지속가능발전 E-course Introductory Module 촬영 출장보고서

발전경험연구팀

Ⅰ. 출장개요

목적 및 배경

□ KDI대학원은 국제개발협력의 최근 동향에 발맞추어 지속가능한 발전(Sustainable Development)의 관점에서 포괄적이고 총체적인 한국 경제·사회발전경험 연구를 실시하고 이를 토대로 한 개도국 맞춤형 한국 발전경험 동영상 콘텐츠 개발을 수행 중

ㅇ 본 동영상 콘텐츠는 총론, 정치, 농촌개발, 보건, 교육, 여성/성인지제고, 환경 분과 외 컬럼비아 대학교 지구연구소(Earth Institute)의 Jeffrey D. Sachs 교수의 Introductory Module로 구성되어 있음

- KDI대학원 발전경험연구팀은 15년 1월, 지구연구소를 방문하여 본 콘텐츠 개발을 위한 Kick-off 회의를 개최하였으며, 해당 논의를 바탕으로 본 지속가능발전 E-Course 콘텐츠 개발사업의 개요를 마련한 바 있음

□ 본 출장을 통해 Jeffrey D. Sachs교수의 Introductory Module 강좌를 촬영하고 동영상 강좌의 시각적 효과를 더할 배경 촬영 등의 과업을 수행

출장기간 : 2016. 10. 3(월) ~ 10. 6(목), 입출국일 포함 (1박 4일)

3. 출장지 : 미국 뉴욕 (국외여비 규정 ‘가’등급)

4. 출장자

성 명	소속 및 직위	출장기간 (입출국일 포함)
류승돈	㈜웨이츠 정보운영실장/이사* (콘텐츠 제작지원)	2016.10.3. - 10.6
정일진	㈜중앙ICS 프로듀서* (영상촬영)	2016.10.3. - 10.6
정혜린	㈜중앙ICS 작가* (촬영보조, 분장 등)	2016.10.3. - 10.6
권효민	KDI대학원 발전경험연구팀 전문원 (행정지원)	2016.10.3. - 10.6

* 참고 : 지속가능발전 e-Course 개발사업은 ㈜중앙ICS에 동영상 콘텐츠 제작을 위탁하여 수행하고 있으며, ㈜웨이츠에서 중앙ICS와 협력하여 콘텐츠 스토리보드 제작을 수행

5. 주요면담자

성 명	직 위	소 속
Jeffrey D. Sachs	Director	Earth Institute, Columbia University
Mariam Gulaid	Special Assistant to the Director	Earth Institute, Columbia University

Ⅱ. 세부일정

일 자	시 간	주 요 일 정	비 고
10.3(월)	10:00	인천 출발	KE081
	11:05	뉴욕 도착
	12:00-17:00	동영상 강좌 삽입화면 촬영
10.4(화)	8:00-12:00	지속가능발전 E-Course Introductory Module 촬영
	13:00-17:00	촬영 후속조치 사항 논의 및 동영상 강좌 삽입화면 촬영
10.5(수)	00:50	뉴욕 출발
10.6(목)	04:10	인천 도착	KE086

Ⅲ. 촬영결과 및 내용

지속가능발전 E-Course Introductory Module

□ 강의자: Jeffrey D. Sach 교수 (컬럼비아대학교 지구연구소 소장)

□ 강의주제: 지속가능발전과 한국의 경제발전 개요

□ 강의구성: 5개 Chapter로 구성

(강의 Script)

Chapter 1

Hello, I’m Jeffery Sachs. I’m director of the Center for Sustainable Development at Columbia University. And also very lucky to serve as special adviser to UN secretary-general Ban Ki-moon on the sustainable development goals. In that capacity, I also direct a global knowledge network called the Sustainable Development Solutions Network or SDSN that aims to help countries to achieve the new sustainable development goals. It's in this capacity that I really deeply honored to be part of KDI’s series on how Korea’s remarkable economic development can contribute to the sustainable development goals worldwide. What we can learn from Korea's economic experience, its history, its efforts, its strategies, its organization and institutions. And how these can be important lessons for not only Korea’s own future but also for the developments in many other countries around the world.

I have the pleasure in this next chapter to talk about what is sustainable development and why is it important. This is a prelude to the whole question of how countries can achieve the sustainable development goals. Well, sustainable development is a concept that has been with us now for more than a quarter-century, almost 30 years, since it was really put in center stage by a commission in the mid-1980s, headed by the Norwegian prime minister at the time, Dr. Gro Harlem Brundtland. And the core idea of sustainable development was that we need to make sure that our economic development really meets human needs, not only for the people alive today but also for future generations. And a big challenge that Dr. Brundtland and her commission faced when they issued their report back in 1987, is the fact that continues till today that the way the economic growth is proceeding in the world poses some very deep challenges, even crises, environmental crises, and social crises that mean that even when economies are expanding their not necessarily meeting human needs or keeping the world safe and secure for future generations. So the idea of sustainable development was brought to the world's attention in Dr. Brundtland's commission report in 1987 and then it became a centerpiece of a very important meeting in 1990, the real Earth Summit. That was the time when the world first agreed on a climate treaty, the UN framework convention on climate change. The world agreed on a treaty to protect biodiversity, the convention on biological diversity. The world agreed to fight the spread of deserts or desertification in the UN convention to combat desertification. All three treaties were adopted in the real earth summit. And they became the essence of sustainable development. But at last, that was 25 years ago and we learned a painful lesson that having international law having these treaties was not sufficient to actually put the world on a course of sustainable development. So on the 20th anniversary of the Real Earth Summit which again took place in Rio in June 2012, the world's governments said ‘We really need to make sustainable development not just a slogan but a reality for the world.’ And at that time, the governments said ‘We'll do that by adopting a new global agenda, a new development agenda. And we will include in that agenda sustainable development goals or SDGs.’ Well, it took three years to negotiate that new agenda and the sustainable development goals. They were finally adopted on September 25, 2015 unanimously by the 193 countries of the United Nations. It was really an exciting day. I was there. Ban Ki-moon was presiding. He had done so much to make this possible. And the world adopted the 2030 agenda on sustainable development and adopted the 17 sustainable development goals.

