I. Introduction

II. The Methodology

1. Model Specification and Data

2. Scenarios

Ⅲ. Simulation Results

1. Potential Impacts of the DDA Negotiations by Various Scenarios

2. Economic Effects of the DDA Negotiations on the G-7 Countries

IV. Conclusion and Discussion

 References

Appendix

This paper aims to implement the simulation studies using a CGE approach to identify ideas on how to finalize the DDA negotiations by making some mutual concessions and deal with contentious issues yet to be agreed. The simulation results of this paper, which lay between those of the previous literature, indicate that the DDA negotiations will boost the global economy to a substantial degree. It reveals that the world GDP effects will amount to US$ 49.9~186.2 billion (0.12~0.45%) and the welfare gain will amount to US$ 49.7~157.7 billion. The GDP growth effects are mainly due to effects of trade expansion, which amount to US$ 265.3~382.0 billion. The simulation result also indicates that developed countries need to consider positively the arguments of developing countries on the controversial issues related to agriculture. In return for the concessions by the developed countries, the developing countries will likely accept further discussions related to the sectoral proposals and services liberalization.

This study examines the history and structure of EU’s ‘New Energy Policy’, which has been promoted by the European Commission since 2005.
First, the procedures for policy decisions at the EU was examined because the EU, as a consensual union of dozens of states, has unique characteristics in its policy decision processes. And then, the history of EU's ‘New Energy Policy’ will be scrutinized. The EU has published many policy documents (generally, ‘communication’ documents of European Commission) and energy legislative packages related to the ‘New Energy Policy’ since 2005. Reviewed in this study are relationships between New Energy Policy's ‘communication’ documents and legislative packages published since 2005.
Second, this paper conducts an evaluation of the structure of the ‘New Energy Policy’, which was found to be very well-structured, although the Policy was based on the existing policies of each energy-related sector. The three goals of the ‘New Energy Policy’ are sustainability, supply security, and competitiveness.
To achieve these goals, EU has developed energy policies both internal and external. The EU has also come up with the ‘20-20-20’ initiative (GHG Reduction/renewable energy/energy efficiency) and the policy of securing supplies of fossil fuels and nuclear energy. There is also a platform established so that EU may implement the two previous policies effectively. There are policies for creating a single energy market (especially for gas and electricity), energy technology development, and setting up financial instruments for the New Energy Policy.
As for the external policies, It will implement the ‘common’ policy for climate change, energy efficiency, and security of energy supply in spite of the structural weakness for the asserting power to the outside of EU.The EU also wants to install ‘market governance’ based on EU energy rules and Energy Charter Treaty in neighboring energy markets. Another external policy is to link the EU energy market to neighboring energy markets (except the current Russian energy market) through new gas and electricity networks.
Based on results of this study, it can be concluded that the ultimate goal of the ‘New Energy Policy’ of EU is to found a new world market that is based on EU's new energy technologies, which will be developed through the ‘New Energy Policy.’ This is the reason for the EU protecting its internal markets with energy efficiency policies for reducing greenhouse gas as stated in the New Energy Policy, so that EU can create a new single internal market for new industries based on energy technology development. The EU will attempt thereafter to apply the structure and rules of EU's internal market to the international market.
In short, EU wants to begin a new industrial revolution and create a new world market based on EU's low-carbon and high-efficiency energy technology.

This study analyzes the Political Elite and Power Structure of the Central Asian nation of Kazakhstan. After the Soviet Union collapsed in 1991, Central Asians had to face the confusion resulting from their introduction to Capitalism and Democracy based on US values, while being out of favor with the international community. However, Central Asia soon attracted global interest as it was found to possess abundant resources such as Oil, Natural Gas, and Minerals and the potential for development, and most countries in the region are concerned with improving economic relationship and cooperations with South Korea. As Kazakhstan has the most powerful economy among the Central Asian republics, it is expected to become a regional economic and diplomatic 'hub' by soon overcoming the recent recession resulting from the global financial crisis and the drop in oil prices.

