Its rising international status after joining the OECD DAC and changes in the global environment including the expansion of the international procurement market along with enlargement of the global economy have increased pressure on Korea to actively participate in international development and cooperation. Due to changes in the global environment, demand for manpower in international cooperation specialized in specific fields and regions is expected to increase. This research presents measures to establish a system for Human Resources Development (HRD) through study of the background, necessity, current status and challenges along with the analysis on HRD systems in advanced countries.
In Korea, most of the experts in the field of international development and cooperation are concentrated in government ministries, specialized agencies and organizations implementing the projects (affiliates of ministries, universities, private consulting agencies, etc.). This research sets itself apart from existing research in that it focuses on the HRD system and analyzed it in different stages (pre-introduction, introduction, and project implementation) depending on the period of its introduction.
In the pre-introduction stage of international development and cooperation, primary and middle school textbooks dealt with globalization, global village, international society and politics, national development and global community, and outlooks on the global market and Korean economy; which are somewhat related to international development and cooperation. The challenge during this period was that there were no specialized curriculum and no teachers exclusively teaching the related courses were available. Even graduate schools of international studies often did not have a variety of courses, and local courses were insufficient in quantity. Many universities created curriculums related to international development and cooperation, but shortage of teachers and difficulty in securing competent teachers limited the HRD in terms of responding quickly to global issues.
In the introduction stage of international development and cooperation, experts in the field were being trained and nurtured. KOICA's International Development Education Academy was established to increase understanding of ODA and international development and cooperation. Its main role was education related to implementing projects; however demand was growing for education on general qualification and skills for work in the field including human nature, language, expertise, report writing, leadership, health conditions. With the change in Korea’s international status, increasing number of Koreans are willing to work in international organizations. As these global agencies prefer candidates with working experience, measures to respond to such demand are essential.
The government has recently been trying to create jobs and solve youth unemployment through international development and cooperation. While many consider these policies to have been effective in terms of their role, continuous attention and support is required to prevent it from becoming a one-time project.
In the project implemention stage, activities of agencies specializing in international development and cooperation is divided into two categories ­ grants and loans, with different aims in their operation. The demand for wider use of experts and increase in development and consulting projects are growing. NGOs for international development often have weak financial foundations, however, and working experience in such organizations is very important in acquiring knowledge in the field. As these NGOs have relatively plentiful job vacancies, systematic support for the training of experts is essential. As the MDB procurement market is expected to expand and would require higher participation from private consulting agencies; the government needs to help promote and systemize the project implementation process and enhance competencies in operating such projects.
Some of the more important issues in establishing the HRD system in international development and cooperation include establishing systems with variety and consistency, multifaceted systems to respond to centralization in international development and cooperation, information sharing system, and reinforcement of policies for increasing employment.
Measures to establish an HRD system in international development and cooperation are provided separately by government ministries, specialized agencies, graduate schools of international studies, NGOs, industry, and private consulting agencies. The government should support studies on manpower projection, reeducation system for professionals, development of a long-term HRD system, cultivation of on-site experts, and creation of a flexible labor market. For higher education institutions, some of the proposals for establishing HRD systems in international development and cooperation include promoting graduate schools of international studies to concentrate on its specialized fields, capacity building for research institutes in colleges and universities, promotion of consulting agencies to strengthen cooperation between the government and the private sector, and utilization of social enterprises. We also advise mid- to long-term plans to secure professionals and expertise, establish infrastructure, and assistance for participation of experts from outside the field of international cooperation and development.

India’s economic growth in the last two decades (1991-2011) improved significantly spurred by the cumulative effect of the major economic reforms initiated in 1991. Particularly, during the Xth Five year Plan (2002-03 to 2006-07) India achieved remarkable success in main economic fronts including GDP growth, foreign trade and FDI flow. It is found that many industries, notably, automobile, electronics and steel industries, have been benefited by competitive policy and become global players. The findings of the study show that despite these remarkable economic performances, the gap between the rich and the poor, and inter-state disparity have been widening due to failure of trickle-down effects of the economic reforms which has compelled the present ruling party and the government of India to pursue an “inclusive growth policy.” The direction of the reforms in future, therefore, will be substantially carried out on the path of inclusive growth as the policy principle. Further, this study also found that there has been lack of coordination between the central government and state governments regarding the nature of and direction of the economic reforms.
This study suggests four important tasks ahead of the future economic reforms in India. These include building infrastructure, undertaking the second green revolution and developing human resource, managing the environment, and stabilizing energy demand-supply. Regarding the prospects of the reforms in India, this study argued that the economic reforms of the last two decades had been predominated by the central government in meeting the larger economic needs of the country. It seems, however, the state governments will have a crucial role to play in pursuing the economic reforms in future in meeting their own local economic needs. In this process, competition among state governments for the development of their respective states will be substantial by attracting more FDI and business. In fact, this kind of competition has already been started in some states like Gujarat and Bihar. In this direction, Korean government as well as enterprises need to devise suitable policy strategies to engage with India’s future economic development. There are many thrust areas such as the second green revolution, infrastructure development, etc., in which Korean industries and government can seize the business opportunities. At the end, the study emphasizes that that Korea should prepare to deal with the post reform generations of India who have market friendly thinking and attitudes.

