Financial development is a necessary condition for economic development. However, the current state of financial development in most developing countries is rather striking. Over half of the world’s adult population do not use formal financial services to save or borrow. This is especially true for those who live at the poverty level, and without access to formal financial services, their ability to build wealth, increase income and manage uncertainty is seriously restricted.
Well-functioning financial systems provide savings, credit, payment, and risk management. Without inclusive financial systems, poor people must rely on their limited savings to invest in things like education or setting up small businesses. Therefore inclusive financial systems that help poor people and other disadvantaged groups in this regard do would be very beneficial, contributing to improvement of income distribution and economic growth. As expected, the degree of financial access is higher in economies with higher national income as measured by GDP per capita. However, national income explains much less of the variation in financial access for low and lower middle income countries. At a given income level and financial depth, use of financial services varies significantly across countries. This suggests a potentially important policy challenge. That is, ODA in finance must be directed towards improvements in financial access in poor countries.
Economic stability and effective contractual and informational frameworks are crucial for an inclusive financial system. To create a deep, efficient and stable financial system, however, the government’s role is very important. Governments have an important role in building long-term financial institutions and making financial markets function properly. In this respect, it is worth exploring how the financial system has evolved in Korea, which achieved surprisingly rapid industrial development with strong government support.
Korea's experience in financial development cannot be separated from the government. It is well-known that, since the early 1960s, the Korean government was directly involved in allocating credit for the purpose of fostering rapid industrialization and export expansion. From the early 1980s to the currency crisis of 1997, however, various attempts were made towards financial liberalization. Even if the government did not completely abstain from interventions in the financial markets, many attempts were made to lift government control over financial institutions. But deregulation in the absence of appropriate laws and institutions essential to a truly liberal financial system would serve as an important cause of the 1997 currency crisis. At that time, the necessary institutional infrastructure was not firmly in place. The post-crisis period has seen a series of reforms based upon so-called ‘global standard.’ The key lesson from Korea’s experiences was that institutions simply transplanted from abroad may not function as expected due to differences in stages of development and local specificity. This lesson also applies to many developing economies.
In principle, the financial ODA to developing countries should be designed to fit the circumstances of the recipient country. Policy alternatives should be differentiated in accordance with recipient countries’ demands. For example, policy options should reflect whether the recipient country wants enhancement of basic financial access, fostering development finance, or opening financial markets. It is necessary to develop step-by-step ODA programs based on the demands of respective recipient countries in different stages of financial development.
Another consideration is that Korea is taking its first steps in the financial ODA program. First of all, international norms and guidelines as well as the existing ODA practices need to be analyzed. Based on those analyses together with Korea's own experiences, a uniquely Korean financial ODA strategy can be derived. Strategies should also reflect what recipient countries wants from Korea. Also, it is important to find where Korea's comparative advantage lies.
This report examined potential strategies for Korea's financial ODA and provide three main areas for ODA; fostering financial markets, supporting development finance, and building financial infrastructure. First, fostering financial markets is the most basic step, especially for poor economies. Sub-areas in this category include enhancing financial accessibility, increasing savings, and developing capital markets. Second, supporting the development finance will probably be the most wanted area for recipient countries who wish to share with the experiences related to Korea's development strategies. The sub-areas include development finance, export finance, SME finance, microfinance programs. Third, programs related to building financial infrastructure could be focused on the education of financial experts, the establishment of a financial supervision system, and the cooperation with international organizations.
Overall. this report presents a total of 10 challenges which are potentially important for Korea’s financial ODA strategy. Proposed action plans and initiatives can be organized, depending on the development stages and demands of recipient countries. For example, for the country whose per capita income is very low and with a wide range of people not served by financial institutions, improving financial access will be a priority. Meanwhile, for the (middle income) country wishing to develop the manufacturing sector and enhance export, putting the emphasis on development finance and export finance might be more effective.
In fact, the ODA to developing countries is generally of a diverse nature. The ODA program is typically divided into institutional/technical support and direct funding. Institutional/technical support includes building financial infrastructure, financial sector reforms, and step-by-step financial development plans. Direct funding is a form that is closer to the original aim of the ODA. Because extensive and complex financial issues are interconnected, however, direct funding may have only limited impact. Nevertheless, the focus of financial ODA should not be limited just to consulting, training and education. There is a need to select diverse programs for enhancing financial access, microfinance, development finance, export finance, via small but direct funding. In this case, it is recommended to follow a more practical approach, through cooperation with recipient country governments and local NGOs.
This report examined comprehensively the financial circumstances of developing countries and ODA-related challenges in light of Korea’s experiences. However, there are smaller systematic studies on financial ODA strategies and in fact, this report listed several menus on programs simultaneously. In the future, it is necessary to review closely individual programs conducted by other countries and international organizations, and sort out selective programs suited to the characteristics and development stages of recipient countries. In other words, the focus of Korea's financial ODA will be on how to select country-specific programs and how to combine institutional/technical support with direct funding, and putting them into practice effectively.

서언
 
국문요약 

제1장 문제제기 

제2장 개도국 금융발전의 중요성과 제약요인 
1. 금융발전과 경제발전 
가. 금융과 성장 
나. 금융발전의 결정요인 
2. 빈곤퇴치와 포용적 금융발전 
가. 금융과 빈곤 
나. 포용적 금융발전의 중요성 
3. 개도국의 금융접근성 
4. 개도국 금융접근의 장애요인 
가. 금융계좌 이용의 장애요인 
나. 대출 및 기타 금융서비스의 이용 

제3장 한국의 금융발전 경험과 시사점 
1. 한국의 금융발전 개관 
가. 한국의 금융제도 및 금융정책 
나. 금융시장의 양적 성장과 구조변화 
다. 금융기관의 설립 
라. 금융 하부구조 구축
2. 개발금융체제와 금융정책 
가. 금리정책 
나. 정책금융 
다. 금융저축 정책 
라. 외자도입 정책 
3. 정책금융의 전략과 수단 
가. 설비투자지원금융 
나. 수출지원금융 
다. 중소기업금융 
라. 서민금융 
마. 주택금융 
바. 농수산금융 
4. 금융시장 육성정책과 제도변화 
가. 자금시장 
나. 자본시장 
5. 금융발전 경험의 평가 

제4장 주요국의 금융분야 ODA 현황  1
1. 금융분야 ODA의 국제적 현황 
가. 금융분야 ODA의 규모와 추이 
나. 금융분야 협력의 주요 유형 
2. 금융분야 협력의 주요 사례 
가. 금융시장과 자본시장 육성을 위한 제도적 지원 
나. 민간투자의 확대 유도를 위한 정책 및 인프라 확충 
다. 금융시장에 대한 직접적 지원

제5장 한국의 금융분야 ODA 전략과 과제 
1. 한국의 금융분야 ODA 현황과 평가 
2. 한국의 금융분야 ODA 정책 방향 
3. 한국의 금융분야 ODA 실천과제와 실행계획 
가. 금융접근성 제고 
나. 저축증대 
다. 자본시장 육성 
라. 설비투자 지원금융의 활성화 
마. 수출금융의 활성화 
바. 중소기업 지원금융의 활성화 
사. 서민금융의 활성화 
아. 금융분야 역량강화 
자. 금융감독체제 구축지원 
차. 국제기구와의 협력증진 

제6장 결 론 

참고문헌 

Executive Summary