The Global Financial Crisis had a catastrophic effect on Central Asian economies, which had been growing rapidly up to that point. The economic growth rate in Kazakhstan was over 10% annually from 2001 to 2007, but nose-dived to 3.2% in 2008, and the country would record minus growth in 2009. The sharp recession of the economies of Central Asian countries caused by the global financial crisis was the result of Central Asian countries having weak economic structures that were vulnerable to the external factors. Central Asian countries made an effort to transform their Soviet-style, centrally-planned economies to market economies starting in 1991, but had experienced difficulties in the rest of the 90s. Their economies began growing actively from early 2000s, yet it was growth driven by heavy dependence on natural resources such as petroleum, gas, nonferrous metals, and raw cotton. The exports of natural resources depends upon the world economic situation, and the lack of the demand for the natural resources following the crisis had a destructive impact on Central Asian economies, as the Crisis caused a drastic contraction of the world economy, which greatly reduced the demand for natural resources. In order to overcome the Global Financial Crisis, Central Asian countries are focusing on economic recovery and the stimulation of exports not through increasing investment in natural resources for a short-term strategy, but make an effort to build a sustainable system for economic development. A 'sustainable' development strategy for Central Asian countries means that they want to improve the structure of their economies, that are overly reliant upon exports of natural resources. This new development strategy following the Global Financial Crisis is rapidly changing the trading and investment environment in Central Asia. The purpose of this book is the study of the strategic approach to the rapidly-changing trading and investment environments of Central Asian countries. Chapter 2 analyzes the impact of the Global Financial Crisis on Central Asian countries, the possibility of their economic growth, and their new development strategy. Chapter 3, 4 are concerned with the study of the investment environment from the perspective of finance and logistics, and the search for investment strategies. Chapter 5, 6 looks at market opening strategies for Kazakhstan and Uzbekistan, the two representative Central Asian countries. Chapter 7 studies various cases of Korean investments, and Chapter 8 searches for possible strategies and new approaches for trade and investment to Central Asian countries after the Global Financial Crisis. New strategies for Korea's advance into Central Asia are as follows: First, the package strategy for natural resources has to be strengthened. These strategies are especially applicable to Central Asian countries, which have weak SOC infrastructure and manufacturing industry. As for details of the strategy, the exchange of the plant and natural resources would be very effective. Korea already signed contracts for the exploitation of the Surgil gas field and construction of the oil and gas complexes in Uzbekistan. And the contract for the construction project of the Balkhash Power Station in Kazakhstan can be considered part of a package strategy. Furthermore, neighboring countries like Azerbaijan and Turkmenistan are placing orders for plants in spite of the Global Financial Crisis, which makes application of the Korean model for 'exchange of natural resources and plant' that much more hopeful. Second, the Korea Investment Fund for Korean companies intending to enter the Central Asia market must be created. 'Natural Resources-Plants package model' needs a great amount of money for the development of natural resources and construction of plants. Therefore we need to devise a plan for suppling the money for the project. Third, there is a need to expand actively into logistic and financial markets, which have existed as obstacles for the investment of Korea. Central Asia's financial market is premature, but has a highly-rated growth potential. Korean financial agencies are already achieving notable successes in Central Asia thanks to advanced financial technologies, risk management, and by securing customer confidence. The Korea Development Bank in Uzbekistan and Kookmin Bank in Kazakhstan adapted successfully to local markets and are ready to move forward to a new stage. Other commercial banks are advised to follow suit and invest actively in the Central Asian market. Fourth, the Korean government should take aggressive measures, to show that official attention is being given to the service market concerning the business environment in Central Asian countries. Kazakhstan is currently a member of a customs union formed with Russia and Belarus, and is also trying to get the membership for WTO. It is necessary for Korea to occupy advance positions ahead of the competition in service sectors such as IT, finance, medicine and transportation. In order to achieve this goal, it is desirable that Korea take the initiative in agreeing to a CEPA with Kazakhstan and Uzbekistan which already have formed strategic partnerships with Korea. To enhance cooperation in trade with Central Asian countries, there is a need to strengthen investment and cooperation in the Special Economic Zones. In particular, Korea's participation in 'Navoi FIEZ' is highly recommended, which Uzbekistan is driving forward at the government level. Korea needs access not simply through strategies on all the various possible industries, but through strategy focused on competitive high technologies, asking the Uzbek government for market-friendly investment atmosphere in currency exchange and customs service. Fifth, elements of soft power such as experience in economic development and the Korean Wave should be enhanced. Korea is regarded as one of the role models to Central Asian countries and they consider Korea to be an ideal partner that is not politically imposing. Moreover, to strengthen cooperation in the private sector, the Korean government needs to encourage introduction of various development models in a diverse field that includes economy, medicine, education, culture, etc. Sixth, Korea should take the initiative in Green Growth. Despite their huge endowments of natural resources, Central Asia suffers from desertification and shortage of water caused by the global warming. Once Korea is able to show its capabilities in reforestation, desalination and green energy recycling, Koreans will be able to secure support from the locals and find new potential for economic growth. Seventh, Korea should also look towards countries like Turkmenistan and Azerbaijan as areas holding future promise, aside from Kazakhstan and Uzbekistan where her investment has hitherto been centered. In Turkmenistan, there is much room to take advantage of its resources and Korean participation in plant export and construction is greatly anticipated. Since Azerbaijan has already accepted Korea's know-how in IT and New Town Construction, the Korean government should sustain a more aggressive strategy. In addition, the Korean government must support medium-size and small companies in expanding into Kyrgizstan and Tajikistan through overseas assistance and KSP. Lastly, Korea has to enlarge exchange of human resources with Central Asian countries. The ethnic Koreans living in that area will be especially very helpful in establishing the Korean Entrepreneur Network to gain reliable information and to help companies obtain localization. Sustainable and stable relationship with Central Asia is possible when the relations are developed in all social and cultural fields beyond simple economic cooperation. Since Korean and Central Asia share much in terms of common cultural and ethnic heritage because of their common Altaic roots, it is easier for Korea to expand exchange in cultural, social, and human resources with those countries. This will make for a more reliable relationship and help establish more successful economic relations.

