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   11-29-2007 16:58
Market Economy for NK

Seoul's Program to Help Pyongyang Learn New System

The South Korean government plans to launch an education program next year to help North Korean officials and scholars learn about the market economy. It is the first time that Seoul has organized such a program. The plan followed recent developments in improving inter-Korean relations after the second South-North summit held in Pyongyang from Oct. 2-4.

According to the Ministry of Finance and Economy, a budget of 300 million won ($320,000) has been set aside for the 2008 program, which will include cross-border information sharing workshops and education on a transition to a market economy and how to adapt to the new system. The budget is only a small sum at this initial stage. But it could increase if the program produces tangible results.

We welcome the education program as it is expected to encourage the stalwart socialist country to shake off its aversion to the market economy system. And furthermore, the program could create a favorable atmosphere for North Korean policymakers and economists to usher in reform and an open door policy. It's time for the North to realize that inter-Korean economic cooperation packages cannot succeed if it fails to introduce economic reform.

South Korean officials are well aware that it is still difficult to change the mindset of the North Korean leadership that sticks to the old ways of socialism. Regrettably, President Roh Moo-hyun was disappointed that North Korean leader Kim Jong-il and his inner circle refused to discuss reform and openness during the summit.

However, we have to be more patient with the hard-line North Korean regime and make more effort to persuade it into acknowledging the need to join many socialist countries in their effort to move toward a market economy. During the summit, President Roh agreed to build railroads, ports and other infrastructure in the North as well as an industrial park and a peace zone for inter-Korean cooperation. These development packages require huge investments from the South.

Such big-budget projects are expected to inject fresh air into the moribund North Korean economy. But they are not enough for the North to realize its ultimate goal of economic reconstruction. In addition to massive investment, the South will have to teach North Koreans how to do business, make money and become rich.

North Korea has recently shown interest in Vietnam. In October, a Hong Kong-based weekly reported that Kim Jong-il expressed the intention of following Vietnam's reforms and openness during a meeting with Nong Duc Manh, secretary-general of the Vietnamese Communist Party. A delegation from the North led by Prime Minister Kim Yong-il visited Hanoi to learn about the ``Doi Moi'' reform policy.

The Seoul government plans to select a research institute that will take charge of the education program for the North. An official said candidate institutes might include the Chinese Academy of Social Sciences in Beijing. We hope the North will learn a lesson from Chinese or Vietnamese style reform to end its isolation, bring prosperity to its people and promote peace on the Korean Peninsula.