A Roadmap for EU – North Korea Relations

Based on existent EU relations with Vietnam and Cambodia

Francesc Pont Casellas Màster Oficial en Integració Europea Universitat Autònoma de Barcelona

Contents
CONTENTS ............................................................................................................................................. 1 INTRODUCTION ..................................................................................................................................... 2 WHY VIETNAM AND CAMBODIA? .......................................................................................................... 4 BACKGROUND INFORMATION: VIETNAM ............................................................................................................ 4 BACKGROUND INFORMATION: CAMBODIA ......................................................................................................... 5 BACKGROUND INFORMATION: NORTH KOREA..................................................................................................... 6 SIMILARITIES AND DIFFERENCES........................................................................................................................ 7 THE THREE COUNTRIES AT A GLANCE ................................................................................................................. 8 CURRENT AND RECENT EU – NORTH KOREA RELATIONS ........................................................................ 9 THE RELATIONSHIP WITH VIETNAM AND CAMBODIA .......................................................................... 10 BASIC FRAMEWORK ..................................................................................................................................... 10 TRADE RELATIONS ....................................................................................................................................... 12 DEVELOPMENT COOPERATION ....................................................................................................................... 14 HUMANITARIAN AID .................................................................................................................................... 18 POLITICAL DIALOGUE.................................................................................................................................... 19 Bilateral dialogue ............................................................................................................................... 19 Multilateral dialogue ......................................................................................................................... 21 DEMOCRACY AND HUMAN RIGHTS PROMOTION ................................................................................................ 22 A PROPOSAL FOR NORTH KOREA ......................................................................................................... 24 FIRST PHASE ............................................................................................................................................... 24 SECOND PHASE ........................................................................................................................................... 26 CONCLUSIONS...................................................................................................................................... 32 REFERENCES ......................................................................................................................................... 33 NORTH KOREA ........................................................................................................................................... 33 VIETNAM................................................................................................................................................... 33 CAMBODIA ................................................................................................................................................ 34 EU FOREIGN ACTION FINANCIAL INSTRUMENTS ................................................................................................ 35 THEMATIC PROGRAMMES OF THE DCI ............................................................................................................. 35 TRADE POLICY ............................................................................................................................................ 36 REGIONAL COOPERATION ............................................................................................................................. 36 OTHER REFERENCE SITES ............................................................................................................................... 36

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Introduction
This paper focuses on a hypothetical case study that requires a notable change of the current state of affairs to take place. Nowadays, international cooperation with North Korea is, at best, a very tense affair: broken rounds of talks for nuclear disarmament, condemnation of violent attacks, negligible trade relations (excluding arms trafficking and military know-how transfers to some countries), etc. North Korea’s menace-based diplomacy and isolated, autarchic economy makes it impossible for international actors such as the European Union to improve their ties with the Hermit Kingdom. However, amidst the overall confusion surrounding the Kim regime, there is a ‘new, bright light it the sky’, as the official propaganda puts it: the future ascent to power of Kim Jong-il’s youngest son, Kim Jong-un, probably by 2012. To make the transition smoother, the young, Western-educated Jong-un will probably be surrounded by Kim Jong-il's sister Kim Kyong-hui and her husband Jang Song-taek. How this triumvirate will lead the country starting on the year marking the 100th birthday of eternal leader Kim Il-sung, whereupon the North Korean government has pledged to convert the country into a prosperous and modern one, remains a mystery. However, leadership changes in reclusive Communist countries are usually catalysts for change: China in 1978, the USSR in 1985 or, more recently, Cuba are fine examples of aggressive reform agendas being applied by new leaders leading up to a progressive – or radical – opening of the economies and the political system. What should the European Union do, therefore, if the new North Korean regime shows signs of openness and a real willingness to negotiate with international actors in order to modernize and open up its economy and progressively adopt measures to change the political scene of the country? We could easily imagine a smooth transition to a ‘socialist-based market economy’ with a strong, one party leadership, along the lines of China or Vietnam. In what would be the best possible short term scenario – avoiding a sudden collapse of the regime and the humanitarian crisis it would unleash –, the EU should be ready to step in and make its voice heard in the region, along with those of China, South Korea, the US, Japan or Russia.

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but also detect and take into consideration key differences that will give a unique personality to any future cooperation framework between the EU and North Korea. based both on the similarities between the three countries and the particularities of the North Korean case. Those successful examples of deepening relations will help devise a basic strategy for North Korea. and it also possesses several political and economic instruments to make such relationships effective. As we will see.The European Union has many decades of experience in building bridges with third countries. 3 . both situated in South East Asia and consumed by long. Vietnam and Cambodia. two former Communist countries – Vietnam still is one. we can put forward a set of proposals for future relations with a more cooperative Kim regime. at least in name –. the EU has comprehensive relations with both these countries: from trade-related cooperation to development cooperation. The question is which instruments and methods should be applied in this hypothetical case. they have opted for multipolar diplomacy and integration in the world economy as a way to reinforce their independent status and the best path to progressively raise income and welfare levels for their citizens. were the countries chosen for the analysis. A deep and comprehensive analysis of the relations between the EU and these two countries will let us single out exportable structures and instruments – while also realizing their weaknesses –. deadly wars during the last third of the 20th century. from political dialogue to good governance and democracy promotion. This comparative analysis aims to be a possible answer to that question: by studying the current framework of the EU’s relations with two countries that share several characteristics with North Korea. Being under the direct sphere of influence of the Chinese giant.

running a one party regime with a questionable human rights record. Vietnamese authorities have reaffirmed their commitment to economic liberalization and. France continued to rule until 1954. Vietnam joined the WTO in January 2007. Although Communist leaders maintain control on political expression.Why Vietnam and Cambodia? As we argued in the introduction. the country experienced little economic growth because of conservative policies. 4 . reuniting the country under Communist rule. Despite the return of peace. North Vietnamese forces overran the South. the loss of the Soviet Bloc and the rigidities of a centrally-planned socialist economy. Background information: Vietnam Although Vietnam declared independence after World War II. Deep poverty has declined significantly and a labor force that is growing by more than one million people every year fuels the 7% annual average GDP growth rate achieved during the last decade. Agricultural share of economic output is shrinking. securing its entry into the global market and reinforcing the domestic economic reform process. the persecution and mass exodus of dissidents and growing international isolation. no other two countries could have as much in common with North Korea. After a 20year war between both countries. Vietnam was divided into the Communist North and anti-Communist South. when it was defeated by local Communist forces under Ho Chi Minh. with exports making up more than 60% of GDP. the enactment of Vietnam's “doi moi” (renovation) policy in 1986 meant increased economic liberalization and structural reforms to modernize the economy. with valuable support by the European Union. Vietnam is a densely-populated developing country that has had to recover from a long war. Although stark differences between themselves and between them and North Korea are obvious enough. the selection of these two Southeast Asian countries for this comparative study is not a random one. in which US forces were heavily involved.

