Middle Power Partnership and Cooperation

The 2nd Annual Australia-Korea Leadership Forum was held on November 5-6th, 2009 at the Westin Chosun Hotel, Seoul. The inaugural Forum was held in Canberra, Australia in 2008, co-hosted by The Australian National University (ANU) and the East Asia Institute (EAI), Seoul. This year, sponsored by the Korea Foundation and the Australia-Korea Foundation, the 2nd annual Forum brought together a panel of prominent Australian and Korean leaders in business, politics, academia, society and government. Three sessions were held in informed discussions on Australia and Korea’s shared interests in promoting cooperation, security and progress in the region and the world as middle powers. A summary session was held on the final day to wrap up the discussions and put forward recommendations. The following is a summary of the main points raised during the presentation and discussions in the three sessions, as well as the main remarks from the final session. Each session is divided into two main themes reflecting the views and questions raised.

Session I: Global Economic Crisis and Green Energy-led Growth

The first session tackled many issues and views on how the Global Economic Crisis has affected the Australia-Korea partnership. It also looked at the new efforts to promote green-led growth as part of recovery efforts. Going into the details of the session, the three main areas of focus were: the Australia-Korea economic partnership and the Global Financial Crisis; implementing green growth strategies and tackling climate change; and the Asia-Pacific Community.

1) The Australia-Korea Economic Partnership and the Global Financial Crisis

Australia-Korea economic ties are strong, interdependent, and mutually beneficial. The two countries have dependable ties through Australia providing natural resources and Korea providing consumer products.

Australia and Korea should enhance their strong trade links by signing the Australia-Korea FTA that is under negotiation. This FTA will not only improve Australia-Korea economic ties but also offer more options for the future. It will also send a strong signal counter to protectionism in the Post-Crisis environment.

Australia and Korea must continue their positive efforts through the G-20. Their actions so far have helped the G-20 to rise up to prominence in managing the global economy and as an avenue for resolving the Global Financial Crisis. Their efforts reflect those of middle powers that have favored the broad scope of the G-20 format.

There is a need for dialogue on how to deal with the decline in trade. The Global Financial Crisis had a particularly negative effect on Australia-Korea trade. Korean trade to the U.S. has declined, thus creating lower demand for Australian resources. However, both countries have worked positively in resolving these challenges.

The Lee-Rudd partnership is vital for the upcoming G-20 Summit to be hosted by Korea in 2010. The warm and personal relationship between President Lee Myung-Bak and Prime Minister Kevin Rudd has been a strong factor in the positive relations between the two countries and has created a closer working partnership between the two leaders. It will be the key to addressing the major challenges ahead.

2) Implementing Green-Growth Strategies and Tackling Climate Change 

Further cooperation on green technology to assist on green-growth strategies. Korea has a very vibrant and active green-growth strategy tied to its fiscal stimulus plan. This can be supported by Australian exports of LNG and the sharing of green information technology and research. This mutual exchange of knowledge will help both countries in pursuing a green-growth strategy.

More efforts are needed to deal with the effects of climate change. The G-8’s declared effort to limit global warming to 2 degrees is still not enough. Even within this limit, the effects of a 2 degree rise will still cause irreparable damage to Australia, particularly the Great Barrier Reef. 

Reductions in carbon emissions need a more urgent focus. The current recommended carbon reductions limit of 1 trillion tons of CO2 by 2050 cannot realistically be met. Going by the current data, global emissions have already crossed the 35% mark and this raises serious questions about whether that target of 1 trillion tons can be met.

More clarity needed on Korea’s position for the upcoming Copenhagen summit. Korea’s position on the UN Climate Change Conference in Copenhagen is not clear, particular with regards to its position as a developing or developed country.

Measures required to address the issue of subsidies for fossil fuels. The practice of state subsidies to poor people and industries for fossil fuels needs to be looked into. This issue underscores the challenge of adopting a green-growth strategy.

A consensus is needed on how to deal with climate change. Disagreements remain on how to best implement measures to tackle climate change, particularly with respect to developing countries and the issue of voluntary reductions of carbon emissions.

Stronger domestic dialogue on green-growth. Australia’s own green-growth strategy is lacking and needs stronger support domestically. 

Dialogue between developed and developing countries. A better understanding is required between the developed and developing countries on climate change issues. Middle powers, particularly Korea which understands both worlds, can play a strong role in this regard.

Stronger policy debate on climate change. There is a need to shift dialogue on green-growth away from addressing these issues on the fringes and bringing it to the center of policy debates in Seoul and Canberra.

More emphasis on reducing energy usage. A fundamental change is needed that comes from the center to emphasize reducing energy usage. This could start out as energy security and gradually work toward climate change. The example of the Nordic countries is useful in that they have successfully brought energy issues to the center of the political dialogue.

3) Asia-Pacific Community

Community must include others. An Asia-Pacific Community must include the United States and even India. The current regional framework is not working and there is certainly a need to improve upon the existing institutions.

Community presented as a regional idea. The recent proposal by Prime Minister Rudd on an Asia-Pacific Community should not be put forward as an Australian initiative. This proposal should be shown to be a regional idea in order to become more inclusive.

Session II: Australia-Korea Security Cooperation

The second session dealt with the complex and comprehensive topic of Australia-Korea Security Cooperation. This session covered many issues related to regional security, including the alliances with the United States and the current North Korean nuclear crisis. In what ways can Australia and Korea improve their bilateral security relations, how is this affected by their respective alliances with the United States, and how do they complement each other? These are the main questions that set out the session. The three main areas of focus of the session were: the North Korean nuclear crisis and regional stability; the U.S.-Japan alliance and the impact of the Democratic Party of Japan (DPJ); and the role and value of the Australia-Korea partnership...(Continued)