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IsbN 978-92-64-00000-0 -:HSTCQE=UWWU\W: The Development Assistance Committee:
00 2013 01 1 P
Enabling effective development
OECD Development
Assistance Peer Reviews:
Korea
2012
This work is published on the responsibility of the Secretary-General of the OECD.The
opinionsexpressedandargumentsemployedhereindonotnecessarilyreflecttheofficial
viewsoftheOrganisationorofthegovernmentsofitsmembercountries.
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andtothenameofanyterritory,cityorarea.
ISBN978-92-64-19605-6(PDF)
Series:OECDDevelopmentAssistancePeerReviews
ISSN2222-7466(online)
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3
FOREWORD –
The Peer Review Process
The DAC conducts periodic reviews of the individual development co-operation efforts of DAC members. The
policies and programmes of each member are critically examined approximately once every four or five years.
Five members are examined annually. The OECD’s Development Co-operation Directorate provides analytical
support and is responsible for developing and maintaining the conceptual framework within which the Peer
Reviews are undertaken.
The Peer Review is prepared by a team, consisting of representatives of the Secretariat working with officials
from two DAC members who are designated as “examiners”. The country under review provides a
memorandum setting out the main developments in its policies and programmes. Then the Secretariat and the
examiners visit the capital to interview officials, parliamentarians, as well as civil society and NGO
representatives of the donor country to obtain a first-hand insight into current issues surrounding the
development co-operation efforts of the member concerned. Field visits assess how members are implementing
the major DAC policies, principles and concerns, and review operations in recipient countries, particularly with
regard to poverty reduction, sustainability, gender equality and other aspects of participatory development, and
local aid co-ordination.
The Secretariat then prepares a draft report on the member’s development co-operation which is the basis for
the DAC review meeting at the OECD. At this meeting senior officials from the member under review respond to
questions formulated by the Secretariat in association with the examiners.
This review contains the Main Findings and Recommendations of the Development Assistance Committee and
the report of the Secretariat. It was prepared with examiners from Australia and Germany for the Peer Review
of Korea on 11 December 2012.
In order to achieve its aims the OECD has set up a number of specialised committees. One of these is the
Development Assistance Committee, whose members have agreed to secure an expansion of
aggregate volume of resources made available to developing countries and to improve their effectiveness.
To this end, members periodically review together both the amount and the nature of their contributions to
aid programmes, bilateral and multilateral, and consult each other on all other relevant aspects of their
development assistance policies.
The members of the Development Assistance Committee are Australia, Austria, Belgium, Canada,
Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, Korea, Luxembourg, the Netherlands,
New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, the United Kingdom, the United States and
the European Union.
DAC PEER REVIEW OF KOREA–© OECD 2012
4
– FOREWORD
Korea’s aid at a glance
DAC PEER REVIEW OF KOREA–© OECD 2012
5
TABLE OF CONTENTS –
Table of contents
List of acronyms .................................................................................................................................... 9
The DAC’S main findings and recommendations ....................................... .................................... 11
Overview ....................................................................................................... .................................... 11
Overall framework for development co-operation ........................................ .................................... 12
Promoting development beyond aid ............................................................. .................................... 14
Aid volume and allocation ............................................................................ .................................... 15
Organisation and management ...................................................................... .................................... 17
Improving the impact of development co-operation ..................................... .................................... 19
Towards better humanitarian donorship ....................................................... .................................... 21
Chapter 1 Strategic orientations ................................................................... .................................... 23
Korea is working hard and building a strong reputation in development co-operation ..................... 24
Korea is reforming its aid and establishing strong foundations .................... .................................... 24
Challenges ahead .......................................................................................... .................................... 26
Ensure that all Korea’s aid delivery channels support a common vision ..... .................................... 30
Korea needs to strengthen its approach for mainstreaming cross-cutting issues .............................. 32
Communication and transparency should be strengthened ........................... .................................... 33
Future considerations .................................................................................... .................................... 34
Chapter 2 Development Beyond Aid ............................................................ .................................... 37
Putting in place the building blocks for policy coherence for development . .................................... 38
Korea is increasing its use of whole-of-government approaches.................. .................................... 42
Future considerations .................................................................................... .................................... 43
Chapter 3 Aid volumes, channels and allocations ....................................... .................................... 45
Korea needs to sustain increases in its ODA volume ................................... .................................... 46
Korea has a relatively concentrated aid system, but coordination remains a challenge .................... 47
Korea’s planning and budgeting process for its ODA should be strengthened ................................. 47
Allocations: Korea has target ratios for bilateral and multilateral ODA, grants and loans................ 49
Bilateral aid ................................................................................................... .................................... 49
Multilateral aid .............................................................................................. .................................... 56
Non-ODA flows ............................................................................................ .................................... 57
Future considerations .................................................................................... .................................... 58