So what is sustainable development mean for us. The way that it is now interpreted by the member states of the United Nations is that sustainable development means having three big objectives for society. Economic prosperity that one we're used to, social fairness or the social inclusion is the second big objective and the third environmental sustainability. So sometimes this sustainable development agenda is defined as having as a triple bottom line: an economic, social, and environmental bottom line for society. Or to put it in another way that Society has to aim for 3 things: not just the growth of the gross domestic product but the prosperity including economic growth, but also social inclusion or social fairness so that everybody can share in those benefits of economic growth and environmental sustainability. So that as the economy expands, it doesn't destroy the land; it doesn't poison the air and water; it doesn’t change the climate in dangerous ways. In other words, economic growth must be compatible with a safe environment guarding against human-made climate change, guarding against the destruction of other species. So this triple bottom-line embodied in the 2030 agenda so called and the 17 sustainable element goals is now the world's globally agreed framework of cooperation. It is the strategy of all of the member states of the United Nations. It has a set period, 2016 to 2030. And one of the aspects that makes the sustainable development goals so interesting and potentially so important is that these goals have time lines, milestones, and quantitative targets. We're supposed to reach certain outcomes by the year 2030.  Now South Korea is a country that has a lot of experience with goal setting and achieving those goals and taking very big National objectives and then being successful in achieving them. And that's what makes it exciting to ask the question of how Korea's Economic Development history and experience can help inform the success of the sustainable development goals. I do want to emphasize Korea has its own work to do. It's not the end of the story for Korea though Korea is a high-income success story, admired around the world, a country that was impoverished, one of the poorest in the world a half-century ago and now is one of the richest in the world, a country that stands at the top of the charts in educational achievement. That is a highly competitive economy at the cutting edge of technology, in advanced information technology, and consumer electronics, in the mobile broadband, in the cutting edge sectors of modern economy, Korea is there. But it doesn’t mean that Korea is without its own challenges because when you think about sustainable development always think about the three pillars. Economic, I say Korea has done an absolutely spectacular job. Social, pretty good but with some room to improve. Because Korea is, a broadly speaking, a country with shared prosperity but there still are challenges in making sure that women are well-represented in a national life at the top of the business circles. In politics of course you have a women president and we see advances but there is still indications that Korea has a gap of income distribution and gender inequalities and some of the other social challenges I think are well known in the Korean context. But on the third pillar, environmental sustainability, this is a challenge for Korea as it is for all of the high-income countries. Korea is a country for example that is heavily dependent on fossil fuels: coal, oil, and gas. And Korea's power generation is predominantly a fossil fuel-based power generation. That means that Korea is a major emitter of greenhouse gases that contribute to global climate change. This means that in order for Korea to achieve the sustainable development goals and in particular SDG 13 which calls on every country to take actions to eliminate the greenhouse gas emissions that contribute to the human made climate change, Korea has major work to do, green growth as opposed to Simply growth in the years ahead.

So I believe firmly that Korea's development experience which has been spectacular is a basis for other countries to make significant advances in the sustainable development goals. But I also believe that Korea's own development experience gives lessons for Korea as well on how Korea should achieve the SDGs in the period 2016 to 2030, because this is a universal challenge. It’s a Universal commitment. It's a challenge for Korea as well as the rest of the world

Chapter 2

Hello, I’m Jeffrey Sachs and in this chapter I want to talk about the basic ideas of how to achieve the sustainable development goals. Remember that sustainable development means aiming for many objectives especially economic Prosperity Social inclusion and environmental sustainability. and it's not surprising that to achieve multiple objectives we need multiple approaches. Now the most basic point that I want to emphasize is that achieving sustainable development and specifically the sustainable development goals means investing in the capacities of society in a number of different kinds of capital. Capital in general for an economist means productive assets that the help of a society to achieve its objectives whether it's high-income or social inclusion. And to achieve the sustainable development goals means to invest in a number of different kinds of capital. It's that balanced investment across many different major kinds of capital that in my opinion forms the essence of any sound plan for achieving the sustainable development goals.

So what are those kinds of capital that are so important? I think in this regard we can look back to Korea’s own strategy.

How did a country that was impoverished, coming out of war at the end of the 1950s and early 1960s get on a path of very rapid economic development, averaging around 9 percent per year? Absolutely extraordinary, meaning taking about just an eight years to keep doubling the size of the economy.

What kind of investments did Korea made? Because that would give us some sense of the overall multiple paths of capital that need to be invested in order to achieve sustainable development.

The first of these is infrastructure. Infrastructure means the network for transportation, for power, for communications that form the basis of moving economic goods and services and disseminating ideas so that a modern economy can flourish. Without roads, rail for transport services; without the ports and airports for domestic and international trade; without energy, electricity especially but other forms of energy as well, of course no economic sector can flourish. And in this day and age of information based economies without the Broadband transmission and access to the internet and high-speed, high-quality and mobile, it's also going to be very hard for any economy to be internationally competitive in the 21st Century. So the first kind of capital that I would emphasize is the infrastructure: the transport, the power generation, the Telecommunications that form the underpinnings on which all other economic sectors rely. And it's notable that from the late 1950s coming out of the Korean War into the miracle years of the Korea, some of the very first steps that were taken to achieve a Korea's rapid economic growth was completing the basics of the transport system, power generation. and functioning ports so the Korea could be an active and then turned out to be one of the world's most successful participant in international trade.

