Philosophy

I. Background and Characteristics of the Basic Policy Statement

1. Background

ㆍDespite the 20 year history of providing development assistance, Korea lacksa
basic policy statement on ODA.

 - ODA related-laws such as the Korea International Cooperation Agency (KOICA) Act and the
   Economic Development Cooperation Fund (EDCF) Act, only present the general goal of
   development projects.

ㆍKorea is an emerging donor and needs an ODA policy guideline

- To p rovide guidelines on aid policies such as project development, enforcement, and evaluation
  and promote joint projects with international development agencies

ㆍTo prepare for joining the OECD DAC in 2010, and promote enhanced development assistance policies
assistance policy

- Contributeto smooth accession to DAC membership by establishing and executing a development
   of the OECD-DAC donor countries

2. Objective and Characteristics

   Present a general guideline on the promotion of development assistance policy

ㆍPresent Korea’s development assistance philosophy and vision and propose a constructive principle
and strategic method accordingly

 - Internationally, declare the intention to actively contribute to international development goals
such as the MDGs and enhance our role in the international community’s efforts in poverty reduction

 - Internally, design a development assistance project that is result-oriented and consistent,
increase public support and participation by raising awareness of development assistance

ㆍResponding to the expansion of ODA scale and support program, propose a practical direction
for pursuing both bilateral and multilateral assistance projects and thus maximize the overall
effectiveness of the development assistance projects

ㆍThe basic policy statement is a prioritized model of the ‘08~’10 mid-term ODA strategy adopted
at the 2nd Committee for International Development Cooperation as well asthe aid strategy
for each country and the annual project plan.

- However, when a relative law is enacted, such as the foreign assistance basic law (tentative name),
under this law (incomplete sentence)

- Conditions which are not regulated by this law or need to be specified can be prescribed

II. Structure of the Basic Policy Document and Its Roadmap

1. Structure of the Basic Policy Document

Document Title: Policy Statement of Korea's International Development Cooperation

[Basic Elements of the Organization]

2. Roadmap for the Basic Policy Document

ㆍContents:

Set priority on core elements such as foreign aid ideology & goal and basic principles

⇒ At the 3rd Committee for International Development Cooperation the above provisional contents
were established.

* Rank policy priorities (regional/sectoral)

ㆍProcess:

- Through participation from a wide range with people of interests, such as government ministers,
experts from private sectors, and NGOs, establish according to a transparent and open process

- Encourage diverse opinions through informal talks with experts and public hearings

III. Main Elements of the Basic Policy Document

1. Preamble

ㆍChanges in the international environment related to development assistance

- Entering the year 2000, as the international community’s effort for MDGs and ‘poverty
reduction’ strengthened, international partnership was also emphasized

- Due to rapid globalization, interdependence of the international community has deepened

- Mutual cooperation in dealing with global issues became a vital condition for security and
prosperity of the international community

ㆍChanges in domestic condition related to development assistance

 - Following Korea’s continuous economic development and as one of the world’s largest
economies, Korea’s responsibility in the international community has increased

 - The scope of Korea’s development assistance has widened

 - International interest have increased due to Korea’s first-hand development experience

ㆍTo meet the changes in external and domestic development assistance environment
and conditions, systematic and effective development assistance built upon firm
principles and national consensus is necessary.

2. Ideology and Goal of Official Development Assistance

   Ideology of ODA

   Summary

ㆍContribute to creating an environment where all citizens of the world can lead
a decent life and at the same time, contribute to world peace and mutual
prosperity of mankind

   Basis

ㆍ“All people have the right to live like a human being” and “Contribute to permanent
world peace and mutual prosperity of all mankind” are fundamental principles
of the constitution

ㆍAs interdependence in the international community deepens, Korea is obliged
as a member of the international community to develop cooperative relations that
help all to prosper.

ㆍPoverty eradiation and socio-economic development are outcomes of the
international community’s united effort and cooperation.

 - Strengthening cooperation with developing countries through development assistance is an
important factor in the development of the international community as well as Korea’s stability and
prosperity.

  Goal of ODA

ㆍSet the goal of Korea’s ODA to contribute to poverty reduction
and sustainable development.

ㆍAchieving the above stated goal of development assistance , placing development
  assistance as a priority in foreign policy, and strengthening cooperation with
  developing countries are important factors in promoting security and prosperity
  of the international community and Korea alike.

3. Basic Principles of Official Development Assistance

ㆍThe basic principles of promoting development assistance:

① Contents of development assistance

② Relationship with development assistance stakeholders

③ Implementing method of development assistance proposed on three different levels

ㆍThe Structure and Contents of the Basic Principle

Classification	Principle	Basis
	Value on developing human ability	- The essential basis of national development (Includes constructing and reforming the system) - Core strategy of Korea’s economic development
Contents	Expand growth potential	- Emphasize the importance of building socio-economic development foundations such as R&D and infrastructure - For sustainable development, it’s necessary to support development of private sectors in developing countries
	Utilize Korea’s experience and expertise	- Based on Korea’s knowledge in poverty alleviation - Share Korea’s experience on development assistance
Relationship (Foreign)	Respect the recipient countries’ sense of ownership	- Support developing countries’ self-effort and respect/value their national development strategies
	Cooperation and harmony with the international community	- Respect development expertise of and maintain harmony with the international community - Follow the international community’s assistance standards
Relationship (Domestic)	Maintain coherence with related policies and harmony with policy goals	- Maintain coherence with development policies and other national policies - Plan the policy synergy
	Promote private sector participation and secure public support	- Induce participation, support, transparency of NGOs, academic institutions and corporations
Promoting Method	Focus and Concentration	- Basic principles for improving aid effectiveness
	Result-emphasized project management	- Introduce assistance policy and evaluation method of the project - Improve policy, aid effectiveness and responsibility through project evaluation
	Consider developing countries’ demand for development, socio-economic conditions and Korea’s comparative advantage	- Compare developing countries’ demand for development and socio-economic conditions with Korea - ConsiderKorea’s comparative advantage and develop and choose ideal assistance methods and sectors

IV. Future Project Plan

Organization

ㆍThe Office for Government Policy Coordination as the central figure organizes and
operates the ‘Working Group (T/F)’

- Utilize the OECD-DAC admission preparation class that has recentl been organized

ㆍFollowing the「Direction for promoting the basic policy document」,
proceed with preparing the text for the basic policy document

Schedule

ㆍJanuary’08: Secure the provisional basic direction at the 3rd Committee for
International Development Cooperation

- Draw up direction for the policy document’s main elements

ㆍFebruary’08: Draw up a draft for the Preliminary Draft of the Basic Policy Document

- Muster ODA experts from private sectors as consultants; promote active participation in the
process and in the revision of the policy statement

ㆍMarch~April’08: Gather public opinion on the Preliminary Draft of the Basic Policy
Document

- Collect viewpoints through conferences with diverse organizations such as academic institutions,
research centers and ODA-related NGOs and form social consensus

ㆍFirst half of’08: Deliberate decisions at the 4th Committee for International
Development Cooperation