This study covers 4 areas - economy and policy, natural resources and industry, infrastructure, and law and institutions - to analyze FDI attractiveness of the 5 Central Asian countries.
According to our analysis, investment attractiveness of each Central Asian country can be summarized as follows. First, in terms of economic and policy factors for attracting FDI, Kazakhstan has the highest attractiveness by virtue of economic scale and income level; but the other 4 countries are much less so. As for potential for economic development, Uzbekistan is the most attractive because of its population, with the largest population among the Central Asian republics. In the area of policy, Kazakhstan and Kyrgyzstan are more attractive than the other 3 countries because of their openness to the international society and fewer regulations that can constrain activities and investment of foreign companies. In political stability, Kazakhstan and Turkmenistan score comparatively well; whereas Kyrgyzstan, Tajikistan, and Uzbekistan do not. In government effectiveness, Kazakhstan has the best indicators while those for the other 4 countries are low.
But overall, the Central Asian region made up of those 5 countries is not a very attractive choice as an investment destination presently, due to a relatively small population and low income level compared to other regions. However, investment for entry into this new market has to be considered in the context of a larger regional market, the CIS, rather than just the individual countries in Central Asia. Even though Central Asia is a small market, it should be noted that 4 countries have recently posted steady economic growth, which is expected to last into the foreseeable future. Kyrgystan is the outstanding exception, as it has which has recently undergone a political crisis.
Second, in terms of natural resources and industry, Kazakhstan and Uzbekistan have higher FDI attractiveness because of their energy, mineral resources, and relatively robust agricultural sectors;  Turkmenistan also has potential due to its abundant natural gas reserves. Attractiveness of Kyrgyzstan will increase if its rare earth deposits are exploited and developed actively. As for the industrial sector, Kazakhstan, Turkmenistan, and Uzbekistan have higher attractiveness for establishment of fixed capital.
Third, there is the problem of Central Asia having insufficient infrastructure in general. However, as Kazakhstan and Uzbekistan are competitive in air transport; Kazakhstan and Kyrgyzstan has higher attractiveness in distribution; Kazakhstan and Uzbekistan have high wire or wireless distribution rate; and Kazakhstan has the highest internet penetration rate; all in relative terms.
Fourth, in terms of law and institutions, the legal process for establishing corporations is the simplest in Kyrgyzstan and Tajikistan, while the country requiring the highest number of documents / certifications is Turkmenistan. Meanwhile, setting up businesses in Uzbekistan takes the longest in terms of the time required. As for real estate, 4 countries except Kazakhstan do not recognize ownership of land by foreign corporations and foreigners. In connection, lease, rent, and loan by credit are not recognized in Uzbekistan and Turkmenistan, making them the least attractive in this area.
The conclusions of our analysis reveal that Kazakhstan is the most attractive, followed by (in order) Uzbekistan, Turkmenistan, Kyrgyzstan, and Tajikistan. Turkmenistan is presently implementing a policy of openness to the world as well as vigorous policies to attract investment, which has had an important effect in increasing the country’s investment attractiveness. Completion of a gas pipeline to China also positively influenced its investment attractiveness. On the other hand, there is severe political confusion in Kyrgyzstan, which decreases its FDI attractiveness.
In analyzing Central Asia’s attractiveness for investment, the changing political and economical environment must be considered. Because politics in this region exert significant influence upon the economy, changes in the domestic and external environment have direct (or at least indirect) effects on foreign investment. Recent improvement in inter-country economic exchange among 5 Central Asian countries along with CIS countries is one of the most important factors in increasing investment attractiveness of the region. Through promotion of international economic cooperation, 5 countries in Central Asia can reform their weak economic system and enhance their political transparency necessary for improving FDI conditions.
Therefore, Korea has to observe and research continuously and monitor constantly the changing relations between Central Asia and other countries. Only then would Korea be able to focus on investment into strategic industries of Central Asia. Korea also has to consider an export strategy to Russia, CIS, Middle East, and Europe from Central Asia when integration of this region has been achieved.
Despite weaknesses in FDI conditions in the 5 Central Asian countries, they are potentially highly attractive for FDI in terms of rapid economic growth, abundant energy and resources, integration possibility for integration of the regional economy, and mid-to-long term economic development strategies of each country. Therefore, if the Korean government and enterprises can enter Central Asia with a deeper understanding about the strengths and weaknesses of the region, along with detailed  information about each country, prospects for investment would be bright indeed.