Chapter 4 Organisation and management ................................................... .................................... 61
Korea’s development co-operation system: two pillars and two main challenges ............................ 62
Korea has improved the integration and co-ordination of its aid .................. .................................... 62
Building on a system that is partly decentralised .......................................... .................................... 65
Ensuring Korea has sufficient, appropriate development co-operation staff for scaling up .............. 66
DAC PEER REVIEW OF KOREA–© OECD 2012
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– TABLE OF CONTENTS
Korea is building a stronger evaluation system ............................................ .................................... 69
Future considerations .................................................................................... .................................... 71
Chapter 5 Aid effectiveness and results ....................................................... .................................... 75
Korea is committed to aid effectiveness and is trying to improve its performance ........................... 76
Korea has made progress in most aid effectiveness areas ............................ .................................... 77
Further progress is needed to meet Korea’s aid effectiveness commitments .................................... 79
Accountability and management for results.................................................. .................................... 82
Future considerations .................................................................................... .................................... 83
Chapter 6 Humanitarian assistance ............................................................. .................................... 85
Significant progress in humanitarian work since joining the DAC .............. .................................... 85
Increasing strategic focus will help manage a broad humanitarian mandate .................................... 86
Prioritising for a growing programme .......................................................... .................................... 88
Ensuring the humanitarian system remains “fit for purpose” ....................... .................................... 91
Improving monitoring and performance reporting ....................................... .................................... 91
Future considerations: ................................................................................... .................................... 92
Bibliography .................................................................................................... .................................... 95
Annex A OECD/DAC Standard Suite of Tables ......................................... .................................. 103
Annex B Field visit to Cambodia .................................................................. .................................. 111
Tables
Table 3.1. Grant element of Korean ODA loans by category of country ........................................ 54
Table 4.1. Development co-operation staff, May 2012 ................................................................... 67
Table 5.1. Global Partnership for Effective Development Co-operation: Indicators ...................... 77
Table 5.2. Korea’s progress in selected partner countries in meeting the Paris Declaration
indicators ........................................................................................................................ 77
Table 5.3. Korea’s implementation timeline for untying grant aid ................................................. 80
Table A.1. Total financial flows ..................................................................................................... 103
Table A.2. ODA by main categories .............................................................................................. 104
Table A3. Bilateral ODA allocable by region and income group ................................................. 105
Table A.4. Main recipients of bilateral ODA ................................................................................. 106
Table A.5. Bilateral ODA by major purposes ................................................................................ 107
Table A.6. Comparative aid performance ...................................................................................... 108
Figures
Figure 1.1. Korea’s development co-operation framework ........................................................... 25
Figure 1.2. Korea’s priority partner countries and lead ministries, 2012 ....................................... 28
Figure 3.1. Korea’s official development assistance, 2006-2015 .................................................. 46
Figure 3.2. Korean ODA by government department in 2011 ....................................................... 47
Figure 3.3. Korea’s ODA planning and budgeting process, 2012 ................................................. 48
Figure 3.4. Korea’s 26 priority partner countries, 2012 ................................................................. 50
Figure 3.5. Composition of Korea's bilateral ODA, 2010 .............................................................. 51
DAC PEER REVIEW OF KOREA–© OECD 2012
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TABLE OF CONTENTS –
Figure 3.6. Korea's bilateral ODA by type of aid, 2010................................................................. 53
Figure 3.7. Korea's ODA in support of gender equality and women's empowerment, 2007-10
(2009 USD millions) .................................................................................................... 55
Figure 3.8. Korea's ODA commitments targeted at the objectives of the Rio Conventions,
2007-10 ........................................................................................................................ 55
Figure 3.9. Korea's core and non-core multilateral aid, 2010 (2010 USD million) ....................... 57
Figure 4.1. Korea's aid management architecture .......................................................................... 63
Figure 5.1. Share of Korea’s bilateral ODA untied under the DAC Recommendation,
2002-2010, % ............................................................................................................... 80
Figure A.1 Net ODA from DAC countries in 2010 ..................................................................... 109
Figure B.1. Summary of Korea's Partnership Strategy for Cambodia, 2012-2015 ....................... 115
Boxes
Box 2.1. Korea's support for policy coherence for development within the G20............................... 38
Box 2.2. Research into policy coherence for development in Korea ................................................. 40
Box 3.1. Korea's green ODA and global development initiatives ...................................................... 56
Box 6.1. Korea's humanitarian assistance .......................................................................................... 86
Box 6.2. The principled approach to humanitarian funding decisions ............................................... 89
Box 6.3. Korea’s Disaster Relief Team .............................................................................................. 90
Box B.1. Cambodia's MDGs ............................................................................................................. 112
DAC PEER REVIEW OF KOREA–© OECD 2012