The second kind of capital is less tangible. You don't see it as the roads are the power grid but it is equally I would say even more decisive and probably the key story of Korea's unique economic success and that is human capital. Because at the core of any modern economy any successful diversified economy is a healthy well educated high skilled workforce. Because it's people that constitutes the most important factor of production in any economy. If people are not healthy; if people are undernourished; if people are poorly educated and poorly trained, the economy of course cannot function properly. There may still be a sector or two, oil or gold or diamonds or some other sector that gives us some economic return but it is the quality of human capital that really propels an economy from a resource-based usually quite poor economy to a major world-class economy such as Korea’s. So from the earliest days of Korea’s modern economic development, the government and the public has paid a huge amount of attention to human capital.

Human capital means three basic things, I would say.

First its investment in basic health so the people have longevity they are productive they have the capacity to achieve their physiological potential.

Second and related to that is nutrition. People have to have food security. They have to have a decent diet to be active to be healthy and the proper nutrition is the key.

The third part of human capital is education. Developing brains so that every child can get a decent education can gain the skills and literacy, numeracy, knowledge of technology, specific job market skills, to enable talented skilled flexible dynamic work force. Here in Korea has absolutely excelled. Not only does Korea score at or near the very top of the world in test score performance when children are tested around the world on their knowledge of science math or reading, but we know that almost any Korean family, what's the number one goal make sure the children get a good education and are able therefore to have a good economic future.

The third kind of capital is the one maybe the people think about first not the infrastructure human capital but the business capital. The factories the production is the basis of the private sector of an economy. Here we think about the Korea’s Chaebol which have been large companies have been the most visible sign of Korea’s global competitiveness. Samsung or LG or other major companies and we see their huge Investments, now we see their Investments everywhere in the world. But in general the business capital of course meaning private sector investment for the future capacity in industry or the services provided by the private sector is the third fundamental kind of capital to achieve sustainable development.

The Fourth kind of capital could be called intellectual capital or technological capital. It’s the specific investments in research and development to bring product innovation. And we know that in our growing world economy the countries at the forefront of the world economy are the ones that are innovating that are achieving high level of new patents of new inventions to bring new products and new processes to the market. That doesn't come easily not only… of course does a country need a skilled scientific codder and excellent Engineers, but it needs to invest both public and private money in the research and development of new products. Korea has become one of the great innovating economies of the world and that's why Korean products are now at the cutting edge of consumer electronics or information technology. And while we watch high-quality television we are watching on Korean screens. When we use mobile devices, very frequently Korean devices. A lot of innovation has come and that's been a lot of investment in intellectual or technological Capital.

Now there are two more kinds of capital that are crucial for sustainable development and often not sufficiently invested in.

One is a natural capital to grow our food to be safe, to have clean air to be safe from extreme storms to avoid coastal erosion to avoid the destruction of our forest areas and other ecosystems. We have to protect the natural ecosystems. We have to invest in the natural capital that in turn provides so many natural services of food and fiber and the protection from the elements and cleaning the water and so forth. If we're not careful of course we destroy natural capital. The soils are poisoned by chemical pesticides so the air is poisoned and the water by toxic releases of chemicals. The climate is changed by greenhouse gas emissions. So we've learned that to create sustainable development we need actively to invest in the stability of conservation of natural capital.

The final kind of capital that I would emphasize is also an intangible. Sometimes called by economist and sociologist, social capital. Social capital means the social fabric the social networks like the physical infrastructure networks but this social human networks that whole society together. Do individuals and families have a social support network? Do people trust others in their community? Does the public trust the government to be honest to use tax revenues for legitimate purposes rather than for corrupt self-serving purposes? This question of trust and social support is called social capital. Some countries are highly trusting both in each other and in government. Other countries have citizens that are absolutely wary you can't trust the other person and I certainly don't trust my government. And that's very common as well so there's a big variation in social capital in the world. Now it seems strange could you invest in social capital? Could you invest consciously and saying we need a more trusting society? And the answer absolutely is yes. Governments that are more honest themselves undertake legislation of transparency that resigned when they're caught red-handed in corrupt practices and so forth. Our governments that help to foster social capital and many other aspects of societal behavior the extent of income in quality, care for the poor, the protection of the minority groups in society, foster social capital or the failure to undertake the steps of diminishing social capital.

So my point about infrastructure, human capital, business capital, intellectual capital, natural capital, social capital, is that these are all parts of a society's productive assets, some are tangible and some are not tangible; some you can see before your eyes some you only can feel. But investing broadly in this range of productive assets of society whether it's the trust or the roads or the new patents or the factories as part and parcel of achieving broad-based objectives like a sustainable development goals.

Two more points that I would like to make in this chapter. In order to achieve that broad kind of investment we need saving an investment from all major sectors of the society. Government for example has a huge role to play without government investing in infrastructure it's not going to get done. Without government ensuring quality public education it's not going to happen, without government protecting the natural environment than the natural capital is going to be depleted rather than preserved or built. But the private sector is also key. Without private sector companies searching for profits and value and economic growth and market growth there also will not be economic development and sustainable development. Without the not for profit sector Universities for example or foundations or NGOs or think-tanks also pursuing research and development or education activities then Society well so far short of human capital or intellectual Capital. So, this means that investing in this broad range of productive assets also requires a broad range of stakeholders. Those who say it's only private markets and profits drive an economy are wrong. Of course, those who say that the government has to do everything or should do everything are equally, dreadfully mistaken. The key message is mixed economy.