 Environmental cooperation has been becoming one of the most important international agendas. Korean government has planned to increase the amount and proportion of green assistance to developing countries in the near future. It has already implemented “East Asia Climate Partnership” in 2008. The total amount of assistance is as much as 200 million US dollars and it will continue until 2012. Korea needs to develop its ability to conduct efficient and effective environmental cooperation with developing countries. The experiences of Japan and EU are expected to give Korea good examples of environmental cooperation.
This report is aimed at introducing Japan and EU’s environmental cooperation in some sectors such as energy efficiency, climate change, water supply, and waste management. This report also gives us some information on Japan and EU’s ODA policy from the environmental perspective. We have conducted voluminous comparison analysis and suggested some policy implications from Japan and EU’s case study.

After global financing crisis in 2008, China broke from the economic growth model which mainly depends on foreign direct investment and export and tried to find a balance among consumption, investment and export, especially focusing on development of domestic market. This change of paradigm of economic growth which is emphasizing on domestic demand is closely related to regional development strategy. And the strategy of developing central region in China, in other words, the strategy of the rise of Central China whose keystone is urbanization and developing megalopolis has been progressed since 2009.
The scope of existing researches about Chinese domestic market in Korea has been extended from eastern region to western region and northeastern region, while the researches about central region are relatively few. Besides, the research about central region in China from the perspective of megalopolis is extremely rare. Therefore on the assumption that the core of future domestic market in China is megalopolis in central region, this study selected four main megalopolises among six provinces in central China, which are Wuhan megalopolis in Hubei province, Changzhutan megalopolis in Hunan province, Zhongyuan megalopolis in Henan province, and Wanjiang megalopolis in Anhui province.   
First, this report went through historical background to the rise of central China and analyzed economic features of the four megalopolises using several main economic indicators. Also, it made a cross- comparison of growth possibility(GDP, GDP per capita and growth rate), marketability(market size, consumer propensity), human resources (wage level, number of college graduates), and openness(the size of foreign trade, FDI) in five major cities such as Beijing, Shanghai, Shenzhen, Qingdao and Chengdu. As a result, it proved that the central China contains great potential in the speed of growth and investment environment though not being in superior position to other regions in terms of the economic indicators.
As for each megalopolis, we introduced the status of major city and evaluated megalopolis development strategy. Then we divided Chinese domestic market into three markets-industrial market, consumer market and project market and analyzed each market’s current state and characteristic. Finally we provided some implication to Korean enterprises which are searching for the chance to enter into central market in China through introducing some cases of foreign invested companies in those regions.
The four megalopolises clarify common ideas on its long-term development strategy which are to establish resource-saving and eco-friendly society and accept the industry  relocation from the East coastal region in China. It is much concerned that overlapping investment would occur due to similar plans and indistinctive industrial structure. It is therefore important to discover business projects fully supported by the local governments with specific characteristics.
In case of industrial market which consists of import market and industrial network, the market share of Korea in the import markets in those four provinces is not big compared with that of Korea in total import market in China. Therefore the differentiated export strategy considering the size and characteristics of each province’s import market is mostly needed.
As for the core consumer whose income level in upper 20%, the scale of the four provinces is comparable to that of Shanghai. However, people in the Provinces spend more on necessities(food, clothes, housing, etc.) than on service goods(transportation and communication, education, culture and entertainment, etc.).
Meanwhile, data shows the proportion of durable goods in Provinces is relatively higher than in Shanghai, whereas their penetration rate is still remains lower. These figures lead to the room for huge potential markets of durable goods such as air conditioner, mobile phone, computer and color TV.
While the share of Korean investment in total FDI in four provinces of China is mostly insignificant level, the biggest advantage in investing those provinces is geographical condition. Therefore, it is necessary to actively find out market entry with the strategies such as far-sighted perspective, partnership with local government and local firm, development of own technology, local employment, entering into non-core cities.

