History of cooperation between port cities

(1) Organization for East Asian Economic Development (OEAED)

The best known inter-city institution in the Pan Yellow Sea Zone is the East Asian City Conference (currently known as OEAED).

Participating cities (10 cities): China (Dalian · Tianjin · Yantai

· Qingdao), Korea (Incheon · Busan · Ulsan), Japan (Fukuoka · Kitakyushu · Shimonoseki)

Kitakyushu (secretariat city) has led the operation of OEAED since its launch as the East Asian City Conference in 1991.

In the beginning, the East Asian City Conference aimed at promoting economic cooperation between -- and mutual prosperity of -- different cities. It rides on the flourishing Chinese economy and rapid development of the Pan Yellow Sea Zone.

An assessment found that the East Asian City Conference focused on improving cities’ friendly linkages. Thus, OEAED was established during the November 2004 meeting.

The member cities agreed that the Pan Yellow Sea Zone was home to the notable development of the steel, semiconductor, shipbuilding, and automobile industries. Moreover, they believed that the horizontal division of labor between different cities would be realized through the export and import of parts in the area. Thus, the East Asian City Conference was renamed OEAED.

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OEAED established 5 key tasks and 4 divisions to realize substantive accomplishments in 2004.

5 key tasks: promotion of East Asian FTA; creation of the Pan Yellow Sea Environment Model; creation of the new business generation system, implementation of the Pan Yellow Sea tourism brand strategy; establishment of technology transfer/talent education platforms

4 divisions: manufacturing, environment, logistics, and tourism; the following are the members of each division:

· Manufacturing: Kitakyushu, Yantai, Ulsan

· Environment: Kitakyushu, Dalian, Incheon

· Logistics: Shimonoseki, Tianjin, Busan

· Tourism: Fukuoka, Qingdao, Busan

The manufacturing division seeks to promote industrial exchange between China, Japan, and Korea. It is currently considering the following projects:

Designation of offices for business inquiries, promotion of online/offline business exchanges, expansion of manufacturing exchange between 10 member cities, research on and promotion of industrial transfer between 10 member cities, hosting of the East Asian Environment Industry Technology and Investment Show, establishment of network platform, and establishment of advanced technology/top goods exhibition center

The Environment division aims at the compilation and organization of city environment information and environment industry information and related exchange of opinions. It pools suggestions for cooperation projects from member cities.

Some of the projects are as follows: establishment of information exchange platform; information compilation and organization of a group of environment-related scholars from universities and research bodies; inducement of participation of businesses and research bodies in the environment division’s activities; promotion of talent education through

international workshops; identification and development of joint research projects; fostering of the circular economy in the region, and; joint operation of the youth education program.

The logistics division is developing a database of port information. It prepares policy suggestion reports for central governments and vitalizes cargo processing through international airports. The division also modifies logistics promotion projects for the Pan Yellow Sea Zone.

Some of the detailed project proposals include the following:

hosting of the annual meeting of the International Association of Ports and Harbors; utilization of the multi-cross port service at the Hakata Port; promotion of sustainable and mutual benefits for the East Asian region; provision of quick delivery service; construction of the logistics association network for 10 member cities; establishment of the Ferry RORO route between 10 member cities; provision of mutual support between ports sharing certain characteristics, and;

development of logistics cooperation project and international logistics works.

Finally, the tourism division facilitates the sharing of tourism information between member cities. It maintains the region’s tourism website and publishes city-guide literature.

Pan Yellow Sea Tourism Campaign, tourism information network development, tourism product development, incentive-based tourist attraction, field trip planning, promotion of easing regulations, etc.

(2) Japan-Korea Strait Zone cooperation & establishment of the Busan-Fukuoka Economic Zone

Since it was initiated in 1992, cooperation between local governments in relation to the Japan-Korea Strait Zone has continued (Won-Bae Kim, et al, 2005).