The second point that I would emphasize in that regard is a good balance between rural and urban areas. Most economies by the time they're rich like Korea's are overwhelmingly urban and that's the case from Korea. But it's also true that if you look at Korea's development experience Korea balanced investments in rural areas, in the villages and I'll talk about that in another chapter. With the investments in the urban sector and in industrial activities in the cities and so a good geographical balance is also quite important. And especially for countries today say those throughout Africa or in low-income Asia or maybe half the population rural and half the population is urban. A good balance of improving rural productivity and improving urban productivity is a key to achieving the sustainable development goals. The basic lesson achieving the SDGs requires saving and investment. That saving and investment needs to be a balance saving and investment across infrastructure, human capital, business capital, intellectual capital, social capital, natural capital, broad-based investment strategy and to achieve that we require investments by the public sector the private sector and not for profit sector and we require a balance geographically in where those Investments are undertaken.

Chapter 3

Hi, I’m Jeffrey Sachs. And in this chapter I want to talk about the question how should developing countries get started with the sustainable development goals. Here we have a new globally agreed agenda. The time is short. SDGs are 15-year agenda to reorient every economy to make sure that it achieves the triple bottom line of economic prosperities, social inclusion, and environmental sustainability. Context matters enormously. The challenges for Korea as a rich successful prosperous economy are quite different from the challenges of Niger or Lao P.D.R which are low income countries still struggling to make economic break through. But for all economies, I think there are certain basics that are essential and in these few minutes, I want to talk about some of the basics of getting started.

Now, the most important to the basic of course is context. To understand where the countries stand in terms of the sustainable development goals. And for that purpose, so we need tools and in fact I have brought one tool along with me just now. It’s the SDG index and dashboard that the UN Sustainable Development Solutions Network prepared. If we look up Korea for example, we have a benchmarking for Korea and Korea turns out of 149 countries sampled in this SDG index, Korea ranked near the top and not at the top 27 out of 149. And by looking at indicators across the 17 sustainable development goals one can get some sense of the prioritization. And for Korea, let me give an example. If you look at the economic goals, fighting poverty, ensuring food security, having access to water and energy services, decent health, decent education, decent jobs, decent infrastructures, these are SDGs 1, 2, 3, 4, 6, 7, 8, 9. When I look Korea ranks quite well on those on the economic pillar. Definitely Korea is one of the top countries of the world. When I look at the social inclusion aspects, gender equality or overall economic equality, SDG 5 for gender equality, SDG 10 for overall economic equality, Korea is in good shape but not absolutely near the top. And for gender equality for example the indicators, percentage of women in parliament or the gap of wages and earnings between men and women not as narrower gap as one would like to see. And so there are indicators that Korea has some work ahead on the social inclusion objectives. When I look at the environmental objectives which are STD 11 meaning green cities, SDG 12 so-called sustainable consumption and production, SDG 13 to stop human-made climate change by bringing greenhouse gas emissions down to near zero, SDG 14 protecting the coastal areas in the marine and ocean environments, and SDG 15 protecting the land ecosystems, there I find the Korea according to these data are really facing some some big challenges. There are areas of a heavy air pollution, Korea's emissions of carbon dioxide per person around 12 tons per person per year is quite high and meaning that Korea needs a major effort to reduce its greenhouse gas emissions in future years. There are indications that Korea has not adequately protected its marine & land environmental systems and so forth.  So of course the first step of achieving the SDGs is know where you stand. And for that indexes of the SDGs like the sustainable development solutions network index and dashboards are very important for countries to get an idea of how they are oriented.

The second point that I emphasized in the previous chapter is that a balanced portfolio of Investments that looks it infrastructure, human capital, business capital, intellectual capital, natural capital, social capital, that kind of balanced portfolio, rural and urban, public and private, I think is really key. Because in an economy that aims just in one direction, it's going to be oil dependent or just in another direction it's going to be private sector oriented without the role of government will not achieve sustainable development. Probably won't even achieve economic development much less economic development that is socially inclusive and environmentally sustainable.

Now, the third point that I would emphasize is that these goals in fact any complex social objective cannot take care of themselves. And this means that you need national planning. Now, national planning has a mixed record and it has a mixed perception.  Sometimes when people think of the national planning in different parts of the world they think of the central planning of the old Soviet style economies that had failed and let to impoverishment and economic collapse. But the kind of economic planning that I’m talking about is different. It’s planning to say by 2030 we want to achieve certain objectives. This requires a cycle of investments both public and private. This requires in terms of our own government if it’s government official asking this question, that the government fulfill its part of the responsibility in spending and taxation, in budgeting for public sector capital – improving infrastructure, regulating the environment, and so forth. The planning mechanism in my view is very very important. Now it’s interesting that in Korea’s miracle period, especially the period launched in early 1960s by president Park, a lot of the first 25, 30 years in fact through 6 Five Year Plans was through a formal planning mechanism. And I think those Five-Year Plans served Korea very well. By the late 1990s, Korea had dropped the formal Five Year Plan structure that was a part of a worldwide reaction to the collapse of the Soviet Union in fact because the Soviet Union was famous for its Five-Year Plans. And it seemed that kind of central planning had let to collapse. But I think we went too far in dismantling planning mechanisms because we need plans to help countries grow in a green way, to help them to be more socially inclusive, to help to make sure the infrastructure is adequately developed. So in my view, countries need plans. Plans come in different time horizons. Of course, almost every government in the world has a one year “Plan” which is its budget. When it comes to in case of planning for the energy transition, shifting from coal, oil, and gas to low carbon energy sources like wind, solar, or nuclear or hydro power, geothermal energy. That requires a planning over 20 to 30 year period because that’s how long the infrastructure is and how long ahead we have to anticipate changes in peak use and so forth to make sure there is a resilient energy system. So, planning is extremely important and one part of the planning under the sustainable development goal to emphasize is concept of back casting. Back casting means planning for success by saying in the year 2030, Korea, Niger, or any other country should be at following levels of performance whether it’s economic, social, or environmental. And then saying for our country to reach that level of performance in 2030, we have to take steps between now and 2030 to get that far. And by back casting from the year 2030 to the present, we can say here is our trajectory for success in SDGs.