Hun Sen keeping his long-standing post as Prime Minister. not fully respected by the Khmer Rouge. At least 1. after national elections led to the formation of another coalition government. In April 1975. construction. Phnom Penh. the economy grew about 10% per year. and many lack education and productive skills. forced hardships or starvation during the Pol Pot regime. a Vietnamese invasion began a 10-year occupation period. but political stability was restored just a year later. The latest national elections. including education and infrastructures.5 million people died from execution. particularly in the countryside. 5 . In 2004. mining also is attracting significant investor interest. Cambodia needs to create an economic environment in which the private sector can create enough jobs absorb the growing work force: more than 50% of Cambodians are 25 years old.000 people – about 5% of the work force – and generates more than 70% of Cambodia's exports. and evacuated all cities and towns. oil was found beneath Cambodia's territorial waters. In 2005. particularly in the north of the country. Prince Norodom Sihamoni. but it took one year of negotiations before a coalition government was formed. but climbed again in 2010. From 2004 to 2007. some of the surviving leaders have been tried or are awaiting trial for crimes against humanity by a hybrid UN-Cambodian tribunal. The textile industry currently employs more than 280. already with EU observers. King Norodom Sihanouk abdicated and his son. resulted in Mr. GDP contracted in 2009 as a result of the global economic slowdown. Cambodia gained independence from France in 1953. Communist Khmer Rouge forces captured the capital. The remaining Khmer Rouge surrendered in 1999.Background information: Cambodia After suffering Japanese occupation in World War II. was crowned as his successor. The tourism industry has continued to grow rapidly. with more than 2 million visitors annually. The 1991 Paris Peace Accords mandated democratic elections – finally held in 1993 – and a ceasefire. The Cambodian government cooperates with bilateral and multilateral donors to address the country's many needs. In 1978. However. Elections were held again in 2003. the long-term development of the economy is still a big challenge. held in July 2008. driven by an expansion in the clothing. after a five-year civil war. agriculture and tourism sectors. The coalition government that arose from the 1993 elections ended in 1997.

North Korean industry operates at well less than full capacity due to the lack of fuel. structuring political. Although the economy has since stabilized and grown modestly. assuming a growing role until the elder Kim’s death in 1994.Background information: North Korea Korea was occupied by Japan until the end of World War II. spare parts and raw materials. economic and military policies around the eventual unification of Korea under Pyongyang's control. After the 1950-53 war against the USbacked South. nuclear programs. Agricultural output has not recovered to early 1990 levels. GNP per capita fell by about one-third between 1990 and 2002. it relies heavily on international aid to feed its population. the northern half coming under Communist control. 6 . North Korea. and the energy sector has collapsed. Since then. North Korea experienced a severe famine in the summer of 1995 and continues to suffer from chronic food shortages and malnutrition. under its founder President Kim Il-sung. output and living standards remain far below 1990 levels. North Korea's economy declined sharply in the 1990s with the disintegration of the Soviet Union and the dissolution of the former socialist bloc. North Korea's history of military provocations. adopted a policy of diplomatic and economic autarky. either. proliferation and massive conventional armed forces impede any hint of normal relationships with the international community. when it was split. The current ruler Kim Jong-il was officially designated as his father's successor in 1980. the infrastructure is generally poor and outdated.

although Vietnam’s economy is growing faster and its population enjoys a higher GDP. both Southeast Asian countries are in a rebuilding process. Vietnam’s and Cambodia’s populations are much younger than Korea’s. North Korea’s population is mainly urban. 7 . Cambodia and Vietnam were ravaged by long wars in the last third of the 20th century. Although different in number and structure. although outdated. there is no country that can be compared to North Korea. as attested by their WTO membership. They are geographically located in East Asia. while North Korea’s economy has sharply receded in the last two decades. differences also abound: Both Cambodia and Vietnam are already functioning members of the world economy. Cambodian and North Korean populations enjoy a very similar life expectancy. both Vietnam and Cambodia share several historical. The three countries share a number of environmental challenges. While 37% of North Koreans still work in the agricultural sector. therefore.Similarities and differences What unites and differentiates North Korea and these two Southeast Asian countries? As previously stated. geographical and economic characteristics with the DPRK: Both Vietnam’s and Cambodia’s economies are formerly Communist systems transitioning to market economies and. Cambodia is. also in part due to the long wars. while Vietnamese citizens live longer. while North Korea has infrastructures in place. although North Korea is not part of the same sub-region in which Vietnam and Cambodia are located. such as increasing floods and droughts and severe deforestation. while Vietnam’s and Cambodia’s remains predominantly rural. underused and in disrepair. the percentage reaches 52% in Vietnam and 68% in Cambodia. Therefore. However. both show dynamic and sustained growth rates. with the Communist party firmly in hold. Moreover. Vietnam is also a one-party state. Moreover. with no infrastructure left after the wars. a democracy. while the Korean War finished almost 60 years ago. political. a mirror into which The three of them are low-income countries. However. however.

The three countries at a glance Vietnam Political system Single Communist implementing market economy Population as % of total Median age of the labor force Life expectancy purchasing power parity Cumulative GDP 74% growth 2002-2009 WTO member Recent periods Past dependency Former relationship EU countries with colony (until 1954) Yes (2007) war 1955-1975 72 years 27.900 63% Yes (2004) 1970-1975 1978-1988 French Former 10% No 1950 .6 years 68% 62 years $2. 23 million 63% 33.9 years 37% 64 years $1.800 Urban population 28% Agricultural share 52% Per capita GDP at $2.4 years 90 million Cambodia party. Monarchy democratic a elections 15 million 22% 22.000 North Korea with Single Communist party.1953 French None colony (until 1954) Source: The CIA World Factbook 8 .

more than €366 million have been provided as food and medical aid. The European Union had already envisaged a more integral cooperation with the Korean regime. coupled with sanctions and condemnations. After establishing diplomatic relations in 2001.Current and recent EU – North Korea relations Humanitarian aid. support for agricultural programs and water sanitation projects. where the EU has sponsored and supported several resolutions on North Korea. In it. have defined the relations between the European Union and North Korea in the last two decades. However. 9 . In fact. While food and medical aid and water sanitation projects were funded by the DG ECHO. adopting a Country Strategy Paper for the period encompassing 20012004. the Commission detailed its priorities. focused on the topics of non-proliferation and human rights. while also fostering modest knowledge-sharing activities on issues such as the modernization of the Korean economy. Since then. the Council of the European Union recently adopted a decision to renew and expand the lists of persons and entities from the DPRK subject to restrictive measures (namely visa bans and asset freezes). while there are still some minor aid and cooperation programs in place. agriculture-related activities have been funded under the Food Security Thematic Programme of the Development Cooperation Instrument. assistance programs and cooperation activities. Multilateral political dialogue involving the DPRK is done through the United Nations. focused in three main areas complementing existing food security activities: institutional support and capacity building. the strategy was never implemented and there are currently no plans to prepare a new one. The EU has been active in North Korea since its planned economy started to crumble following the dissolution of the Soviet bloc and the disastrous floods and resulting famine of 1994-95. sustainable management and use of natural and energy resources and reliable and sustainable transport. the CE/EU has also conducted regular political dialogues with the DPRK.

