Discussion - 3 challenges for Korea

(my answer to a question regarding the critical challenges Korea will face in the 10 years to come)

I were to select 3 challenges, I would pick :
- one that policies can solve but are addressing counterproductively nowadays (the Brain Drain / Capital Drain),
- another one that policies are having a difficult time tackling (China and regional competitivity), and
- yet another one, utterly unpredictable (North Korea).
The fourth challenge (Demographics) could partly find, in the previous 3, solutions more sustainable than today's massive imports of South East Asian wives for the rural poor.

The most vital challenge is NK. I'm not worrying about nukes but about a brutal social / political / economical collapse, and I keep warning my Korean friends about what I call a "Albania Scenario" : they only benchmark with Germany's reunification, but they should also consider post-Hoxja's Albania, the only case vaguely similar to Kim Il-seung / Kim Jong-il's Xanadu (a country run like a sect, a people unable to live in a democracy, nor to survive in a free market).
=> Worst case scenario : a third Bush-Cheney term, with Shinzo Abe's neofascist clique to wrap it up.
=> Best case scenario : Beijing manages to coerce Pyongyang into tougher reforms (at last)

The Brain Drain / Capital Drain issue could prove more critical than it seems - the golden youth of the country is switching continents and it starts showing.
=> Worst case scenario : Korea's "undeclared emigrants" (the name I give to those who have a home and spend quite a lot in Korea but have other homes, passports and niceties overseas) reduce dramatically the time and budget they devote to their country (ie after the burst of the real estate bubble). Korea is left with a few wealthy people, an impoverished middle class and an ever increasing poverty. Even top chaebols could change nationalities (individuals as well as companies).
=> Best case scenario : Seoul decides to leverage on its diaspora (ie a "coming out / coming home" - more transparency vs less taxes and a lighter military service) to strengthen its links with the US, the Middle East and even Europe. Korea must be loved by its own people again. It must also become the herald of cultural diversity in Asia far beyond the shameful exploitation of the international fad for its disposable celebs.

Regional competitivity remains a priority for this administration, but if Korea wants to become a hub, it will need much more focus (ie too much intranational competitivity and confusion). Especially with the return of ultranationalists in Japan and a much fiercer competition from China, whose revisionists have other ideas in mind : beyond the rewriting of Koguryo history, Beijing intends to create a new regional capital of Korea in China !
=> The system of regional clusters and the strengthening of partnerships with Europe could pay.

Gloomy, but Korea's main asset remains its people. That's one of the reasons why it shouldn't risk losing its most promising talents to the rest of Asia or to the US. Also : Korea should stop selling its soul for short term profits, exports and investments : that would be the best way to become a suburb of Shanghai.

White blogule to Roh Moo-hyun - protecting Korea from the US

The Bush Administration has been working on a violent collapse of Kim Jong-il's regime for years. Bush even refused proposals by Pyongyang dovishest hawks to make peace and step by step becoming a strategic ally in the region. Former Ambassador Christopher R. Hill hasn't stopped putting oil on fire since North Korea's first nuclear test. For the White House, any diversion could help before November 7 mid-term elections.

So Roh Moo-hyun decided to protect the peninsula from this bilateral dead-end and announced the subject a purely intra-korean matter right before Condi Rice's visit in Seoul, without warning his closest advisors - especially those working on the Secretary of State's agenda.

Roh politely removes the US, Japan, Russia and China from the landscape, but also the UN, even if all voted resolutions will carefully be respected. Korean medias criticize the way secretary general elect Ban Ki-moon is cast away by his own Government the very week of his election at the head of the United Nations Organization, but this could prove to be a very smart way of helping Ban prove his independence from his country.

In the short term, I cannot see what can prevent NK from setting another nuclear test. In the medium term, Kim's regime will not survive. In a not so far future, Korea will face yet another nuclear neighbor : remilitarized Japan.

Right now, South should meet with North with the blessing of Beijing. For the time being, the 6-party talks should at least officially shrink to a 2-party-plus talks. Just to remind what's at stake if Korea as a whole collapses.

Red blogule to stop-and-goes - the wisdom of crocodiles

A slomo brain can be something other than a curse. Take President Bush, for instance. After yesterday's signature of the deal with North Korea, he took a "wait and see" stance. Hours later, Pyongyang would add more conditions and threaten all previous efforts. And as Mayor C. Ray Nagin called for a homecoming of New Orleans citizens, King W said more time was needed. Hours later, a new hurricane alert would support this piece of wisdom.
After crocodile tears, the wisdom of crocodiles... Now that he knows the UN is not for him, Bill Clinton tries as hard as he can to get Dubya's skin and offer a nice bag to his lady. But the beast ain't dead yet.

Red blogule to North Korea's hooligans

The small riot in Pyongyang's Kim Il-Sung Stadium yesterday (following the defeat of North Korea to Iran 2-0) could be considered as good news since it exposes the deliquescence of the ruling power. I don't think it should.
The problem is the same as for Iraq, only worse : a regime change is badly needed, but the changing itself means a highly dangerous situation and should be carefuly planned. The chaos in Iraq may look very peaceful compared to what could happen the other side of the DMZ and at the frontiers (especially with China).
Something big is definitely going to happen in North Korea, and much sooner than expected. A collapse by the end of the year wouldn't surprise me. Chosun's neighbors should get ready, and so should the UN, the only international body which could be accepted by Pyongyang or what's left of it.