2014 2014 KIEP KIEP Visiting Fellows Program KIEP Fellows Visiting Visiting Fellows Program Edited by JEONG Hyung-Gon Edited by JEONG Hyung-Gon 370 Sicheong-daero, Sejong-Si 339-705, Korea Tel: (8244) 414-1042 / Fax: (8244) 414-1043 URL: http://www.kiep.go.kr 2014 KIEP Visiting Fellows Program Edited by JEONG Hyung-Gon The Contents of the KIEP Visiting Fellow Program do not reflect or represent the official opinion of KIEP. The KIEP Visiting Fellows Program is published with the aim of promoting discussions among researchers, and to remember the outstanding achievements by the visiting fellows who came to KIEP. KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP) 370 Sicheong-daero, Sejong-Si 339-705, Korea Tel: (8244) 414-1042 Fax: (8244) 414-1043 URL: http://www.kiep.go.kr LEE Il Houng, President Published 2015 in Korea by KIEP ⓒ 2015 KIEP Acknowledgements In 2009, Korea Institute for International Economic Policy (KIEP) launched "Visiting Fellows Program (VFP)" with the view of advancing cross-border exchanges of knowledge, information, insights and expertise. Since its inception, the VFP has demonstrated that sharing thoughts and ideas through face-to-face contacts and dialogue works as a catalyst for enhancing mutual understanding among scholars and professionals with diverse background. By successfully implementing the VFP for the past 7 years, KIEP has been motivated to assume the role as a hub for international economic research in the region. As a host of the program, KIEP has many mandates. One of those tasks is to let more people know what has been accomplished through the program and how valuable it is. In an effort to do so, KIEP has published series of research every year. This volume, the 6th of its series, contains seven research papers contributed by 2014 Visiting Fellows. Publication owes many debts. Here I acknowledge just a few of them. First of all, I must express my deepest gratitude to the 2014 visiting fellows for their outstanding performances. My special thanks also goes to Ms. Juneyoung Choi, Ms. Mi Jung Woo and Ms. Jeewoon Rim from the Outreach Team who worked very hard for the publication of this volume. JEONG Hyung-Gon Senior Research Fellow Korea Institute for International Economic Policy Notes on the Contributors Dr. Ibrohim Umarov is a senior researcher at the Institute of Forecasting and Macroeconomic Research in Uzebekistan. He received M.A. at Tashkent State Institute of Oriental Studies. He was a visiting fellow at KIEP in March, 2014. Dr. Khalid Ahmed is an assistant professor at the Sukkur Institute of Business Administration in Pakistan. He received Ph.D. at Johns Hopkins University, USA. He was a visiting fellow at KIEP in April, 2014. Dr. Sudhakar Yedla is a professor of Environmental Policy at the Indira Gandhi Institute of Development Research (IGIDR), Mumbai, India. He received Ph.D. in Civil and Environmental Engineering at the Indian Institute of Technology (IIT), Kharagpur, India, and was a Post Doc at Asian Institute of Technology (AIT), Thailand and got diploma in International Enviornmental Law from the United Nations Institute for Training and Research (UNITAR), Switzerland. He participated in the KIEP Visiting Fellows Program from May 9th to June 7th in 2014. Dr. Mozafari Mohammad Hassan is a senior researcher at the Islamic Culture and Relations Organization. He received Ph.D. in Law from JMI, the Central University in Delhi, India. He participated in the KIEP Visiting Fellows Program from May 19th to June 17th in 2014. Dr. Ni Jinli is an associate researcher at the Jilin Province of Academy of Social Sciences. She has a Masters degree in Rural Technical and Vocational Education from Jilin Agricultural University. She was a visiting fellow at KIEP from May 20th to June 18th in 2014. Dr. Murat Ali Yulek is a professor at the Istanbul Ticaret University. He has Ph.D. in Economics from Bilkent University and Masters of Business Administration from Yale University. He visited KIEP from August 25th to September 5th in 2014. Dr. Moaness Tahoun is a First Secretary at the Egyptian Commercial Service in Cairo, Egypt. He has a Masters of Economics from the College of Europe in Bruges, Belgium. He was a visiting fellow at KIEP in September, 2014. Contents Acknowledgements 3 Notes on the Contributors 4 1. Diversification of Bilateral Foreign Economic Relations between Uzbekistan and Korea 11 Ibrohim Umarov Introduction 11 Analysis of Economic Development of Uzbekistan 13 Perspectives of Further Development of Uzbek-Korean Economic Relations 28 Conclusion 32 References 35 2. Political Economy of SAARC and Regional Trade Integration: TheThe Recent Ontogeny and Future Prospects 37 Khalid Ahmed Abstract 37 Introduction and Background 38 Regional Cooperation to Free