There can be various views about what a concrete form of the post-Kyoto regime will look like. However, in any cases, we may anticipate we will experience a certain period of time before it is completely settled down as a comprehensive legal form. This research presumes that the international climate change policy architecture will evolve into comprehensive level of international norm, but gradually. And in the meantime, the multilateral agreement will be in a loose-shape compared to Kyoto Protocol and it will be complemented by bilateral treaties. This study recognizes the importance of bilateral cooperation during a transitional period of multilateral norm formation. In this study, one of such bilateral cooperations we focus on is ETS (Emission Trading Schemes) linkage between at least two different countries or regions. 
ETS linkage is attractive to policy makers in that the linkage expands the size of permit market which leads the reduction of total abatement costs in both markets. Such a cost reduction enhances the effectiveness of persuasion of interest groups against the introduction of mandatory cap and trade system. In addition, by equalizing carbon price among linked schemes, linkage can weaken carbon leakage problem and competitiveness concern.
In terms of directions, there are two different types of linkage; direct and indirect linkage. If the only concern is abatement cost reduction, linking between two schemes is more effective than sharing a common scheme between two separated schemes. The advantages of indirect linkage is from its one-way directional property. When a link is one-way directional, it is easier to be disconnected whenever a linkage brings an undesirable consequence, such as a huge volatility of  carbon price in the linked scheme. Especially, in the early stages of formation of a new international climate change agreement, it is required to respond flexibly to rapidly changing international policy environment. In short run, from this reason, indirect linkage is preferable to ensure the policy sovereignty. And direct linkage is suitable to a long run policy.
In discussion of a short-run linkage strategy, we suggest offset market differentiation; breaking down common credit systems by country' abatement technology level. When several ETSs share a common credit system, like CDM(Clean Development Mechanism), profits from the linkage are distributed into each country unevenly. A bigger share of linkage benefit goes to a country which has a higher marginal abatement cost or a higher reduction target. International offest market segmentation may eliminate such an uneven distribution of linkage benefit. As well as it makes developing countries easier to participate in  reduction efforts, it would be consistent with a fundamental principle of UN Convention on Climate Change, ‘common but differentiated principle.’
For a long-run linkage strategy, we examine both partial and general equilibrium analysis. In our partial equilibrium model, we found that cost containment measures such as imported permit discount may help a country to maintain its environmental policy autonomy in some degree. 
To investigate the economic effect of linkage on overall economy beyond permit market, we use a CGE (Computable General Equilibrium) model, specifically GTAP-E. In case of indirect linkage, we consider a part of Korea’s national reduction target (BAU 30% by 2020) to be implemented in other developing countries, which may describe mutual recognition by bilateral agreement as well as purchasing CERs in UN framework. The bigger portion of reduction target is implemented in other developing countries, the less economic burden on Korea. It is because mitigation costs in developing countries are lower than those in Korea to reduce the same emission, which enables Korea to avoid the necessity of production reduction to reach the target. The result shows that both ASEAN and China are suitable linkage partners of Korea meaning that both Korea and linked countries get better off by linkage. In case of indirectly linking to India, we may expect India would be reluctant to link since India suffer a slight real GDP loss by linkage, though Korea gets better off.  
In case of direct linkage, we consider Annex 1 countries which have already introduced or will introduce ETS in near future. In general, Korea will experience both real GDP and welfare loss by such direct linkages to countries with a higher marginal abatement costs. This result is similar to that of partial equilibrium analysis but the reasons are more complex. Besides decrease in production activity to sell out permits, terms of trade effect and inefficiency in resource allocation interrupted.
Finally, it is considered that regional linkage between developing and developed countries in East Asia. Specifically, combinations of Korea-China-Japan, Korea+Japan+ASEAN, ASEAN +3 are considered. The result shows us that Korea-China-Japan and ASEAN+3 are preferable to Korea and Japan. In those cases, China experience decrease in real GDP but welfare gain. It implies that likelihood of climate change cooperation in East Asia through ETS linkage will depend on how much China consider change in social welfare compared to that in real GDP.

 

The Greater Tumen Initiative (GTI), which originated from the Tumen River Area Development Program (TRADP), is an intergovernmental cooperation mechanism in North-East Asia. The United Nations Development Programme (UNDP) is the key supporter, and four countries including the Republic of Korea, People’s Republic of China, Mongolia and Russian Federation are the major participants. In spite of its great potential, GTI had been shelved due to several challenges including disharmony of interest among member countries, weak infrastructure development, and lack of funding to reactivate the project. However, GTI has received new stimulus since China adopted it as part of its central economic development plan in 2009. Its revitalization is expected, and this means it is necessary to maintain a close watch on the development of the GTI. This book includes historical background of the GTI, analysis of reasons for its deactivation, current trends in efforts to move it forward, and policy responses for its activation and consistent development.
This book comprises of five chapters. Included in the first chapter are the purposes of this study, previous studies on subjects related to GTI, methodologies, and expected effectiveness. In the second chapter are historical backgrounds and processes of both TRADP and GTI. In the third chapter, potentials of development under GTI are assessed, in particular from the perspective of regional, transportation, and economic cooperation. In the fourth chapter, strategies and policies toward the GTI of each member country are introduced, especially the detailed description of the change in attitudes and policies of the Chinese government toward the GTI. In the fifth, policy responses to GTI activation are introduced. This part is composed of assessment of policies taken in the TRADP system, challenges in the TRADP system, and tasks in revitalization of the GTI.

