Brazil, the fifth largest nation in the world, and possessing a population of 160 million, is the world's eighth largest economic power and leader of the South American market. During the Cold War, both Brazil and South Korea maintained very cooperative relations in political terms, however, their economic relations were quite limited. Brazil's import-substitution industrialization strategy, from the 1960s through 1980s, and the prevalence of macroeconomic instability there, in the late 1980s, led to protectionist trade measures that hindered both countries' attempts at further developing their economic relations. In the 1990s, however, the reformist governments in Brazil and its neighbors chose to focus on open-regionalism strategies, and established the Southern Common Market (MERCOSUR). While taking advantage of the economies of scale resulting from this regional integration, Brazil has continuously promoted market-oriented economic reforms. As the leader of MERCOSUR, Brazil has forged free trade accords with Chile and Bolivia, as well as with other major South American economies. All this has helped Brazil to emerge as a dynamic force in the world economy. Although Brazil recently suffered from a financial crisis resulting from an overwhelming accumulation of foreign debt and the confidence-loss effect caused by the Asian financial crisis, its economic dynamism was strong enough to allow Brazil a rapid recovery. The annual inflow of more than $20 billion in foreign direct investment firmly indicates that the economic growth of the country has not lost any momentum.

In the spirit of continued cooperation, the Korea-Brazil 21st Century Commission, created as a result of President Kim Yong Sam's visit to Brazil in 1996, during its first four meetings and parallel academic conferences, held alternately in Korea and Brazil, decided on a number of fields to be jointly developed by both countries. Notable progress has resulted from the Commission's coordination of the exchange of intellectuals and experts from a vast array of fields of mutual interest. The proposed science, technology and industrial cooperation fund, visa exemption accord, and summit meeting are already in sight.

This book is a compilation of numerous papers and presentations submitted by Korean and Brazilian scholars, and discussed by the Korea-Brazil 21st Century Commission members. Several new articles have been added, and others have been re-edited and updated since their initial presentation. We would like to give our special thanks to the esteemed members and coordinators of the Korea-Brazil 21st Century Commission for their insightful, wise and expert contributions, through all stages of this project, and to all those who put a great deal of effort into this book. It is my sincere hope that this publication provides both useful information and ideas that will assist in the building of further mutually cooperative and rewarding relations between Korea and Brazil, while also serving as a valuable academic resource.

Foreword

Ⅰ. Korea and Brazil: Development and Challenges

1. The Management of Science and Technology in Industrial Development: Lessons
from
the Korean Experience
Linsu Kim
Professor, Korea University

2. Korean Economic Growth and Current Crisis
Woo Tack Kim
Professor, Hallym University

3. Brazil's Current Economic Situation and Major Issues
Alkimar R. Moura
Professor, Getulio Vargas Foundation (FGV)

4. The Brazilian Economy: From Hyper-Inflation to Stabilization
Claudio Monteiro Considera
Researcher Director of the Institute of Applied Economics
Research (IPEA)

Ⅱ. Korea-Brazil Economic Relations at the Turn of the Century

5. Korea-Brazil Trade and Investment Relations: Boom, Crisis, and Future
Prospects
Won-Ho Kim
Director for the Americas, Korea Institute for International Economic
Policy (KIEP)

6. The Brazilian Economy, Mercosur, and Cooperation between Brazil and Korea
Luiz Felipe de Seixas Corrêa
Secretary-General of External Relations of Brazil

7. Brazil-Korea Cooperation: Prospects and Questions
Mauro M. Durante
President of the Executive Board of the Brazilian Service for Support to
Micro and Small
Companies (SEBRAE)

8. Korea's Financial Crisis and Financial Cooperation between Korea and Brazil
Jae-Yoon Kim
Former Member of the Monetary Board of the Bank of Korea

9. SMEs in Mercosur and Korea: Searching for New Sources of Economic
Development
Gilmar Masiero
Professor, the State University of Maringa

10. Economic Cooperation between Asia and Mercosur:
Searching for Economic Cooperation Directions Between Korea and Mercosur
Ki-Su Kwon
Country Specialist, Korea Institute for International Economic Policy
(KIEP)

Ⅲ. Korea-Brazil Science and Technology Cooperation in the New Millennium

11. Korea-Brazil Science & Technology Cooperation: Trends and Issues
Sung Chul Chung
Director, Center for International Science and Technology
Cooperation (CISTC/STEPI)

12. Science & Technology in Brazil: Possibilities of Cooperation with Korea
Eduardo M. Kriger
Chairman, Brazilian Academy of Science

13. Biotechnology in Korea and Prospects for Cooperation with Brazil
Young Hoon Park
Director, Bioprocess Technology Research Division, Korea Research
Institute of Bioscience and
Biotechnology (KRIBB)

14. Biotechnology in Brazil and Korea: Possibilities for Cooperation
Antonio Paes de Carvalho
Professor, Institute of Biophysics Carlos Chagas Filho, Federal
University of Rio de Janeiro

15. The Korean Initiatives Towards the Information Society: Opportunities for
Cooperation with Brazil.
Carlos J. P. Lucena and Mario D. Ripper
Professor, Department of Computer Science at Catholic University of Rio
de Janeiro and Consultant,
Fang & Ripper

APPENDICES

A. The Final Report of the Korea-Brazil 21st-Century Commission

B. The Minute of the First Meeting of the Korea-Brazil
21st-Century Commission

C. The Minute of the Second Meeting of the Korea-Brazil 21st-Century Commission

D. The Minute of the Third Meeting of the Korea-Brazil 21st-Century Commission

E. The Minute of the Fourth Meeting of the Korea-Brazil 21st-Century
Commission