[Special Feature] Solar Power and Firewood

[Special Feature: Tracking the Reality of K-Origin]
Comprehensive Analysis of 4.85 Million Official Development Assistance (ODA) Projects
Spent $26.9 Billion Over 10 Years, with Over 70,000 Projects Proliferating

Having undergone remarkable economic growth from the ruins of the Korean War, South Korea became the world's first country to transition from an aid recipient to a donor nation. President Yoon Suk-yeol stated in his keynote speech at last month's United Nations General Assembly, "The Republic of Korea will boldly expand its Official Development Assistance (ODA)." The Yoon administration, which has positioned itself as a 'global pivotal state' in its foreign policy, increased next year's ODA budget by 2 trillion won (40%) compared to this year. However, the effectiveness of South Korea's aid to developing countries has been analyzed as negligible. Over the past decade, approximately $26.9 billion (36 trillion won) of taxpayers' money has been invested in ODA, but due to inter-ministerial fragmentation, more than 70,000 projects have proliferated.

[Special Feature] Solar Power and Firewood

Solar power panels installed at a school in Vinh Lao Con Village, Quang Binh Province, Vietnam. The batteries are gone, and firewood is piled up in the battery box. Photo by Younghan Heo younghan@

On the 25th, our newspaper conducted a comprehensive analysis of 4,852,071 government ODA data points from 2010, when South Korea joined the OECD Development Assistance Committee (DAC), through last year. The analysis revealed that South Korea's ODA projects totaled 77,017. Among these, government ministries and public institutions accounted for 44,050 projects, the largest share, followed by public organizations with 7,756 projects. ODA refers to funds provided by developed countries to support the economic development of developing and underdeveloped countries.

During this period, the South Korean government spent $26.92 billion (36 trillion won) on ODA projects in recipient countries. From $1.206 billion in 2010, the amount increased by an average of 7.7% annually, reaching $2.785 billion last year. As the scale of ODA grew, the number of ministries competing for aid project budgets proliferated rapidly. Consequently, the role of specialized ODA ministries diminished, while the share of unrelated ministries actually increased. ODA projects were fragmented due to bureaucrats' organizational and budgetary ambitions. Budget fragmentation intensified.

With limited budgets spread across numerous projects, many projects had similar types, leading to overlapping use of taxpayers' money. Although the ODA budget is funded by South Korean taxpayers, the beneficiaries are the citizens of recipient countries. Bureaucrats, companies, and international organizations act as proxies for the public. However, since the funds are spent on the international stage, transparency, efficiency, and performance are difficult to properly monitor.

The country that received the most aid from South Korea was Vietnam. South Korea carried out 5,051 ODA projects there, spending a total of $2.112 billion. Accordingly, our newspaper visited the solar power project site in Quang Binh Province, Vietnam, to conduct an in-depth investigation of the ODA situation. To enhance national prestige and fulfill its role as an advanced country befitting the international community, it is necessary not only to quantitatively expand the aid budget but also to improve quality and conduct performance analysis.

In the first installment, we analyzed the reality of budget fragmentation, where 34 ministries divide and share the budget. We also investigated the hasty management of ODA budgets, including selecting implementing agencies without intergovernmental agreements and prematurely allocating funds starting with personnel expenses. Furthermore, we will publish a five-part series on the findings from interviews with residents at the solar power plant project site in Quang Binh Province, Vietnam, the largest ODA recipient country.