This policy paper aims to review the current situation of regional development and human resources in Indonesia, the main themes in the ‘Master Plan: Acceleration and Expansion of Indonesia Economic Development 2011-2025 (MP3EI)’, and to deliberate ways for the long-term economic cooperation between Korea and Indonesia. MP3EI is an ambitious and comprehensive plan which contains strategies and policies for serious development of the Indonesian economy, based in the Indonesia Economic Development Corridor(IEDC). Through the plan, Indonesia is attempting to introduce new institutions, review established systems, and forge a new direction for infrastructure development.
Chapter two reviews the current situation of economic cooperation between Korea and Indonesia. Indonesia is Korea’s tenth biggest trade partner, and trade between the two countries shows that the volume continues to increase and the sector is concentrated on natural resources. Korean investment to Indonesia is focused on the manufacturing sector with increasing investment in large scale projects. Because trade and investment are centered on natural resources and the petrochemicals sector, they could be vulnerable to external shocks from fluctuations in crude oil prices. Therefore, it is necessary to diversify sectors in terms of trade and investment. Presently, Korean assistance to Indonesia is concentrated in infrastructure, regardless of grant or credit. Since Korean assistance geared mainly for infrastructure makes it difficult to show Korea’s competence, it is necessary for Korea is necessary to find out and diversify the assistance areas where Korea has an advantage.
Chapter three examines the current situation of the economic cooperation between Indonesia and Japan, China, and Singapore. Japan is ① the largest official development assistance (ODA) donor to ② the largest importer from and ③ the second biggest investor to Indonesia. Since the late 1960s, Japan has employed ODA to Indonesia as a tool for natural resource diplomacy by providing assistance for infrastructure and securing natural resources in return. Currently, Japan has extended economic cooperation with Indonesia even to fields such as renewable energy and energy saving. It is also peculiar that Japan has aligned competitiveness of the Japanese firms with Indonesia’s demands for utilizing ODA. China has seldom provided ODA to Indonesia since the economic cooperation between two countries began, but has become the second largest trade partner for Indonesia both in exports and imports. China also considers Indonesia a supplier of natural resources and approaches it in sectors such as electricity and machinery, where it possesses price competitiveness. It implies that Korean firms would have stiffer competition in Indonesia from Chinese firms as well as from Japanese firms. China, as the sixth largest investor to Indonesia, has invested much more than Korea since 2004. Singapore secures the position of the largest exporter and investor to Indonesia, due to its proximity to Indonesia. With ODA programs in technology cooperation, Singapore contributes to human resource development in Indonesia. In the process of establishment and operation of special economic zone (SEZ) of Indonesia, Singapore has been deeply involved in building industrial complexes and developing resorts. Regarding this, Korea could consider participating in establishment and operation of SEZs in Indonesia. It would be necessary for Korean firms to consider expanding investment towards sectors Indonesia wants to invite Korea into. We should also watch for designation of additional SEZs in Indonesia, which the Indonesian government is deliberating nowadays.
Chapter four discusses regional development of Indonesia. We study the plan for regional development centered on IECD which the Indonesian government is currently promoting. In addition, we review the metropolitan priority area(MPA) project, being driven forward by Japan. Japan has played a central role in the process of establishing a regional development plan for Indonesia. In terms of regional development of Indonesia, Japan is proceeding with economic cooperation emphasizing infrastructure development and improvement of the environment for Japanese firms.
Chapter five reviews human resource in Indonesia. Currently, the strategies and policies for human resource development in Indonesia is not tightly related to MP3EI. Therefore, the Indonesian government should connect MP3EI concretely to strategies and policies for human resource development and back up economic development by developing necessary education and technology. To sustain high economic growth, Indonesia should transform the economic structure and the source of competitiveness from ‘low wages’ to the higher value-added sectors and service industries. To effect changes in the economic structure of Indonesia, however, would require a highly educated and skilled labor force with a fair amount of mobility. In order to do that, Indonesia could consider benchmarking Korea’s success in enhancing competitiveness and transforming the economic structure, accompanied by rapid increase of productivity. Currently, the centralized education and training system of Indonesia does not fit the demands of the market and is not well aligned with industrial needs. Korean methods for consolidating human resource development with economic development could serve as a reference point for Indonesia. It would be a useful exercise to adapt Korean education policies to the Indonesian situation.
Chapter six discusses policy implications for deepening the economic cooperation between Korea and Indonesia, focusing on the creation of an  implementation plan for MP3EI, policy measures for the economic cooperation, regional development, and human resource development.
