Let's Set Up Northeast Asia Joint Energy Body
- By Ahn Choong-yong, president of Korea Institute of International Economic Policy

President Roh Moo-hyun, during his summit meeting with his Russian counterpart Vladimir Putin in Moscow, declared that South Korea and Russia are reliable partners with comprehensive companionship after putting their signatures on a 10-point joint statement.

Details of the joint statement are diversified, but what draws our attention are those related to cooperation between the two countries for the development of energy and East Siberia.

As is widely known, South Korea, Japan and China in Northeast Asia are large consumers of energy ranking 10th,4th and 2nd in the world as of 2002.

In particular, in the case of oil, natural gas and coal, fossil fuels, are being imported entirely from overseas by South Korea and Japan, although China has been able to meet its demand for coal without importing them from overseas.

Russia is emerging as an energy resources supplier to these countries; In the Soviet era, Russia provided energy to Europe, but after the end of the Cold War, she turned to its Far East and East Siberian regions for the development of energy resources to emerge as a major player in Northeast Asia.

Under such an environment, it is significant that President Roh visited Russia and discussed with President Putin matters related to energy security, which are basic to long-term development of the Korean economy.

With three large energy consuming countries, South Korea, Japan and China, located in Northeast Asia with natural resources-rich Russia sharing borders with them, it is always possible to mutually understand the need for cooperation in the energy area in harmony.

Therefore, we would be able to draw up supplementary policies to our vision for Northeast Asia, which would give a momentum to speeding up regional cooperation with a significant meaning.

But until recently, the three N.E. Asian countries have been competing hard for securing Russian energy, in fact, so hard that it appeared like a "zero-sum" game. Russia, too, appeared to be spurring competition among the three countries by separating their energy needs to deal with each of them.

Matter of fact, the competition among the three countries for the rights to development oil and gas fields in East Siberia  and build pipelines have been so intense that it could have been compared to a war with Russia gauging capabilities of each country for its own interest.

In fact, it would not be of  help to the  interest of any countries involved in this energy war in long ?term perspective if it slips by without satisfactory results to all parties including Russia, the key supplier of the energy.

This growing competition among the three countries with Russia as the monopolistic supplier has raised the energy prices to an extraordinary level that it would make the three countries to seek alternative energy sources and Russia would have hard time securing  stable customers and funds needed to develop its Far East and East Siberian regions.

Therefore, the four countries should seek cooperation in energy under a win-win policy to build a structure that will ensure stable energy supplies to the three countries, namely, South Korea, Japan and China.

An excessive competition between Japan and China would be no help to South Korea and therefore, South Korea should pursue policies as a mediator to bring about cooperation in energy matters in Northeast Asia.

South Korea should induce China and Japan to form a three-country joint structure with her and at the same time, she should concentrate its diplomatic efforts on persuading Russia to set up a structure best suited to develop the energy resources in its Far East and East Siberian regions through cooperation with the three energy consuming nations instead of boosting competition among them.

For this reason, South Korea should make energy cooperation a state issue with Russia, Japan and China. The three energy-consuming countries should get together and cooperate with one another as a joint body in dealing with Russia, the energy supplier, instead of making a separate approach to Russia.

Cooperation among countries to build an energy consumption and supply system for a stable supply of energy in Northeast Asia could contribute to peace and prosperity in the region.

Countries in Northeast Asia should realize that the European Union traces its beginning to a cooperative system among Western European countries  on coal, and steel in the 1950s and learn from the historic lesson.   nw