The Doha Development Agenda (DDA) negotiation which was launched in November 2001 has been at stalemate for more than eleven years. As many empirical studies has shown, the progress of the multilateral trade liberalization is crucial for the continuous growth of the global economy. The stalled DDA is expected to impede on the continuous growth of the world economy.
Against this backdrop, this study intends to analyse the factors which have led  the stalemate of the DDA negotiation and to present some implications for its completion. In particular, this study tries to analyse the delaying factors in the three major market access areas, namely, agriculture, non-agriculture market access (NAMA) and services. And this study aims to present some international cooperation plans as Korea alone cannot solve the problems.
The overall reasons that the DDA negotiation has not been progressed are as follows: Firstly, the US has not shown its political leadership. President Obama has not delivered his leadership in international trade policies under the circumstances that his approval rating has been falling.
Secondly, In the EU where its member nations have suffered the fiscal crisis, the economic conditions do not support the policies for market opening and reduction of subsidies in the agricultural sector.  
Thirdly, FTA as a substitute for the DDA negotiation has been proliferating. As major member countries are actively pursuing FTA negotiations, the effectiveness of the DDA negotiation with regard to market opening is declining. 
Meanwhile, if we analyse the delaying factors in the three key market access sectors, the agricultural sector can be divided into domestic supports and market access areas. In the domestic supports, developing countries are confronting with the US in that excess benefits are given to the US. In the market access area, special products and special safeguard mechanism for the developing countries are the key issues. In particular, it is accepted that special safeguard mechanism is necessary, but India is confronting with the US and EU on its conditions for exceeding the UR concessions.
In NAMA, the sectoral liberalization is the major issue. And on this issue, whether China will participate or not is the key. The participation of the emerging developing countries such as China is crucial to reach the critical mass in order for the sectoral liberalization to be taken into effect. China is opposing the mandatory participation, arguing that the participation in the sectoral liberalization must be on the voluntary basis.
In the service sector, the developing countries do not have interests in the multilateral liberalization negotiations due to their worries about the possible market failures. Accordingly, the trade-off negotiations have not been tried. Furthermore, the lack of progress in agriculture and NAMA also affect the service negotiation. This is because that the deadline of the submission of the second revised offers is linked to the deadline of the modalities of agriculture and NAMA. 
Under these circumstances two scenarios can be considered as the overall international cooperation plans for the completion of the DDA negotiation. For the optimistic scenario, it can be proposed that duty exemptions be provided to the LDCs' products as well as the trade facilitation issue be linked to the aid for trade. In addition, IT service agreement can be proposed because it can be considered as a precondition for the success of the ITA II negotiation.
As the pessimistic scenario, in the market access side, it can be considered to adopt the most conservative version among the various proposals put forward so far in the goods area and also to adopt the revised offers in the services area which have been submitted since May 2005. In addition, as a way to alleviate the oppositions from the developing countries, the linkage between trade facilitation and the aid for trade as well as the duty-free and quota-free treatment for LDCs can be considered.
As the compromise plans in the major sectors, firstly in the agricultural sector, it can be summarized as developing countries accept the position of the US in the domestic supports while they can attain concessions from the developed countries in the area of special products and special safeguard mechanism.
In NAMA, the US and China should agree on the sectoral liberalization negotiations. For example, the US can have China participate in one of the sectors which it prefers and instead the US should participate in the negotiation for the textile and clothing and allow China can select another sector voluntarily. Otherwise, it can also be considered to conclude the NAMA negotiations abandoning the sectoral liberalization negotiations since the benefit by doing so will still be greater than the loss from the failure of the overall NAMA negotiations.
In the service area, it is inevitable that its progress is tied with the progresses in the agriculture and NAMA. In the service area alone, it is necessary to have enhanced prudential regulations and pro-competitive regulations in order to alleviate the worries of the developing countries about the possible market failure. As a method of attaining this objective, a 'services knowledge platform' has been proposed, where sectoral regulators, trade negotiators and interest groups can discuss the assessment of the current policies and possible reforms to bring benefits.