In order for Korea to contribute to the creation of an MP3EI implementation plan, we must identify priorities in MP3EI implementation which the Indonesian government is contemplating, to reestimate project costs precisely, to evaluate any shortage of funds, and to readjust priorities of the projects. It is also necessary to review conformity of MP3EI to reform measures that the Indonesian government is considering. To do that, we should define the role of ‘the Jakarta executive office for economic cooperation (the Jakarta office)’ and clearly identify the tasks of  Korean research institutes and government. It is desirable that the Jakarta office, as a channel for cooperation, plays a coordinating role for affairs related to the formulation of the MP3EI implementation plan. The Korean research institutes should study the Indonesian laws and systems intensively to provide background information needed for the MP3EI implementation plan. The Korean government should also establish a framework for effective cooperation between the Jakarta office and the Korean research institutes, and coordinate their cooperation. It is also necessary that various Korean personnel communicate with their Indonesian counterparts in diverse ways. Regarding this, we must consider gaining, in particular, an understanding of the Indonesian system for public-private partnerships and employ it for economic cooperation between Korea and Indonesia.
It is necessary that the Korean ODA to Indonesia be closely connected to economic cooperation with Indonesia. To achieve it with ODA, we should consider developing natural resources efficiently, expanding infrastructure, and constructing industrial complexes related to SEZ development in Indonesia. It is also necessary to actively proceed with ODA that conform to the green growth strategy, because it is distinct from ODA strategies of other major countries. Korea could enhance the level of economic cooperation by sharing the policies and technologies related to green growth with Indonesia.
Korean firms should carefully consider entering IEDC projects unilaterally, as they might want to allow for Japanese initiative in the IEDC. Since the possibility of cooperation with Japanese firms is fairly high, it is desirable that Korean firms deliberate initially going into the IEDC projects with Japanese firms together. It is necessary that the Korean government set the basic policy direction in order to support the investment into Indonesia, first in the manufacturing sector in which Korea is competitive globally, and then allowing Korean firms to further expand economic cooperation with Indonesia.
With regard to regional development, Korea could consider participating in building new towns around Jakarta where urban development is urgent, because Korea has competitive advantage in urban development with experience in new town construction. With participation in setting up a master plan for new town development and by joining in the projects, Korea could contribute to improving living conditions through efficient provision of housing. We should especially take note of the ‘Sunda Strait Bridge(the Bridge)’. It is highly probable that development plans for Sumatra and Java could be impacted drastically if the two islands are connected with the Bridge. Considering this, it is necessary that Indonesia set up the MP3EI implmentation plan, allowing for the development of opposing coastline areas in the two islands along with construction of the the Bridge. Because the value involved in developing these areas is expected to increase with the Bridge, it is desirable that Korea take part in establishing a development plan for them at the early stage.
 As Korea devised a system that corresponds to the changing economic environment, Indonesia can learn from Korea by reforming the system of education and job training in order to adapt to the demands of the market. To enhance effectiveness, it is necessary that Korea offer help  to Indonesia by linking human resource development to industrial development, transferring some of Korea’s competitiveness to Indonesia. In order to do that, Korea should provide needed and appropriate technologies for Indonesia and share development experience, focusing on areas where Korea has an advantage; a very efficient way of human resource development.

As the Chinese government pushes forward its domestic demand-driven growth strategy, trade and FDI in China are facing  changes at the structural level. Trade based on export-oriented simple processing is decreasing, while general trade linked to domestic demand is increasing. Korea’s share in China’s imports for domestic demand, however, is relatively small. According to import statistics compiled by Chinese customs which we have acquired for this research, Korea’s share in China’s domestic demand import market was 5.9% while its share in total import market of China is around 10%.
Compared with other countries or regions, the pattern of Korea’s exports to China is similar to that of Taiwan. As for major economies such as Japan (11.6%), USA (8.3%) and Germany (7.5%), they enjoy larger shares of China’s domestic demand import market. In categorizing domestic demand into primary, intermediary, and final goods; we have found that Korea’s exports to China is heavy in intermediary goods, at 76.3%. Taiwan’s percentages and structure are similar to that of Korea; however the greater proportion of Japanese, American and German exports consist of final goods and less intermediate goods.
Further investigation of the trend of Korea’s export to China reveals that intermediary goods exports for domestic demand has been increasing since 2008. In 2010, when Korea’s intermediary goods export reached USD28.8 billion, sharp growth in exports of General machine parts (64.3%), Petrochemicals and Coke (50.2%), Automobile parts (57%), Plastics (19.5%) and Chemical materials (14.3%) contributed to the increase. On the other hand, export of final goods for domestic demand increased by 52.9% in 2010 and reached USD8.3 billon. Precision Optical Instrument (35.7%), Vehicles (63.1%), General Machines (68.2%), Special Machines (74.1%), Electric Devices and Equipments (32.7%) and Electronics and Communication (75.6%) also registed major increases.
The main competitors in China’s intermediary goods market are Korea, Japan and Germany. In the market for Korea’s main export product, namely Chemical materials and Plastics, the competitors include Korea, Taiwan and Japan. In China’s final goods market, Japan, USA and Germany are the main competitors. The only industry that Korea possesses a lead is in Textiles and Garments.
