Aid for trade takes the lion’s share of Korea’s ODA, ranking highest among the DAC countries. Neverthless, it is believed that Korea’s ODA policy particularly with respect to AfT faces major challenges in order to secure aid effectiveness. Major criticism includes that most of AfT programmes are designed from supplier's perspectives. Also, Korea’s AfT policy lacks adequate overall policy framework. In most major donor countries, AfT is either conducted as a specific sector or considered as a cross-cutting issue.
There are two major policy areas of AfT in establishing an efficient policy framework; basic principle and institutional framework. The former includes mainstreaming of trade, pro-poor Aft and strategy for aid effectiveness such as program based approach. The latter is about setting up institutional framework of AfT. As far as mainstreaming of trade is concerned, Korea has not shown any systematic efforts even though it emphasizes trade as an important area of aid policy. Also, Korea’s ODA policy puts less weights on the principle of pro-poor AfT. Considering these two principles are well regarded international norm of AfT, it is high time for Korea to introduce them into its AfT policy.
Preparation of institutional framework of AfT seems to be the requisite for establishing right AfT policy. This study recommends a hybrid model of AfT policy framework. The hybrid model simultaneously considers AfT as a specific sector and a cross-cutting issue. The rationale for this approach is to incorporate Korea’s current fragmented ODA policy structure, that is MOFAT(Ministry of Foreign Affairs and Trade) and MOSF(Ministry of Strategy and Finance) take responsibilities for non-concessional and concessional aid respectively. This study proposes that Korea needs to include trade in the list of specific sectors of non-concessional aid. At the same time, trade needs to be considered as a cross-cutting issue in many large concessional aid projects. Also, it is suggested that AfT strategic guideline needs to be formulated for the effectiveness of the hybrid model. In this context, this study encourages an active role of the office of the Prime Minister is important to coordinate the funtions of MOFAT and MOSF.
- 주요국 무역 분야 원조의 정책체계와 한국의 정책방향
- 한홍렬; 이호생; 이시욱
주요국 무역 분야 원조의 정책체계와 한국의 정책방향
|Series Title; No||ODA기초연구 / 11-03|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Trade
Official Aid < Production
|Holding||Korea Institute Economic Policy|