Korea imports most of its energy resources from the Middle East. In particular, the region supplies Korea with 80 percent of its oil. Yet, this region is unstable due to various political, territorial, and religious issues. Under these circumstances, the Korean government perceives the need to diversify its sources of energy resources and is attempting to secure these resources in regions such as Central Asia, Russia, Latin America, and Africa. The Central Asian region contains abundant natural resources. In particular, four countries in the region; namely, Kazakhstan, Uzbekistan, Turkmenistan, and Azerbaijan possess large amount of oil and gas. The Korean government and corporations have sought to secure these resources. But these efforts were not so successful compared with those by other countries such as Russia, China, the United States, and Europe. This does not necessarily mean that prospects for Korea are bleak. The country only recently began to invest in Central Asia's oil and gas industry. Therefore, if Seoul conceives an appropriate long-term strategy followed by consistent implementation, there is much likelihood of success in this region. To improve this chance, Korea needs to fully understand Central Asia's present conditions such as its energy resources, its transportation routes, tax systems, and investment environments. This report suggests several policy guidelines for improving Korea's chances of success in the Central Asia region. First, Korea needs to promote political ties with Central Asian countries. To do this, the Korean government must not only employ summit diplomacy, but also maintain regular contacts with officials and opinion leaders from those countries. These contacts should include people in diverse spheres such as energy, academia, and art. Second, the Korean government and corporations need to find out in detail what Central Asian countries want. The Central Asia republics are attempting to draw benchmarks from the Korean developmental model and hope to improve technology in the various industries. Recently, the Korean government began to extend invitations for programs for Central Asian officials and scholars, with the intention of improving their understanding of various Korean development policies. These programs should be greatly expanded. Third, Korea should make good use of opportunities in the area of Central Asian countries' construction and plant (building) industry, as those countries are attempting to develop downstream industry; for example, building oil refineries. In the case of gas-abundant Uzbekistan and Turkmenistan, they want to build petrochemical plants. These represent excellent opportunities for Korean corporations to participate in this region's downstream industry. Fourth, Korea needs to develop a separate strategy for each energy-abundant Central Asian country (Kazakhstan, Uzbekistan, Turkmenistan, and Azerbaijan). The geopolitical situations in the Central Asia region is changing rapidly. While Russia's influence is diminishing, China's influence is increasing and each Central Asian country is becoming more assertive in its foreign policy. Korea should fully understand these developments and take a different approach for each Central Asian country. Fifth, Korea should consider entrance to Central Asian countries' oil and gas industry in collaboration with other states. For example, Korea can participate together with Azerbaijan in other Central Asian countries' energy industry. Moreover, Korea can penetrate this industry in partnership with Russian or Chinese national oil companies. Sixth, Korea should systematically manage information regarding Central Asia. Information collected by various organizations including the government, corporations, and research institutes should be shared and exchanged. In particular, stories of Korean corporations' success or failure in Central Asian countries' oil and gas industry should be disseminated. This is likely to minimize risk associated with investing in those countries.

