The Initiative of Korean NGOs for International Development

1. The Second Good People Conference 22th September 2009, Seoul, Korea. The Initiative of Korean NGOs for International Development Seung-Hun Chun, Ph.D. sychun@kds.re.kr President Korea Institute for Development Strategy The Republic of Korea

2. CONTENTS • Paradigm Shift in Development Cooperation • Unique Experience and Role of Korea in Development Cooperation • Role of Korean NGOs in Development Cooperation • Concluding Remarks 2

3. I. Paradigm Shift in Development Cooperation 1. The Features of International Development Distribution of Per Capita GNP in the World [Year 1960] [Year 1999] Source: http://ucatlas.ucsc.edu/gnp/gnp.html Stylized Facts about International Poverty

4. I. Paradigm Shift in Development Cooperation 2. Reponses of the Global Community • “Poverty reduction” has become the core agenda of the global community, as was represented by the Millennium Development Goals (MDGs). Global Agenda • The global community has provided enormous financial assistance for development. - In 2007, DAC members provided USD 103.6 billion as ODA to developing countries, equivalent to 0.28% of their GNI. • With the MDGs as a turning point, the global community is strengthening its efforts to provide more assistance with higher effectiveness. - UN confirms the target of ODA for 2015 as 0.7% of GNI in 2005. Global Assistance • Until recently, no significant reduction of poverty in the global community is witnessed. - During the last 25 years, the situation has not been any better in poverty reduction (UN, 2005, In Larger Freedom). • In particular, effectivenessof ODA has been under criticism. - No correlation between ODA and economic development (World Bank, 2000, Assessing Aid). * “Almost every African country has witnessed a systematic retrogression in capacity in the last 30 years; the majority had better capacity at independence than they now possess (Van de Walle, 2002).” * This deterioration in capacity has happened precisely during a period of acceleration in external aid flows to the point where more than 10 % of the GDP of the entire region comes from foreign assistance in various forms(Fukuyama, 2005, State-Building, pp. 39-40). Performance & Evaluation • Exploration for aid effectiveness through Paris Declaration and AAA has been under way. • NGOs and civil societies are taking more active role and extending their scope of activity in development cooperation. New Trend

5. I. Paradigm Shift in Development Cooperation 3. Difficulties in Poverty Reduction International Environment • Under the WTO system, free trade as well as high mobility of capital and labor have become more and more prevalent. • It is almost impossible in developing countries for newly-born local firms to compete with foreign firms under the circumstance of large-scale inflow of goods and services from abroad. • Poor governance or management capacity might be a major obstacle to poverty reduction and economic development. • Transfer of advanced institutions for good governance may not be successful under different culture and at the early stage of development. Governance Failure • Provision of financial assistance may promote corruption and hamper self-help spirit of recipient countries. - No more money, please! (Moyo, 2009, Dead Aid) • With regard to contents of aid, knowledge sharing or policy consultation may not be relevant to the contemporary developing countries. • In the Western countries, development had been proceeded in a completely different mode under the completely different global circumstances. Aid Effectiveness 5

6. I. Paradigm Shift in Development Cooperation 4. Growing Role of NGOs in Development Cooperation • NGOs and CSOs are strengthening their role and extending their scope of activity in developing cooperation. • In the net flows of financial resources to developing countries from DAC members, the portion of private flows and net grants by NGOs occupies a considerable proportion in the total financial inflows. • AAA in 2008 proposes new perception of the role of civil society incorporating it as one of the key agents of development cooperation. New Trend Total Net flows of financial resources from DAC members (USD million) source: OECD/DAC

7. CONTENTS • Paradigm Shift in Development Cooperation • Unique Experience and Role of Korea in Development Cooperation • Role of Korean NGOs in Development Cooperation • Concluding Remarks

8. II. Unique Experience and Role of Korea in DC 1. From a hopeless country to a modern industrial state <Chong-gye stream, Downtown Seoul (2000s)> <Chong-gye stream, Downtown Seoul (1950s)> 8

9. Initial Stage of Development Performance of Korea • Over 200 times increase in per capita GDP - $89(‘61)→$11,432(‘95)→$20,500(‘07) • Modern industrial state - World’s manufacturing base in steels,autos, semi-conductors, etc. - Knowledge society based on ICT • Assessment from the world - Independent country from a colony - Full industrialization in a 40 mnpopulation - Industrialization: 200→100→ 30 yrs • Historical background • Colonial rule & war • Socio-political instability • Negative consciousness of the people • Extreme poverty • $79(1960) • Shortage of food • Subsistence depending on aid • Chronicle deficiency in int’l BOP * Korea was viewed as a hopeless country. II. Unique Experience and Role of Korea in DC 2. Economic performance of Korea Growth trend of Korea Unique Development Strategy Strong Political Leadership