As for FDI, investment to China from the rest of the world has rebounded recently from the sharp decrease during the financial crisis and its focus is shifting from manufacturing to service industries. For the research on the trend of Korea’s investment to China and the performance of Korean firms in China, we have analyzed series of data from KOTRA’s and Korea EXIM bank’s survey on Korean firms in China. Through investigation of these materials, we have identified recognizable features in Korean investment to China as follows. First, Korean investment to China reached its ceiling in 2004 and decreased since then. Second, investment to Shandong, Jiangsu and Beijing has decreased and investment to the Huadong region increased. But investment to inland provinces has not shown a clear increase. Third, the weight of manufacturing has decreased but still remain around 70~80%. This is a much higher figure compared with the world average, 46.9%. Fourth, the amount of investment per contract is growing. Fifth, large firms make adequate profits but small and medium-sized enterprises do not. Sixth, sales of manufacturers exploded before 2007 but has leveled off since. Seventh, several emerging service industries such as Lodging and Catering, Commercial Service, Mass Media and Health Care show congestion or reduction in their sales whereas Wholesales and Retail, Transportation and Leisure show significant growth. Eighth, Korean firms understand that the investment environment has improved in terms of institutional transparency but degenerated in terms of economic aspect such as wages. These patterns coincide with actual facts. Ninth, Korean firms emphasize the Chinese domestic market, which brings more profit than Korean or the third country markets. Its share, however, is increasing very slowly. Tenth, as the procurement of parts and material is localized, trade balance improvement effect of investments to China is decreasing. Nevertheless, export of parts and materials are still increasing. Eleventh, Korean firm’s intention to invest to China is getting weakened.
To respond to the above, the strategy for making inroads into China’s market for domestic demand is required. Chinese investment environment is becoming unfavorable for manufacturing and processing but consumption is on the rise as household income grows and inland provinces become richer. As a matter of fact, various markets such as luxury goods, low-price goods, 2nd and 3rd tier cities, rural areas, 80-90 hou and women are emerging.
This report has investigated a few successful foreign firms in emerging domestic markets. Media-Markt, a German home appliance distribution company; Shimadzu, a Japanese precision chemical device manufacturer; Nongshim, a Korean food company and Another Group, a Hong Kong clothing chain store are selected. These companies are engaged in aggressive marketing activity focused on Chinese consumers. They have entered China’s mid-western and northeast regions seeking increasing market shares there, aside from Beijing and Shanghai. They are supported by sufficient capital and are cooperating with localized firms. They established R&D bases in China to satisfy local demands. In addition, their cooperation with the Chinese government played a very important role.
As for export strategies, this report classifies intermediary and final goods for domestic demand into ‘excellent items’, ‘growth items’ and ‘competing items’. The 5 Excellent items of intermediary goods need to retain/maintain their buyers in China. Competitive items such as Plastics and Chemical materials are Korea’s 1st and 2nd export product respectively, and will need to diversify buyers. The most representative among competitive final goods items, such as Precision Optical Instruments, comprise the 1st and main export products for Korea. Its status would be impacted much by the ECFA between China and Taiwan and will require special attention. On the whole, it is necessary that Korea examine the demand for each intermediary product to enter the Chinese import market. Moreover, the competitive advantage of products in the growth items category should be studied with respect to their foreign competitors. Besides, the consumer market should be differentiated and each market should be approached with its own set of strategies.
Concerning investment strategies, the report describes Korean firms’ activities in China by a SWOT analysis framework. First, Korean firms have competitive manufacturing capacity. Second, Korean firms are not doing very well in the domestic consumption market nor investing in non-manufacturing areas. Third,  the Chinese domestic market is growing rapidly and investment opportunity continues to burgeon along with development in China’s mid-west region. Fourth, factor costs such as wages are increasing rapidly and the government is being selective with foreign capital, which will worsen the investment environment. According to such analyses, specific investment strategies could be deduced as follows. First, manufacturing investment could continue in China’s mid-west provinces where Korean firms’ competitive advantage can be maintained for a while and local governments are looking to attract foreign production facilities. Second, distribution channels for Korean products should be secured for access to the domestic market. Third, a few existing Korean industrial complexes in China could be expanded or new ones be established. Fourth, cooperation between Korean and Chinese small and medium-sized enterprises could be promoted. Korean SMEs are suffering from lack of local distribution channels while Chinese ones are deprived of opportunities for cooperation with foreign firms by large state-owned enterprises.

 CEPA (Comprehensive Economic partnership Agreement) started from January, 2010 between Korea and India is expected to be catalysis to bridge two countries in many areas such as economic collaborations, cultural understandings, diplomatic partnerships, and human interactions. As CEPA emphasizes human relations, interactions of labor and human resources will bring about huge economic effect to both countries.