We analyze the relationship between the government debts and credit rates of OECD countries between 1995 to 2010.
In the chapter 2, we first summarize the OECD countries’ credit rates history and the definition of sovereign credit rates. We also report the relation between the credit rates and macroeconomic variables. The credit rates drop quickly in case of downgrading, but they rise steadily otherwise. The countries with international currencies get the better credit rates but the credit rates are affected by the debts. The countries’ credit rates drop when they get the bailout from IMF, they recover very slowly due to stigma effects. The countries which has the stable macroeconomic conditions have the better credit rates and the lower interest rates and CDS premiums.
In chapter 3, we analyze the how the OECD countries’ credit rates are determined by using linear panel model and ordered logit model. We focus on the total debts, foreign debts, short-term debts, foreign currency debts, international currency status and difference between upgrading and downgrading. When the debts increase, the credit rates get down. The effect has magnified, if the debts are supplied by foreigners or foreign currencies. If the countries have the international currency, their credit rates are not sensitive to governments’s debts and other determinants.
In Chapter 4, we look into the four countries’ cases with the most volatile credit rates changes. In Greece and Iceland cases, their credit rates are downgraded due to the sudden increase of debts. In Slovakia and Poland cases, the debts do not play as a key determinant in upgrading their credit rates. In every cases, the per capita income and the frequencies of financial crises are the main determinant of credit rates’ changes.
In Chapter 5, we look into the credit rates history of Korea and how the determinants work in Korean credit rates’ changes. We also suggest how to manage the government debts in terms of maintaining the desirable credit rates. The Korea’s credit rates are upgraded during the global financial crisis due to diminishing the stigma effects from Asian currency crisis. The increase of per capita income and current account surpluses contribute the upgrading. We suggest to maintain governments debts, foreign debts, foreign currency debts and amounts of issuance in order to keep or improve the credit rates. And we also suggest to internationalize won.
 

This study analyzes the causes of the European debt crisis and reviews reforms the eurozone has pushed for in order to solve the crisis. It also focuses on the future prospect of economic governance of the eurozone. European debt crisis has spread over the entire Eurozone despite the bail-out of Southern European countries. Starting from Greece, Ireland and Portugal were bailed out and since the second semester of 2011, Italy and Spain have been under pressure of a potential debt crisis due to their soaring bond yield rate. During the early period of the crisis, the Eurozone focused on providing liquidities to Greece. However as the crisis affected other countries one after another, Eurozone’s responses have become more comprehensive, recognizing that the crisis is related to insolvency beyond liquidity crisis. The causes of the debt crisis can be analyzed in two parts: macroeconomic factors of individual countries and structural default of the European Monetary Union (EMU). The fiscal stimulus measures used during the global financial crisis caused serious damage to fiscal sustainability of the individual eurozone countries. In addition, a failure in economic governance (Greece) and a distorted growth strategy based on asset bubbles (Spain and Ireland) provided a cause for the crisis. Since the debt crisis, the financial market has been increasingly doubtful of the integrity of the eurozone as a monetary union and this lack of confidence has turned up as diverging yield rates of government bonds. With regard to the structural problems of the eurozone, it seemed that eurozone countries adopted the single currency without serious budget disciplines and coordination mechanisms for fiscal policies. The ambiguous role of the European Central Bank (ECB) as a “lender of last resort” is also pointed to as the reason that the crisis has spread. Political factors acted strongly from the early stage of the debt crisis and the latter has an aspect of a political crisis about the European integration. Major actions were slow and ill-coordinated due to lack of leadership at the EU level. Germany and France did not share views in tackling the crisis from the beginning. In order to tackle the debt crisis and reform economic governance, the eurozone has advanced various measures in strengthening the fiscal discipline and reducing macroeconomic imbalances. First, the European Commission initiated economic governance and surveillance structures, along with two dimensions, 1) strengthening the Stability and Growth Pact (SGP) and 2) preventing and correcting macroeconomic imbalances within the EU and Eurozone. The European commission introduced successfully the European semester which intend to exert peer pressure for relevant budget control for each members. The new economic governance set a mechanism for correcting macroeconomic imbalances based on an early warning system. In addition, 25 members of the EU signed the new fiscal pact which set up debt brake in each members’ legal system and strengthen sanction in case of violation. The ECB’s responses have been increasingly active. In order to keep financial markets stable, the ECB has intervened in lowering base interest rates to the lowest level, buying more sovereign bond in secondary markets and providing massive low-interest loans to European commercial banks. In October 2012, its president announced the ECB would purchase sovereign bonds of short maturity without limit, if the crisis spreads further. This announcement has been interpreted as a willingness of the ECB as a lender of last resort. There is a consensus that the Eurozone needs strong reforms in order for the euro to survive in the future. Firstly, it will be inevitable to push for a certain level of fiscal integration to sort out the current crisis. However, this will require a high level of political compromise, as well as efforts of debt-ridden countries for structural reforms and budgetary discipline. Progress towards fiscal integration will depend highly on political agreements between Eurozone Member States. Secondly, correcting macroeconomic imbalance between members will be a key issue in the medium and long-term, because the debt crisis is regarded as a consequence of diverging competitiveness between members. Thirdly, it will be increasingly necessary to develop a close coordination mechanism of economic policies between members. This mechanism will have to address not only budgetary behavior of Member States, but also comprehensive economic policies including labor market reforms and industrial policies. In the historical perspective, however, the EU has been developed through multiple crises, repairing its structural problems and resolving the differences among members. These precedents provide optimistic expectations for EU and Eurozone’s institutional reform. However, given the recession in real economies and de-leveraging in the financial market, the Eurozone may encounter a low-growth period for next few years. The European debt crisis has attracted a lot of attention from Korean media and policy makers, because the crisis provides various policy lessons in several areas. Particularly, some insist that Korean government needs to be careful regarding management of its public finances, given the future demand in social security and pensions. The others argue that the debt crisis of the Southern European countries did not result from excessive social spending, but from failure in creating a positive relationship between the welfare system and economic growth. At this point, we can elicit some policy lessons as follows. First, it is necessary to consider future fiscal demand in setting up a social security system. Population aging will be a more salient issue in Korea than any other OECD members in a couple of decades. Second, it is necessary to monitor development of household debt, because increasing private debt can exert indirect impact on credibility of fiscal sustainability. Third, Korea should develop domestic demand as well as maintaining competitiveness of its export industries.