The recent full-blown global financial crisis, triggered by the bankruptcy of Lehman Brothers, has been called the worst financial crisis since World War II. Since China's financial institutions have been relatively isolated from the global financial system, the initial impact from the global financial crisis were not so severe. Consumption in most developed countries has, however, shrunk in the aftermath of the global financial crisis. As a result, China's export industries suffered from sluggish overseas demand, meaning that the current global economic crisis clearly caused some serious damage to the Chinese economy. Amidst an unprecedented and distressing economic situation, China's policymakers quickly came up with stimulus packages of RMB 4 trillion for two years. This stimulus package effectively boosted the Chinese economy, achieving the target growth rate of 8% in 2009. It means that in the midst of a severe global economic recession, only China was able to achieve meaningful economic growth. On the other hand, the US which was once touted as the world's main growth engine, has stagnated. The unemployment rate has recently hit double digits and the status of dollar has been weakened as trust in the dollar as the key currency has been undermined. In addition, a rising China is becoming one of the world's most influential buyers at the market for oil and other natural resources. With cash flowing from huge foreign exchange reserves, China is in a comfortable position to buy oil and other strategically important resources in the world. The other example of the rise of China can be seen in the automobile industry. China was expected to produce over 13 million vehicles in 2009, becoming the world's largest automobile producer and consumer. In the automobile industry, some Chinese automakers are eager to acquire brands and technologies from foreign firms as the domestic auto industry struggles to produce high-end vehicles and break into markets of developed nations. At this point of time, it seems uncertain what the world's political and economic landscape would look like after the end of the current global economic crisis. It is, however, clearly certain that China would be the only winner in the midst of the current global economic crisis and that China will join the ranks of the great powers in world politics and economy. As illustrated above, the main purpose of these books is to analyze the rise of China and to seek out the various implications for Korea-China relations. All 22 topics were selected in order to elicit detailed strategies for Korea facing various circumstances related to the rise of China. To give some examples, Korean policymakers are recommended to maintain stable relations with China in a consistent and predictable way. Also, it will be critically important to seek a balance between Korea's relations with the US and China in the future. With respect to economic relations, Korea should not be reluctant to explore China's potentially immense domestic market and to expand the exchange between the two countries. However, Korean policymakers must urgently find ways to reverse the current overdependency of the Korean economy upon China. In conclusion, more efforts should be made to improve bilateral relations between Korea and China, politically and economically because China is fast emerging from the status of a regional power to become one of the world's powerhouses.

