By Jung Sung-ki
Staff Reporter
Korea aims to become a major international donor by joining an aid group at the Organization for Economic Cooperation and Development (OECD), in line with a policy to increase the country's role in the global community, officials said Monday.
The government is seeking to join the OECD's Development Assistance Committee (DAC) by 2010 and increase its officials development aid (ODA) to underdeveloped or developing countries to 0.25 percent of the nation's gross national income by 2015, the foreign ministry officials said.
South Korea's ODA rose 48 percent in 2007 from a year earlier to $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, they said.
DAC is a forum for member states to discuss issues regarding development and poverty reduction in underdeveloped or developing countries. There are currently 23 members, including Australia, Canada, Japan and the European Commission. South Korea and seven other OECD member states, such as Iceland, Turkey, Mexico and Hungary, have not joined the committee.
``I'm 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,'' DAC Chairman Eckhard Deutscher told reporters in Seoul. Deutscher was on a trip to Seoul to attend a special session Monday aimed at reviewing South Korea's joining the aid group.
Oh Joon, deputy foreign minister for international organizations, global issues and treaties, and scores of representatives from the DAC, China, Indonesia and South Korean government agencies related to international aids, including the Ministry of Strategy and Finance attended the one-day meeting.
Deutscher 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 players and government ministries are involved,'' he said. ``There are up to 30 ministries and agencies involved (in South Korea's foreign aid programs). 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 DAC the chairman noted, but are still crucial points.
Oh said 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.
He said 95 percent of South Korea's ODA programs are handled by the Ministry of Foreign Affairs and Trade, and the Ministry of Strategy and Finance and the other agencies just offer technology cooperation or training programs for foreign workers or students.
The foreign ministry deals with grant programs for poor nations, while the finance ministry is in charge of loans for them, he said, adding an ad hoc panel under the prime minister's office has been successfully coordinating foreign aid programs managed by the two.