The next point that I would suggest along the line of this balanced investment approach is some specific lessons from the Korean experience really emphasizing technological transformation. One of the great suggest stories of Korea is the speed and determination of Korea moving from a commodity based economy in the 1950s to a relatively low skilled labor intensive based economy in the 1960s, to a more and heavy industrial economy – chemicals, ship building, and large construction – in the 1970s and the 1980s, to an advanced electronics, information technology, and intellectual capital economy in the last 25 years. So Korea has in a way walked up the value chain from labor intensive relatively low skilled production to cutting edge technologies and that’s been part and parcel of its economic success. Now how the Korea do that? Of course, it did it in part by the vision that develop means a focus on advanced technologies. It did it in part from the excellence of its educations system. It did it in part by government and Chaebol saying we must be able to compete at the front lines of modern technology even in most cutting edge sectors. And often companies took on big challenges. I remember famous cases where Korean company said ‘we will become a leading world exporter of microwave ovens’ for example and then saying ‘How do does work? What do we do? How do we produce? How do we become world class?’ and spending many years in Samsung or other technology powerhouses to develop in-house technologies, reverse engineering, learning-by-doing, driving efficiency, getting to the front lines of global competitiveness in a very conscious way. Well, technology transformation is going to be a very key part of success in achieving the sustainable development goals. We need for example technology transformation from high carbon to low carbon energy from internal combustion engine vehicles to electric vehicles. That's going to require sophistication and a technological drive and investment in research and development and this is the place where we can all learn a lesson from Korea’s success.

The last point that I would make on the general strategy of how to get started is to consider the finances. How to pay for the Investments. Of course, an adequate tax base is part of the story because many of the investments in health and education and public infrastructure are paid for out of government revenues. In addition, governments need to tap into International help when they can. We should remember even though Korea is now an economic powerhouse and a donor country, it was once an important recipient of development aid, especially from the United States in the late 1950s and in the 1960s. This is going to be a truth for today's poor countries. They’re ganna need help. I hope the Korea provides some of that help and other rich countries, but that's another part of the financing.

A third part of the financing is the private financial sectors or the public private financing. Korea relied heavily on Bank financing but a lot of that financing was directed by government. Now, sometimes it’s said ‘Oh, government shouldn't get involved in credit allocation.’ But the truth is that government is involved and government’s involvement in credit allocation in the miracle years of Korea's growth from the 60s to the 90s was on the whole quite important even though big mistakes were also made. And I think the concept of development financing of national development banks or directed credits to priority sectors still has a role to play not just purely market-driven capital but the capital that's driven by a mix of public and private considerations.

So these are the main points that I would say in getting started.

Get the contexts. The National specifics understand where your country stands in terms of an SDG ranking or an SDG index what are the contextual areas.

Plan ahead. Don't think this is going to happen on its own. Think about the technological transformations and how would they are going to be necessary to achieve sustainable development.

Have a balanced view with it spreads across rural urban and the many kinds of capital that I've been emphasizing.

And finally, understand the complexity of the financing challenge. Investment does not pay for itself at least not contemporaneously and not straightforwardly. Taxation, borrowing, international aid, bank credits, development finance, they're all part of the institutional mix and the financial flow mix to help to finance the investments to achieve the sustainable development goals.

