Deputy Prime Minister Delivered Remarks on The International Community's Support for Economic Growth in Developing Countries at The G7 Finance Ministers Meeting
Deputy Prime Minister Kyungho CHOO attended G7 finance ministers and central bank governors meeting held in Niigata, Japan, from May 11 (Thu) to May 13 (Sat).
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 (MDB) and aid from advanced 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 industrial policies of advanced countries, such as green transition, should not hamper developing countries' entry into the global market while promoting mutual cooperation models between advanced and developing countries such as economic partnership agreements, which are more flexible than Free Trade Agreements (FTA) 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 International Monetary Fund (IMF)’s Resilience and Sustainability Trust (RST) raised by channeling Special Drawing Rights (SDR) 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.
DPM Choo's presence at the G7 finance ministers meeting served as an opportunity to improve cooperation with G7 member states and invitees while attesting to Korea's elevated economic status in the international community. Not only that, as a responsible member of the global society, Korea also set forth its views on major global agendas such as financial aid for developing countries in difficult conditions due to food and energy crises, debt relief as well as funding for MDBs.
Please refer to the attached pdf.