NGO participation crucial to overseas aid

By Victor W. C. Hsu

In the aftermath of the 2010 Seoul G20 Summit, President Lee Myung-bak and his senior staff announced that South Korea would play a constructive role as a member of the Organization for Economic Cooperation and Development (OECD).

In a post-summit interview, Lee said that Korea would seek to “teach the poor to fish” so that those from lower income levels will become self-reliant. This is a worthwhile goal long sought by the international community especially when Official Development Assistance (ODA) was introduced a generation ago with the noble goal to lift the world out of poverty. However, the Millennium Development Goals (MDG) demonstrate that the quest remains as elusive as it is challenging.

The enthusiasm of the Lee administration to present Korea as a key and competent player in ODA is much welcomed. Equally welcome is the June 24 signing of a Statement of Intent to cooperate in ODA between the Korean Ministry of Foreign Affairs and Trade and the U.S. Department of State. Korea should certainly be proud of its accomplishment of being the first OECD Development Assistance Committee (DAC) member that not too long ago was still a beneficiary of ODA.

The critical question for Korea is how it will discharge its responsibilities as a donor. Put differently, how will the country teach the poor to fish? What innovations will the nation bring into the ODA implementation to both inspire other DAC members and make a fundamental and qualitative difference in poor people’s lives? In short, what is the Korean brand in ODA?

The world has noted Korea’s impressive economic development and political progress in which its civil society has been both partner and militant critic. Many NGOs are eager to extend their influence beyond Korean shores. Already 83 member NGOs of the Korean Council for Overseas Cooperation (KCOC) implement projects overseas and advocate strongly with the Korean government to increase the quantity and improve the quality of Korean ODA.

The agenda and dynamics of this week’s Fourth High Level Forum (HLF-4) in Busan reflect the ongoing tension between donors in the DAC and NGOs. Most, if not all, DAC member countries include in their ODA budget items to support NGOs’ development-related activities. Most of the funds go to national NGOs. Between 2005 and 2006, 5.2 percent of total bilateral ODA from all DAC members went to, or through NGOs. According to OECD’s own sources, these varied from 0.4 percent to 19.5 percent for individual donors. The latest figures should be within these ballpark amounts.

Donors rightly insist that there continues to be improved aid effectiveness through alignment and harmonization among all stakeholders. But NGOs argue with great legitimacy that a long-term engagement in poverty reduction cannot succeed (and therefore aid cannot be effective) without the active partnership with civil society and NGOs because they are the frontline troops in the war against hunger and poverty.

That Korea contributes 0.12 percent of its gross national income for ODA in contrast to a handful of countries that manage 1 percent is nothing to be ashamed about. Though the total amount of ODA disbursed is often regarded as synonymous with a country’s clout in international relations, it is misplaced. One only need to recall the much admired accomplishments of Florence Nightingale, Mahatma Gandhi or Mother Theresa who influenced millions of people beyond measure, sharing openly their physical vulnerability and fragility while displaying their sacrifice, resolve and outreach to the neediest and the poorest. Korea should be mindful of developing its own ODA brand while taking into account DAC best practices. What steps should the Seoul government take?

First, it should integrate into its planning a fundamental assumption that one essential sector for helping to create the Korean ODA brand is Korean civil society, specifically Korean NGOs because they will be the closest stakeholder to the government. NGOs are in the frontline of development assistance either as direct implementers or as implementing partners.

Second, Korea’s role in ODA must leverage the enormous energy and enthusiasm of the Korean NGOs eager to form partnerships with their government to deliver and implement ODA. As the nation continues its process to refine and further formulate its ODA policy and procedures, it must factor the NGO role into the equation.

Third, it is imperative that the Korean government should not neglect to improve the NGO capacity in aid delivery and in development effectiveness. It will be Korean NGOs and not the government which will be in the frontline of the implementation of ODA. It will be the NGOs who will be at the sea shores and the lake fronts to partner and teach the poor people how to fish. If Korea desires to project its brand as being a proactive and responsible donor in aid effectiveness, it will have to work with the Korean NGOs who can enhance, deliver and shape that approach.

To ensure that this dynamic partnership occurs, Korea must, on a priority basis, invest in its own NGOs with capacity building and best practices seminars. The Korea Development Institute School of Public Policy and Management and the Korea International Cooperation Agency are two institutions with the expertise and ability to meet this urgent need. The HLF-4 is evaluating ODA issues which have been affecting donor-recipient and donor-recipient-NGO relationships such as best practices, accountability, transparency, democratization of aid practices.

But all must remember that NGO participation in ODA ignites a synergy that may otherwise not be possible. For them, working with ODA as the resources of the donor nation can be tremendously empowering. For example, a five-year $100 million grant can propel an agency into making a tremendous social impact on the lives of thousands, if not millions of people. Such a large size grant can empower synergistic relationships among multiple NGOs, the donor and the beneficiary country.

Synergy is the result of visionary leaders finding a way to leverage their resources into expanded capacity. It is time for these leaders to step forward not just in Korea but around the world. The Busan stakes are indeed high. The world must not fail the poor and the vulnerable.

The writer is a professor at KDI School of Public Policy and Management. He can be reached at victorhsu@kdischool.ac.kr.