Moving to the Diversification of the Gabonese Economy: Lessons Learned from Korea Lessons Learned from of the Gabonese Economy: the Diversification to Moving Moving to the Diversification of the Gabonese Economy: Lessons Learned from Korea / Passer à la Diversification de .go.kr l’Économie du Gabon: ksp Leçons Tirées de la Corée www. 2012 Ministry of Strategy and Finance Government Complex 2, Gwacheon, 427-725, Republic of Korea Tel. 82-2-2150-7732 www.mosf.go.kr Korea Development Institute 130-740, P.O.Box 113 Hoegiro 47 Dongdaemun-gu, Seoul Tel. 82-2-958-4114 www.kdi.re.kr Korea Institute for Development Strategy 135-918, 8th fl. Yuk-Sung Building 706-25 Yuksamdong Gangnamgu Seoul Tel. 82-2-539-0072 www.kds.re.kr Knowledge Sharing Program, Center for International Development, KDI ● P.O. Box 113 Hoegiro 47 Dongdaemun-gu, Seoul, 130-740 2012 ● Tel. 02-958-4224 MINISTRY OF STRATEGY Korea Development Institute ● cid.kdi.re.kr ● www.facebook.com/cidkdi AND FINANCE KSP����������_�����.indd 1 2012.6.20 11:56:14 AM Moving to the Diversification of the Gabonese Economy: Lessons Learned from Korea Moving to the Diversification of the Gabonese Economy: Lessons Learned from Korea Project Title Moving to the Diversification of the Gabonese Economy: Lessons Learned from Korea Prepared by Korea Institute for Development Strategy (KDS) Supported by Ministry of Strategy and Finance (MOSF), Republic of Korea Korea Development Institute (KDI) Prepared for Republic of Gabon In cooperation with Ministry of Foreign Affairs, International Cooperation and Francophonie, Republic of Gabon Program Directors MoonJoong Tcha, Executive Director, Center for International Development (CID), KDI Taihee Lee, Director, Division of KSP Consultation, CID, KDI Program Officer Jaehyun Yoon, Research Associate, Division of KSP Consultation, CID, KDI Soyen Park, Program Officer, International Development Planning Division, KDS Project Manager Jung Mo Kang, Professor, Kyung Hee University Authors Chapter 1. Jung Mo Kang, Professor, Kyung Hee University Chapter 2. Hyunseok Oh, President, Academy of Territorial Development Chapter 3. Jae Ho Song, Professor, Jeju National University Chapter 4. Hongmin Chun, Director, Korea Institute for Development Strategy English Editor Enkoline Co., Ltd. Government Publications Registration Number 11-1051000-000262-01 ISBN 978-89-8063-651-8 94320 978-89-8063-657-0 (set) Copyright ⓒ 2012 by Ministry of Strategy and Finance, the Republic of Korea Government Publications Registration Number 11-1051000-000262-01 Knowledge Sharing Program Moving to the Diversification of the Gabonese Economy: Lessons Learned from Korea 2012 MINISTRY OF Korea Development STRATEGY AND FINANCE Institute Preface In the 21st century, knowledge is one of the key determinants of a country’s level of socio- economic development. Based on this recognition, Korea’s Knowledge Sharing Program (KSP) was launched in 2004 by the Ministry of Strategy and Finance (MOSF) and the Korea Development Institute (KDI). KSP aims to share the development experience and knowledge Korea has accumulated over the past decades to assist in the socio-economic development of the partner countries. Former high-ranking government officials are directly involved in policy consultations to share their intimate knowledge of development challenges, and they complement the analytical work of policy experts and specialists who have extensive experience in their fields. The government officials and practitioners effectively pair up with their counterparts in development partner countries to work jointly on pressing policy challenges and share development knowledge in the process. The Program includes policy research, consultation and capacity-building activities, to provide comprehensive, tailor-made assistance to the partner country in building a stable foundation and fostering capabilities to pursue self-sustainable growth. 2011 is the first year in which the KSP has been conducted with Gabon. Reflecting the Gabonese government’s interests, which were identified in a written demand survey form submitted by the Gabonese government, the KSP with Gabon was launched in June 2011 to focus on the following four sectors: private sector development and industrial diversification, tourism, agriculture and ICT. I would like to take this opportunity to express my sincere gratitude to the Project Manager Dr. Jung Mo KANG, Sector Experts including Dr. Hyunseok OH, Dr. Jae Ho SONG, and Mr. Hong Min CHUN, and Program Officer Ms. Soyen PARK for their immense efforts in successfully completing the 2011 KSP with Gabon. They were extremely professional, thorough, and courteous. I also would like to extend my warmest thanks to the Ministry of Foreign Affairs, International Cooperation and Francophonie