diversification program of Kazakhstan, named as ‘the State Program of Forced Industrial and Innovative Development 2010~2014,’ does have elements of green growth policy. It is written in the basic principles of this program that the introduction of a green economy represents the fundamental direction of Kazakhstan's economic growth. And the program includes policies for energy efficiency improvement and for renewable energy development. Actually, the program is for industrialization but not exclusively green growth. So it does not have sufficient instruments for the green growth of Kazakhstan. To stimulate the green growth of Kazakhstan, Kazakhstan has to make the promotion plans for the industries related to green industries and the infrastructure construction plans to create the demand of green industries. The prospective green industries in Kazakhstan include energy saving and efficiency, wind power, and power grid including the smart grid industry.
To reinforce the economic partnership for green growth between Korea and Kazakhstan, cooperation among both governments and both industries is necessary. First, at the government level, Korea needs to designate Kazakhstan, which has a relatively free business environment, as the core partner country for green growth in the CIS region. Second, Korean government should give support to the diplomatic efforts of Kazakh government to take the lead of green economy internationally. Third, the Korean government should combine the green growth cooperation policy with Kazakhstan with the Knowledge Sharing Program of Korea. It will heighten the effectiveness of Korea's green growth cooperation with Kazakhstan. Fourth, Kazakhstan's government partner for green growth should be the Ministry of Industry and New Technology, which oversees the industries of Kazakhstan. Fifth, Korea should earn the designation as a prior partner country in the energy efficiency improvement section of ‘the State Program of Forced Industrial and Innovative Development 2010~2014’ like EU. Sixth, the loans for encouraging Kazakhstan's green growth and the overseas expansion of Korean green industries should be linked strategically. Seventh, it is necessary to cooperate for the nurturing of green technology manpower and for green R&D. Eighth, Korea and Kazakhstan need to make joint efforts to restore ‘Non-actionable Subsidies’ in the WTO regime for the development of the green industries.
At the industry level, both countries need to cooperate in the industries like wind power, LED and smart grids. These industries are the prospective industries for Kazakhstan and among Korea's strategic industries for green growth. In addition, R&D and training of engineers for green industries, the establishment of joint ventures and investment in Kazakhstan, and the development of Kazakhstan as the strategic base for CIS regions' green markets should become the cooperation agenda regarding industries of the two countries. Also, other related industries are to be developed together in wind power, LED and smart grid industries to expand the economic effects of green growth policy. And 'the growth-together strategy' should be used to overcome the disadvantages of Korean green industries by the advantages of its other related industries for the cooperation with Kazakhstan. The other related industries include shipbuilding, materials industry, semi-conductor industry, solar power industry, IT industry and etc.
Finally, this case study about Kazakhstan's green growth identifies implications for the future direction of cooperation with developing countries for green growth. First, potential green markets do exist in energy rich developing countries and these markets need to be developed. Second, the green growth cooperation policy for developing countries may be used as the diplomatic leverage for improving Korea's global position. Also, the green growth cooperation policy needs to be combined with Korea's Knowledge Sharing Program for the effectiveness. Third, it is necessary for Korea to build an effective WTO regime to grow green industries together with the developing countries that pursue green growth. Fourth, Korea's economic cooperation with energy rich developing countries should drive the transition from energy resource development to green industry development for reciprocal economic growth.

Executive Summary

I. Introduction

II. Inflation Targeting and the Business Cycle

III. Monetary Business Cycle Accounting
1. The Prototype Model
2. The Business Cycle Accounting Procedure

IV. Data

V. Results
1. Quantitative Results
2. Robustness Checks

VI. Conclusion

References

This paper examines the effectiveness of inflation targeting to stabilize the real economy of the advanced countries where inflation targeting was adopted in the early 1990s. This paper employs the monetary business cycle accounting methodology recently developed by Šustek (2011) which is an extended version of Chari, Kehoe, and McGrattan (2007) to monetary models in order to quantitatively assess inflation targeting. Our main finding is that the monetary policy wedge, which captures economic fluctuations caused by monetary policy, has significantly declined since the implementation of inflation targeting in the early 1990s. The results suggest that advanced economies such as Australia, Canada, Sweden, and the UK, that adopted inflation targeting in the early 1990s have been successful in stabilizing business cycle fluctuations.