Trade Agreement 41 Trade Integration in View of Political Economy 44 Regional and Intra-Regional Trade in South Asia 49 Collective Challenges and Conflict Resolution 53 Future Perspective: Some Concluding Remarks 57 References 59 3. India-Korea CEPA: Analysis of Industrial Competitiveness and Environmental Implications 63 Sudhakar Yedla Introduction 63 Pattern of Trade between India and the Republic of Korea 64 Comprehensive Economic Partnership Agreement (CEPA)–Basic Constructs and Key Features 77 Impacts of CEPA on Trade between India and Korea 80 Qualitative Analysis of CEPA's Impact on the Environment and Natural Resources Base in India and Korea 93 Concluding Remarks 97 References 98 4. Iranian Economic Policy after the Election (2013) 100 M. H. Mozafari Introduction 100 Various Aspects of Iranian Economic Policies 102 Conclusion 131 References 132 5. Research on Counties' Economic Development of Jilin Province 135 Ni Jinli Introduction 135 Body 136 Conclusion 156 References 157 Appendix 158 6. Industrial Policies: A Comparison between Korea and Turkey 160 Murat A. Yülek Introduction 160 Turkey's Industrial Strategy in Historical Perspective 161 Korean Industrial Strategy in Historical Perspective 168 Assessment of Industrial Policies in Turkey and Korea in Historical Perspective 186 Conclusion 191 References 191 Appendix. Turkey's Industrial Strategy Documents 195 7. The Arab Spring: Facts and Illusions 198 Moaness Tahoun Abstract 198 Introduction 200 Political Stagnation as Causal Force 209 Corruption and Rule of Law 226 Conclusion 232 References 235 Diversification of Bilateral Foreign Economic Relations between Uzbekistan and Korea 11 1 Diversification of Bilateral Foreign Economic Relations between Uzbekistan and Korea Ibrohim Umarov1) I. Introduction Results of development around the world in the late twentieth and early twenty-first century show that despite the considerable efforts of the international community, the economic gap between the advanced and developing countries of the world is not decreasing, but actually continues to increase. One of the few exceptions to this global economic trend is the Republic of Korea. Over the past half-century, Korea went from an underdeveloped, poor agricultural country to a modern industrialized country, and now rivals the most economically advanced countries of the world in many areas. Korea's per capita GDP in 1960 was 5.4% of U.S. GDP, but this ratio had changed dramatically by 2012, with the figure reaching 44% .2) 1) Senior Economist, Institute of forecasting and macroeconomic research, Cabinet of Ministers of the Republic of Uzbekistan. 2) World Bank development indicators. 12 2014 KIEP Visiting Fellows Program It is important to note that these and other impressive achievements were secured amidst complex internal and external conditions of development. Korea did not have any significant reserves of minerals. In addition, the division of the Korean Peninsula after the liberation of Korea (1945) into northern and southern parts caused political instability. The incredibly destructive Korean War (1950-53) resulted in a South Korea that was trapped in poverty, hyperinflation and chronically high unemployment. That is why; the experience of the Korean economy in the modern era is the undoubtedly an important point of reference for all developing countries. Korea's experience is also important for Uzbekistan, due to the fact that many structural and qualitative indicators of the Korean economy 20-30 years ago bears a close resemblance to the Uzbek economy. As in modern Uzbekistan, in Korea, the state played an important role in defining development priorities, allocation of resources, and provided direct support to individual economic sectors. Subsequently, the role of the state and the extent of its direct intervention in the economy began to decline, and the role of market mechanisms increased. Measures to reform and modernize the economy played a significant role in this, as well as flexible and effective strategy for development. As a result, in the last three decades, Korea managed to achieve significant progress in improving the efficiency of production, the development of high-tech and knowledge-intensive sectors of the economy, and increasing its competitiveness. In modern conditions, these factors are becoming the keys to success in economic development. In this regard, the experience of the creation of a modern Korean economy and its relationship to the development of the national economy of Uzbekistan is valuable for accelerating the economic development of our country, especially in the difficult conditions of globalization of the world economy. Among the countries with which Uzbekistan is actively developing mutually beneficial partnership, the