The recent full-blown global financial crisis, triggered by the bankruptcy of Lehman Brothers, has been called the worst financial crisis since World War II. Since China's financial institutions have been relatively isolated from the global financial system, the initial impact from the global financial crisis were not so severe. Consumption in most developed countries has, however, shrunk in the aftermath of the global financial crisis. As a result, China's export industries suffered from sluggish overseas demand, meaning that the current global economic crisis clearly caused some serious damage to the Chinese economy.
Amidst an unprecedented and distressing economic situation, China's policymakers quickly came up with stimulus packages of RMB 4 trillion for two years. This stimulus package effectively boosted the Chinese economy, achieving the target growth rate of 8% in 2009. It means that in the midst of a severe global economic recession, only China was able to achieve meaningful economic growth.
On the other hand, the US which was once touted as the world's main growth engine, has stagnated. The unemployment rate has recently hit double digits and the status of dollar has been weakened as trust in the dollar as the key currency has been undermined.
In addition, a rising China is becoming one of the world's most influential buyers at the market for oil and other natural resources. With cash flowing from huge foreign exchange reserves, China is in a comfortable position to buy oil and other strategically important resources in the world. The other example of the rise of China can be seen in the automobile industry. China was expected to produce over 13 million vehicles in 2009, becoming the world's largest automobile producer and consumer. In the automobile industry, some Chinese automakers are eager to acquire brands and technologies from foreign firms as the domestic auto industry struggles to produce high-end vehicles and break into markets of developed nations.
At this point of time, it seems uncertain what the world's political and economic landscape would look like after the end of the current global economic crisis. It is, however, clearly certain that China would be the only winner in the midst of the current global economic crisis and that China will join the ranks of the great powers in world politics and economy.
As illustrated above, the main purpose of these books is to analyze the rise of China and to seek out the various implications for Korea-China relations. All 22 topics were selected in order to elicit detailed strategies for Korea facing various circumstances related to the rise of China.
To give some examples, Korean policymakers are recommended to maintain stable relations with China in a consistent and predictable way. Also, it will be critically important to seek a balance between Korea's relations with the US and China in the future. With respect to economic relations, Korea should not be reluctant to explore China's potentially immense domestic market and to expand the exchange between the two countries. However, Korean policymakers must urgently find ways to reverse the current overdependency of the Korean economy upon China.
In conclusion, more efforts should be made to improve bilateral relations between Korea and China, politically and economically because China is fast emerging from the status of a regional power to become one of the world's powerhouses.

The recent full-blown global financial crisis, triggered by the bankruptcy of Lehman Brothers, has been called the worst financial crisis since World War II. Since China's financial institutions have been relatively isolated from the global financial system, the initial impact from the global financial crisis were not so severe. Consumption in most developed countries has, however, shrunk in the aftermath of the global financial crisis. As a result, China's export industries suffered from sluggish overseas demand, meaning that the current global economic crisis clearly caused some serious damage to the Chinese economy.
Amidst an unprecedented and distressing economic situation, China's policymakers quickly came up with stimulus packages of RMB 4 trillion for two years. This stimulus package effectively boosted the Chinese economy, achieving the target growth rate of 8% in 2009. It means that in the midst of a severe global economic recession, only China was able to achieve meaningful economic growth.
On the other hand, the US which was once touted as the world's main growth engine, has stagnated. The unemployment rate has recently hit double digits and the status of dollar has been weakened as trust in the dollar as the key currency has been undermined.
In addition, a rising China is becoming one of the world's most influential buyers at the market for oil and other natural resources. With cash flowing from huge foreign exchange reserves, China is in a comfortable position to buy oil and other strategically important resources in the world. The other example of the rise of China can be seen in the automobile industry. China was expected to produce over 13 million vehicles in 2009, becoming the world's largest automobile producer and consumer. In the automobile industry, some Chinese automakers are eager to acquire brands and technologies from foreign firms as the domestic auto industry struggles to produce high-end vehicles and break into markets of developed nations.
At this point of time, it seems uncertain what the world's political and economic landscape would look like after the end of the current global economic crisis. It is, however, clearly certain that China would be the only winner in the midst of the current global economic crisis and that China will join the ranks of the great powers in world politics and economy.
As illustrated above, the main purpose of these books is to analyze the rise of China and to seek out the various implications for Korea-China relations. All 22 topics were selected in order to elicit detailed strategies for Korea facing various circumstances related to the rise of China.
To give some examples, Korean policymakers are recommended to maintain stable relations with China in a consistent and predictable way. Also, it will be critically important to seek a balance between Korea's relations with the US and China in the future. With respect to economic relations, Korea should not be reluctant to explore China's potentially immense domestic market and to expand the exchange between the two countries. However, Korean policymakers must urgently find ways to reverse the current overdependency of the Korean economy upon China.
In conclusion, more efforts should be made to improve bilateral relations between Korea and China, politically and economically because China is fast emerging from the status of a regional power to become one of the world's powerhouses.

