Deputy Prime Minister Choo Kyung-ho attended the G7 finance ministers and central bank governors meeting held in Niigata, Japan, from May 11 to 13, where he delivered a speech on the international community’s support for economic growth in developing countries.
In a keynote speech at session 1 on ‘addressing the economic difficulties of developing countries’, DPM Choo proposed support measures for poverty alleviation and economic growth based on Korea’s experience of rebuilding a shattered post-war economy to an advanced economy. First, he mentioned that support from Multilateral Development Banks (MDBs) and aid from developed countries are essential for low-income countries that lack the capacity to raise capital for investment. To this end, he highlighted the importance of MDBs’ sufficient financial resources and debt relief for developing countries.
In addition, DPM Choo emphasized that industrial policies of developed countries should not hamper developing countries’ entry into the global market, but should promote mutual cooperation models between developed and developing countries such as economic partnership agreements, which are more flexible than free trade agreements (FTAs) or partial FTAs on certain products.
In session 2 on ‘global cooperation for sustainable and inclusive growth’, DPM Choo also proposed policies to support growth for developing countries amid full-fledged changes of global economic structures and reorganization of global supply chains.
In this regard, DPM Choo suggested that diversified measures should be sought to secure development resources, considering that each country’s financial capacity has decreased since the pandemic. In particular, he cited the IMF’s Resilience and Sustainability Trust (RST) raised by channeling Special Drawing Rights (SDRs) as an excellent example to support long-term structural changes in developing countries. He promised that Korea will also actively contribute to beefing up development funds.
DPM Choo also suggested strengthening cooperation on global supply chains, noting that Korea will also actively engage in such efforts.