[Exclusive] US, Japan, Sweden ODA Agencies Allocate Up to 83% of Budget to Projects... Korea Only 25%

ODA Status Analysis [K Wonjo Tracker] ⑥
Proliferation of Domestic ODA Implementing Agencies
Other Agencies' Participation Rate High at 16.8%

Advanced Countries Sweden and Japan
Over Half of Projects Implemented by Dedicated Agencies
Prioritization System Based on Strategic Goals

Sweden and Japan, recognized as advanced countries in Official Development Assistance (ODA), have ODA-dedicated agencies implementing 83.8% and 76.6% of projects respectively, accounting for the majority. This contrasts with South Korea, where the main ODA actors are split between the Export-Import Bank at 45.3% and the Korea International Cooperation Agency (KOICA) at 25.9%. Unlike South Korea, where all ministries divide the budget to conduct 'many diverse projects,' major overseas countries have a systematic prioritization of ODA projects according to strategic goals.

On the 30th, an analysis was conducted by extracting the number of implementing agencies of advanced countries from OECD Statistics big data. Unlike Japan, Sweden, and the United States, South Korea is listed in OECD statistics as having 16.8% under 'miscellaneous' agencies. This indicates a high proportion of projects involving other subordinate agencies not considered main ODA implementing ministries. Excluding miscellaneous agencies, the structure shows the Export-Import Bank managing 45.3%, KOICA 25.9%, and the Ministry of Foreign Affairs 11.3%.

However, in Japan, the Japan International Cooperation Agency (JICA) implements 76.8% and the Ministry of Foreign Affairs 18.8%, with these two departments handling most ODA projects. Other government ministries account for only 4.3% of total projects, a very small proportion. This is because, to prevent inefficiencies caused by fragmentation, in 2018 the Ministry of Foreign Affairs and JICA launched the 'New JICA' system, which integrates the execution of both concessional and grant aid. While each ministry receives a budget, project execution and implementation are primarily entrusted to the Ministry of Foreign Affairs and JICA.

The United States has 13 implementing agencies, all government ministries, with none classified as miscellaneous. The U.S. Agency for International Development (USAID) implements 56.7% of projects, the Department of State 17.4%, and the Department of Health and Human Services 17.4%. The remaining 10 ministries each implement between 0.1% and 2% of projects.

In Sweden, an ODA minister is appointed separately within the Ministry of Foreign Affairs, and the Swedish International Development Cooperation Agency (SIDA) is placed under the ministry to centralize project management. SIDA manages 83.8% and the Ministry of Foreign Affairs 12.4% of most projects.

The proliferation of ODA implementing bodies in South Korea is cited as a major issue that reduces project efficiency. The OECD Development Assistance Committee (DAC) in its 2017 peer review report, citing data from the Board of Audit and Inspection, stated, “The number of institutions related to South Korea’s ODA projects increased from 44 in 2013 to 64 in 2015. Coordination of international development cooperation activities has become more complex than ever, and it is assessed that South Korea is deviating from its commitment to pursue integrated ODA.”

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