Boogyun Kang

Promoting New Growth: ‘Advanced Special Economic Zones’ in the Russian Far East

To become a major manufacturing hub for East Asia, the Russian Far East must overcome various socioeconomic challenges, including an imbalanced economic structure, decreasing population, and a poor investment climate. To address these challenges, the Russian authorities in 2014 adopted a new development mechanism, ‘advanced special economic zones’ (ASEZs). This chapter discusses pros and cons of introducing ASEZs as investment platforms for cultivating export-oriented industry. Much will depend on the domestic and foreign capital inflow over the next years. If the ASEZ policy works out as planned, in the medium and long term there are possibilities for creating a new industrial value chain linking the Russian Far East with Asia-Pacific markets.

Economic Development Strategies of Major Central Asian Countries and Their Implications for Korea

Amid global economic uncertainties arising from prolonged oil prices, China’s economic slowdown, and increased protectionist US trade policies, the Central Asian governments are developing and pursuing individual economic development strategies which reflect their own socio-economic characteristics and key policy goals. Central Asia’s three resource-rich countries, Kazakhstan, Uzbekistan and Turkmenistan, have several common obstacles threatening further economic growth: inadequate transportation and logistics networks due to land-locked locations, high dependency on primary commodity exports, among others. Thus their economic development strategies aim to pro-mote economic diversification for sustainable growth. The purpose of this study is to focus on Kazakhstan, Uzbekistan and Turkmenistan, analyzing the new economic development strategies of these countries, and to discover opportunities and demand for economic cooperation.

Russia's Economic Modernization Policy and Implications for Cooperation between Korea and Russia

The goal of Russias economic modernization policy is to transform the economy, heavily dependent on energy exports, into an innovation-based economy. There are diverse views as to the achievements and limits of Russias economic modernization policy. The Russian leadership considers the discussions over goals, policy directions and priority sectors of the modernization policy to be yet unfinished. Meanwhile, experts do agree in general that economic modernization is a laudable policy direction for sustainable development and that the governments willingness, efficient operation of the constituent mechanisms, improving the investment environment through intensive structural reforms, and promoting innovation of SMEs through political and financial methods are critical factors for the policys success. Recently, the Russian government has shown a tendency to include economic reform tasks such as nurturing import substitute industries and SMEs in economic modernization policies. This reflects Russias reality in which comprehensive reforms led by the government are urgently called for. The five sectors - energy efficiency, nuclear technology, ICT, space technology, and medical and pharmaceutical technology - are still Russias key priority, and the industries are discussed as core agendas by the Council for Economic Modernization and Innovative Development, the control tower of the policy. Based on the findings of this study, measures for Korea-Russia cooperation in terms of Russias economic modernization policy are suggested as follows. First, a Korea-Russia business forum for innovative venture companies should be held simultaneously when the Korea-Russia Joint Committee on Economic, Scientific and Technological Cooperation convenes. Second, it is necessary to open a Korea Innovation Center (KIC) in Moscow and set up cooperative relations with the implementing agencies of the economic modernization policy.Third, the next generations human resources should be nurtured to enhance scientific and technological cooperation between Korea and Russia. Fourth, Russias special industrial and innovative economic zones can be utilized as a platform for Korea-Russia cooperation. Fifth, launching a Korean-Russian portal site for economic modernization and innovation will be helpful in strengthening bilateral cooperation.