India has the second largest population in the world. This made India rich in laborforces and higher economic growth especially past 5 years. India demonstrates about 8% annual GDP growth with increasingrate of education level of population. Korea regards India as a key trade partner in various areas. 2000’s see phenomenal increase in trade to India, especially after CEPA,economic collaboration accelerated trade amount about 40% growth to 17billion dollars. This counts 7th largest trade partner in Korea. Nevertheless, human resource exchange does not follow the trade growth pattern. In 2010, only 50 thousand Indians visited Korea, where 80 thousand Koreans visited India in 2009.
The research intended to provide basic methodologiesto develop partnerships in both human resource interactions and economic collaborations. The research has two perspectives. The first view is the research for Indian labors working in Korea.
The study hired both structured questionnaire survey andin depth interview. The study found that Indian human resources are relatively satisfied with the working conditions and wages. However, the keen sense of considerations such as education of children and spouse daily activities are required.
The second view is the research for Korean human resources working in India. As the number of Koreans working in India is scarce, the study adopted in-depth personal interview method. Theresult shows that most Koreans are hired for marketing purposes to Korea. Koreans are suffered by lack of utilities such as water, electricity and sewage. Mostly they were not satisfied with the wage level.
The research found the situations and recommendations for both countries. The recommendations from the research are two folds. Firstly, in order to compensate the lack of domestic labors, we need to have longer term relationships with Indian partners such as colleges and universities and some other research institutions in India. Secondly, in order to develop job opportunities in India, institutional support rather than individual relations are essential. As most needs for Korean labor forces are limited to correspond to Korean institution, institutional relations are more effective.
The research is without limitations. As the sample size is quite limited, the sampling bias is the main limitation.The study may lack in external validity. However, the study can shed a light concerning Indian and Korean labor exchange and mutual benefit by labor collaboration.

While the rising international price of energy and mineral resource increase since 2000, Korea promotes forward a national project like overseas resource development with great interest targeting resource-rich countries. However, Korea has short history to enter and invest into Mongolia for mineral development, which is the ten major mineral resource rich country in the world, is near from Korea geographically, and is very similar racially with Korea. Because Mongolia is land locked country surrounding China and Russia, Korea has a big problem to transport the mineral resources that Korean corporations invested and developed by land.
Global major mineral development corporations started to invest into Mongolia in the early 2000s when international price of raw materials are rising, and they thought that mineral resources development of Mongolia have great potentials. As a result, companies from China and Canada achieved substantial success to develop minerals as the first discoverers of a great mine in Mongolia. Foreign companies already begin to develop the mine of Oyu Tolgoi with government of Mongolia, and they try to participate in development of one of strategic mine, Tavan Tolgoi which Mongolia selects bidders to invest Tavan Tolgoi in the near future. 
At the same time, Mongolia attracts foreign investors for development of mines, which it can not develop because of funding, and for jumping up to be a industrial country based on development of mineral industry. In other words, Mongolia implements a policy that gives equal rights to foreign investors and deregulate foreign investment or exempts from corporate tax, windfall profits tax, and value added tax.
However, entry situation of Korea into Mongolia is not reach their potential to cooperate between two countries. Korea entered into Mongolia much later that major countries, and participate in develop the mines, but it can not get a profitable outcome yet. Because Korea imports mineral resources amount 16 billion dollars from Australia annually, it is one of the most important policy to secure mineral resources for the future of Korea. In this point, Korea has to expand the level of cooperation with Mongolia.
Since Korea established diplomatic ties with Mongolia on March, 1990, researches about history and culture of Mongolia were progressed actively while researches about economy and political issues of Mongolia were not. Especially, methodical researches of mineral resources of Mongolia that is representative mineral-rich country were barely in Korea. The existing researches covered only situation of mineral development, so they could provide a limited implication for understanding and analyzing all about mineral policy of Mongolia and entry strategies synthetically. Therefore, more Korea corporations could not invest into Mongolia because of lack of information about mineral resources investment, and social recognition of Mongolia. Because Korea needs to secure mineral resources at national level, Korea really has to expand research about mineral resource of Mongolia.
Therefore, the main purpose of this study is to examine and analyze synthetically policy and institution of mineral resources and situation of foreign companies investing in Mongolia, and then it will be used to provide policy implications and new strategies for expanding entry of Korean companies that consider to invest into Mongolia. In other words, this study covers situation of mineral resources in Mongolia, minerals and related foreign investment policy of Mongolia, and entry situation and strategies of major countries into Mongolia, so it can contribute Overseas resource development policy of Korea to invest and participate in the mining development of Mongolia actively.
This research composes with 6 sections. After introduction, section 2 provides history, classified three periods, of mineral resource development in Mongolia in the period before 1990 when Mongolia started economic system reform. Section 3 analyzes synthetically situation of mineral resources and related policy of Mongolia including regulation and law, especially importance of mineral resource of international strategy of Mongolia is also analyzed. Topic of section 4 is major countries' such as Canada, Australia, Russia, China, US, Japan, and Europe development situation of mineral resource and entry strategies into Mongolia, so it and its comparative analysis can provide implications for Korea to invest into Mongolia. Section 5 examines mineral development cooperation between Korea and Mongolia and assesses their results, and also provides cases of success and failure that Korea companies invested into Mongolia for twenty years, then it can provide useful information to Korea corporations consider to enter into Mongolia. Finally, section 6 provides an effective counterplan to expand investment and development in Mongolia.
