A Country To Country Aid Agreement Is Called

22 Chart 5 shows that, until the mid-1990s, Korea channelled its development cooperation primarily through multilateral organizations. During this period, South Korean aid was mainly distributed by the World Bank and regional development banks. For example, in 1990, 61% of Korea`s multilateral aid came from the World Bank and 29% from regional development banks. However, beginning in the mid-1990s, Korea changed its profile and increased its assistance under bilateral agreements. Over the past decade, Korea`s multilateral aid has been below the DAC average (about 30%), but the International Development Association (IDA) and other World Bank institutions (35%) are still the main destinations for Korean multilateral aid, followed by regional development banks (30%, see Chart 6). Instead of a single name for official development assistance, the French government presents its finance bill in the form of important public policies, known as “missions,” which will be reviewed and approved by Parliament. In 2011, French ODA included 23 programs distributed among departments. Other French ODA expenditures can be found in other missions and programmes whose resources are only partially allocated to development aid. Moreover, Sachs argues that democratization is not an integral part of an effective distribution of aid. Instead of keeping the strings of our aid or working with only democracies or “good governments,” Sachs believes that we should consider the nature of government in the country in need as a secondary concern. The concept of foreign aid refers to any type of aid that one country voluntarily transfers to another, which may take the form of a gift, a subsidy or a loan. Most people tend to view foreign aid as capital, but it can also be food, stocks and services such as humanitarian aid and military aid.

Kiyokazu, K. (2008) `Reality of Aid 2008 Country Report: Republic of Korea`, The Reality of Aid, (Quezon City: The Reality of Aid) www.realityofaid.org/wp-content/uploads/2013/02/Reality-of-Aid-country-report.pdf (released April 4, 2013). 19 In addition to the comparison between South Korean cooperation and EU development cooperation, the following sections also highlight some inseisees regarding the South Korean aid programme. Many of these criticisms, which highlight the link between development cooperation and policy and economic objectives, reflect criticism of other donors, including many OECD DAC members. First, some authors have criticized Korea`s development aid as too selective. Chun et al. (2010) notes that poverty reduction and the achievement of the Millennium Development Goals are probably not the only goals of Korea`s development cooperation policy, given that a significant portion of the country`s ODA is devoted to relatively prosperous Asian countries where Korea has strategic economic interests (such as Sri Lanka and Indonesia) rather than to least developed countries.