This study aims at drawing out implications for promoting the service industry in the Korean economy. While assessing the current situation and problems objectively, this research focuses on industrial structure, linkage effects, and productivity of service sectors in the OECD member countries by application of the input-output model.
As the precedent researches involving international comparison analysis of service industries have generally used the national account data owing to limitations of statistical data, the majority focuses on the structure and change of service activities, such as the progress to a service economy. Although some studies include international comparisons analysis on linkage effects of service industries, the analysis is confined to a few countries. This study is distinctive in that it empirically analyzes the structure of service industries, its linkage effect and productivity of the OECD member countries, using the identical analysis method and sets of data. It contributes to a better understanding on the dynamic environment of the industry.
According to this study, service economies have grown in most OECD member countries in terms of total output, value added, and employment. The Korean economy, however, only shows employment-oriented progress in its service sector, unlike many other countries. It still has not used producer services in all areas of its economic activities at the same time. This study also states that there are significant changes in the linkage effect of services. As service industries play intermediate roles in national production system, the forward linkage effect of producer services is relatively greater than other service sectors. The Korean producer services is at a competitive disadvantage among the OECD countries due to sluggish service industries while its manufacturing sector is one of the greatest in terms of the forward linkage effect. The productivity of service sectors in OECD countries has improved, particularly producer services, while that of Korean services industries remains at a low level because of its reliance on labor.
This study seeks to draw some implications for promoting the service industry as follows. First, it is necessary to enact policies for promotion of the Korean service industry, focusing on stimulation of higher-value added service sector instead of employment-oriented policies. Second, the promotion of the Korean domestic producer services must be achieved within the earliest possible time considering its economic effect. Third, a competitive market environment including market access must be encouraged in the Korean commercial services sectors. Fourth, the Korean government must support the service companies to strengthen their area of specialty and extend their business abroad.

The possibility of Korea-China FTA negotiations starting in the near future is edging closer to reality. Thus there is pressing need for further research and preparation for the sensitive issues that will arise with the FTA, considering the huge impacts and consequences that the FTA will have on the Korean Economy. Within this vein, the issue of Movement of Natural Persons, otherwise known as Mode 4, will constitute the most sensitive part of the negotiations for Korea. On the other hand, China will strongly push for an opening of the Mode 4 sectors, something Korea has experienced during negotiations for the Korea-India Comprehensive Economic Partnership Agreement.
This study attempts to provide policy implications of negotiations on Movement of Persons in the Korea-China FTA. For this purpose, all agreements China has hitherto concluded including DDA, APEC, FTAs were examined and the analysis of China's positions in the negotiations for Movement of Persons are presented herein. On the basis of the analysis, this study outlines agendas and points likely to be adopted in the Korea-China FTA negotiations.
First, in China's FTA deals, the commitments made in Mode 4 categories were concluded at levels equal to that of existing GATS Mode 4 negotiations of its partner countries. Since Korea offered a commitment to open the Contract Service Supplier (CSS) category in the DDA negotiation, there is ground for requesting Chinese commitment in the CSS category, where Chinese commitment was not forthcoming in the DDA. The Business Visitor (BV) is a new category that China offered, for temporary residence of 6 months, first in the China-New Zealand FTA and then in all FTAs concluded afterwards. Korea included a BV commitment for up to 90 days in the DDA. Therefore, the category can be included in the Korea-China FTA talks pending adjustment of the duration of stay.
Second, it is possible that additional commitments for skilled workers can be requested by China. In the China-New Zealand FTA, New Zealand made a non-reciprocal commitment for temporary employment entry for Chinese skilled workers. On the other hand, Korea has included a list of 163 occupations of the Independent professional (IP) category, allowed a stay of up to one year, in the Korea-India Comprehensive Economic Partnership Agreement (CEPA). Therefore, assessing actual domestic needs for foreign manpower and setting the objective criteria for a list of occupations are required in preparation for the negotiations with China.
Third, China can request DDA-plus commitments linked to service sector commitments in the Movement of Persons negotiations. Education-related services is the sector that China has been especially active in pushing for openings in GATS as well as in other FTA deals, and China is also willing to institute policies to promote its own domestic education services. Therefore, there is a distinct possibility that China will be interested in opening the Korea education service market through Korea-China FTA negotiations. Meanwhile, Korea has not yet made many commitments for the education-related services in DDA due to the unique character, of education service in Korea, meaning Korea may need to prepare to handle Chinese demands for opening of additional markets. Furthermore, China obtained New Zealand's commitment for 200 Chinese doctors and nurses at one time for a 3 year stay. It seems quite possible that China will request a Korean commitment in the sector.
Furthermore, the study examines closely the Movement of Persons negotiations of the China-New Zealand FTA and the operations of the FTA agreement after the deal, in order to draw out lessons for Korea ahead of the Korea-China FTA negotiations. New Zealand installed new visa classification to manage the new categories of temporary entry generated by the Movement of Persons negotiations in the FTA. Moreover, it seems desirable for New Zealand to attempt to integrate the existing employment immigration policy into the Movement of Persons negotiations in its FTA talks.