Acknowledgements

Notes on the Contributors

1 Introduction/Yonghyup Oh

2 Global Imbalances, Twin Crises and the FinancialStability Role of Monetary PolicyHyun-Song Shin
1. Introduction
2. Twin Crises in Emerging Countries
3. Securitization and Global Imbalances
4. Financial System Perspective
5. Policies to Deal with Emerging Country Twin Crises
6. Lessons for Monetary Policy

3 Crisis-Era Protectionism and the G20: Prospect and Retrospect/Simon J. Evenett
1. Introduction
2. The G20, commercial policymaking, and protectionism
3. The resort to protectionism since the first G-20 summit in November 2008
4. The G-20's contribution to “fighting protectionism”: A preliminary assessment
5. Possible commercial policy roles for the G-20 in 2010
6. Concluding remarks

4 Proliferation of FTAs and the WTO/Shujiro Urata
1. Introduction
2. Growing Bilateralism and Regionalism in the World and in East Asia
3. FTAs and Global Trade Liberalization under the WTO
4. Economic Impacts of FTAs
5. Multilateralizing FTAs
6. Concluding Remarks

5 Regulatory Reform after the Crisis: Opportunities and Pitfalls/Thorsten Beck
1. Introduction
2. Restricting or harnessing markets―searching for a new approach
3. Failure resolution schemes―the core of regulatory reform
4. Regulatory reform―the global dimension
5. Concluding remarks

6 Global Crisis and Currency Competition in the Asia-Pacific Region/Seung-Gwan Baek and Yonghyup Oh
1. Introduction
2. Why would Asia-Pacific economies want to internationalize their currencies?
3. Determinants of international currency status
4. Policy implications
5. Concluding remarks

7 Epilogue: What policies for the G-20?

The ongoing financial crisis and global economic downturn is reshaping the global economic and financial architecture represented by the surge of the G-20. This book addresses the core policy agenda for the G-20 process. The G-20 process is launched and the last three meetings, without any enforcement mechanism, have helped identifying the problems such that the economies were induced to coordinate on actions of macroeconomic recovery and minimize egoistic actions. The large scale global liquidity injections during the peak of the crisis and fiscal stimulus packages executed by governments were remarkably well coordinated in timing. Now as the world is recovering from the crisis, early actions of exit strategies are discouraged as the G-20 expresses concerns on the right timing.

This book is an early and timely attempt to provide proposals for policy makers and academia alike what should be considered as important policy agenda for future G-20 forums. The five themes studied in this book tackle some of the most important economic agenda in the fields of trade, macroeconomics and finance.

The contributors of the book analyses the situation leading the crisis and major macroeconomic responses required to overcome the current global economic problems Hyun-Song Shin (Chapter 2) who highlights the causes of the crisis with fresh look and proposes policy responses to deal with global imbalances. Simon J. Evenett (Chapter 3) shows one aspect of the global economic down fall. He shows that protectionist measures have actually increased during the crisis. Thorsten Beck (Chapter 4) addresses financial regulatory reforms, one of the most important agenda of the G-20 process. He highlights the roles and challenges emerging markets could face in international financial reforms. Shujiro Urata (Chapter 5) addresses the issue of free trade, another important issue in the G-20 forum. He warns that the FTAs have protectionist characters. The G-20 system will address mainly global issues, but in so doing the forum must take into account the regional interests, because the member countries will have to deal with both regional and global issues. Seung-Gwan Baek and Yonghyup Oh (Chapter 6) address a regional problem, for which a solution should be found not just by a global cooperation.

The book also includes comments of keynote speakers, discussants, panelists and other participants who expressed their views at the seminar on the G-20 progress organized jointly by the CEPR and the KIEP, in Seoul, on 20 November, 2009. They include Svein Andresen, director-general of Financial Stability Board (FSB) who expressed his wish that the G-20 forum should support FSB's reforms. He also made a remark that a global liquidity standard is part of the works that the FSB is now preparing. SaKong Il, chair of the Korea's G-20 advisory group, stresses that sustainable and balanced economic growth should be a major objective the future G-20 summit forums should address. Richard Portes, president of CEPR, says that the G-20 is the premier forum whose role and responsibility will be very different from the G-7/G-8 meetings. Wook Chae, president of KIEP, emphasizes the importance of outreaching to the non-members. Vitor Gaspar of European Commission shares this view and further stresses the importance of social cohesion as another important economic issue to be addressed in the G-20 process.