Chapter 4

I’m Jeffrey Sachs and in this chapter I want to talk about the international context of achieving the sustainable development goals. Agenda 2030 puts a big emphasis on global partnerships and SDG 17 is about global partnerships. It says that in order to achieve the first 16 sustainable development goals on inclusive and sustainable economic development, we need as the 17th goal, partnerships, in order to accomplish this. I want to explain in just a few minutes what this really means. Every country's development is largely its own responsibilities. The strategies, the financing, the very hard work, the public investments that are needed, cannot be made from outside. But I think it's fair to say that every country in the world had needed help at one point or another help from other countries in the world to become independent to stand up on the country's own feet or to get help in particular areas. I know that's true of my own country, the United States, because without early assistance from France for example there would have been no independent United States of America. And it's also true of Korea’s experience. From the Korean War to rebuilding the Korean economy beginning in the late 1950s to Korea's economic miracle from the early 1960s through the end of the 1990s and Korea's continued dynamism till today. Korea has needed help at times from other countries and we need to keep that in mind in order to help those countries in more desperate shape today to have a chance to achieve sustainable development goals. If you look at the Korea's experience in the 1950s and 1960s, of course Korea was attacked by North Korea and was able to survive and defend itself in part through the defense support of the United States of America and other allies of Korea. But after the Korean war in the mid to late 1950s Korea was in pretty desperate shape, extreme poverty one of the poorest countries in the world, no natural resource base to speak of. Without question it was Korea's ingenuity and hard work and good strategy that made the Korean economic miracle possible. But I would say also that the Korea’s help that came from the United States in particular was also very very important. The United States gave financing to rebuild basic infrastructure. The United States gain financing to help meet Korea’s social needs in the 1960s. It happened to that Korea was given a pretty open market by the United States and also lots of contracts for supplying the US war effort in Vietnam that was an early stimulus to a lot of Korean companies. But generally speaking in the partnership of Korea in the United States, the U.S. really played an important strategic role as a financer, as an open market, as a purchaser of Korean products, as a geo-political booster of Korea in many International forums and venues. That was very very important in Korea’s ultimate success in its economic miracle. Now, I believe that this basic point remains true today. We have very low income countries and objectively speaking even if those countries do all the things that they're supposed to do – in good governance, in good strategic planning, in public Investments – they simply lack the budgets, they simply lack the financial means, they simply lack the creditworthiness right now to undertake all of the investment in human capital physical infrastructure, protecting the natural environment, technological R&D and the other kinds of capital in order to achieve the sustainable development goals. They need partnerships. And we have seen during the 15 years of the Millennium Development Goal period from the year 2000 to 2015 where I served as the UN secretary-general special adviser on the Millennium Development Goals for Kofi Annan and for Ban Ki-moon. We’ve seen that development aid well targeted two countries that are ready, able, willing, determined, to use that aid effectively made a huge difference in controlling disease or helping children to be in school or building the basic infrastructure needed to overcome extreme poverty. And the same kind of assistance will be needed now. I'm a big believer in what are sometimes called global funds where countries that are donors pool their resources into a common pot into a common account to enable countries to then use that funding in a strategic way to advance their needs. Korea houses a new global fund, the Green Climate Fund based in Incheon and I'm happy to say that I recommended the Korea would be a wonderful home for the Green Climate Fund.  The Green Climate Fund is one of those pool financing mechanisms that is vital to achieve the sustainable development goals. It's created under the mandate of the UN framework convention on climate change. And it's there to help provide financing for energy system transformation to a low-carbon energy system and for climate adaptation to help make an economy and society resilience to climate change. And I believe Korea has a particular responsibility in the GCF and it said ‘We want to host it, we wanted to be in Incheon’ and I believe that Korea now needs to help make it a success. Korea has gone from being a recipient country of aid to being a donor country. But I believe as one of the world's richest economies Korea can do even more. There is a standard of good behavior that says under international practice that donor countries should aspire to give up to 0.7 of 1 % of their national income as development Aid. And I would like Korea to start taking steps as it gets richer and richer to reach that 0.7 standard right now Korea is at 0.1 % of national income roughly in its development assistance. But the government has promised that it would quickly get up to 0.25 % but it’s going to have to really move much faster in order to reach that border objective. But even 0.25 of 1% one quarter of one percent of Korea’s national income. Wanting in opinion live up to Korea’s responsibilities as one of the world's most advanced most successful and very generous countries in development aids. So I would like to see that level of assistance continue to rise. Of course, Korea can do more than only giving money, but giving money is very important, giving assistance it can also give advice. And one of the areas where I'd seen Korea give really good and solid advice is in the area of rural development. You know under president Park chung-hee in the economic miracle years, one theme was rural self-sufficiency and economic development called the Saemaul Undong movement, the New Village Movement. And this was an idea that even very poor rural Villages had to take responsibility for their development by investing in health and education, higher crop yields and developing specific products, processed foods or other goods that that village could use as a pathway to higher incomes. And now with the Korean government through KOICA, the Korean aids agency, is giving advice in Africa and I've been privileged to help of partner in that effort on how the Saemaul Undong concepts that served Korea so well, it can also now serve Africa as it aspires to achieve this sustainable development goals. Korea also in my view has a huge lessons to offer in education. You look at almost any area of education and I know it for my own students at Harvard University and Columbia University, the Korean students are just at the top of the charts. Korean school systems work extremely well. Highly qualified teachers, highly motivated households, parents urging their children and helping their children with educational success and here too I believe the Korea can really share lessons of educational success. And my recommendation has been that we have a global fund for education, like a global fund for climate, the Green Climate fund or like a global fund to fight AIDS, TB, and malaria which is a very successful Health Fund. But that we have a global fund for Education which enables the poorest countries to get the financing that you need to achieve a SDG 4 which is the on universal access to quality education. And not only do I think we need a global fund for education I think Korea should help to lead and help to finance it because of Korea's a very particular successes. There's another way that international cooperation can play a huge role and that is through helping on high technology and advanced skills. Korea has universities of excellence that can partner with other universities around the world. It has KDI and other world class think-tanks, they can partner with think-tanks around the world. And it is...Korea has cutting-edge technologies in its major companies that are in the leading edge of the nanotechnologies, information technology, mobile, wireless, advanced robotics, advanced transport technologies, and so many areas where sharing this knowledge and helping poor countries to access the advanced technologies will be essential.

An area where I would like to see Korea play a larger role internally as well as a larger role internationally is in the green economy. Korea actually initiated the Global Green Growth Institute many years ago to help create a center of knowledge, base of knowledge, on how to grow but grow in a green way. Well this remains a Korea’s challenge as well because Korea has to continued its economic growth but decarbonize its energy system. And I believe the Korea can be, should be a leader in renewable energy technology, in advanced nuclear energy technology, in electric vehicles, in smart grids, in efficient appliances, in low-carbon Industrial Technologies as well. Because this is a really Korea's expertise on how to achieve big bold technological objectives with forward look that will put Korea also in a highly competitive situation for the new global sustainable development economy. And so this is another area where I would think the Korea's own history gives a road map for Korea's future strategy and how a global partnership around technology that can really take effect image in a very fruitful way.