it also provides for comprehensive political dialogue between the actors. this agreement was valid for an initial period of 5 years and automatically renewable on a yearly basis. In the multilateral sphere. However. which will probably be of Mixed nature 1 The precise use of terminology is very important here. with the EU-Vietnam agenda diversifying towards increased political and economic cooperation. the EU-Vietnam Framework Cooperation Agreement (FCA) was signed in 1995. don’t. under the 1969 Vienna Convention. relations are shaped around the 1980 EC-ASEAN Cooperation Agreement. which work within the frame set up by the respective Cooperation Agreements. negotiations of a new Partnership and Cooperation Agreement – equivalent to an Association Agreement. although its main focus and level of detail remains in the economic sphere. as the word 'essential' has. Based upon Articles 113 and 130y of the Maastricht EC Treaty – after Lisbon. Moreover. entering into force in June 1996. Articles 207 and 208 of the Treaty on the Functioning of the European Union–. which allows all parties to be involved in regional cooperation activities Vietnam’s diplomatic relations with the EU were established in 1990. aiming to promote trade and investment. such as ‘vital’ or ‘key’. it already provides for the inclusion of development cooperation. it also includes political conditionality clauses. considered an essential 1 part of thereof – and positive – it contains a clause on cooperation in the fields of human rights and democracy. support Vietnam's economic development and its transition to a market economy. After the signature of a limited commercial agreement covering textiles in 1992. In line with other contemporary agreements – including Cambodia's FCA –. both negative – with the possible suspension of the Agreement in case of breaching the principles of democracy and human rights. 10 . legal implications in International Law. while other synonym expressions.The relationship with Vietnam and Cambodia Basic framework The relationship with both Vietnam and Cambodia is structured around the goals defined in the respective Country Strategy Papers for the period 2007-2013. A good example of a third generation Cooperation Agreement. now financed via the European Instrument for Democracy and Human Rights. together with the first sentence of Article 228(2) and the first subparagraph of Article 228(3) of that Treaty.

Such positive conditionality. while also covering other areas such as environmental and regional cooperation. In fact. as stated in its 2010 Mid Term Review of the Vietnam Country Strategy. any future proposal for North Korea should include this element. human resources. both in the order 3 and content of the articles and the emphasis on certain aspects. economic cooperation and development cooperation activities. However. As is the case with Vietnam. Therefore. Environmental and political cooperation are also included in both Agreements. subtle differences can be found. it cannot be overlooked that development cooperation (Article 3) appears even before trade cooperation (Article 4) in the Cambodia Agreement. 3 For instance. have much in common. a situation that worries the EU. like the encouragement of and support towards resettlement of refugees returning to Vietnam – the readmission of citizens is only mentioned in Annex II of the Cambodia FCA –. after a few years of progressive but controlled opening of the political sphere. of which both Cambodia and Vietnam are beneficiaries. science and technology. respect for and recognition of democratic principles and human rights also constitute an essential and binding element of the Agreement.because of the variety of subject matters (up to 60) affected – were launched in 2007. while it stays well behind (Article 9) in the Vietnam FCA. This Agreement. the explicit wording used in the clause regarding intellectual property rights in the Cambodia FCA or the differences in the provisions drug abuse control. Eight rounds have already been completed with notable progress achieved. but the final signature of the Agreement is being delayed due to severe discrepancies in the fields of human rights and the rule of law between the two parties 2. in the form of the so-called Special Incentive arrangement for sustainable development and good governance. the EU signed a Framework Cooperation Agreement with the Kingdom of Cambodia on April 1997. 2 11 . Both Agreements. being almost contemporary in time and sharing the overall scope and target region. focuses basically on trade and financial relations. Its relationship with Cambodia framed around development assistance. also including a most favored nation clause. communication or culture. intellectual property. although the clauses are not linked to the Generalised System of Preferences. support to democracy and a commitment to open markets and free trade. Vietnam has cracked down on protests and opposition after the global crisis hit the country in 2008. Also to be found in the Vietnam Agreement. more developed in the case of Vietnam. the future developments clause in Article 15 allows for the expansion of the scope of the Agreement by mutual consent. can usually be found in more modern FCAs. which came into force on 1 November 1999.

offering duty-free access to imports of all products from LDCs. Cambodia is clearly the less developed country of the two: with a PPP-adjusted per capita GDP of just $2. Cambodia's followed in 1999.900 in Vietnam). 2011. in case North Korea decided to abandon its aggressive. the EU has included Cambodia in its Everything But Arms (EBA) program. a tweak of the GSP rules of origin that allows unfinished textiles imported from other ASEAN countries to be considered of Cambodian origin and. are commonplace. Moreover. with an exports-to-GDP ratio of 45% and 60% respectively (source: IMF). equaling more than 50% of the total annual worth. except arms and ammunitions (as well as bananas. easily exportable to the EU. Their trade with the EU concentrates on the export of garments and footwear 5 (and also seafood in the case of Vietnam). 5 This explains why one of the first agreements between the CE and Vietnam was a Textile Trade Agreement. This explains why the EU has granted regional accumulation to Cambodia.Trade relations Trade relations are the key element of the relationship between the EU and these two Southeast Asian countries. according to the latest Blue Book for Cambodia (2010 edition). Rules of origin under the GSP regime have also been amended recently by Regulation (EU) 1063/2010). 4 For instance. lack of infrastructure and deficient access to education are more acute. it would be granted LDC status by the UN and. problems related to poverty. In 2001. sugar and rice for a limited period). trade imbalances in favor of both developing countries. Both Cambodia and Vietnam are export-oriented developing economies. aimed at least developed countries (LDCs). already signed in 1992. The structure of their trade relations with the EU is. the changes having entered into force on January 1.000 (compared to $2. Although growth rates have averaged 6-7% in recent years. without any quantitative restrictions. while importing modest amounts of hi-tech goods. the Council adopted Regulation (EC) 416/2001 – later incorporated in the GSP regulation (EC) No 2501/2001 –. therefore. and an additional 6 million have between 1 and 2 dollars per day. Of course. Therefore. Cambodia and Vietnam still face daunting challenges before becoming middle income countries. uncooperative stance. automobiles. including improving the education level of a growing working force and reducing the number of people living below the poverty line 4. not identical. 5 million Cambodians live with less than 1 dollar a day. 12 . however. airplanes and machinery.

The FTA negotiations with Vietnam and other individual ASEAN countries were started after talks to reach a wider EU – ASEAN FTA stalled due to the differences in development levels among ASEAN countries. both during the accession process and the implementation period. both to create a Free Trade Area (FTA) and to sign a new Partnership and Cooperation Agreement (PCA) that would make bilateral relations more comprehensive. both under the GSP and the Everything But Arms programs. which offers preferential access to the European market in the form of reduced tariffs for goods. as a developing country. its admission to the World Trade Organization in 2007 has to be partially credited to the EU. and also offered help via its MUTRAP assistance programme. 13 .” 7 In exchange for a further opening of the Vietnamese market to EU firms. therefore. both in the political and the trade fields. For its part. Still not granted Market Economy Status 6 by the EU. 2005 7. However. It must be noted that current agreements. is a beneficiary of the Generalised System of Preferences. With a growing service sector and a thriving industrial complex specialized in low-cost products. increasingly attractive for the EU. both for its protectionist sentiments and humanrights concerns.EC Strategy Paper for 2007-2013: “In spite of impressive achievements. Such cooperation focuses on trade and economic reforms.therefore. Vietnam’s process of transition to a market economy is still on-going. signed by all EU member states. Vietnam. only cover trade in goods. 6 According to the Vietnam . Those aspects of trade have to be regulated under Mixed Agreements. Cambodia is also a beneficiary of trade-related technical assistance. which negotiated a Market Access Agreement lifting restrictions on Vietnamese textiles from January 1. as for the restrictive interpretation of the EU trade policy arising from the well-known ECJ's Opinion 1/94 on the WTO. be eligible for the Everything But Arms program – an ironical proposition for a country whose exports currently focus on arms and weapons. This is precisely one of the reasons behind current ongoing negotiations with Vietnam. obstacles lay ahead in the European Parliament. State-owned enterprises still represent a substantial part (about 40%) of the economy. structured under an integrated sector-wide approach detailed in the EU’s Cooperation Strategy with Cambodia for 2007-2013. capacity building to meet WTO obligations and regulatory aspects. the Vietnamese market is. but does neither include trade in services nor trade-related aspects of intellectual property rights.

