HONOLULU — "It could have been worse, a lot worse!" This was my initial reaction to the Oct. 2-4 summit meeting in Pyongyang between South Korean President Roh Moo Hyun and North Korea's "Dear Leader" Kim Jong Il.
The summit went relatively smoothly. The worst fears of many critics (myself included) were not realized, at least not yet. While some potential good may even come out of the joint agreement signed by the two leaders — for instance, the possibility of an examination of military confidence-building measures — there are also some significant potential pitfalls ahead, depending on how the North (not to mention the South) chooses to interpret and implement the agreement.
The economic aspects of the joint statement — and it is mostly about economics — provide a real windfall for Pyongyang. The Roh government has not attached a price tag to the promised aid and development package, but the state-run Korean Development Bank has assessed the cost of the three main proposed projects alone — expanding the Gaeseong Industrial Zone, establishing a new zone in Haeju and providing infrastructure improvement to roads and railways in the North — at more than $50 billion in public and private funds.