The objective of the study proposes new strategies and concrete action plans of Korea's assistance, looking at the Official Development Assistance(ODA) status of the major donor countries and international organizations for Lao Human Resource Development(HRD), most important area for socio-economic of Laos, which is least developed country.
The study describes Laos strategies in the national development goals to find out the HRD demand. The analysis of the study includes not only the Government of Laos' own goals but also Lao socio-economic status and trends to get an accurate demand for HRD assistance, prioritizing the relatively weak and urgent field in local circumstances. It provides Laos socio-economic indicators and objective statistics relevant with HRD status. It explains that Lao HRD development has suffered from the imbalance of regional, ethnic, gender in addition to Lao governance issues.
This study also reviews ODA strategies and action plans of major donor countries and the international organizations in the field of Laos' HRD. The World Bank(WB) and the Asian Development Bank(ADB) have presented detailed goals for the targeted area and specific assessment methods, emphasizing the continuity and linkages between ODA programs. And these organizations have also stressed the partnership with other donor countries in the field of Lao HRD. Japan has set the strategic area for promoting the effectiveness of ODA by emphasizing the linkages between their HRD projects in Laos. And Japan has dispatched a training personnel dedicating to HRD in Laos and also supported to establish a permanent institution for the field of Lao higher education development. Australia has made mid to long-term strategies for Lao HRD and the annual report for the evaluation and inspection of the strategies. Australia has also focused on the support of Lao local and overseas scholarship for the higher education that it may maximize the effect within a small development assistance budget.
Korea has been a key partner in Laos' development over last 20 years, scale of Korea's ODA to Laos has ever increasing, the greatest proportion of it has been provided for Lao HRD. By far Korea's existing programs has been obvious somewhat for improving Laos HRD infrastructure. However, without a strategic approach and long-term planning, these programs have been shown to undermine its effects.
The study recommends within a limited budget Korea's ODA for Lao HRD is required new strategies as followings in order to maximize the effectiveness. At first, Korea's ODA for HRD should be concentrate on a specific region, sector, support measures in Laos. Thus, it is necessary for Korea's ODA to focus all of efforts, selecting the most underdeveloped and isolated area particularly in poor educational circumstance.
Secondly the dispatching of educational advisor and the establishment of permanent institution in Laos should be actively examined to enhance consistency and continuity in the program of Korea ODA.

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

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

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

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

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

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