as Europe is looking for business and delocalization opportunities for its companies which. For now. which were rationalized in 2006-2007. In the context of globalization. in this case Vietnam’s Socio-economic Development Plan 2006-2010 8 and 8 The 2011-2015 Socio-economic Development Plan should be published shortly. almost unilaterally. in line with the 2005 Paris Declaration and the 2006 EU Roadmap for Increased Aid Effectiveness. would create jobs and generate revenue in the beneficiary third countries.Also related to that. harmonization. which highlight the importance of ownership. Development cooperation Development cooperation is a key element of the EU relationship with both Cambodia and Vietnam. Therefore. results and mutual accountability. all information the Government has made available through official media is that the main goals of the plan are maintaining the GDP 14 . the EU strives to align its development cooperation strategy with third country national plans. the EU defines. The successful implementation of applicable EU cooperation instruments. and economic cooperation with. Although the legal basis for such development cooperation actions. Development cooperation goals and focal sectors are detailed in the respective Country Strategy Papers (currently for the period 2007-2013). in turn. as specified in the relevant FCAs. the European Union looks for an ever closer cooperation with the beneficiary nations. the fields of action of such cooperation. shows the true level of commitment the European Union has with the development agenda of the third countries. the developing countries in Asia and Latin America. Under the header Economic Cooperation (and also with a dedicated article on Investment in the Vietnam FCA). another goal of the Framework Cooperation agreements is facilitating the business climate for European companies willing to invest in Cambodia and Vietnam. generating synergies between companies in the private sector and facilitating investment. alignment. this should be in the best interest of both parties. is the Council Regulation (EEC) 443/92 of 25 February 1992 on financial and technical assistance to. its progresses analyzed in Mid Term Reviews (published in 2010) and its per-country implementation in regards to DCI (the Development Cooperation Instrument) detailed in Multi-Annual Indicative Programmes (latest edition: 2007-2010). which the ultimate goals of creating a better economic environment and business climate.

9 Revised in 2008 and now valid until 2013. Nowadays. totaling €152 million (or about 1. Cambodia’s include supporting its Strategic Development plan as well as basic education. which allocates funds corresponding to country programmes. €16. while the focal sectors for Vietnam are supporting the Socio-economic Development Plan (with the aim to reduce poverty in a sustainable manner via the World Bank’s Poverty Reduction Support Credit) and supporting the health sector. and Vietnam’s and Cambodia’s are no exception to that trend. roughly €10. for its part. Of the total budget for the period 2007-2013. thematic programmes (benefiting all developing countries) and a programme of accompanying measures for the Sugar Protocol countries (that does not apply to Asian partners). was allocated 77 million for 2007-2010 and 75 million for 2011-2013. and 144 million from 2011 to 2013. EC Country Strategies look to reduce the number of focal sectors. we should also take into account that the €304 million that the EU is set to disburse in 7 years (or growth rate of 7-8% per year and attaining an annual reduction of 2-3% in the number of poor families while completing the transition to a fully functioning and stable market economy. 15 . the only difference being the second focal sector chosen for each case.1 billion are allocated to geographic programmes (both country and regional programmes). The main instrument the EU has to implement development cooperation programs is the DCI. So. the environment and gender issues identified as key cross-cutting issues that should be positively affected by EU policies and actions. Cambodia.9 billion.6 billion will go to thematic programmes. selecting areas in which the European Union has a competitive advantage and/or additional know-how compared to other donors. In both cases.5% of the total available budget). Under the multi-annual indicative programme. which covers three components: geographic programmes (focusing on 47 developing countries and 5 regions worldwide). while €5. we find just two focal sectors and two sets of additional actions. Additional actions focus. for a grand total of €304 (roughly 3% of the total available budget). While the per capita allotment to Cambodia is much higher that Vietnam’s 10. both also guided by the UN’s Millennium Development Goals and based on the IMF scheme of Poverty Reduction Strategy Papers.Cambodia's National Strategic Development Plan 2006-2010 9. with governance and human rights. Vietnam was set to receive 160 million from 2007 to 2010. on trade-related assistance and support to political dialogue and cooperation. in both cases.

In what the EU terms thematic programmes. EU measures funded with the DCI can be used to co-finance programs and are eligible for cofinancing from Member States or other donors. 11 Donor countries and institutions pledged $8 billion. it must be noted that. compared to less than €3. thematic policy and know-how based cooperation (including topics such as higher education or the environment) and support to displaced people. while also profiting from ASEAN regional integration cooperation programmes. that focus on the promotion of democracy and human rights.about €43 million a year) surpass the €299 million it offered from 1989 to 2006. or roughly €6 billion. 10 Cambodia will receive half the amount Vietnam has been assigned. under Regulation (EC) No 1905/2006. 12 In what is fresh news and an excellent demonstration of this versatile and useful instrument in action. Also under the financing umbrella of the Development Cooperation Instrument and complementing national assistance programmes are a series of regional cooperation programmes for Asia. also available to both countries. as well as the development of a strong civil society. Moreover. so it will indeed be granted about €10 per person for the whole period. as well as non-state actors and partner countries. including international and private organizations. the environment (both the ‘green growth’ SWITCH and the sustainable forest management FLEGT programmes) or food security (in the case of Cambodia 12). their potential for relevance is dramatically increased by creating synergies with other actors in the field. to Vietnam in 2008. we can expect a similar or even higher contribution to these two countries. but its population is just 1/6 of Vietnam's. Given that the budget allocated for Asia (excluding Central Asia) for 2007-2013 reaches €775 million. Vietnam and Cambodia benefit from Asia-wide thematic programmes for regional cooperation in the fields of higher education (Erasmus Mundus). Those are funded under the EIDHR instrument and the NSA/LA thematic program of the DCI. 16 . of which both Cambodia and Vietnam (and also North Korea) are beneficiaries. even if the overall number is small 11. the EU announced on January 20 that it was providing €2.5 per person in the case of Vietnam. and will be analyzed independently. Therefore.6 million to two food security projects run by the FAO and the Danish NGO ADDA. Such regional programmes are structured around three intervention priorities: support to regional integration through regional organizations and fora (such as ASEAN or ASEM). Vietnam received about €40 million per annum between 2002 and 2005 under such regional programmes. we can also identify a series of instruments. While we don’t have any exact data from Cambodia.

covering the period 20072013. is the biggest partner in development assistance for Cambodia (pledging approx. Under EU mandate ALA IV. Vietnam also receives loans from the European Investment Bank. Financed through the regular EU budget and the European Development Fund (EDF). when the time comes. it must be noted that effectiveness in the implementation of development cooperation programs is greatly enhanced by decentralized management. the WTO's Aid for Trade program. We are. which currently lacks an EU Delegation. however. the EIB reached an agreement with the Government of Vietnam for a loan of €100 million to fund climate change adaptation investments. €200 million per year) and the third biggest for Vietnam (pledging around €900 million per year). be a key point in any future strategy for North Korea. There is no doubt that this program. which is already a given in all EU-operations in Vietnam and Cambodia will. as well as another agreement to loan €73 million for the construction of a subway line in Hanoi. This aspect. also in North Korea. In this sense. the EIB can lend up to €1 billion to support and complement EU cooperation strategies. and must strive to play a similarly important role in the future. both in its Trade Related Assistance and wider agenda categories. when implementation is managed from the local European Union Delegation. while plain numbers might not seem staggering. could be hypothetically applied in North Korea if it decided to take progressive steps towards creating market-oriented economy. 17 . the EU.e. therefore.Another important but often overlooked instrument of trade-related development cooperation. Finally. talking about very relevant figures. both in these Southeast Asian Countries and. has been used by the EU to help Vietnamese businesses become more competitive and develop trading links with the EU. substantially higher than the yearly combined allocation the EU pledges to the country in development cooperation. i. programmes and instruments. which co-fund many of its projects. In conclusion. the Commission has pledged to contribute €1 billion annually (with an extra €1 billion coming from Member States) on a global scale. As a complement to all these instruments. when put together with its Member States.

