Korea’s Multilateral Aid: Recent Developments and Future Challenges

Yul Kwon, Jione Jung, Jisun Jeong, Ju Young Lee and Aila Yoo

Amid the growing demands in addressing cross-border issues such as climate change, disaster relief and conflict, there is an increasing consensus on the importance of multilateral organizations in international development. Traditional donors invest in multilateral co-operation in an effort to help achieve Millennium Development Goals (MDGs), create synergy with bilateral co-operation and increase influence in global development fora. One of the most significant trends in multilateral development is the sustained growth of non-core multi-bi aid over the past few years and subsequent bilateralization of multilateral aid.

While South Korea has attempted to implement various policy measures to enhance its aid effectiveness since joining the OECD Development Assistance Committee (DAC), the newly-emerging donor has yet to establish a coherent, government-wide multilateral strategy. The fragmentation of multilateral aid among line ministries and agencies as well as the lack of strategic guidance on multilateral resource allocation are regarded as major challenges undermining the effectiveness of the Korea 's multilateral aid system. In this context, the paper aims to propose policy directions for Korea's future multilateral strategy and possible measures to improve its multilateral effectiveness by analyzing the current status of Korea's multilateral aid system. The paper is expected to provide key policy implications for the multilateral chapter in the upcoming Strategic Plan for International Development Cooperation for 2016 - 2020, which represents the second phase of the basic framework for Korea's ODA policy.

The paper begins by analyzing trends and major issues in the global system for multilateral aid. The continuous rise of non-core multilateral aid was one of the most significant trend over the past few years. It was noted that the emergence of new contributors, such as BRICS countries and the private sector, led to the diversification of multilateral donors. In the context of growing demand for accountability and transparency due to budget constraints, various approaches for evaluating multilateral effectiveness such as Multilateral Organisations Performance Assessment Network (MOPAN) and those of bilateral donors were examined.

The following chapters analyze the current status and challenges in Korea's multilateral aid to UN agencies, global funds and Multilateral Development Banks (MDBs). Acknowledging the general rise of multilateral aid, it has been shown that non-core funding to UN agencies by more than 17 ministries and government agencies resulted in a high level of multilateral fragmentation. As attention toward global public goods increases, the paper suggests that Korea needs to engage in more active investment in global funds, mobilizing not only traditional ODA but also innovative development financing. Chapter 4 examines the current trends in co-operation with the World Bank, ADB, IDB and AfDB, focusing on the performance and management of trust funds.

Based on the previous chapters, Chapter 5 provides a set of policy recommendations to enhance Korea's multilateral development cooperation. It was proposed that the Korean Government must state multilateralism as one of key pillars in its development cooperation. While focusing on core funding, it was recommended that non-core funding be used strategically to enhance the multi-bi linkage and strengthen domestic accountability. Accordingly, it was argued that Korea should take a more decentralised approach by increasing multi-bi projects and programmes with multilateral country offices. Followed by suggestions on Korea's multilateral principles, the paper proposes the appropriate volume and share of multilateral aid as a percentage of total ODA. In order to ensure the accountability of multilateral allocation for core funding, it was recommended that assessment of multilateral organizations be undertaken by looking at the existing performance results of the MOPAN and other bilateral donors while considering their strategic relevance to Korea's development priorities. For non-core funding such as trust funds, Korea as a donor should ensure result-based managements of trust funds by multilateral organizations.

The paper concludes with suggestions to improve the management and operation of Korea's multilateral aid. Case in point, fragmentation in UN cooperation is an issue that stands out in Korea’s multilateral aid as too many ministries and public agencies channel multilateral funding to UN agencies. To address this issue, it was advised that inter-ministerial partnership mechanism be set up, led by the Ministry of Foreign Affairs and participated by line ministries. The predictability of multilateral allocation is another issue to be addressed in terms of effectiveness. Recognizing the importance of the private sector in development financing, it was pointed out as critical to engage in joint efforts with the international community to mobilize more private resources in multilateral financing. In ending, the paper recommends that Korea build up its multilateral management capacity as a donor and develop human resources with expertise in multilateral cooperation.

국문요약

제1장 서 론
1. 연구 목적
2. 연구 방법 및 범위
3. 연구 내용 및 구성

제2장 국제사회의 다자원조 추진동향과 특징
1. 다자원조의 분류와 기준
2. DAC 공여국의 다자원조 추진동향
3. 최근 다자원조 체제의 특징
가. 지정기여의 확산
나. 신규 재원주체의 대두
4. 다자기구 평가 및 성과관리
가. 다자 차원 접근
나. 개별 공여국 차원의 접근

제3장 우리나라의 다자협력 현황과 특징
1. 다자원조 추진 현황
가. 다자기구 지원 현황
나. UN 및 기타기구 지원 현황
2. 부처별 다자기구 지원 현황
가. 우리나라의 다자협력 추진체계
나. 다자기구별 지원 현황
다. 부처별 지원 현황
3. 글로벌 펀드 지원 현황과 개선과제
가. 글로벌 공공재와 글로벌 펀드
나. 우리나라의 글로벌 펀드 지원 현황
다. 글로벌 펀드 활용의 개선과제

제4장 우리나라의 MDB 협력 현황과 과제
1. MDB 지원 현황 및 추진체계
가. 국제금융기구 출자‧출연 현황
나. MDB 협력 추진체계
2. MDB별 지원 현황
가. 세계은행그룹
나. 지역개발은행
3. MDB 신탁기금 운영체제와 개선과제
가. 신탁기금 운영체제
나. 운영성과 및 개선과제

제5장 우리나라의 다자원조 추진전략과 개선방안
1. 다자원조 정책의 기본방향
가. 정책목표
나. 기본방향 및 원칙
2. 적정 다자규모 및 지원방식
가. 다자원조 비율과 배분
나. 현장중심의 지정기여 확대
다. 신탁기금의 운용체제 개선
3. 전략적 우선순위 및 지원체계 개선
가. 다자원조의 중점지원 분야 선정
나. 다자원조 승인 및 추진절차 개선
다. 글로벌 펀드 및 신규재원 조성
4. 다자원조의 운영체제 개선
가. 다자원조의 협의체계 개선
나. 부처간 통합적 플랫폼 구축
다. 다자원조 예산의 예측성 강화
5. 다자원조 성과관리 및 평가체제 구축
가. 다자원조 성과관리의 기본방향
나. 모니터링 및 평가기준

제6장 정책과제

참고문헌

부록

Executive Summary