The governors of 3 prefectures (Saga, Fukuoka, and Yamaguchi) in Southwestern Japan and 2 cities (Busan and Ulsan) and 3 provinces (Gyeongsangnam-do, Jeollanam-do, and Jeju-do) in Southern Korea meet regularly. As a result, various cooperation projects for the youth, culture, and sports

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have been promoted. Environment technology and other business areas have also been pursued.

The following are some of the key projects: environment technology exchange; fishing industry-related exchange;

citizen fraternity programs led by tourism promotion agencies;

environment-friendly agricultural exchange; disaster prevention exchange; science and technology exchange, and;

information network establishment.

The forum for regional research institutions was established to support the governors’ meeting in 1994. Since then, it has conducted joint research works in various fields.

Even with the abovementioned projects, however, economic accomplishments for the past 16 years have been minimal.

Nonetheless, the secondary accomplishments cannot be ignored. These include the significant increase in the number of cross-border travelers between Japan and Korea (mostly Korean tourists to Japan) and improved understanding of the two countries’ culture.

The meeting is operated considering all the members’ interests and consensus. This explains the relatively poor economic accomplishment.

Busan first suggested to Fukuoka the creation of a supra-regional economic zone between Busan and Fukuoka in March 2008. Based on the continuous bilateral discussions, detailed plans are being implemented.

The establishment of the supra-regional economic zone was inspired by a change in the future outlook of the two cities particularly Busan. In other words, it is an expression of Busan’s will to open the Era of Cities through joint efforts with Fukuoka. The city recognizes that surviving the inter-city competition in the 21^st century on its own would be difficult.

Fukuoka has a relatively inferior status within Japan in terms of economic size and technology level. Thus, it seems to have decided as well on cooperating with Busan to form a unified economic zone. The city realized that such cooperation would benefit it more than an independent development strategy.

The single most important project is the launch of the Busan-Fukuoka Economic Cooperation Conference; the details of organization and operation are currently being discussed.

Busan and Fukuoka have started commissioning research works that can be conducted through joint efforts. The joint study mainly focuses on the introduction of low-cost flight shuttle between Busan and Fukuoka. Other thrusts are as follows: tourism promotion to expand the scope of cultural exchange; increased automobile parts industry-related exchange; strengthening of industry-academe cooperation through the appropriate agency; expansion of human exchange between universities; IT industry exchange between Japan and Korea, and; establishment of a talent bank in the Japan-Korea Strait Zone (Busan Economic Policy Division, 2008).

Efforts have been made to create a supra-regional economic zone beyond the national boundaries by Busan and Fukuoka.

This presents us with a new direction for inter-city cooperation in Northeast Asia. Note that it is quite similar to the cross-border cooperation between Malmo and Copenhagen in the Oresund area of Europe.

Whether or not Busan and Fukuoka can create a supra-regional economic zone will depend on two factors: receptiveness of citizens and businesses to the political leadership and their efforts toward accomplishing the goal.

(3) Other exchange and cooperation programs and projects

Some of the substantive programs aimed at enhancing exchange and linkages between key cities in the Pan Bohai Zone are as follows: Pan Bohai Zone Economic Cooperation Conference of China, Japan, and Korea; Pan Yellow Sea Zone Economic and Technology Exchange Meeting, and;

China-Japan-Korea Industrial Exchange Council.

The Pan Bohai Zone Economic Cooperation Conference of China, Japan, and Korea was first held in Tianjin on August 30, 2004. Government and economic officials from China, Japan, and Korea participated in the conference; they agreed to disseminate Japan and Korea’s capital, industry, and technology to aging industrial regions in Eastern China and Pan Bohai Zone. The three countries decided to maximize their strengths to help China,

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Japan, and Korea begin a new history of cross-border cooperation in the Pan Bohai Zone.

Key participants were the three countries’ government officials and industry leaders. They included China’s Commerce Minister Bo Xilai, high-ranking officials from the Policy Committee of Japan‘s House of Representatives, and former Korean Prime Minister Su-Seong Lee.

