Finding a Better Fable: After 10 Years of Sunshine Policy

"Sunshine" policy, named after one of Aesop's fables, has been the catch phrase of South Korea's appeasement policy toward North Korea to stimulate and restructure the already collapsed North Korean economy and eventually to convert North Korea to a more conciliatory and cooperative state.

After 10 years of shining the sunlight on North Korea, however, evidences that those self-imposed goals have been achieved are rather scarce. This suggests that, from the beginning, the basic premises of Sunshine policy must have been fatally incongruous with the reality: North Korea should not have been portrayed as an innocent traveler leisurely walking down the street. Or, perhaps, the policy toward North Korea should have pursued more serious goals than just stripping a man of his coat.

In this talk, Dr. Park proposes an alternative to the "Sunshine vs North Wind", and discusses the policy implications of his proposal.

For the past 14 years, Dr. Jongkyu Park has worked on various macroeconomic policy issues of Korean economy including economic forecasts, monetary policy, inflation, budget deficit, exchange rate, savings rate, population aging, real estate bubble, and Japan's economic slowdown and revival. He received B.A. in Economics from Seoul National University in Korea, M.S. in Statistics from University of North Carolina at Chapel Hill, and Ph.D. in Economics from Princeton University.