so the role of ECHO/DIPECHO programs in any plans for that country should be very much taken into account.Humanitarian aid Humanitarian aid also plays an important role in EU relations with its Southeast Asian Partners – and. However. 18 . netting up to €27 million in aid since 1994. any future intervention in North Korea should no doubt build upon existing humanitarian aid programmes. where both the government and the people’s capacity to respond to natural disasters is already high. The European Commission’s Humanitarian Aid and Civil Protection department. chiefly in a fast-developing nation such as Vietnam. environmental degradation caused by deforestation and the changes of weather patterns due to the global climate change – a set of problems which North Korea also shares – has received €73 million since 1994. for its part. mainly focusing on projects to reduce the impact of typhoons and floods in Vietnam (having invested €9. although the EU (including its Member States) is the world's largest provider of funds for humanitarian aid operations. In fact. EU aid is maybe not such a big factor for change in Vietnam and Cambodia as development cooperation is. DIPECHO. the particular cases of these two Southeast Asian countries is not fully representative of its potential. a country still struggling with the legacy of wars.5 million since 1998) and the impact of floods and drought caused by deforestation in Cambodia (investing between €8 and €9 million over the same period). also with North Korea. Cambodia. has also been active in the area. mostly struggles with floods and typhoons. ECHO’s Disaster Preparedness programme. Moreover. Vietnam. offers substantial aid to both Cambodia and Vietnam. Although remarkable. obviously enough. ECHO.

governance and human rights. Cambodia. a parliamentary democracy. A standout event was the visit of Prime Minister Nguyen Tan Dung to the European Commission in October 2010. In the case of Vietnam. a trip he used to emphasize the interest of his country in signing a Partnership and Cooperation Agreement that would substitute the current FCA and thus expand the common agenda for bilateral cooperation. EU electoral observers were also sent on Observation Missions to elections in Cambodia in 2008. 2003 and 2001. both bilaterally and multilaterally.Political dialogue As provided by the relevant bilateral agreements. meetings at the highest level have already been held and will probably increase in number. both Cambodia and Vietnam enjoy several channels of political. 2009 and 2007. also receives the regular – although not systematic – visits by the European Parliament Delegation for Relations with Southeast Asia and ASEAN. Bilateral dialogue Both Cambodia’s and Vietnam’s FCAs provide for regular political consultation and bilateral dialogue via a Joint Commission (Vietnam) or Joint Committee (Cambodia). It is the subgroup on Cooperation in the areas of institution building and administrative reform. both in local and global challenges. which met in 2010. as it allows articulation of an important part of the EU cooperation strategy. which is held every two years. such meetings can also be exceptionally held on a more regular basis. whose work is used 19 . the Joint Commission/Committee can have several working groups and subgroups. a forum for high-level discussions on political and economic issues of common interest. As stated in the respective agreements. thus enjoying another useful channel of political dialogue that shows the active involvement of the European Parliament with democracy promotion around the world. one of them of vital importance for EU relations with the respective countries. as has been the case with the EC-Cambodia Joint Committee. However. alternating Brussels and the capital city of the relevant third country as the venue. technical and sectorial dialogue with the EU.

€70 Million €56 Million €15 Million Focal Sector 1 Support to Vietnam’s Poverty Reduction Strategies 48. As shown by the graphic on the right. is lifting its foot off the pedal to appease an important trade and strategic partner. we can see that just 2% of the cooperation budget for this second half of the current Strategy will be allocated to governance support – which focuses on legal and judicial reform – and strategic dialogue. created in 2001 and holding meetings twice a year. in the following table. instead of fighting to defend its core values of democracy. rule of law and human rights 13. showing the estimated allocations for the period 20112013. 20 . This could easily be seen as a direct result of the slowdown on political aperture and the growing power of conservative leaders in Vietnam’s power spheres as an after effect of the world financial crisis. However. under the 2007-2013 Vietnam Strategy Paper is remarkable enough.to identify the areas of interest for technical cooperation actions and side events funded by the EU under its cooperation strategy.00% Total 100% 13 Also in spite of the continued existence of a human rights dialogue mechanism between the EU Heads of Missions in Hanoi and the Government of Vietnam. influenced by the decisions taken by this subgroup. the funding allocated to this particular “additional action”.00% Trade-Related Assistance 10.50% Support to Governance and to the EU-Vietnam “Strategic Dialogue” €3 Million €144 Million 2. willing to hedge against excessive Chinese influence in South East Asia and also in the final stages of the negotiation of a comprehensive Partnership and Cooperation Agreement with the EU.50% Focal Sector 2 Additional Action 1 Additional Action 2 Support to the Health Sector 39. It looks like the EU.

Cambodia’s statistics. or up to €15 million. with over 50 ministerial and officials’ meetings in between. Multilateral dialogue The Association of Southeast Asian Nations (ASEAN). the intensity and outcomes of such elements of the political dialogue depends on many other – namely economic and geostrategic – calculations. Cambodia. while the ASEAN-EU Meeting of Foreign Affairs Ministers takes place regularly. show an opposite trend. they still fell short of international standards. The first EU-ASEAN summit of Heads of Government took place in 2007. Moreover. which could receive up to 20% of all available funds. The Asia-Europe Meeting is another important forum for multilateral political dialogue. A less important trading partner for the EU and also a minor geopolitical actor in the region. an increasingly successful regional organization encompassing 10 countries – which include Vietnam and Cambodia . Therefore. the EU is an ASEAN dialogue partner. observers from the EU said that. although a young and relatively unstable one. in 2009. we can only conclude that. 14 Not including the People’s Democratic Republic of Korea. 21 . which allows participation in a limited number of ASEAN meetings. Cambodia is already a democracy. covering from finance and trade to disaster preparedness and climate change. although improvements over the 2003 elections were undeniable. Dialogue topics are wide in range and scope. and from food security and development to global governance. we see the clear possibility of a remarkable increase in the funding of the Support to Cooperation and Dialogue in Governance and Human Rights item. If we look at the budget allocation data for the Multiannual Indicative Programme 20112013. although the EU takes democracy and human rights dialogue seriously in Southeast Asia.is the ideal forum for multilateral political and economic dialogue between the EU and these two countries. however. Summits gathering Heads of States and of Governments of forty-six Asian 14 and European countries – plus the President of the European Council and the President of the European Commission – are held every 2 years. After the celebration of general parliamentary elections in July 2008. the latest being held in Phnom Penh.

