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Policy Direction
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Vision
To secure Korea¡¯s image as a donor by improving its ODA in quantity and quality and systematically transfer Korea¡¯s development experience
Increase ODA to the level commensurate with Korea¡¯s position in the international community
- Set a detailed scheme for ODA expansion in order to achieve the ODA/GNI target of
0.128%
by 2011 and 0.25% by 2015¡Ø The international community¡¯s ODA/GNI target was set at 0.7% by 2015 at the Monterrey
International Conference on Financing for Development, whereas the Korean target was set
at 0.25% by 2015- The grant aid budget for 2008 will be increased. It is under consideration to increase the budget gradually.
- The National Assembly proposed a resolution to increase the ODA/GNI ratio to the level attained by
other advanced donor countries (Nov. 8, 2007)Increase grant aids to meet the demand of least developed countries and alleviate economic burden of recipient countries
- Expand aid by reflecting upon the conclusion of the Cabinet meeting on Financing for Development
¡Ø Compared to the average grant-ODA/GNI ratio of 89.9% among the OECD-DAC member
countries, Korea¡¯s ratio stands at only 65.9%.While expanding untied aid, actively participate in international procurement bids
- Expansion of untied grant aid will be applied to 2008 ODA plan.
- Formulate a plan to promote Korean companies¡¯ participation in international procurement bids
[Reference] Untied/Tied Aid
In case of granting tied aid, the recipient country only receives goods and services from a certain donor country or a few selected countries. Contracts to purchase goods, machines and services are restricted to companies in which countries provide loans (concessional loans with a 1~5% annual interest rate and a repayment term of 25~30 years. Otherwise, the loan is untied).
Tied aids can be categorized as follows:
1) The target of procurement is restricted to certain development projects or programs.
2) The goods and services for procurement are restricted to certain items, options and standards
3) Objects of procurement are restricted to certain countries or regions.
The OECD/DAC has categorized aid into 4 types according to the open range of sources for procurement as ¨ç untied; ¨è & ¨é partially untied; ¨ê tied.
¨ç Virtually all countries (both developed and developing countries)
¨è Member countries of regional development organizations
¨é Donor countries and a limited number of selected countries
¨ê Donor countries only
Improve Korea¡¯s ODA Implementation System
- Swift legislation of the ¡®ODA Act¡¯: support and coordinate with the National Assembly
- Along with preparations to join the DAC, improve Korea¡¯s ODA implementation system:
improve
domestic systems related to international aid with the aim of
joining the DAC by 2010.- Strengthen mechanisms for Korea¡¯s aid performance assessment
- Establish mid- to long-term aid implementation strategies and country-specific aid plans
- Improve international competitiveness of Korea¡¯s ODA industry
- Strengthen partnership between public and private sectors
Expand Korea¡¯s diplomatic relations in the long term by means of ODA
- Expand international contribution through ODA and Peacekeeping operations (PKO)
- Improve Upgrade national brand image as a donor[Overall Policy Improvement Framework]
