S. Korea's tech transfers aid developing nations' economies: ITC chief

By Kang Yoon-seung

SEOUL, June 11 (Yonhap) -- South Korea's technology transfers to developing nations have helped change the "trajectory" of their economies, especially at a time of decline in global official development assistance (ODA), the head of the International Trade Centre (ITC) said.

"Most countries, you know, send the money or send some capacity building or technical assistance, but Korea has systematically, over the years, engaged in transfer of technology, which is a huge commitment and investment," ITC Executive Director Pamela Coke-Hamilton said in an interview with Yonhap News Agency during her first visit to South Korea on Wednesday.

"That changes the trajectory of countries," she said, stressing such technology transfers pave the way for "acceleration and inclusive development."

Coke-Hamilton said such support is especially significant as many countries have recently scaled down their ODA projects as they shift resources to national priorities.

"That's unfortunate, because the truth is, with all that is happening globally, the need for ODA is even more now than it ever was," she said.

The ITC chief said South Korea's stance is significant as it has helped recipients move to the next level of the value chain.

"You're the first developing country that received aid that is now a donor country. I mean, that's phenomenal, in a very short period of time," she said. "It actually builds the technology on the ground that enables developing countries to move to the next level, to engage in value addition."

The ITC noted examples of successful cooperation between South Korea and Africa include the LG-KOICA Hope Technical and Vocational Education and Training College in Ethiopia.

The Kenya-AIST, modeled after the Korea Advanced Institute of Science and Technology, is also among such examples, it added.

Other successful examples of technology transfers include the sharing of customs e-clearance systems with various countries, such as Algeria, Cameroon, Ethiopia and Ghana, which has allowed them to increase trade volume.

Coke-Hamilton added South Korea has also made major progress in assisting developing nations' economies by sharing its expertise in fostering small and medium-sized enterprises (SMEs).

"SMEs make up 99 percent of (South Korea's) firms in number," the executive director said, noting they also account for 80 percent of total employment. "SMEs are a critical part of the Korean economy."

Based on this, the executive director said South Korea has successfully facilitated youth startup academies, allowing developing nations to pursue sustainable growth.

"Most organizations that give financing have a very high threshold to meet, and if you're unable to meet that, you just don't get the money, and therefore you can't scale," she said.

"One of the areas where I think Korea has been really a game changer and a leader is in the implementation of their youth startup academies, because those have actually been translated now into programs we've been implementing in Colombia and Uganda," she said.

The ITC implemented the Youth Startup Academy in Uganda and Colombia, supported by South Korea's Ministry of SMEs and Startups.

Coke-Hamilton said South Korea's commitment to investing in human resources and technology has helped other countries understand why such priorities are important in building their economies.

"I think Korea has been able to do two things very effectively; one has been its investment in human resources. That is transformation. And I think too many countries underestimate the value of humans," she said.

"The second is the investment in technology, and combined with human resource capacity, (it) was able to transform the economy in a way that has created wealth and economic dominance," the executive director said.

Coke-Hamilton noted South Korea showed that investment in technology and human resources comes before economic development, not after it.

In addition, the director general said South Korea can continue to play a bigger role in bridging the Global South and North, as it understands both.

"There are very few countries that have been in that position. You can be an honest broker," she said, noting South Korea has become an economic superpower, as well as an "influencer."

"Korea's engagement on the African continent is going to be very critical and instrumental moving forward,"

The ITC is a joint agency of the World Trade Organization and the United Nations that supports SMEs in improving competitiveness in the global trading environment while helping women, youth and refugees.

Coke-Hamilton is currently on a five-day visit to South Korea, where she is scheduled to meet with senior government officials, including those from the SME ministry.