[Exclusive] Wasting Public Funds on ODA... Numerous Cases of Suspension, Poor Quality, and Failure

ODA Status Analysis [K Wonjo Tracker] ⑤
26 Out of 1087 Grants Found ‘Deficient’
One Quarter Require ‘Follow-up Management’

Detailed monitoring data of ODA projects by overseas diplomatic missions obtained by this newspaper. The five-year data from 2018 to 2022 includes project names, implementing agencies, target countries, total project costs, total project duration, and monitoring results from overseas missions.

The government has been found to have numerous cases where projects were halted or criticized for lack of follow-up management due to not considering the culture, history, or local bureaucratic systems of recipient countries during the Official Development Assistance (ODA) process. With 47 institutions (including 12 local governments as of 2023) conducting various projects in a fragmented manner, many projects suffered from poor planning or mid-term failures.

On the 27th, after obtaining detailed data from the Ministry of Foreign Affairs through information disclosure requests and National Assembly data requests on the "Overseas Diplomatic Missions Free Aid Monitoring (2018-2022)" five-year report, it was found that 26 projects had poor content, planning, or outcomes.

Overseas diplomatic missions classify free aid monitoring into four categories: ▲Normal implementation (no issues) ▲Poor project content, planning, and outcomes ▲Need for follow-up management ▲Others. Among these, cases of poor project content and outcomes refer to ODA projects with minimal effects or unsatisfactory results. This category also includes projects that became unusable or were ultimately discontinued and failed.

For example, the Korea Customs Service’s "Developing Countries Customs Administration Modernization" project in Kyrgyzstan, conducted in 2016 with a budget of 731 million KRW, was cited as a "poor project" case. Kyrgyzstan is a member of the Eurasian Economic Union (EAEU) and cannot independently adopt Korea’s customs system. The overseas mission evaluated that the project was not linked to system exports.

Detailed monitoring data on ODA projects from overseas diplomatic missions obtained by this publication. Only cases of 'poor project planning and content' were collected, and the types, ministries, and monitoring results were organized.

The Ministry of Agriculture, Food and Rural Affairs’ "Vietnam Vegetable Contract Farming Pilot Complex Project," implemented from 2011 to 2015 with a budget of 3 billion KRW, faced similar criticism. The Ministry of Foreign Affairs’ overseas missions pointed out that "the five originally planned crops are currently not being cultivated due to lack of market access and poor adaptation to local soil." The Ministry of Trade, Industry and Energy’s "Support for Advancement of Paraguay National Standard Certification System" project, conducted from 2016 to 2020 with a budget of 700 million KRW, also received similar criticism. The project was halted after 2019 due to poor handover caused by changes in the recipient institution’s personnel following Paraguay’s presidential election.

By type, "Need for follow-up management" was the most frequent with 155 cases. This category includes situations where maintenance difficulties arise in the recipient country, operations stop due to difficulties in procuring parts, or when the recipient country lacks capacity or equipment repairs are needed. "Poor project content and outcomes" accounted for 26 cases. "Others," which includes projects that achieved results but had areas for improvement noted for future similar projects, totaled 46 cases.

There were also projects repeatedly criticized for "follow-up management." The Ministry of Education’s "Solar School Utilization Education Support Project," conducted in multiple recipient countries, was classified as needing follow-up management in nine cases and received the same criticism in 2018, 2021, and 2022. Solar School is a project that builds ICT-based classrooms using solar energy in recipient countries with poor electricity conditions. It faced difficulties due to equipment failures and malfunctions in regions such as Ghana, Rwanda, Kenya, Botswana, and Uganda. Budgets ranging from 100 million to 400 million KRW have been allocated to this project.

Experts pointed out that pushing ODA projects solely based on each ministry’s sector expertise leads to the deterioration of aid projects funded by taxpayers’ money. Jae-kwang Han, CEO of Development Alternatives PIDA, advised, "ODA implementing bodies must have not only sector expertise but also regional expertise to discover projects suited to the local conditions of recipient countries."

■Infographic Page■

Solar Power and Firewood - Vietnam Ban Laokon Report

(story.asiae.co.kr/vietnam)

What Problems Does Splitting Aid Budgets Cause?

(story.asiae.co.kr/ODA)

This project was supported by the Press Promotion Fund, funded by government advertising fees.