ADB urged to 'gear up' to fight poverty in communist North Korea

from Mainichi Daily News

KYOTO, Japan -- South Korea urged the Asian Development Bank on Sunday to consider communist North Korea a future client and start preparing to fight poverty in the isolated, desperately poor nation.

"With positive developments being made on the (North Korean) nuclear issue, I can envisage the international community's response to North Korea cautiously, but significantly improving," Kwon O-kyu, South Korea's governor to the ADB, said during the development bank's annual meeting in Kyoto.

"In this regard, I suggest that the ADB gear itself up to supporting the reform efforts of potential future clients like (North Korea), when conditions mature," he said.

After a several-year standoff with the United States and neighboring nations over its nuclear weapons program, North Korea pledged in February to shut down its only operating nuclear reactor by mid-April in return for aid and other political concessions.

However, it has refused so far to act until it receives US$25 million (?18.4 million) in funds frozen in a Macau bank, Banco Delta Asia. The U.S. and Banco Delta Asia have said that the North's funds -- frozen because of alleged links to money laundering and counterfeiting of US$100 bills -- are now free for withdrawal.

But for unknown reasons, North Korea has yet to take the money.

On Saturday, Japanese Foreign Minister Taro Aso was quoted by Kyodo News agency as saying international talks on ending the nuclear stalemate could resume as early as next week if the frozen funds issue is resolved.

North Korea is one of Asia's poorest countries, but is not a member of the 67-member Asian Development Bank, which was founded in 1966 to fight regional poverty through economic development.

In recent years, North Korea has taken tentative steps toward reforms in an attempt to help its moribund economy. But the dispute over its nuclear programs has stymied any major breakthroughs.

Kwon said inaction over North Korea's isolation and poverty would only "increase the risk that this reclusive country can pose to the world economy."