[Session 3]
Resilient Economies and Inclusive Societies: Empowering People for the Achievement of Sustainable, Balanced and Inclusive Growth
- Promoting Environmentally Sustainable (‘Greener’) Growth

Mr. Chairman,

Without environmental resilience, we will not be able to achieve the resilient economies, societies, and institutions we discussed earlier today. In spite of a clear roadmap to Paris agreed in Warsaw, however, the climate change negotiations still remain an uphill struggle. The OECD can and should play a significant role in moving the process forward.

First, the OECD’s comparative advantage in evidence-based, multi-disciplinary research on key policy areas can be instrumental in providing an analytical foundation for both enhancing climate actions before 2020 and leading to an effective post-2020 climate regime. In this regard, we welcome the OECD Statement on Climate Change and look forward to rigorous follow-up.

Second, the OECD should play a leading role in developing a flexible, practical, comprehensible, and durable climate change regime. We encourage the OECD to strengthen its work on the six main pillars of the post-2020 climate regime, with a focus on analyzing cost-effective policies and creating an enabling environment for the private sector’s participation. The OECD can also contribute to facilitating the negotiations by reinforcing its research and analytical work on the role and architecture of climate finance and various options for making climate finance contributions.

Finally, the OECD can provide support in designing and implementing national policies, especially in regard to shifting investment priority to low-carbon, climate-resilient infrastructure, by strengthening project-based work on climate finance including early operationalizing of the Green Climate Fund (GCF).

Mr. Chairman,

During the last five years, Korea has initiated various financial and environmental policies to move towards a green economy. We have also worked closely with other countries and international organizations to promote the values and benefits of green growth across the globe. Establishing the GGGI and hosting the GCF in Korea are the fruits of these efforts.

Yet our achievements in this area fall short of full satisfaction, especially when compared to the level of investment. In particular, progress is insufficient in fostering a market-based industrial ecosystem in the energy sector, partly due to the government-led and supply-driven policy. Reflecting various needs of SMEs and socially vulnerable groups has also been a challenge.

Building on our past experience, we are now working on the Second Five Year Plan for Green Growth. The plan will target key areas for tangible and substantial results, strengthen the role of market and the private sector, and reinforce the ongoing efforts to reflect the balance of economic, environmental and social dimensions.

On a global front, we will continue to faithfully implement a roadmap to achieve our pre-2020 mitigation commitment and work on the post-2020 contribution, the preparation process for which is already underway.

Mr. Chairman,

Due to the growing number of natural and man-made disasters, strengthening national resilience and responsiveness is becoming increasingly important, as these may affect a country’s competitiveness and sustainable development. In this regard, Korea finds the OECD recommendations on Governance of Critical Risks in 2014 both timely and relevant.

After the painful experience of the recent tragic ferry incident in Korea, we now acutely realize the importance of the governance of critical risks. There are several key messages anchored in the recommendations which I would like to highlight and share with you today, based on our experience.

First, a national strategy with finance schemes for the governance of critical risks is a must, not an option. The division of responsibilities among government agencies should be clearly set out, while the efforts of all other relevant stakeholders, including public-private partnerships, are secured.

Second, the national strategy should be implemented with the robust surveillance of the government, regular exercises and reviews. This should also be subject to periodic monitoring and revision. The ferry incident in Korea was mainly due to our failure in this area.

Third, a post-disaster management system is necessary to strengthen the resilience of the society as a whole. This entails supporting not only the physical loss, but also the psychological damage incurred in the communities.

Korea will continue to improve its governance of critical risks from the perspective of “whole-of-government” as well as “whole-of-society.” At the same time, we will cooperate with the OECD in developing a toolkit to facilitate the implementation of the recommendations by sharing the lessons learned. Thank you.

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[Session 6]
Partnerships for Global Resilience and Development as Empowerment


Thank you. Mr. Chairman,

Cooperation with non-OECD Countries

I would like to begin by welcoming the formal launch of the Southeast Asia Regional Program and the agreement on the Country Programs with four countries. Both initiatives are evidence that the OECD has strengthened its engagement with non-OECD countries since the last Ministerial Council Meeting by fostering various forms of cooperation.

I am confident that by sharing its standards and best practices more widely through these programs, the OECD will enhance its role as a ‘global policy network’ and contribute to making the global economy more resilient and sustainable.

