South Korea and SDGs: Poster Child for Successful Poverty Eradication and New Initiatives for SDGs Eun Mee Kim Dean & Professor, Graduate School of International Studies Director, Institute for Development and Human Security Ewha Womans University Seoul, South Korea 2016 Australian Aid Conference Australian National University Canberra, Australia February 10, 2016
Table of Contents 1. MDGs and South Korea 2. UN SDGs and the Rise of Asia: Alternative Model to the Washington Consensus 3. Toward the Successful SDGs and the Role of South Korea 4. Conclusion
1. MDGs and South Korea 1) Toward the Millennium Development Goals (MDGs) 1960s Development assistance from the US and European donors rose in the Post-WWII era. Rapid economic development in a few developing countries (e.g., South Korea and East Asian NICs) 1970s-1980s Growing interest for human rights (including women s rights) based development cooperation. 1990s Development assistance from advanced industrialized with Washington Consensus prescriptions Poverty persisted in many developing countries. 2000 UN Millennium Summit Millennium Declaration (2000) Development cooperation sought with alternative to the Washington Consensus: Social and Human Development 2001 UN Millennium Development Goals 3
UN Millennium Development Goals 4
2) South Korea as an Aid Recipient (1945-1995) Received ODA from 1945-1995 Began in 1945: US Government Appropriations for Relief in Occupied Area (GARIOA) and Economic Rehabilitation in Occupied Area (EROA) GARIOA: Emergency relief aid to assist with US-occupied areas in need of basic subsistence including food, medicine and fuel after WWII. EROA: To assist with infrastructure in US-occupied areas after WWII. The Korean War (1950-1953) devastated over 80% of the Korean peninsula. UN and the US came to the rescue for South Korea; Foreign aid in the post-war reconstruction period. South Korea received a total of USD $12.78 billion from 1945-1995. ODA funds were used for: (1) Post-war reconstruction; (2) Poverty reduction; and (3) Economic development and industrialization. Significance in world history: Major aid recipient Emerging donor of ODA in less than five decades. Poster child for successful poverty eradication and achieving the MDGs. 5
3) South Korea as an Emerging Donor (1987-Present) 1987: Economic Development Cooperation Fund (EDCF) Established in 1987 to handle concessional loans Housed in the Korea Export-Import Bank 1991: Korea International Cooperation Agency (KOICA) Established in 1991 to handle grant aid 2013: South Korea s ODA Volume: $1,740 million (30 times growth since 1991) ODA/GNI: 0.14% DAC members average ODA/GNI: 0.28% UN goal for ODA/GNI for MDGs by 2015: 0.7% 7
2010: G20 Seoul Summit Introduced the Development Agenda 2011: HLF-4 Meeting in Busan Largest HLF meeting. The most inclusive meeting. Busan Global Partnership for Effective Development Cooperation Aid effectiveness to development effectiveness 8
2. UN SDGs and the Rise of Asia: Alternative Model to the Washington Consensus 1) Asian Development Experience State-led Development: Developmental State, Industrial Policies and Long-term Economic Development Plans Japan: Ministry of International Trade and Industry (MITI ) South Korea: Economic Planning Board (EPB) China: National Development and Reform Commission (NDRC) Export-Oriented Industrialization Effective use of ODA for poverty reduction/social development as well as economic development Staged-Approach to Development Early investment in infrastructure Export-Oriented Industrialization Early and consistent investment in Education Poverty alleviation through economic development and employment Regional Development & Cooperation through Exports, FDI, ODA Similarity in development models led to a similarity in aid models Alternative model to the Washington Consensus. 9
2) Asian Development Assistance (South Korea, China, Japan) vs. Western Aid Focus on East Asian neighbors More ODA in economic infrastructure and production facilities (See Table 1) ODA as part of a package of funds i.e., commercial loans, trade credits, foreign direct investment, soft loans, etc. Political conditionality -- e.g., human rights, democracy, gender, or governance is not emphasized. Close relationship between public and private sector UN SDG Goal 17 Partnership for the Goals through solidifying the PPP (Public & Private Partnership). 10
Table 1. Sectoral Allocation of ODA to East Asia by East Asian and Other DAC Donors (Gross Disbursement), 2012 Sector Japan Korea China Other DAC donors $ Million % $ Million % $ Million % $ Million % Total 4,762 100.0 416 100.0 1,405 100.0 5,235 100.0 Social 1,107 23.2 170 40.9 388 27.6 2,626 50.2 Economic 2,566 53.9 153 36.8 840 59.8 761 14.5 Production 351 7.4 36 8.7 79 5.6 380 7.3 Other 738 15.5 57 13.7 98 7.0 1,468 28.0 Sources: OECD-DAC Online Statistics (Creditor Reporting System) for all except China; Chinese State Council (2014) and Table 1 for China. Notes: China data are for all regions over the 2010-12 period; social includes public works. 11
UN Sustainable Development Goals (SDGs) South Korea willing to contribute for the successful achievement of the SDGs with two major global initiatives: 1) New Rural Development Paradigm and 2) Better Life for Girls Initiative. 12
3. Toward the Successful SDGs and the Role of South Korea 1) South Korea s Transmission of Development Experiences to Aid Recipients Knowledge Sharing Program (KSP): Knowledge-intensive development and economic cooperation program designed to share ROK s development experience with partner countries. Saemaul Undong (New Village Movement): Saemaul Undong was begun in 1970 in order to achieve balance between rural & urban development and between agricultural development & industrialization. Saemaul Undong was a government-led program focused on rural development with infrastructure improvement and enhancing income-generating economic activities in rural areas. New Rural Development Paradigm: Updating Saemaul 21 st century global development cooperation program Top-down + Bottom-up Self-Motivation + Empowerment 13
New Rural Development Paradigm inspired by Saemaul Undong (Announced at the UN Development Summit, 2015. Research and Field Tests with OECD, UNDP) Rural poverty is still a major source of global poverty. State-led Top-down approach combined with Bottom-up approach involving citizen leaders (women leaders emphasized). Rural development in the broader context of national/industrial development. Common Themes between the SDGs and the Saemaul Undong Requisites for the Successful Achievement of the Sustainable Development Goals (SDGs) People s participation Sense of responsibility Public consciousness 14 New Rural Development Paradigm Inspired by Saemaul Undong Expand people s voluntary participation through a meritbased incentive system Educate and train local leaders Empower local leadership Inculcate change in the public s values and work habits
2) Better Life for Girls Initiative In September 2015, President Park Geun-hye announced during the UN Sustainable Development Summit that South Korea will provide US$200 million in ODA to 15 countries in 2016-20. 15 countries: (6 Asian countries) Bangladesh, Cambodia, Laos, Nepal, Sri Lanka, Philippines / (6 African countries) Ethiopia, Ivory Coast, Morocco, Senegal, Tanzania, Uganda / (2 Latin American countries) Bolivia, Ecuador / (1 Middle Eastern country) Jordan Better Life for Girls Initiative aims to promote girls rights to education, health, and profession with the support from family, school, and local communities. 15
Inclusive Growth through Education and Health 16
4. Conclusion The SDGs paved a way for South Korea s active engagement in promoting the development effectiveness with its own development experience and effective use of ODA Better Life for All : South Korea s contribution towards the implementation of the SDGs Yet, innovative ideas on how to promote the better life for North Koreans are still absent in its new aid policies. Need to think of a ever more comprehensive approach to include the participation of really marginalized people and groups for sustainable development. 17
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