The need for China-Japan-Korea economic cooperation was raised. Thus, the Pan Yellow Sea Zone Economic and Technology Exchange Meeting was introduced during the ASEAN+3 Summit (Philippines: 1999; Singapore:

2000). During the summit, participants decided to promote intimate economic cooperation and exchange in the areas of international trade, investment, and technology.

The 1^st meeting was held in Fukuoka in March 2001, the 6^th meeting, in Rizhao of Shandong, China in September 2006, and the 7^th meeting, in Kumamoto, Japan in November 2007.

During the Pan Yellow Sea Zone Economic and Technology Exchange Meeting, discussions focused on the promotion of trade and investment, science and technology exchange, and education and human exchange as the main issue.

The China-Japan-Korea Industrial Exchange Council is the first joint project for economic cooperation. It brings together the three countries’ trade and investment-related government agencies (China’s Ministry of Commerce, Japan’s Ministry of Economy, Trade, and Industry, and Korea’s Ministry of Commerce and Industry) and supporting agencies (KOTRA, CCPIT, JETRO).

During the meeting, an industry show for businesses from the three countries was held. Other activities included a symposium featuring the economic cooperation between businesses in China, Japan, and Korea, several investment and procurement council meetings, and other economic activities.

China, Japan, and Korea take turns hosting the council meeting every year. The meeting for 2007 was held at the same time as the International Parts & Materials Show 2007 (KINTEX, June 2007) in Ilsan, Korea.

Most cooperation projects accompanying the inter-city exchange activities in the Pan Yellow Sea Zone are being implemented in the environment sector.

Some of the examples are the Dalian-Kitakyushu Environmental Cooperation Project, Qingdao-Yamaguchi Ecotown Construction Review Committee, and China-Korea Industrial Cooperation Complex Construction in Donggang, Dandong.

The abovementioned inter-city linkages and cooperation activities in the Pan Yellow Sea Zone are led by businesses.

Korean investment in Shandong accounts for 90+% of the total investment in the province. This suggests the close investment relationship between Korean and Shandong. This study focuses on cooperation projects at the city level, however.

First of all, the Dalian-Kitakyushu Environmental Cooperation Project was developed after the Dalian Environment Model Zone Construction Plan Development Survey was conducted between 1996 and 2000. Such survey was led by Kitakyushu, a strategic city-ally of Dalian.

The citizens’ cooperation activities and city governments’

careful management of different sub-level projects in Dalian and Kitakyushu were studied. Through such study, the validity and importance of international cooperation at the local level were highlighted.

Kitakyushu is a clear international leader in the environment sector. It has implemented various cooperation works based on related requests from Dalian. In fact, the Dalian Environment Model Zone Construction Plan was proposed by Kitakyushu.

The project soon became a pilot project; its outcomes were marketed and promoted throughout China.

Kitakyushu used ODA to conduct a development survey. The purpose was to establish an environmental improvement master plan. As a result of such cooperation efforts, Dalian became the first Chinese city to be given the Global 500 award by the UN Environmental Plan in 2001.

It was also the first case of developing a cooperation project between local governments into an ODA subject.

Kitakyushu and Dalian have expanded their scope of cooperation to include the following: environment-related administration; environment monitoring; sewage processing, and; plant cleaner production.

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Similarly, the Qingdao-Yamaguchi Ecotown Construction Review Committee was organized. It sought to facilitate technology transfer related to environmental protection and waste materials use from Yamaguchi, Japan.

The construction of an ecotown and fostering of a circular economy in Qingdao served as the backdrop.

Qingdao implemented the Clean Hazardous Waste Management project through joint efforts with UNIDO and with technical support from Yamaguchi, Japan. It also pushed through with the Hazardous Wastes in City and Other Waste Purification and Management Fellowship project. For this project, the city collaborated with the Asia-Pacific Regional Center for Hazardous Waste Management Training and Technology Transfer.