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ODA of Korea: Achievements and Challenges

Jin-Wook ChoiAssociate Professor

Department of Public AdministrationKorea University

E-mail: jinchoi@korea.ac.kr

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Korea of 2010

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Classifications of ODA

Source: www.odakorea.go.kr

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ODA System of Korea

Authoritiesconcerned

Ministry of ForeignAffairs and Trade

Ministry of Strategy and Finance

Ministry of ForeignAffairs and Trade

Ministry of Strategy and Finance

Korean Int ’l Co-operation agency

(KOICA)

The Export-ImportBank of Korea

Executingorganization

GrantsGrant aid andtechnical co-operation

Contributions to international orgs.

Subscriptionsto int ’l institutions

Bilateral aid

ODA

Multilateralaid

Loans

Types ofcooperation

EDCF loans

Other MinistriesBilateral &

multilateral aid

Source: OECD-DAC, 2008, Special Review of Korea

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Two Approaches of ODA

USA, JapanNorthern EuropeExamples

Short-termLong-termDuration of Aid Program

Bilateral

aid

Multilateral

aid

Aid Flows

Economic interest,

National security

Humanitarian,

Altruistic

Intentions

RealistIdealist

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Korea as a Recipient

12,776.32,226.23,510.83,941.43,097.9Total

968.4(7.6%)

26.2(0.2%)

198.6(5.7%)

164.1(4.2%)

579.5(18.7%)

Multilateral

11,807(92.4%)

2,200.0(98.8%)

3,312.2(94.3%)

3,777.3(95.8%)

2,518.4(81.3%)

BilateralAid Flows

5,778.8(45.2%)

1,023(46.6%)

2,760(78.6%)

1,942(49.3%)

52.3(1.7%)

Loans

6,997(54.8%)

1,202.5(54.0%)

750.4(21.4%)

1,999(50.7%)

3,045 (98.3%)

GrantsAid Types

Total1991-1999

1976-1990

1961-1975

1945-1960

Aid Typesand Aid Flows

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Korea as a Donor I:Korea’s Aid at a Glance

Source: OECD-DAC, 2008, Special Review of Korea

Korea as a Donor II: Regions and Countries of Korea’s ODA

Source: Ministry of Foreign Affairs and Trade, 2009, Korea’s Development Cooperation

Criteria of ODA Effectiveness

The 2005 Paris DeclarationOwnershipAlignmentHarmonizationManaging for resultsMutual accountability

Donor’s CommitmentsShare of gross ODA in terms of GNI (ODA/GNI ratio)Proportion of grants in ODA (grants/ODA ratio)Proportion of humanitarian grants in ODA (humanitarian grants/ODA ratio)Proportion of bilateral (or multilateral) aid in ODA (bilateral aid/ODA ratio)

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ODA of 2009: A Comparison of Korea and OECD-DAC Members I

28.8733.6774.222.7123Multilateral Aid-ODA Ratio, (%)

1.105.8815.360.2223Humanitarian Grants-ODA Ratio, (%)

44.8864.1090.4125.6623Grants-ODA Ratio (%)

71.1366.3997.2925.7823Bilateral Aid-ODA Ratio (%)

0.100.501.120.1622ODA-GNI Ratio (%)

MeanMax.Min.NKorea

DAC MembersCriteria

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ODA of 2009: A Comparison of Korea and OECD-DAC Members II

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ODA of 2009: A Comparison of Korea and OECD-DAC Members III

ODA of Korea, 1987-2007

Source: Ministry of Foreign Affairs and Trade, http://www.odakorea.go.kr

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ODA of 1987-2008: A Comparison of Korea and OECD-DAC Members

Korea’s ODA: Challenges Ahead

Aligning ODA goals in line with the international standards

Expanding ODA volume

Reshaping ODA portfolios

Avoiding aid fragmentation through harmonization with other donors

Coordinating aid implementation along with sufficient staff