In short, this study suggests 7 ways to participate in development mining of Mongolia for Korea companies and contributes to establish investment policy of Korea government. The 7 ways are ① establishing a active support system of Korea government, ② linking entry of financial companies to development of mineral resources of Mongolia, ③ accompanying with mineral service and promising sectors, ④ linking constructing factories to development of mineral resources of Mongolia, ⑤ investment of package strategy that covers development of minerals and environment restoration, ⑥ analysis of mineral resource development strategies of major countries, ⑦ giving attention to enter into Mongolia for Korean companies. These also include concrete ways and detailed strategies.

The recent international political and economic environment in Central Asian countries have recently been undergoing rapid change. Given the situation, the importance of analyses on cases of investment by foreign companies in Central Asian countries have become more important.
The investment climate of Central Asian countries is generally acknowledged to be inadequate. The procedures for establishing businesses are complex, business practices lack transparency in any sense, and government policies are inconsistent. Also, infrastructure is poor due to lack of investment for roads, railroads, and ports. Therefore it is necessary, through various analyses, to prepare diverse strategies for investment in Central Asian countries.
This study focuses on analyzing characteristics of investment of foreign companies in Central Asian countries. We find several implications in this study for Korean companies concerning future strategies for investment in Central Asian countries.
First, there is a high possibility that service sectors in Central Asian countries will expand from continued economic development. The progress toward greater openness in markets of Central Asian countries will also increase the possibility for opening of several service industries that are now closed to foreign investors. Therefore, competitive Korean companies will be able to enter the various service sectors like insurance and banking. In addition, there will also be much potential with respect to investment in fundamental service sectors like education and medicine, which are not strong in Central Asian countries.
Second, human resource management in Central Asian countries will become more globalized and organized in accordance with social changes of these countries. Thus Korean companies that expect to invest in Central Asia would have to adopt a more transparent system of recruiting and incentive programs for employees, as roles and functions of labor unions in Central Asia will expand compared to present.
Third, Korean companies should prepare marketing strategies based on the those of foreign companies currently doing business in Central Asia. The analyses on social changes in Central Asia should also be reflected in their marketing strategies. As Central Asian countries’ economies grow, the importance of both global strategy and localized marketing strategies will increase. The economic development of Central Asia will also lead to the expansion of the middle class and strengthen its purchasing power.
Generally, Korean companies that will be doing business in Central Asia should try to adopt investment strategies that will accord with socio-economic changes in Central Asian countries. Another factor that should be considered is that economic cooperation among Central Asian countries and with CIS countries will increase. As a result of these processes, the Central Asian economy will integrate into a single economy. The economic integration will promote intra-regional trade and change the trends of investment and trade through institutions like common custom duty, etc.
Also, Central Asian countries will continue to foster policies for industrial diversification along with their economic development strategies. Each Central Asian country has adopted its own economic development strategy but all revolve around the same core concept: development of manufacturing industries. Central Asian countries want to lower the share of energy industries and agriculture in their economies, and expand that of manufacturing. Therefore, the focus of Korean companies’ investment should be on the manufacturing industry that each Central Asian country plans to promote.
Central Asian countries have common characteristics including a socialist past, their status as transition countries, the importance of personal connections and a certain degree of non-openness. These characteristics have had much influence on their economies. Therefore, the peculiarities of these economies were major considerations  when foreign companies invested in Central Asian countries. However, the characteristics listed above have decreased in significance as their economies have become more capitalistic and institutionalized during transition periods. Accordingly, Korean companies must keep these factors in mind when engaging in human resource management, and preparing marketing strategies related to investment in Central Asia.

Economic growth of Korea and its entry into the ranks of developed countries was made possible by utilization of its only abundant factor, labor, and excellent human capital; despite its lack of physical capital and natural resources. Future economic growth for Korea would still depend on accumulation of human capital and its utilization. Human capital has been regarded as a very important factor in the development of national economies for a long time. In the 21st century, the rise and fall of nations will not depend on territory and natural resources but human capital. Having more creative and innovative citizens, and more population in general, has become more important than natural resources.
In the global economic system, management of not only one’s own human capital but also those of other countries is an important issue. In terms of exchange of human capital with Korea, Central Asia constitutes one of its most active partner regions compared to other regions. In summit talks between Korea and the respective nations of Central Asia, the exchange of human capital was the most actively-discussed subject during the 17 summit meetings between Korea and Central Asia since the Central Asian countries became independent in 1992. There have also been over 80,000 non-governmental exchanges since that time.

The active exchange between Korea and Central Asia results in increases in exchange in various sectors and also create good opportunities for understanding each other. Especially, transnational marriage and family accounted for the exchange of about 2,602 persons in 2011; and emigrant workers from Central Asia in Korea number about 30,000. On the other hand, Koreans in Central Asia (Korean Diaspora) plays an important role as intermediaries for cooperation between Korea and the region.