Chapter 5

Hi I'm Jeffrey Sachs and in this chapter I want to talk about the really important basic question on what can today's developing countries learn from Korea's remarkable development experience. I want to summarize some of the major lessons of Korea's unique trajectory from one of the world's poorest countries to one of the world's richest countries and I'll do that taking what I regard as 10 major lessons of Korea's development experience.

The first lesson is that development is a process that stretches out for decades. It's of course hard to imagine that one could move faster from extreme poverty to great wealth than Korea did. But to achieve with Korea achieved was a matter of around half a century from the late 1950s until the early years of the twenty-first century. It was the transformation from post war rural nearly object poverty to a Korea’s position as one of the world's richest and most sophisticated economies. One could say that's very fast in two generations remarkable transformation of society but I think it's also true that it's much slower than individual political cycle. It's much less achievable, not achievable within one or two governments. This is an effort that is a national effort, not to the success of only single government or a single decade. Keeping in mind that time perspective, the pacing the fact that this is a marathon not a sprint is very important for economic development but also taking heart obviously in the fact that a country can go from being one of the poorest and war-torn and to many eyes back in the 1950s seemingly hopeless to being a success story that Korea is today also an inspiration.

A second point that I've emphasized in earlier chapters is the Korea's success is built on some basics. Already even in poverty in the post Korean War 1950s, Korea was lucky to have a literate population. Even the poor people in the countryside could read and write. That in turn was partly a legacy of Korea's cultural history, of Korea's the 20th century experience. But it also means that Korea subsequent economic miracle was built on the foundation of literacy and numeracy. It was also built on the foundation of basic decent public health. Of course health improved over the years as Korea got richer but the Korean government focused on public health early on. It focused in other words on the three main components of human capital that is basic health, basic nutrition and food security, and the basic education. And it was on the basis of that the foundation of human capital that the rest of the Korea's economic miracle unfolded.

The third dimension of Korea’s experience that I believe is important is that Korea used national planning. Indeed, used a cycle of five year plans during its economic miracle. I want to remember this fact because I believe the planning is vital to achieve the sustainable development goals. After the fall of the Soviet Union, planning went out of fashion. Korea itself eliminated its planning cycles in the form they existing during the economic miracle. Many other countries disbanded their planning ministries or were told five year plans that's what led to the Soviet Union to collapse. But I think this is a mistake. Of course, no economy can or should be fully centrally planned that's for sure. But no economy can do without planning and the idea of having a planning cycles especially over investments in infrastructure, in technology, in human capital, in health, I think is essential part of the success story of Korean economic miracle.

A fourth key point of course is the Korea's development was export led. Export led growth has many important advantages. Most importantly by earning foreign exchange of country is able to earn its way in the world because it can use that foreign exchange to buy a highly sophisticated equipment and technologies that are needed to advance the technological base of the society. For almost any country the preponderance of technologies that are needed for development are not made inside the country but are imported from outside. But how to pay for those Technologies that’s through export led growth. So famously under President Park who initiated the Korean economic miracle in the early 1960s, the president and the government put a big focus on export promotion. This was smart. And it enabled Korea to have a high growth, high investment economy where Korea earned the foreign exchange that it needed to rapidly upgrade the technological base. Now Korea went on a particular path of export led growth, mainly from labor intensive manufacturers in the 1960s to heavier industry in the 1970s and 1980s to electronics and information technology based Industries in the 1990s until today. Marching up the technological pathway as the economy became more and more sophisticated, more and more high-tech based. Other economies that have more land per person or other natural resource base will have a somewhat different trajectory from Korea's trajectory. But strategizing where can the export can come, how can they be developed, how can they be promoted, what is the infrastructure the skill based the technology based that can help to promote a nation's export growth I think it remains of the main lessons that these were the questions asked and answered in Korea’s own development experience.

The fifth role I already hinted at and that is a special focus on technology. Economist now for, I would say, 60 years have been studying the question what makes long-term economic growth. Is it saving and investment? Is it the accumulation of capital? Well that's part of it. But what makes the real ongoing economic growth has been the waves of technology indeed that have been part of the world economic system since the start of the industrial era 200 years ago. One of the very smart parts of East Asian Economic Development, I think Japan had this Bright Idea Korea really adopted it. Now China, Taiwan, Singapore, other counties in the region share this idea is that climbing the technology ladder becoming more and more sophisticated, being part of the next wave of technology is key to global economic success. Well, being at The Cutting Edge of technology is not easy. Requires universities and institutes of very high quality. It requires quality education, it requires public and private investment in research and development. It requires vision, it requires commitment to being part of the technology age and I would say the Korea's success has been in no small part derived from the fact that Korea always knew we need to accelerate our technological capacities. Our companies can't just sit on their old patterns of exports they have to continue to innovate improve products and really burn their competitiveness by improving the technology base.

The sixth area that I've emphasized for the sustainable development goals is back casting from the 2030 objectives til today. In other words, plan but plan for success. What will it take to achieve these sustainable development goals, what are the core Investments, what are the Strategic priorities, what is the Benchmarking, where are areas where International partnership will be especially important.