Africa is emerging as a new partner for cooperation in the 21th century. During the 20th century, Africa has been perceived as a "crisis continent" with no potential of development. But recently, as a result of new changes, is becoming a market with opportunities The basis of these changes is the economical and political development that have occurred in Africa as well as its strategic value as a resource development market. There is sufficient evidence to believe that if Africa achieves political stability, it will become a new global growth engine. There are both optimistic and pessimistic views toward the future of African development, but the optimistic view recently have recently begun to prevail.
Attention is being given to Africa’s potential value asthe final remaining niche market in the world. Africa not only has economical values in such areas as resource procurement but can also be a partner for strategic cooperation in the international arena. Africa’s 53 nations represent 28% of the states comprising the UN General Assembly, and thus it could be said that close economic cooperation with African nations would have a direct impact on South Korea’s diplomatic competence. Africa’s importance as a strategic partner is recently increasing as African nations, through the African Union, are letting themselves be heardon international problems with a concerted voice. Nevertheless, emphasizing solely on South Korea’s economical benefits from cooperation would only bring temporary effects. What is needed is a mutually beneficial and future-oriented partnership founded on the basis of mutual understanding. As South Korea possesses both experience in overcoming poverty and development know-how, it could assist in developing Africa’s potential capabilities and increasing the ability of African countries to help themselves. Many African nations are actually learning from South Korea’s development history, which overcame experiences of colonization and war, and finally succeeding as a result of rapid growth and African countries are eager to benchmark South Korea’s policies.
Increasing cooperation with everyAfrican nation is unrealistic considering South Korea’s present capability in economic and development cooperation would be too limited; meaning selection and concentration is inevitable. From this perspective, this research identifies 4 countries deemed as requiring preferential attention: Ghana, Congo, South Africa and Ethiopia, who are also deemed major cooperation partner nations. There is a high chance of cooperation with Ghana, the nation with the highest potential for development in West Africa, as it has much interest in South Korea’s development experience. The mineral-rich Congo is also a possible cooperation partner in resource development and infrastructure construction, givenits recent concentration on national development. South Africa is strategically valuable as it is a resource-rich nation as well as the largest market in Africa. Although Ethiopia is the poorest nation in Africa, it is socially and politically stable and it also has a historical relationship with South Korea as an ally during the Korean War.
A summary of the promising fields or plans for cooperation with these major cooperation partner nations are as follows. First, comprehensive agricultural cooperation, construction plants and an establishment of an e-government are key fields for cooperation with Ghana. Ghana has a high potential in agricultural development as it possesses extensive arable land and a great reservoir in the form of Lake Volta. There is a need to utilize development aid funds for measures which include agricultural infrastructure support such as the expansion of irrigation facilities and the establishment of a training center for processing ofagricultural products. From a more long-term aspect, promoting and developing it into an MCI should receive serious consideration. This would lay the groundwork for entry of domestic agricultural businesses into Africa. On the other hand, the Ghanaian government is investing a majority of its budget in infrastructure expansion, which offers great opportunities for participation in construction projects. Also, by participating in Ghana’s national informatization projects, cooperation in high-value fields, e.g. e-government establishment, high-speed communications network construction and establishment of IT master plans, is also feasible.
Second, resource development in connectionwith SOC construction, infrastructure construction, establishmentof infrastructure for hydroelectric power generation or power distribution, and guidance in implementation of the Saemaeul movement are candidate fields for cooperation presented for Congo. As Congo is presently focusing on SOC construction, of which South Korea possesses comparative advantage, there is a need to implement plans which links SOC construction and resource development together. It would be appropriate to tie resource development with SOC construction because with a national budget scale of just4 billion dollars, Congo has difficulty in paying SOC construction costs. Yet, as has been experienced in the past, the matter depends on the prior organization of risk bearing and gain sharing arrangements between the participating entities. Cooperative guidance for the implementation of the Saemaeul movement in agricultural regions is also required. Since Congo shows much interest in the Saemaeul movement, it would be wise to make Congo the role model for implementation guidance of the Saemaeul movement in Africa. It is crucial that the guidance provided by South Korea be applied in a manner which takes into account the circumstances specific tothe partner rather than a simple one-sided guidance based on past experiences of South Korea.
Third, resource development, nuclear cooperation and bio-energy development through cooperation with advanced economies and FTA negotiations are fields for cooperation to be presented for South Africa. Considering the inter-African status of South Africa, an FTA with South Africa would lead to a cooperation mechanism which shall promote South Korea’s relationship with Africa. As South Africa is a member of a customs union, the SACU, approaching SACU is also required separately from bilateral negotiations. For resource development, entering Africa in concert with a major western major nationis recommended. In South Africa, the entry barriers for resource development are high because most of the market is dominated by major European nations. Thus, co-entry with major European nations would eliminate the challenges posed by market monopoly and also disperse theaccompanied risk forthese fields. There are also cooperation opportunities in the fields of new and renewable energies such as nuclear and bio-energy. Currently, South Africa is suffering from lack of power and is focusing on the development of new and renewable energies in search for alternatives. South Korea’s experience and know-how in the construction and management of nuclear power plants presents wide opportunities in the South African nuclear market. It is important to impress South Korea’s nuclear technology and world class management capabilities upon the South African government through human resources exchange.
Fourth, small-scale hydroelectric power generation, public health and education development support, agricultural development support and supply of drinking water are fields for cooperation presented for Ethiopia. Although Ethiopia has poor power conditions, it possesses great potential in the field of hydroelectric power generation. South Korea should consider providing support in the construction of small-scale hydroelectric power plants. Small-scale hydroelectric power plants (below 10MW) are independent means of power supply which have a low cost and have the advantage of being able to supply power to small urban or agricultural regions which are located far from power transmission networks. Expansion in support for public health and education is also required. Ethiopia has one of the poorest public health conditions in Africa, as 68% of its population is exposed to malaria in regions where the disease is endemic. Supplying drinking water is also acute as waterborne diseases frequently cause the death of Ethiopian children who drink polluted water. South Korea possesses comparative advantages in drinking water development projects incorporating well-digging, and should further expand these projects to more areas. Educational support is also required as the literacy rate in Ethiopia is 36%, which is far short of the average for Sub-Saharan Africa nations (68%).