This report includes a statistical and empirical analysis about human resource exchange at the governmental and non-governmental level. Such research can provide legal and institutional policy implications for Korea in human exchange between Korea and Central Asia as follows:
First, various human networks have to be established for continuous cooperation between Korea and Central Asia, from their Presidents down to the people. For this, Korea needs to establish a governmental organization (tentatively named 'Ministry of International Human Resources) which covers human networking, DB, and financial policy. The scope of this organization will cover strategic regions including Central Asia for Korean foreign policy,  managing and constructing the global human resource network for Korea in the long term perspective.
Secondly, the relationship between Presidents of Central Asia and Korea has to develop continuously, as it constitutes the substance of cooperation between Korea and Central Asia. To strengthen the relationship between Korea and  Central Asia, the relationship with ruling parties in Central Asia needs to be expanded. Case in point, Korea has been engaged in exchange with the ruling party in Kazakhstan, by holding the 'Korea-Kazakhstan Forum' annually. Korea has to bolster not only this Forum but also work with officials in developing countries as well as Central Asia to increase the level of exchange, and create a program for mutual reinforcement of capabilities for common endeavors.
Third, networks in education has to be established for the future generations and for building knowledge-based economies. The Korean government has to change its existing employment policy to promote the creation of a ‘labor pool’ system that can bring together talent in various countries including Central Asia. For this, an exclusive organization for attracting talented foreigners under the Ministry of Education, Science and Technology has to be established; and this organization has to provide much employment information for reinforcement of the human network in this regard.
Fourth, it is important to establish the human network and promote human exchange at the corporate level. When Korean firms plan to enter into Central Asia, they need to actively provide training opportunities in Korea for local workers to learn the technology that is required in the work place. On the other hand, the Korean government must cooperate to ease the entry of Korean personnel from industries or education sectors into Central Asia. For example, when Korea obtain rights to a major development project in Central Asia, the Korean government can provide support that allows necessary personnel to better participate in those project in Central Asia.
Fifth, the reinforcement of a network with ethnic Koreans (Goryeo-saram) network is also important. Overseas Koreans, or Goryeo-saram, in Central Asia live mostly in big cities and work in commercial sectors. Because they cannot obtain credit loans in Central Asia, the Korea government need to offer them financial assistance in the form of microcredits programs such as a 'Korean People’s Financing Network'.
Sixth, cultural exchange is also important in stimulating human exchange between Korea and Central Asia. This can be done utilizing Korean popular culture such as K-pop and drama which are very popular in Central Asia. Business for exchange of cultural content will assume a key role in expanding the human exchange between Korea and Central Asia.
Exports is one of the main pillars of the Korean economy, but the line of thinking that assumes trade takes priority over everything else cannot sustain relationships with other countries. To become a truly ‘developed’ country, Korea has to strengthen its hard, soft, and ‘sticky’ power based on its human capital.
In the 21st century, global order is expected to be determined by which countries have more sticky power. Even though US has the most hard and soft power, US has a difficult problem with diplomacy in Afghanistan and Iraq because sticky power of the US is weak. Sticky power is the power that can tie both the elite and the people of another country with one’s own country through the attractiveness of its economy and culture. Through global informatization and democratization in Arab Region, Korea government has to strengthen its sticky power that can cover everyone in Central Asia from the political elite to the common people.
Central Asia is the region that sticky power of Korea can be applied with the greatest effect, as everyone from presidents down to the people in Central Asia consider Korea a friendly nation. They are interested in Korean popular culture, and they want to travel, work, and study in Korea. The new policy agenda for the Korean government therefore, has to involve developing its Korean sticky power in Central Asia and at the global level.

Myanmar has long been considered one of the last frontiers of Asia. Despite being abundant in labor and rich in resources, Myanmar has not been able to achieve economic development for a long time. A military-backed civilian government took office in 2011, and last year pushed forward political and economic reforms at a rate that has surprised many both in and outside the country. Myanmar’s reforms offer long-overdue opportunities for the country’s economic development through liberalization and re-integration into the world economy. This report aims to provide a better understanding of the country’s potential for development from two perspectives. The first half of the analysis focuses on the relationship between Myanmar’s socio-cultural factors and development. The second half examines recent reforms in politics, economy and international relations.
Myanmar’s socio-cultural landscape has had a profound effect on policy. A wide range of religious and traditional elements motivated aspects of earlier economic policies. The subsequent Socialist period, whose arrival was partly triggered by religiously motivated policies of the previous administration, saw the stagnation and isolation of the once-prosperous economy. The prominent place given to Buddhism in conjunction with the country’s ethnic diversity have led to security issues and human rights problems, and for several decades, armed conflict between the central government and ethnic minorities have seriously undermined economic development of the country.