The seventh area that is a logical concomitant of what I'm empathizing in terms of this technology and capital based approach is high savings and high investment rates. Countries don't get rich through consumption, of course consumption is the benefit of a productive economy, but in order to achieve a high performing economy, there needs to be lots of shaving and lots of investment. Most of the country's investment will be financed by its own saving. This was also true in the Korean context. Some of the investment will be financed by development aid, some of the investment will be financed by foreign companies bringing capital, either portfolio capital or direct investment. But most of the investment will be financed by countries own saving rate. If one looks at the miracle years of Korea's rapid growth, saving and investment typically were 30% of national income or even higher. In some years, around 40% of national income was invested. This allowed for a rapid improvement of the capital stock – human capital, physical capital, business capital, infrastructure capital, intellectual capital – and  without the domestic saving Korea would have had to borrow all of that from abroad and probably would have hit massive financial crisis that would have stopped the investment growth. And so high saving, high investment are part and parcel of a rapid economic development scenario.

Point eight that I would emphasize is bumps in the road. Even though we can look back today and look back 50 years and say wow Korea’s success went from light industry to heavy industry to advanced technologies and somehow that looks like a smooth wave. It was a very very bumpy ride. It was a very bumpy ride politically; it was a very bumpy ride at times financially Korea experienced two massive financial crises one in 1997 which was the Asian financial crisis and Korea really went into a very big crisis required an IMF bailout. I was not too happy about some of the advice that the IMF gave but Korea depended on the international financial support in those days and use the occasion to reform the economy. And then in 2008, this was a worldwide crisis when Lehman Brothers went bankrupt on Wall Street on the September 14th, 2008. Within a month, that crisis on Wall Street had spread to Korea and Korea was on the verge of being drained of its foreign exchange reserves until the special financial swap arrangements between Korea and the United States eased that crisis. But it was still a bad crisis worldwide. So, bumps in the road are inevitable. Countries need to maintain a financial cushion of financial reserves. One things Korea learned in 1997 and again in 1998 is…. in 2008 is that if you borrow short-term those short-term loans can dry up overnight in a worldwide financial panic. And so if one is going to rely on international financing, it should be long-term financing and it should be backed by short-term assets of the central bank foreign exchange reserves or financial assets of a sovereign wealth fund that ensure that a country when it hits a speed bump and a financial crisis perhaps part of the world financial crisis doesn't spiral out of control.

A ninth point that is obvious but I think it really bears emphasizing is the Korean people have worked incredibly hard. For many many decades to bring about this great success. In a way Korea survival was at stake after the Korean War. It was a frightening period. Korea was poor. It didn't have even the most basic infrastructure. The question of hunger was very real. And the Korean people came together with the tremendous Social Capital, tremendous the national spirit and worked very very hard. If you look at almost any table today ranking countries by how many hours of work, people work, Koreans are working more hours per year then in just about any other high-income country. This has been a very hard effort. Development doesn't come for free. It comes from very hard work it comes from hard study it comes from serious investment, serious work year after year decade after decade and I think that this has been part and parcel of Korea's success. It's so admirable and people all over the world admire Korea for that achievement.

The tenth and final point is the importance of balancing economic social and environmental objectives. So that's part and parcel of sustainable development and it's built into the 17 sustainable development goals. We know from Korea's own experience and now perhaps even more vividly from China's rapid growth from the late 1970s until today. That it is possible to achieve economic development but at some heavy costs of social and environmental objectives. Korea has especially excelled in the economic side. Of course, I would argue that social achievements are also very strong – good education, good public health, good social inclusion, income inequalities that are not too vast – but I would say that on the social side, Korea has its work to do in gender equality, in reducing poverty within Korea, in ensuring that economic development does not lead to wider dispersion of wealth and inequality. But on the environmental side Korea and especially China, in a way, even sacrificed some of the environmental objectives to achieve rapid economic growth. In Korea, there's evidence of environmental degradation of coastal areas, of rivers, of the marine environment. There is insufficient protection of both the Marine and the terrestrial ecosystems. And there's a heavy reliance, I would say a naturally in a way because it is true just about all countries in the world, on fossil fuels, in an era where we have to move away from fossil fuels. In China, it's even more dramatic because not only is there a heavy reliance on coal specifically but the production is in unsafe manner with the old coal plants that are very heavily polluting and other forms of urban pollution that have left the China’s air so dirty and so polluted that it's a massive public health crisis for China and for neighbors of China as well. So we are reminded that Korea has its own challenges ahead, decarbonizing the energy system, green growth, becoming world leaders in the new low-carbon technologies so that Korea can continue its tradition of being at the cutting edge of global technologies. And working to ensure the fairness of Korean society, gender equality, help for the poor, keeping inequalities of wealth and income narrow. This is a 10th point that I would emphasize. It really goes to the heart of the challenge of achieving the sustainable development goals. Keeping our eye on the 3 bottom line objectives: economic prosperity, social inclusion, and environmental sustainability.

지속가능발전 E-Course 콘텐츠 탑재 협의 관련 주요내용

□ 출장자는 UN SDSN Council Member인 Jeffrey D. Sachs 교수와 지난 2015년 1월, 발전경험연구팀 김태종 개발교육·연구실장, 정영주 선임전문원과의 ‘지속가능발전 E-Course 개발을 위한 Kick-off 회의’내용을 재확인

- 주요 협의미팅 내용: SDSN Education Team과의 구체적인 협업방안, SDSN의 강의 플랫폼(SDG Academy)에 본 E-Course 등재를 위한 기본 요건 확인

□ 본 E-Course를 SDG Academy에의 업로드 여부에 대해 Jeffrey D. Sachs 교수는 긍정적인 의견을 주었으며, SDG Academy 콘텐츠 담당자와의 실무협의를 위한 연락처 정보를 제공

□ 출장 복귀 후 발전경험연구팀은 SDG Academy 콘텐츠 담당자인 Chandrika Bahadur와의 콘텐츠 보완사항 및 업로드 timeline에 대한 논의를 지속하고 있음