a quick glance at the list of projects currently being funded or co-funded by the EU and coordinated by the EU Delegation in Hanoi shows a remarkable number of projects dealing with governance. which are labeled “the main channel for funding NGOs in Vietnam. the European Initiative for Democracy and Human Rights. This instrument. to be disbursed starting in 2011 15. the presence in the country of the current instrument and even of its predecessor. Aimed at enhancing respect for human rights and strengthening the role of civil society.” Moreover. As for Vietnam. 15 http://ec. In Cambodia.europa. no up-to-date information on this particular program is currently available from the EU Delegation website. it can support groups or individuals. the EU has a specific instrument for the promotion of democracy and human rights: the EIDHR (European Instrument for Democracy and Human Rights). is used to grant aid where no established development cooperation channels exist.1 billion for the period 20072013 (or roughly 1/10 of the global DCI budget for the same timeframe). human rights and institutional reforms. seems clear. successor to the European Initiative of 2000-2006. the program is specially active with local and international NGOs. having pledged €13. and can also do it without the agreement of third country governments. Documentation related to calls for proposals for initiatives in Vietnam is readily available through online sources and a clear reference to the successful implementation of both the EIDHR and the NSA programmes in the Vietnam Strategy Paper 2007-2013.5 million since 2003 in grants to support democracy and human rights. eight new projects (out of 23 candidates) were awarded €1. In the resolution of the latest call for proposals. democracy.htm 22 .Democracy and human rights promotion As of 2006. a key element in hostile setups such as one-party autocracies. normally calling for new proposals once or twice a year.eu/delegations/cambodia/press_corner/all_news/news/2011/20110118_01_en. disbursement of its funds in a given country is considered a good indicator of the EU’s compromise with democracy and human rights in the given country or the wider region. with objectives such as building social accountability.6 million. However. empowering workers and trade unions and encouraging democratic participation and social dialogue within companies. but also intergovernmental organizations. With a total budget of €1.

despite its recent crackdowns on dissidents and human rights abuses –. the Strategy Paper clearly details such dialogue and cooperation will take place in the field of governance and human rights. while using the more general term "strategic dialogue" for the single party regime of Vietnam. using the relevant tools to fund active NGOs that. including the judiciary. 23 . administrative reform. the relevant Country Strategy Papers set out two additional actions that should complement the two focal sectors of the EU's development cooperation activities in Cambodia and Vietnam. governance and human rights of the EC-Vietnam Joint Commission. emphasis is also put in the subgroup on Cooperation in institution building. in turn. Although the EU is not ready to sacrifice other interests on behalf of democracy and human rights – as shown by the deepening ties with Vietnam. As already mentioned in the previous sections. which remains a one-party state. help create a stronger civil society in the receiving countries. In the case of Cambodia. the EU is rather active in the promotion of democracy and human rights in the region. However. positive actions are taking place in both countries. In conclusion.All these undeniable efforts have to be complemented with the budget allocations to support political dialogue on governance and human rights. mainly at grassroots level but also at the highest administrative spheres. one of them dealing with political dialogue and cooperation.

in the line of Cambodia's National Strategic Development Plan and Vietnam's Socio-economic Development Plan and based on the IMF’s Poverty Reduction Strategy Papers. isolated economy coupled with an alienated society which should start gradually integrating in a globalized world. together with the definition of a comprehensive national strategy aimed at improving overall living standards and promoting sustainable growth. as the starting point would be a ruined. the Communist regime should be pressed to make positive steps towards a progressive opening that. the first building block being the aperture of an European Union Delegation in Pyongyang. As the EU gradually increases its positive involvement in North Korea. encouraging its integration in the world economy. in turn. They should. Institution and capacity building from the Korean side should be a must. Therefore. Communist state such as Vietnam. 24 .A proposal for North Korea Building upon the stated goals for EU relations with another one-party. the EU should also take several measures to succeed in this first phase. Progressive legislation reforms in the model of Vietnam’s “doi moi” policy should be undertaken. therefore. However. we can easily devise a basic framework for EU – North Korea relations. First phase The first stage of development in EU – North Korea relations should be based on mutual confidence building. should generate mutual trust and greater freedom to operate. assisting in North Korea's transition to an open society and raising the profile of the EU in Northeast Asia. the Korean regime should be able to demonstrate greater transparency and accountability through progressive project ownership. our relationship building plan would be divided in two separate phases: an institution and confidence building initial phase and a cooperation establishment phase. While the EU should be ready to step in and gradually increase its involvement in North Korea. However. aim at supporting the sustainable economic development of North Korea. progress should be attained gradually.

including droughts and floods. Meanwhile. once the situation in the now isolated country is further stabilized. any hypothetical decision to gradually open up North Korea from 2012 would still coincide with the current validity period of said instrument. This first phase could probably imply the use of the Instrument for Stability. the European Union had already adopted a Strategy Paper for North Korea in 2002. the Instrument for Stability could still be implemented in the form of aid in a stable context on the grounds of further implementation of EU cooperation policies. In this sense. in case there is a sudden – and not unthinkable by any means. Humanitarian aid in the form of medical aid and water sanitation projects. it could serve as a curative springboard for further cooperation projects in the second phase. a country sharing these same threats. Taking a look at the identified priorities. while also offering help in the area of sustainable development and environmental protection under the Thematic programme for the environment and the sustainable management of natural resources. the Development Cooperation Instrument should also be used in this initial phase to address food insecurity and scarcity and build competences in agriculturerelated activities. whose stated goal is providing financial aid that would guarantee stable conditions for human and economic development. is a very valid reference. should be resumed. With a total budget of over €2 billion for the period 20072013. In other words. Cambodia. Sweden would be the ideal Member State to head the delegation and implement and coordinate all measures and programs in the field. DIPECHO programs should also be readily implemented in order to help farmers cope with environmental degradation caused by acute deforestation and the effects of changes in weather patterns. given the sorry situation of the country – crisis threatening the law and order or the security of individuals. already in place in the last decade. or affecting critical infrastructure or the public health. using funding from the Food Security Thematic Programme. once again with funds from the DG ECHO. they do not seem too far away from the lines drawn by the Commission almost ten years ago: food security 25 . Hoping that the power transition goes smoothly. Finally.Given their long-time diplomatic and aid-related relationship with North Korea. As stated before in this paper.

we should not rule out that a nuclear North Korea could sign a Framework Cooperation Agreement with the European Union. Second phase Building upon a successful first phase. also wishing to make concessions in the other values and core interests of the European Union.5 of the Treaty. We should expect strong pressure from the European Parliament in that sense. it might well be that the new regime is not ready to surrender its nuclear deterrent but desires a progressive opening anyway. If such hurdles are bypassed. while the third priority area earmarked a decade ago – reliable and sustainable transport – does not seem a maximum priority. 208 and 352 of the Treaty on the Functioning of the European Union.activities. Therefore. China would swiftly take advantage of a hypothetical aperture of the North Korean economy. which could span three or more years. in the line of that signed with Pakistan in 2004. to North Korea. whose legal basis should be found in Articles 207. as defined in Article 3. both by delocalizing low-cost and highly polluting factories and by flooding the market with 26 . Obviously enough. Key to that would be the signature of a new generation Cooperation Agreement. the EU should be ready to offer a basic but attractive Cooperation Agreement. institutional support and capacity building and sustainable management and use of natural and energy resources are all there. always according to developments on the North Korean side and also to the international environment and reaction to such apertures. specially in this first phase of rapprochement. the European Union should proceed in an intensification of political and economic ties with North Korea. meaning that all EU countries should approve and sign it. in line with recent agreements. would be a mixed agreement. measures could be taken to partially implement the agreement in its commercial policy aspects. The main reason for choosing a mixed agreement would be the desirable inclusion of services and property-rights related trade issues. Of course. However. The preferred model. Although this could clearly difficult and slow down the ratification process. which are an exclusive competence of the European Commission. North Korea should also be asked to abandon its nuclear program and sign the NPT before any agreements are signed.