Korea tries to play an active role in international development communities as a new member of the OECD Development Assistance Committee (DAC). Korea has taken steps to strengthen its position as a donor by increasing its aid volume and quality. In this context, Korea’s engagement with multilateral development organizations is expected to grow and Korea should take the opportunity to extend its global influence and develop strategic linkages between its bilateral and multilateral assistance. This study analyzed the global trend and major issues of multilateral aid to suggest Korea’s strategic direction and draw policy implications.

This paper firstly reviewed the trend of multilateral aid of DAC donors, the structure and main activities of key multilateral agencies such as UNs and multilateral development banks (MDBs). The global volume of multilateral aid as of 2008 reached at 35.5 billion dollars which takes 26% of total ODA flow. Korea provided 268 million dollars for the same period, standing at the second highest among the DAC members in terms of the share of multilateral aid in a country’s total ODA.

A review of the multilateral aid strategies of Denmark, Australia, and Switzerland was conducted. Denmark established its multilateral strategy in 1990s and has been systemically approaching with its efforts to cooperate with other donors to assess the effectiveness of multilateral aid and develop its own multilateral evaluation framework. Australia has similarity with Korea in terms of multilateral aid volume and its strong focus on MDBs. Australia has high portion of non-core contribution to actively engage with the Asia Pacific region and flexibly respond to regional challenges, meeting its economic and security interests. Switzerland has two main pillars of aid similar to Korea but effectively cooperates among various domestic actors to build common multilateral aid strategies.

