Seoul starts public-private partnership for overseas aid

South Korea established a public-private partnership on Monday to cultivate overseas development programs in a more comprehensive, diverse and effective way.

The Development Alliance Korea, a first of its kind here, seeks to forge an extensive network between the government, corporations, universities and civic groups that are devoted to assisting developing countries. It will also be working with multinational agencies. 

Among the some 80 members are the Korea International Cooperation Agency, the Federation of Korean Industries and the Korean Council for University Education. Corporate participants include POSCO, Hyundai Motor and LG. They plan to hold their first forum in September and regular meetings twice a year plus impromptu gatherings prompted by their needs.

“Collaboration not only between countries but with business and private groups is absolutely essential to foster a more peaceful and developed world where everyone’s human rights and dignity is respected,” United Nations Secretary-General Ban Ki-moon told reporters after the launching ceremony at the Foreign Ministry in Seoul.

The alliance comes as part of the government’s efforts to streamline and enhance the efficacy of its aid projects. Experts have said Seoul’s development agenda face challenges due to its small-scale funding relative to the number of programs, lack of trained workforce, conflicting goals of about 30 local agencies and their short-sighted strategies focusing on loans rather than grants.

It is a follow-up to the “Busan Global Partnership,” which was launched in June under its commitment made at the High Level Forum on Aid Effectiveness in Busan last year.

Seoul’s official development assistance totaled around $1.32 billion last year, consisting of grants and low-interest loans. That reflects a more than 12.5 percent jump from 2010 and six-fold growth from 2000, according to the OECD.

By Shin Hyon-hee (heeshin@heraldcorp.com)