including those in the banking and insurance sectors. However. coupled with the promise of a generous aid and cooperation package for the underdeveloped nation (including democracy and human Also in line with neighboring Asian countries – including Japan –. even partially. thus making it hard for the North Korean elite to accept the aperture of a sector in which no local firms would be in a position to compete. the North Korean regime should make some concessions in the name of a progressive democratization and respect for the rule of law and human rights. the EU should also be ready to understand that North Korea might not be ready to open its service market 16. even if other additional and conditional incentives are enticing. all of them extremely protectionist with the national service sectors. a positive conditionality clause on cooperation in the fields of human rights and democracy should also be included in the Agreement. 16 27 . the evolution of such agreements has not been much remarkable over the years. in stark comparison with the new generation Association / Partnership and Cooperation Agreements. so any possibility to enter and develop a fresh market should not be passed up. with an extremely reduced elite enjoying enough purchasing power to opt for EU products. Should that be the case. Even if the regime is open for change. said Cooperation Agreement could use the EC-Vietnam's FCA as a basis to introduce a democracy and human rights conditionality clause: Vietnam. which have become much more detailed and comprehensive than their older counterparts. Most European firms would be in no position to compete in a very immature market. aperture would be gradual and not without a relative degree of wariness. including freedom of speech and information. but that has not deprived it from signing a Cooperation Agreement with the EU. know-how and service quality and variety when compared to their Asian counterparts. Moreover. such as the one for Pakistan (signed in 2004). based on international standards. a remarkable competitive advantage in terms of expertise. However. 17 Although more recent Cooperation Agreements exist. the EU should be ready to accept a basic Framework Cooperation Agreement. signed on a bilateral basis and following the lines of Vietnam's and Cambodia's 17. This should appease the European Parliament and. More precisely. Namely Democratic (a “People’s Democracy”). moreover. also a single party Communist regime with a suspect human rights track record. European service sector firms enjoy. entering the service sector – absolutely underdeveloped and with no local know-how or expertise whatsoever – would be a very attractive opportunity for many European firms.cheap Chinese goods.

It must be noted. called the Special Incentive arrangement for sustainable development and good governance. Cooperation in the science and technology fields. North Korea should also be granted beneficiary status of the Generalised System of Preferences. rules of origin should be strictly enforced and special provisions might be in order in order for such trade arrangements to be beneficial for both North Korea and the European Union. and also pending on the regime's acceptance of non-proliferation measures for both small arms and WMDs. Therefore. who would then be able to produce cheaper goods in Korea and export them to the European market paying no tariffs. a measure that would surely be welcome by the regime as it tries to modernize and integrate its economy in the world markets. Such positive conditionality.rights promotion programmes). which would be very welcome by the North Korean government. 28 . North Korea could also be offered participation in the Everything But Arms program. this Framework Cooperation Agreement should include a clear reference to North Korea’s economy transitory status towards a market one. The FCA should also focus on the following aspects: Environmental cooperation. although with no regional accumulation measures in order to avoid covert dumping procedures from Chinese manufacturers. with the EU ready to step in and offer technical cooperation towards that goal. Although very aware of the consequences the current isolation. Also in line with Vietnam’s. so participation in EU-funded programs would be an offer North Korean negotiators would be very ready to embrace. One of the chief goals of a progressive aperture of the regime would clearly be the acquisition and exchange of scientific and technological know-how and expertise. however. that such an offering would also have the intrinsic risk of benefiting Chinese outsourcers. can usually be found in modern FCAs. Conditional on its designation as a Less Developed Nation by the United Nations. the government is already taking controlled steps to have access to modern knowledge via limited and supervised Internet access. be enough to fend off attempts to exercise veto power over the signature of the Agreement. including a conditionality clause linked to the beneficiary status of the Generalised System of Preferences.

in line with Vietnam’s and Cambodia’s agreements and including the setting up of a Joint Commission and relevant specialized subgroups.- Human resource development would also be a key offering for North Korea. At the same time. with a long history of cooperation and aid activities in North Korea based upon successful diplomatic relations between the two countries. as well as NGOs and other European aid agencies 18. The allocation of funds from the DCI should. and Japan. the European Union should focus on: Which will probably be led by SIDA. in line with its European Security Strategy. 18 29 . - Drug trafficking. China. - Institutional aspects and political dialogue mechanisms should also be detailed. In line with the need to mainstream and integrate development cooperation operations. This would mean shifting focus from humanitarian aid (namely ECHO and DIPECHO projects) towards development cooperation. assuming North Korea is included in ASEM. which would badly need to retrain and adapt its workforce for a successful accession into the globalized world economy. the Swedish Government’s Development Cooperation Agency. which should be complemented by two sets of additional actions. but also making sure North Korea benefits from regional programs. Moreover. be valid until 2020 if the current 7-year planning system is maintained). a competent strategy for development cooperation should be devised. and also taking as a basis the current Vietnam and Cambodia strategies. cooperation in this field would also prove beneficial for EU companies starting business activities in North Korea in the future. human trafficking and money laundering provisions should also be included in the Agreement. South Korea. take steps towards mitigating such treats on a global basis. both in the framework provided by EU-ASEM regional integration plans and for Asiawide thematic programmes. be based on a Country Strategy Paper. therefore. which should in any case be prepared in 2014 or later (and. including the UNDP. the U. of course. multilateral dialogue through this channel should also be emphasized.S. Making sure close coordination and synergies are created with other hypothetical donors. chiefly in the shape of DCI country allocations. focus should be narrowed into two main focal points. North Korea is currently a focus for such criminal activities in Northeast Asia and the European Union should. In line with the Agreement.

educational assistance should and would surely be provided by South Korea. which enjoys a 99% literacy rate and whose higher education system is still functional. so cooperation under this thematic program should also be a must. Food security will also keep being a problem in North Korea for the years to come. The Investing in people thematic programme. 3 times those of Vietnam's). all 5 lines of the DCI thematic programmes would be of special interest for the Democratic People’s Republic of Korea: The Non-state Actors and Local Authorities programme should be used to assist in the progressive building of a functioning civil society. desired by both China and South Korea. as many people would seek refuge in China and/or South Korea. moreover. Selfevidently. the main aim of an orderly transition. Migration and asylum could also prove a problem for a more open North Korean regime. 30 . Moreover. would serve to mitigate this risk.e. with its focus in the Erasmus Mundus student exchange programme. North Korea should benefit of the two main lines of the Environment and sustainable management thematic programme. assistance in the basic education sector is not a very pressing need for North Korea. but the EU should be ready to help in case important migratory movements take place. whose perceptions and awareness levels in the area would surely improve. 19 As in the case of Vietnam. shares the vehicular language with its northern neighbor’s. would also be very beneficial for both the educational and the cultural development of the future North Korean economic and political elite and for the European Union. namely the ‘green growth’ SWITCH and the sustainable forest management FLEGT programmes. Also in line with current activities in Cambodia.Focal point 1: Support for North Korea’s Poverty Reduction Strategy Paper – which could prove quite similar to Cambodia's National Strategic Development Plan Focal point 2: Support for the Health Sector 19 Additional actions: Trade-related Assistance and Support to the EU-North Korea Cooperation and Dialogue in the field of Governance and Human Rights Funds allocated to development cooperation programmes cannot be detailed in advance. an advanced nation itself with a top-notch educational system which. but we could foresee per capita yearly allocations in the line of Cambodia’s (i. Moreover.

whose government is well known for its reluctance towards such developments. its fragility to sustain natural disasters such as floods and severe droughts. improved and expanded relations with the country should also be accompanied by a strong commitment with grassroots democracy. adding to that will be the overwhelming influence of its Chinese neighbors.due to the intrinsic instability of such aperture processes in a Communist. human rights promotion and civil society fostering. Therefore. allocation of EIDHR grants – as well as grants from the NSA/LA DCI thematic programme – for projects in this country should be given priority. as the country will surely maintain its underdeveloped status and. Finally.to mid-term. much should be done in North Korea. autarkic society –. ECHO and DIPECHO actions in North Korea should not be discontinued in the short. Although not advisable at the outset of reform . In that sense. 31 . an extremely reclusive country for the last 60 years. therefore.This second phase would also see the introduction of the EIDHR instrument in North Korea.