The following chapter presented its analysis around the recent issues of fragmentation, balance between core and non-core contribution as well as multilateral organizations’ reform after the global economic crisis. It also reviewed multilateral effectiveness evaluation systems and surveyed growing trend of global funds. Lastly, it also examined the participation in aid procurement to identify Korea’s challenges and opportunities.

This paper concluded with recommendations for Korea’s multilateral aid strategy and policy actions. Korea needs to set up a comprehensive multilateral strategy with more focused and selective perspectives. Given the high level of aid going into MDBs, Korea needs to develop a systematic approach to fully utilize its multilateral assistance programs. As a recommendation, this study suggests the importance of establishing a long-term partnership agreement with core multilateral partners. It also carefully advises the expansion of non-core contribution as a transitional approach to the fully scaled-up multilateral aid while the strategy of multilateral aid should be aligned with that of bilateral aid. Finally, this study suggested that Korea should actively participate in joint multilateral aid monitoring and evaluation systems to feedback the relevant outcomes to improve the effectiveness of its multilateral aid.

 This research analyzed economic features in India by area and by state and suggests a series of strategies specialized for Korean companies doing business in India. The information of business environment in major states of India in compare and contrast will play an important role to set up a variety of demand and strategy for government and corporation. To do so, this report divides India into four areas– Eastern, Western, Southern and Northern area with consideration of several factors such as cultural and historical difference, regional identity and administrative division, economic gap and social development gap among regions, and economic structure and business atmosphere. General atmosphere, production, market and policy and openness were major parts of analysis.
Eastern area was assessed showing increase of economic development possibility with large-scale pro-industrialization centered on west Bengal and Orissa, although this area is the poorest and has the slowest development rate in India. However, there have been several weaknesses in terms of infrastructure, labor strike, and expropriation. Furthermore, the risk about rebel force like Naxalite exists.
Western area can be said as the most open and fastest development economy in India, and the state government has maintained a close relationship with central government. However, it also has downsides such as labor disputes, residents’ conflict by industrialization and hardly acquiring property.
Southern area has been with manufacturing, IT and tobacco industry, but labor disputes in this area is comparatively palpable and many of industrial complex in southern area has already been saturated.
Northern area revealed different features between area nearby border and capital. The major state in capital area, Haryana, has been in steep development, consumption and investment with concrete foundation for the economic growth. On the other hand, northernmost areas have slowed its growth due to conflict, Hindu-sacred area, hilly area, etc.
When it comes to the FDI of India by area, it has been strongly escalated since the middle of 2000, continued in spite of global economic downturn.
FDI inflow by area was allowed to northern area at 40% during 2000 to 2005, and western, southern, eastern area took 35, 23 and 2% respectively, but in the time from 2006 to May 2010, western area has been with a steep FDI increase as 56%. Northern and Southern areas were gone down to 26 and 16% and the eastern remained at 2%.
Recently, Japanese companies has rushed to Indian business, showing the augmentation from 475 in February 2007 to 1050 in April 2010 accounted by criteria of key area, which demonstrates double in 3 years. The number of Korean companies in India is about 500 and total amount of accumulated investments is 240 million dollars that increased 2.6 times compared to 2005.
The strategy targeting on India by area consists of 4 parts: interlink in links and its application strategy, expansion of business and a successful settlement, becoming a strategic base or a hub, and founding and supporting the relevant strategies and encouraging research.
First of all, for interlink in links and its application strategy, different income level by area and by state and also the propensity to consume should be considered. Moreover, deep consideration of the company’s purpose of entering oversea, target market and business features is also necessary.
Second, large companies need to think of expansion plan by area, and small and middle sized companies should pursue a sequential enlargement of their business after fully settled down on key area with the purpose of making more type of industries work in India.
Third, when Korean companies are designing to become a strategic base or hub, the looming of ASEAN and South Asia needs to be thought. For instance, eastern region can be used as a strategic base for expansion to Bangladesh, Myanmar and China. Likewise, southern area suites for Sri-Lanka, ASEAN, and western area suites for Europe, Africa.
Last but not least, it is important to secure Korean-only industry area and/or distribution centers in order to particulate market by area, and to reinforce the relationship between India and Korea in terms of education, human resources, etc.