I also note with satisfaction that the OECD has strengthened its cooperation with the Key Partners. While appreciating such efforts, I would like to emphasize some points which I believe are important for the success of our joint efforts with these partners. First, we must treat them as equal partners and cooperation projects with them should be mutually beneficial. Second, we should establish an institutional framework that promotes whole-of-government engagement with the Key Partners. The OECD-Indonesia Framework Agreement signed in 2012 is a good example. Finally, in working together with the Key Partners, a special emphasis should be placed on utilizing various cooperation channels with the G20 and other international fora. Action-oriented programs such as BEPS (Base Erosion & Profit Shifting) in which these partners are already participating should be further activated.

OECD Southeast Asia Regional Program

Mr. Chairman,

The newly launched Southeast Asia Regional Program will contribute to the sustainable growth of the region which in turn will expedite the ongoing process of regional integration. We also believe that it will lay the groundwork for the countries in Southeast Asia to join the OECD in the future.

In order to ensure the success of the Program, we are of the view that a steering group should be established as soon as possible to provide the overall strategic guidance for the Program. It is also essential to secure sufficient Part I funds and voluntary contributions from member countries.

Korea, for its part, would like to play a bridging role between the OECD and Southeast Asia in making the Program a mutually beneficial platform. In particular, we are keen to facilitate cooperation in yielding substantial results in six key areas -- tax, investment, deregulation, SMEs, PPPs and education -- by making the best use of existing networks such as the OECD-Korea Policy Center and the Korea-ASEAN Center.

The year 2014 is a special year for Korea and Southeast Asia since it marks the 25th anniversary of the establishment of the Dialogue Partnership between Korea and ASEAN. To commemorate this anniversary, the Korea-ASEAN Special Summit is to be held in Korea this coming December. Building on this momentum, we will seek to identify various ways to ensure the successful implementation of the Program, including by supporting the Southeast Asian Economic Outlook (SAEO) and Multi-Dimensional Country Reviews (MDCRs) initiated by the OECD Development Centre.

Implementation of the OECD Strategy on Development

Mr. Chairman,

Development is one of the key areas where we can foster comprehensive cooperation with non-OECD countries. In this regard, we commend the progress made on the implementation of the OECD Strategy on Development and welcome the work to monitor its implementation. We encourage the OECD’s continued efforts to mainstream development through strengthening its role as a knowledge-producing and -sharing organization and promoting policy coherence for development.

International Development Agenda and the Role of the OECD

As the United Nations embarks on negotiations on the post-2015 development framework in September of this year, inclusive and accountable global partnerships will be crucial to implement the new global agenda.

Korea believes that the Busan Global Partnership for Effective Development Cooperation will serve as an effective platform, with broad participation of all stakeholders, to support the implementation of the newly agreed goals. In particular, we can make use of the four principles of the Busan Global Partnership and its global monitoring framework as a mechanism to monitor the implementation of the post-2015 development agenda.

In this vein, we would like to congratulate Mexico on the successful host of the First High Level Meeting of the Global Partnership for Effective Development Cooperation and on laying a strong foundation for linking the Busan Global Partnership to the post-2015 context. We look forward to the OECD’s continued active role in supporting these global development processes and initiatives, especially in its capacity as Joint Support Team of the Global Partnership together with the UNDP.

Maximizing the Benefits of Various Development Resources

Mr. Chairman,

Korea shares the view that in order to ensure the successful implementation of the post-2015 development agenda, ODA should continue to play its critical role. While maintaining its key role in reducing poverty in countries most in need, ODA can also help leverage other resources for development such as trade, foreign direct investment, and tax revenue. To this end, we should nurture an enabling environment and build capacity within developing countries, so that they can effectively mobilize and make full use of such resources.

The OECD has done a superb job in improving the measurement of development resources, putting this issue high on the agenda at the DAC Senior Level Meeting and High Level Meeting this year. We believe that the OECD can continue to serve as an important and value-added platform in the global discussion on development finance by identifying the role of non-ODA finance, tracking and providing reliable data, and helping developing countries strengthen their capacity in the field of statistics. At the same time, we should make utmost efforts to meet the ODA target to remain reliable donors.

By drawing upon its experience as a recipient-turned-donor country, Korea will remain committed to supporting the OECD in the global outreach and cooperation with various partner countries and regions to enhance the organization’s relevance, effectiveness, and leadership in the rapidly changing world.

Thank you.