On the other hand, Myanmar's traditional culture also holds great potential for economic development by creating favorable conditions for investment in human capital. Myanmar has higher literacy rates than other countries with comparable levels of economic development and the country is known for high levels of achievement motivation. Myanmar’s institutionalized religions, where Theravada Buddhism holds a prominent place but also with large congregations of Christians and Muslims among ethnic minorities, contributed to human capital accumulation through cultural norms that emphasize learning and institutional support through monastic schools. Nonetheless, it is equally true that Myanmar has serious limitations in human resources outside basic literacy rates, due to low public investment in education. Yet the country’s cultural potential suggests that once aggressive investment and institutional reforms are in place, Myanmar's human capital could increase rather rapidly.
Political and economic reforms initiated by the newly formed civilian government show encouraging signs of society-wide change. It should be remembered that when the new government took office in early 2011, expectations of substantial change were modest because the military still maintained tight control over the political process. Yet subsequent actions by the government included substantive measures that include the meeting between Aung San Suu Sukyi and President Thein Sein, restoration of the NLD as a political party, release of political prisoners, and legalization of street protests. On the other hand, peace negotiations with armed ethnic groups appear face complex hurdles. Several minority armed groups have resisted the government demand for their integration into the government-controlled Border Defense Forces. More fundamentally, the government and ethnic minorities disagree sharply over center-periphery relationships including the level of autonomy for minority states.
The government is gradually introducing market liberalization and promoting private economic activities. Special economic zone law has been introduced and foreign investment law is being revised while the Myanmar Investment Committee gained renewed government support and has been regrouped. To pave the way for foreign exchange reform, the Myanmar government invited a delegation from the IMF for technical assistance. Private banks were allowed to handle currency exchange transactions for the first time since the military coup in 1962. The Myanmar government already privatized state firms in control of natural gas and oil in 2010. A significant number of SOEs under the ownership of 15 government ministries and entities are also expected to be on sale.
The reforms in Myanmar have proceeded at a time when the United States is trying to respond more directly to China’s growing influence in Southeast Asia. Myanmar’s political and economic liberalization can lead to gradual easing of economic sanctions imposed by Western governments, and the West can and will further encourage reforms through easing of sanctions. Myanmar appears to be willing to take advantage of its geostrategic location with respect to the US-China rivalry in the Asia-Pacific region, finally seeking to end its heavy economic and military dependence on China.
The opening of Myanmar’s economy offers considerable investment opportunities for Korea and its importance is only heightened under current global recession. The implications that can be drawn from the current report are as follows. First, it is imperative to understand that the socio-cultural environment of Myanmar will produce complex effects, with mixed results for development potential of the country. The emphasis on Buddhism in a country with high levels of ethnic diversity poses challenges for peace and nation-building, which is a prerequisite for economic development. Yet another aspect of Buddhism and deep religiosity of ethnic groups helped create cultural norms and institutions conducive to human capital accumulation. Second, Korea needs to fully utilize its advantage in credibility over other countries when Myanmar opens up for international economic cooperation. For Myanmar, Korea can make a successful case that it has no geopolitical agenda like the US, China or India. Unlike Japan, Korea has no historical baggage with respect to Myanmar from colonial rule or wars. Korea should design its economic cooperation strategy with Myanmar based on such understanding of Myanmar’s domestic politics and international relations in addition to technical knowledge of development processes.

The new Myanmar government has been trying to introduce a series of political and economic reform measures which are intended to improve its relationship with the western countries including the US and the EU. Those reform measures also shows that Myanmar has greater willingness to gear up its socio-economic development.
Myanmar has been known for its growth potential with plenty of natural resources as well as its sizable land and population. Recently, Myanmar’s role in the ASEAN has been increased and strengthened. There will be more opportunities for economic and development cooperation with Myanmar. In this vein, Korea considers Myanmar as one of the important partner countries for development cooperation. Nevertheless, development cooperation strategies as well as country studies on Myanmar are hardly found in Korea. 
This report analyzes the current status of Myanmar’s socio-economic development, and then evaluate development cooperation efforts made by donor countries including Korea up to now. Based on the analysis and evaluation, three directions are derived for Korea’s development cooperation for Myanmar. Firstly, Korea needs an early and considerable increase in its ODA for Myanmar. Currently, per capita ODA amounts for the nearby important partner countries such as Cambodia, Rao PDR and Vietnam from Korea, are well above those for Myanmar. Secondly, concessional loans have not been provided by Korea since 2005. They need to be resumed to help Myanmar construct and improve its physical infrastructures (especially electric transmission lines, small local roads and bridges, local ports etc) which are prerequisite for social and economic development. Lastly, Korea has to prepare the Country Partnership Strategy (CPS) that is a comprehensive framework for development cooperation allowing for Myanmar’s mid/long-term development process.
The CPS has to identify priority areas or issues of development cooperation. Based upon the analysis of Myanmar’s socio-economic development and the selection principles such as willingness, alignment, selective focus, harmonization, spill-over and short-term urgency, this report recommends the first and second tier priority areas of development cooperation for Myanmar. The recommendation will be a very useful reference in devising the CPS for Myanmar.