The examples of Vietnam and Cambodia. such as South Korea. can be very useful for the hypothetical North Korean model. The European Union has the right set of tools – namely comprehensive cooperation agreements and financial instruments – to make a difference for the North Korean population. A bizarre combination of isolationism and aggressive diplomacy. Will the transition be smooth? Will the new leader(s) take the chance to modernize the economy and improve the living conditions of their long-suffering population? If that is the case. with their respective Development Plans guiding the highly focalized EU strategies. Having a clear strategy for a progressive deepening of ties with the DPRK can help hedge China’s influence in the region. promoting the EU core principles and helping attain the goals detailed both in the Treaties and the European Security Strategy. the world community awaits an elusive aperture of the regime. the United States. the pending power transfer raises the stakes once again. the EU must be ready to step in. the European Union will cement its position and raise its profile in Asia in an effective and efficient manner. also at the political dialogue and trade levels. if necessary.Conclusions No country with a functioning government is more unpredictable than North Korea. while also providing for the use of different tools in the short. By leveraging its experience in those Southeast Asian countries and applying it to the particular characteristics of North Korea. while also benefiting the European economy. the Instrument for Stability –. However.and mid-term – such as humanitarian aid and. Japan or Russia. while also making its name heard amongst other players in the area. 32 .

S.eu/world/agreements/downloadFile.pdf Multi-Annual Indicative Programme 2007-2010 http://www.stm Vietnam Delegation of the EU http://www.ec.europa.europa.europa.htm U.pdf Evaluation of ECHO’s actions in the DPRK 2004-2007 http://ec.pdf EEAS page on North Korea http://eeas. Department of State page on North Korea http://www.eu/korea_north/docs/01_04_en.eu/eu_vn_relations/development_coo/pdf_file/VIETNA M_DS_2007_2013_EN.europa.delvnm.html Framework Cooperation Agreement http://ec.eu/eu_vn_relations/development_coo/pdf_file/Multiannu al_Indicative_Programme_0710.co.delvnm.eu/korea_north/index_en.htm BBC North Korea Country Profile http://news.bbc.eu/echo/files/policies/evaluation/2008/dprk.europa.ec.state.do?fullText=yes&treatyTransId=81 4 Strategy Paper 2007-2013 http://www.delvnm.References North Korea Strategy Paper 2001-2004 http://eeas.uk/2/hi/country_profiles/1131421.ec.pdf 33 .europa.eu/index.gov/r/pa/ei/bgn/2792.europa.

pdf Cambodia Delegation of the EU http://ec.eu/echo/aid/asia/cambodia_en.htm Framework Cooperation Agreement http://ec.europa.europa.europa.europa.htm Vietnam’s main economic indicators http://trade.europa.pdf 34 .201 0.pdf Humanitarian Aid in Cambodia http://ec.eu/eu_vn_relations/bluebook2010/EU_Bluebook22.eu/doclib/docs/2006/september/tradoc_113362.eu/vietnam/csp/07_13_mtr_annex_en.9.ec.europa.eu/delegations/cambodia/index_en.eu/delegations/cambodia/documents/eu_cambodia/eu_bluebook_2010_ en.europa.eu/echo/aid/asia/vietnam_en.pdf Humanitarian Aid in Vietnam http://ec.pdf Multi-Annual Indicative Programme 2011-2013 http://ec.eu/doclib/docs/2006/september/tradoc_113463.eu/delegations/cambodia/documents/eu_cambodia/mip_2011_2013_en.Mid Term Review http://eeas.htm Cambodia’s main economic indicators http://trade.ec.europa.eu/cambodia/csp/07_13_en.eu/world/agreements/downloadFile.eeas.ec.europa.do?fullText=yes&treatyTransId=78 2 Strategy Paper 2007-2013 http://www.delvnm. pdf Cambodia Blue Book 2010 http://ec.europa.pdf Vietnam Blue Book 2010 http://www.europa.

htm Migration and asylum http://europa.htm Food security http://europa.htm 35 .eu/legislation_summaries/development/general_development_framework/r 12554_en.eu/legislation_summaries/development/general_development_framework/r 12546_en.EU Foreign Action Financial Instruments Instrument for Development Cooperation (DCI) http://europa.eu/legislation_summaries/development/general_development_framework/r 12547_en.eu/legislation_summaries/development/sectoral_development_policies/l14 172_en.htm Instrument for Democracy and Human Rights (EIDHR) http://europa.htm Thematic programmes of the DCI Non-state Actors and Local Authorities http://europa.htm Environment and sustainable management of natural resources http://europa.eu/legislation_summaries/development/sectoral_development_policies/l28 173_en.eu/legislation_summaries/development/general_development_framework/l 14510_en.eu/legislation_summaries/development/general_development_framework/l 14171_en.eu/legislation_summaries/development/general_development_framework/l 14173_en.htm Investing in people http://europa.htm Instrument for Stability http://europa.

pdf Other reference sites EuropeAid Development and Cooperation http://ec.eu/doclib/docs/2008/july/tradoc_139988.htm http://ec.eu/trade/wider-agenda/development/generalised-system-ofpreferences/everything-but-arms/ Aid for Trade in developing countries http://europa.europa.pdf http://ec.eeas.europa.europa.europa.Trade Policy Generalised System of Preferences http://ec.europa.europa.pdf Everything But Arms http://ec.eu-un.eu/legislation_summaries/development/sectoral_development_policies/dv 0006_en.eu/europeaid/where/asia/regionalcooperation/documents/rsp_0713_en.eu/trade/wider-agenda/development/aid-for-trade/ Regional Cooperation http://ec.eu/europeaid/where/asia/country-cooperation/index_en.htm 36 .europa.eu/asia/rsp/mip_0710_en.europa.htm The European Union @ United Nations http://www.htm http://www.ec.eu/home/index_es.eu/trade/wider-agenda/development/generalised-system-of-preferences/ http://trade.eu/europeaid/where/asia/regional-cooperation/index_en.europa.

gov/library/publications/the-world-factbook/ Index Mundi http://www.ec.imf.europa.do Eurostat http://epp.eu/world/agreements/default.aspx The CIA World Factbook https://www.htm Asia EurPoverty Reduction Strategy Papers http://www.org/external/np/prsp/prsp.com/ 37 .eurostat.eu/asem/index_en.europa.home.cia.indexmundi.europa.eu/portal/page/portal/eurostat/home/ EEAS page on the ASEM http://eeas.EU Treaties Office Database http://ec.

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