|Organization in Charge
|Training program under the sponsorship of USAID
|Training program funded by the Korean government
|Implementation of the Experts Program, funded by the Korean government Training Program with the cooperation of the UN and other international organizations
|Dispatch of experts through the Medical Experts Program
|Hosted the Technical Trainees Program
|Cooperation Project with the UN and other international organizations-training by invitation, aid in-kind
|Research Cooperation Program
|International Development Exchange Program (IDEP)
|Hosted training for construction workers
|Technical cooperation in the construction sector
|Establishment of the Economic Development Cooperation Fund (EDCF) Outsourcing EDCF project to Ministry Of Science and
|Grant services for communications technology in developing countries
|Dispatch of volunteers through the KOV Program, First expense of EDCF
|UNESCO, EPB, EXIM Bank
|Korea International Cooperation Agency (KOICA) established
|First dispatch of international cooperation personnel NGO Support Program
|Accumulated EDCF exceeds USD1.6 billion
|Special Assistance Program to Afghanistan
|Rehabilitation projects following South East Asian Tsunami Korea joins IDB
|Korea joined OECD/DAC (Nov 25)
|First anniversary of DAC membership; International Development Cooperation Day proclaimed (Nov. 25)
(3) Multilateral ODA Volume and Trend
The volume of Korea’s multilateral ODA increased from 48.9 million USD in 1990 to 230 million USD in 2009. This increase seems dramatic, however, it must be taken into account that a majority of this ODA was in the form of contributions to multilateral development banks and contributions to other organizations. Korea’s multilateral ODA consists of contributions to UN organizations, multilateral banks including the World Bank and regional development banks, other international organizations, and non-governmental organizations. In terms of contribution by organization, the World Bank and regional development banks received 38.5% and 30.8% respectively from 1990 to 2009, accounting for about 70% of multilateral ODA. Contributions to UN organizations accounted for 23.1%.
[Figure 2-4] Korea’s Multilateral ODA Trend (1991~2010)
(4) Korea’s ODA Performance System
A. Grant and Loan Aid by Type
Korea’s ODA implementation system includes bilateral and multilateral assistance. Bilateral assistance is divided into grants and loans. KOICA administers grants and technical cooperation programs through the Ministry of Foreign Affairs and Trade (MOFAT). Loans are managed by the EDCF, which is run by the Export-Import Bank of Korea (Korea EXIM Bank) under the supervision of the Ministry of Strategy and Finance.
While KOICA is responsible for all grant aid programs, some of the responsibility of overseeing and managing certain programs is delegated to other government agencies and organizations. With regard to multilateral assistance, contributions to the UN and other international development institutions are managed by the MOFAT. Subscriptions and contributions to multilateral development banks such as the International Bank for Reconstruction and Development (IBRD), the IDA, and the ADB are managed by the Ministry of Strategy and Finance (MOSF). Other government agencies are responsible for contributions to international organizations specifically relating to their area of expertise. These agencies include the Ministry of Health and Welfare (MOHW), the Ministry of Science and Technology (MOST), the Ministry of Food, Agriculture, Forestry and Fisheries (MIFAFF), and the Ministry of Environment (MOE).
B. ODA Management System
Korea’s ODA has been absent an overall central institution. MOFAT and MOSF have managed the dual system of grants and loans as described in the previous chapter, and several different government ministries have conducted ODA projects separately. To solve aid fragmentation and foster policy coordination between agencies, the International Development Cooperation Committee (IDCC) was established in 2006.
Since the enactment of the Framework Act on International Development Cooperation in 2010, the IDCC has been playing a key role in upgrading Korea’s ODA implementation system. Led by the Prime Minister’s Office, the IDCC suggests consolidated aid strategies and guidelines to promote consistency and unity in ODA policies. Such coordination strengthens the relationships between different government agencies and between ODA projects. Various plans to better implement ODA policies were discussed during the 7th (Oct 2010) and 8th (Dec 2010) meetings. Other specific issues addressed in these meetings were mid-term and long-term goals and implementation plans, ODA volume and the ratio of grants to loans, and ODA advancement strategies.
[Figure 2-5] Korea’s ODA Implementation System
C. KOICA’s Role and Status
KOICA has administered 46.93% of Korea’s total bilateral ODA budget and 78.93% of bilateral grants over the last 20 years, positioning KOICA as Korea’s leading agency for grant ODA implementation. KOICA’s budget has continually grown to reflect Korea’s efforts to assume the position of a significant donor country in the international community. It increased from 23 million USD in 1991 to 30 million USD in 1993, and again to 56 million USD in 1997. During the Asian Financial Crisis in 1998, the budget dropped to 38 million USD, but in 2002, the budget bounced back to reach a new high of 59 million USD. In 2003, the budget more than doubled as an impressive total of 123 million USD was spent on special reconstruction programs in Iraq and Afghanistan. The budget was maintained at around 270 million USD in 2007, and then in 2010, the budget expanded to 454 million USD, an increase of 64.6% since the previous year’s 276 million USD. The budget is expected to continue to grow as the government strives to raise its ODA volume to the average level of other OECD/DAC member countries.
KOICA has been accumulating experience with various ODA modalities. It has assembled a number of regional experts to establish the Country Partnership Strategy (CPS) as well as sectoral experts on education, public health, construction, environment, and climate change. Currently, KOICA’s 44 overseas offices are implementing field based strategies that position KOICA as the sole agency specializing in field oriented ODA projects in Korea.
KOICA has established a feedback mechanism through which it can use lessons learned in the field in CPS and sectoral strategy modification. This feedback system will also allow KOICA to pass on ODA strategies and program know-how to other ODA agencies in Korea. Various educational programs are offered through the ODA Education Center to raise awareness of ODA among Korean citizens. KOICA also supports educational programs on international affairs in elementary, middle, and high schools, and in universities. These educational programs promote pride in Korea’s ODA programs and to circulate knowledge of KOICA’s experiences to the general public.
[Box 2-7] International ODA Expansion Trend
|ODA refers to financial resources provided to developing countries that are listed as partners by the OECD/DAC and to multilateral international organizations. The international community has been participating in debt relief programs since the late 20th century, taking into consideration that loan ODA has brought about debt crisis in many developing countries. The debt relief program is designed to correct for unjust budget cuts to the essential sectors of education and public health which developing countries were forced to make in order to pay the interest on development loans. Currently, many OECD/DAC member countries deliver over 90% of their total ODA in the form of grants, including Canada (98.73%) and the United States (96.5%).