10. Chosun Dynasty 1910 Colonial rule by Japan • 1945 Independence from Japanese colony • 1945 Division of Korea into North (Communist Country) and South (Democracy Country) • 1945~1948 Under the American Military Government 1948 Establishment of the Government of the Rep. of Korea 1950 The Korean War 1953 End of the Korean War 1961 Military Coup • 1987~1992 Democratic Transition 1996 OECD Membership 1997 Financial Crisis (Asia Financial Crisis) 2004 Korea ranked 12thbiggest economy by the World Bank II. Unique Experience and Role of Korea in DC 3. Historical Background & Factor Endowment of Korea in 1960s Historical background of Korea

11. II. Unique Experience and Role of Korea in DC 4. Subsistence Dependence on Foreign Aid • The amount of ODA took over 10% of GNP in the 1950s. • Most of ODA was in the form of consumer goods rather than capital goods. • Over 70% of total ODA to Korea in the 1950s was used for consumer goods. Source: The Ministry of Finance and Economy, Korea

12. II. Unique Experience and Role of Korea in DC 5. World Manufacturing Base in High-Tech Products

13. CONTENTS • Paradigm Shift in Development Cooperation • Unique Experience and Role of Korea in Development Cooperation • Role of Korean NGOs in Development Cooperation • Concluding Remarks

14. III. Role of Korean NGOs in DC 1. Unique Position of Korean NGOs for International Development Emotional Sympathy • Korea shares common historical experiences of colonial rule, ideological conflict, and war experience with contemporary developing countries. • Korea has vivid memory of absolute poverty, from which many developing countries have been suffering. • Korea benefited a lot from foreign aids when she was in poverty. • Depending her market and raw materials much on developing countries, Korea has grown as one of the major trade partners in the world. Moral Responsibility Intellectual Capacity • Koreans have accumulated live experiences and knowledge of poverty elimination and national development through their own efforts during the recent several decades. • This trial & error experience of Korea may be a good lesson for contemporary developing countries in their endeavor for poverty reduction and national development. ※ In this respects, Korean NGOs are at a unique position to become real partners for international development.

15. III. Role of Korean NGOs in DC 2. Public Attitude toward Development Cooperation Experience of participation in DC Awareness of Korea’s Development Cooperation Awareness of Korea’s aid receiving experience Willingness of participation in DC • A half of respondents is aware of Korea’s development cooperation activities. • Nearly two thirds of respondents are aware of the fact that Korea had received foreign aid. • Comparatively fewer people have been engaged in development cooperation activities. * In Netherlands, one third of citizens are recorded to participate in development cooperation. • However, they show high willingness to participate in the future (49%). Source: KDS survey (2008)

16. III. Role of Korean NGOs in DC 3. Expected Role of Korean NGOs • Korean NGOs are in better position in speaking for adverse circumstances of developing countries, which may not fully be understood by advanced donors. 1) Speak for developing countries Scope of activity • Korean NGOs should focus on the core issues of poverty reduction rather than engaging in a wide range of issues that are only symptoms not causes. 2) Focus on poverty reduction Emotional sympathy • For the sake of aid effectiveness, program- based or sector-wide approaches should be taken instead of project-based financing or labor source. 3) More comprehensive approach Methodology Moral responsibility • Korean NGOs need to complement the effort of recipient government, in cooperation activities rather than seeking to replace the government role. Self-positioning in development cooperation 4) Supportive role to the recipient government Intellectual capacity ※Korean NGOs need to take the initiative for international development based on their unique position and expertise.

17. III. Role of Korean NGOs in DC 4. Building a Partnership for a New Role in Development Cooperation • A momentum is provided for Korean people to participate actively in development assistance. • Encourage the people for, and broaden the base of international development. • Strengthen alliance with INGOs in any assistance activity or program. • Take advantage of Korean expertise or specialty for international development. Participation of the people INGOs Korean NGOs • Full respect on their culture and ownership. • Supplementary role to local governments rather than supplant them. • Support to strengthen the role of local governments with good governance. • Share full information in the course of assistance activities. • Contribute to the development of project/program, and evaluation. • Extend their role in ODA activity. Korean Gov. & aid agencies Recipient countries ※ Since a momentum is provided for active role in development cooperation, Korean NGOs need to build a new partnership for their expected role for international development.

18. CONTENTS • Paradigm Shift in Development Cooperation • Unique Experience and Role of Korea in Development Cooperation • Role of Korean NGOs in Development Cooperation • Concluding Remarks

19. IV. Concluding remarks Korean NGOs are at a unique position in development cooperation with three respects; emotional sympathy for poverty, moral responsibility for aid, and live experiences as well as expertise of poverty reduction. Being at a unique position for international development with growing supportive base from the public, Korean NGOs are facing a momentum for more active and supportive role for international development. Korean NGOs are in a position to speak for developing countries, and need to focus on poverty reduction and capacity building for national development, rather than touching on wide-ranging social issues of developing countries. 4. Korean NGOs should be supportive to strengthening the role of local governments rather than supplanting them. To perform the expected role more effectively, Korean NGOs need to build new partnership with key agents of development cooperation such as INGOs, recipient countries, Korean aid agencies and the general public.

20. Thank you.