ID :
21895
Mon, 09/29/2008 - 14:35
Auther :
Shortlink :
http://m.oananews.org//node/21895
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(LEAD) S. Korea urged to streamline international aid system
(ATTN: RECASTS 6th para for clarification)
By Lee Chi-dong
SEOUL, Sept. 29 (Yonhap) -- A committee of the Organization for Economic Cooperation and Development (OECD) on Monday advised South Korea to streamline its international aid system and introduce related legislation.
"Korea needs to tackle the fragmented nature of the system, as too many actors
and government ministries are involved in the aid system," Eckhard Deutscher,
chairman of the OECD's Development Assistance Committee (DAC), told reporters.
Deutscher was on a trip here to attend a special review session of the country's
aid system.
South Korea aims to join the DAC in 2010. The committee has 23 members, including
the European Commission, and is the only OECD committee of which Korea is not yet
a member.
"There are up to 30 ministries and agencies involved (in South Korea's foreign
aid programs)," Deutscher said. "Korea also should think about the high level of
tied aid. Ninety percent of financial aid is tied, which is much higher than that
in other DAC members. We know tied aid is less efficient and more costly."
The chairman was referring to grants or loans provided by one government to
another on the condition that the funds are used to purchase goods from the
donor nation.
Deutscher, formerly a German executive director to the World Bank, described the
complicated system as a "challenge" facing South Korea. He urged Seoul to pass
related legislation and create a single entity with the sole authority over
development programs.
These are not preconditions for Seoul's bid to become a member of the DAC, but
are still crucial points, he added. Deutscher also praised Seoul's efforts to
increase its financial contributions to the international community.
"I am very impressed by reports that highlight the enthusiasm and the speed of
progress Korea has made in building its development cooperation and its
increasing aid levels," he said.
South Korea's Official Development Aid (ODA) to underdeveloped nations rose 48
percent in 2007 from a year earlier to US$672 million. The figure accounts for
0.07 percent of its gross national income.
The country plans to increase the ratio to 0.15 percent by 2012 and 0.25 percent
by 2015.
South Korean officials said the DAC's advice is understandable in general, but
that it might be an exaggeration to say that South Korea has more than 30
government agencies handling ODA.
"Basically, 95 percent of the ODA programs are handled by two ministries: the
Ministry of Foreign Affairs and Trade and the Ministry of Finance and Economy,"
said Oh Joon, South Korea's deputy foreign minister for international
organization, global issues and treaties. "The other agencies just offer
technology cooperation."
South Korea has a committee presided over by the prime minister on international
development aid, he pointed out.
The foreign ministry deals with grant program for poor nations, while the finance
ministry is in charge of loans for them.
lcd@yna.co.kr
(END)
By Lee Chi-dong
SEOUL, Sept. 29 (Yonhap) -- A committee of the Organization for Economic Cooperation and Development (OECD) on Monday advised South Korea to streamline its international aid system and introduce related legislation.
"Korea needs to tackle the fragmented nature of the system, as too many actors
and government ministries are involved in the aid system," Eckhard Deutscher,
chairman of the OECD's Development Assistance Committee (DAC), told reporters.
Deutscher was on a trip here to attend a special review session of the country's
aid system.
South Korea aims to join the DAC in 2010. The committee has 23 members, including
the European Commission, and is the only OECD committee of which Korea is not yet
a member.
"There are up to 30 ministries and agencies involved (in South Korea's foreign
aid programs)," Deutscher said. "Korea also should think about the high level of
tied aid. Ninety percent of financial aid is tied, which is much higher than that
in other DAC members. We know tied aid is less efficient and more costly."
The chairman was referring to grants or loans provided by one government to
another on the condition that the funds are used to purchase goods from the
donor nation.
Deutscher, formerly a German executive director to the World Bank, described the
complicated system as a "challenge" facing South Korea. He urged Seoul to pass
related legislation and create a single entity with the sole authority over
development programs.
These are not preconditions for Seoul's bid to become a member of the DAC, but
are still crucial points, he added. Deutscher also praised Seoul's efforts to
increase its financial contributions to the international community.
"I am very impressed by reports that highlight the enthusiasm and the speed of
progress Korea has made in building its development cooperation and its
increasing aid levels," he said.
South Korea's Official Development Aid (ODA) to underdeveloped nations rose 48
percent in 2007 from a year earlier to US$672 million. The figure accounts for
0.07 percent of its gross national income.
The country plans to increase the ratio to 0.15 percent by 2012 and 0.25 percent
by 2015.
South Korean officials said the DAC's advice is understandable in general, but
that it might be an exaggeration to say that South Korea has more than 30
government agencies handling ODA.
"Basically, 95 percent of the ODA programs are handled by two ministries: the
Ministry of Foreign Affairs and Trade and the Ministry of Finance and Economy,"
said Oh Joon, South Korea's deputy foreign minister for international
organization, global issues and treaties. "The other agencies just offer
technology cooperation."
South Korea has a committee presided over by the prime minister on international
development aid, he pointed out.
The foreign ministry deals with grant program for poor nations, while the finance
ministry is in charge of loans for them.
lcd@yna.co.kr
(END)
