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Realistic Expectations of the Future Role of the International Financial Institutions on the Korean Peninsula
Published May 25, 2011
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Recent developments on the Korean peninsula are raising expectations that the DPRK may finally be ready for a new era of political rapprochement and economic opening. This possibility is reflected intangible progress in completing phase two of the nuclear negotiations despite delays and in the prospects for a more ambitious economic agenda for phase three. It is also reflected in expectations for expanded inter-Korean economic cooperation that were set in motion by the October 2007 summit. The incoming administration in Seoul has signaled that it will seek revision, not repudiation, of the summit accords and will link inter-Korean economic cooperation more tightly to progress on the denuclearization agenda and mutual benefi t for the two Koreas. With a new administration taking shape in South Korea and one more year left for the Bush administration, 2008 may be the watershed moment that will anchor this new phase and propel international economic engagement with the DPRK.

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