Korea to increase dev aid for Bangladesh

18 May 2010, 18:00 PM

Diplomatic Correspondent

Prime Minister Sheikh Hasina and South Korean President Lee Myung-Bak hold a bilateral meeting at Cheong Wa Dae Presidential Palace in Seoul yesterday.Photo: PID

South Korea plans to increase its development aid for Bangladesh to help stimulate economic growth and modernise industrial infrastructure and energy facilities, diplomatic sources said. In a joint statement issued in Seoul yesterday following a summit held at president's office at Cheong Wa Dae, Prime Minister Sheikh Hasina and Korean President Lee Myung-bak agreed to boost economic ties and cultural exchanges between the two countries. High on the agenda were Seoul's plan to strengthen diplomatic and economic partnership with its Asian neighbours by raising development aid and Bangladesh's efforts to become a major industrial power in South Asia. President Lee pledged to share Korea's growth experience and cooperate in transfer of shipbuilding, construction and IT technologies to Bangladesh. Hasina welcomed Korean investment in her country, saying that she wants more firms to take part in the establishment of power plants, exploration of oil and gas, construction of roads, highways and bridges. On the sidelines of the summit, the two governments signed agreements on the provision of Korea's Economic Development and Cooperation Fund (EDCF) to Bangladesh for next three years and boosting cooperation in energy, culture and the environment. Last year, the Lee administration pledged to triple its official development assistance to underdeveloped nations to 0.25 percent of gross national income by 2015 to help achieve more balanced global growth. The two countries designated 2013 as the Year of Korea-Bangladesh Friendship in celebration of the 40th anniversary of diplomatic relations and agreed to hold joint cultural events. Full text of the joint statement: At the invitation of Lee Myung-bak, President of the Republic of Korea, Sheikh Hasina, Prime Minister of the People's Republic of Bangladesh paid an official visit to the Republic of Korea from 16 to 18 May 2010. Prime Minister Sheikh Hasina and her entourage were received by President Lee Myung-bak and senior officials and were accorded a warm welcome reflecting the close friendship and ties between the two governments and peoples. President Lee Myung-bak and Prime Minister Sheikh Hasina held official talks in a cordial atmosphere and exchanged views on a wide range of bilateral, regional and international issues. 01. The two sides reviewed the development of bilateral relations since the establishment of diplomatic ties 37 years ago, and noted with satisfaction the active cooperation and partnership between the two countries in the political, economic, social and cultural fields. The two sides agreed that consolidation and enhancement of Korea-Bangladesh friendship and cooperation serve the fundamental interests of both countries, meet the common aspirations of the two peoples and are conducive to peace and development in the Asian region and the world at large. 02. The two sides agreed to continue exchange of high-level visits and contacts between the two countries to intensify friendly exchanges between government agencies, parliaments, political parties, armed forces and non-governmental groups of the two countries and enhance the consultation mechanisms including Annual Foreign Policy Consultations. 03. Both sides shared the view that economic cooperation and trade constitute an important part of the comprehensive partnership between the two countries. In this regard, the two sides agreed to intensify cooperation in trade, investment, transfer of technology, energy and infrastructure development on the basis of equality and mutual benefit through the following measures: a) The two sides will take active measures to expand bilateral trade and work together to achieve trade balance. The Bangladesh side expressed its appreciation to the Korean side for according duty-free market access to a large number of Bangladesh products and requested for the further expansion of duty-free coverage both under the Asia Pacific Trade Agreement (APTA) and through the Korean duty-free quota-free scheme for LDCs under the WTO. The Korean side agreed to explore ways to accord further duty-free market access to more Bangladesh products. b) The Bangladesh side expressed its deep appreciation for the grant assistance provided by the Korean government and requested for increased grant assistance on human resource development projects, including the establishment of more vocational training institutions, as well as nursing and IT training institutes. The Korean side expressed its commitment to continue to offer assistance in support of the economic and social development of Bangladesh. The Korean side also expressed its willingness to favourably consider increasing the amount of EDCF loans. c) The Bangladesh side welcomes the active involvement of Korean enterprises in the energy, communications, transportation, industry and infrastructure sectors of Bangladesh. In this regard, both the sides agreed to support and facilitate the mutually agreed cooperation projects such as Korean Export Processing Zone (KEPZ). Both the sides also agreed to support the joint venture between Petrobangla and Korea Consortium in energy sector including coal mining and coal-based power plants in Bangladesh d) In response to Bangladesh side's request, the Korean side agreed to explore ways to support capacity building, including on-site training, in the emerging shipbuilding industry of Bangladesh e) The Bangladesh side expressed its deep appreciation for increasing the quota for workers from Bangladesh under the Employment Permit System (EPS), and both sides agreed to explore ways in which Bangladesh workers can further contribute to the economies of both countries. f) Both the sides agreed to further expand defence cooperation including training, exchange of visits, and collaboration in the defence industry. g) Both the sides agreed to intensify cultural exchange activities and further broaden people-to-people contact with a view to promoting mutual understanding and friendship between the peoples of the two countries. In this context, both the sides welcomed the designation of the year 2013 as the 'Korea-Bangladesh Friendship Year' in celebration of the 40th anniversary of diplomatic ties between the two countries. h) The Korean side will continue to provide scholarships and training opportunities for Bangladesh students and researchers in its academic and training institutions. 04. Both sides underscored the importance of working closely for environmental protection and sustainable development at the bilateral, regional and international levels. The Bangladesh side noted with appreciation the “Low Carbon, Green Growth” strategy of the Republic of Korea. Both the sides will strengthen cooperation in the areas of technology for increased food production, development of renewable energy sources including solar, wind and hydroelectricity, waste management and restoration of rivers in order to enhance the capability in tackling climate change. 05. The Korean side expressed its appreciation for the active effort made by Bangladesh to promote regional cooperation in South Asia. The Bangladesh side expressed its appreciation for the constructive role of the Republic of Korea as an observer country in the South Asian Association for Regional Cooperation (Saarc). 06. The two sides agreed to continue consultations on international and regional affairs, including the global financial crisis, trade liberalisation and facilitation, climate change, energy, food security, and counter-terrorism. In this regard, the Bangladesh side expressed its appreciation for the Republic of Korea's intention to act as a bridge between developed and developing countries at the next G-20 summit. 07. The Following agreement and MOUs were signed during the visit: (i) Framework arrangement concerning Loans from the Economic Development Cooperation Fund (EDCF) for the year 2010 to 2012 (ii) MoU on Cooperation in the Energy Sector (iii) MoU on Cooperation for Environmental Protection (iv) Cultural Exchange Programme for the years 2010 2014 08. The Bangladesh side expressed its condolence and sympathy for the loss of 46 officers and sailors on the Cheonan, the Navy corvette of the Republic of Korea. 09. Prime Minister Sheikh Hasina expressed her deep appreciation for the warm and friendly hospitality accorded to her during her visit, and extended a sincere invitation to President Lee Myung-bak to pay a visit to Bangladesh at a mutually convenient time. The President of the Republic of Korea expressed his appreciation and accepted the invitation with pleasure.