and the Ministry of Economy, Trade, Industry and Tourism of the Republic of Gabon, other Gabonese government agencies, Program Supervisor M. Hugues MBADINGA, Program Coordinator M. Hamidou OKABA, local project consultants, and participants for their active cooperation and great support. In your hands is the final report of the 2011 KSP with Gabon. I sincerely hope that the Gabonese government fully benefits from the policies recommended by the Korean KSP team to support a prosperous and bright future in Gabon. Seung-Hun Chun President Korea Institute for Development Strategy Contents 2011 KSP with Gabon 014 Executive Summary 017 Chapter 1 Developing the Private Sector and Diversifying the Industrial Sector in Gabon: Lessons from Korea’s Experience of Economic Development Summary 030 1. Current Economic Situation 036 1.1. Overview of the Gabonese Economy 036 1.2. Mining, Oil and Gas, and Timber Sectors 038 1.3. Trade 041 1.4. Industrial Base of Private Sector Development and Diversification 042 2. Private Sector Development and Industrial Diversification in Korea 046 2.1. Economic Conditions before Take-Off (1900-Early 1960s) 046 2.2. Economic Transition—The Take-Off 048 3. Institutional Support System for SMEs in Korea 056 3.1. Financial Support for SMEs 056 3.2. Fiscal Support for SMEs 059 3.3. Non-financial /Fiscal Support for SMEs 060 3.4. Policies Protecting SMEs 061 4. Korean Model of Economic Development 062 4.1. The Basic Idea 062 4.2. Korean Model 063 5. Lessons from the Korean Experience and Policy Recommendations 070 5.1. Lessons from the Korean Experience 070 5.2. Policy Recommendation 071 Chapter 2 Development Strategies for the Gabonese Agricultural Industry: Towards Food Security and Diversification of the Industry Summary 076 1. Current Status and Challenges of Gabon’s Agricultural Industry 079 1.1. Current Status of Gabon’s Agricultural Industry 079 1.2. Challenges for Gabon’s Agricultural Sector 083 1.3. Strategies to Develop the Agricultural Sector in“ Emerging Gabon” 084 1.4. Evaluation of the Agricultural Sector Strategy in Green Gabon 086 2. Experience and Implications of Agricultural Development in Korea 088 2.1. Korea’s Economic Growth and the Development of its Agricultural Sector 088 2.2. Evaluation of Agricultural Development in Korea 092 3. Policy Recommendations for the Development of Gabon’s Agricultural Sector 094 3.1 Integration of Agricultural Technology R&D and Supply 095 and Link to Educational Organizations 3.2. Creating a Korean Model of Comprehensive Agricultural Cooperatives 096 3.3. Creation of a State-owned Firm to Lay Out the Foundation 099 for Agricultural Production 3.4. Creating Agricultural-Industrial Complexes 101 3.5. Jointly Establish and Use a Firm Specialized in Agricultural Equipment 101 through Cooperation with Neighboring Countries 3.6. Multiple Approaches to Attract Foreign Investment 102 Chapter 3 Tourism in Gabon Summary 104 1. Overview of the Tourism Sector in Gabon 108 Contents 1.1. Tourists: Evolution and Characteristic 108 1.2. Overview of Tourism Resources in Gabon 109 1.3. Overview of the Tourism Industry in Gabon 110 2. Review of the Tourism Development Strategy in Gabon 111 2.1. Opportunities and Challenges for Tourism in Gabon 111 2.2. Review of Tourism Policy in Gabon 112 2.3. Expectation Building 114 3. Tourism Development Experience of Korea 115 3.1. Introduction 115 3.2. Major Tourism and Policy and Development Direction 115 4. Policy Recommendations 123 4.1 Comparative Analysis of Tourism Development in Gabon and Korea 123 4.2. Strengthening Awareness of the Tourism Industry within the Government 126 4.3. Management of Tourism Quality and Labor Force Specialization 129 4.4. Promotion of Ecotourism Using National Parks 130 4.5. Development of Tourism Zones and Creation of a Fund Supporting 133 the Formation of Tourism Companies Chapter 4 Plans to Improve Gabon’s ICT Industry Summary 138 1. Overview of Gabon’s ICT Sector 141 1.1. Current Status of the ICT Infrastructure 141 1.2. Current Status of Communication Expenses 145 1.3. ICT Accessibility and Utilization 146 1.4. Current Status of ICT Human Resources 147 1.5. E-Government Readiness 148 2. Review of ICT Sector Development Strategy in Gabon 148 2.1. Review of ICT Strategies of Gabon 148 2.2 Opportunities and Challenges for ICT in Gabon 151 3. Cases of ICT Sector Development in Korea 154 3.1. Overview of ICT Sector in Korea 154 3.2. Development Trends of the ICT Sector in Korea 155 4. Policy Recommendations 158 4.1. Establishment of Legal and Institutional Systems 158 4.2. Preparation of Industrial Base 159 4.3. Fostering Professionals 165 4.4. Preparation of Financial Base 166 Contents | LIST OF Tables Chapter 1 <Table 1-1-1> Industrial Structure 037 <Table 1-1-2> Production of Oil and