ODA

ODA stands for the official development assistance (공적 개발원조/公的開發援助) provided by an advanced country to less developed countries (LDC).

Recently the Korean government is increasingly required to provide more ODA to less developed countries in proportion to its economic growth. At the end of 2009, Korea was admitted to the Development Assistance Committee (DAC, 개발원조위원회) under the Organization for Economic Cooperation and Development (OECD).

It was remarkable for Korea to shift from an ODA receiver to a donor country within several decades. So Korea is committed to the implementation of untied aid based on the international competitive bidding (ICB) recommended by DAC.

Key words
ODA, development aid, DAC principles, KOICA, untied loan

ODA Contracts
In general, ODA is actually implemented by the government agency, i.e., the Korea International Cooperation Agency (KOICA, 한국국제협력단), which makes and enters into an international agreement with a supplier to procure the goods, services or construction for a host country.

In this regard, standardized agreements are believed to facilitate the ODA process.

Standardization of ODA contracts
What answers the following questions can be found in an article:
 * While the ODA agreements are executed by the government agency, is it obliged to comply with the Act on Contracts to which the State is a Party (국가를 당사자로 하는 계약에 관한 법률), and KOICA's internal regulations?
 * Is the General Conditions of Contract (GCC) apt to be standardized and useful in performing ODA agreements?
 * What should we do when GCC amounts to general terms and conditions, and do the DAC guiding principles function as the controller of general terms?

Review of contracts
It is advisable to screen and elect the necessary provisions out of a number of contracts in the past when untied aid is implemented by means of international competitive bidding.

In principle, the agreement can be structured by the contract form with preamble, general conditions of contract, special conditions of contract and necessary schedules, exhibits and/or appendices, as simple and concise as possible insofar as the contract is legally under control.

As a matter of fact, the general conditions of contract is guided by DAC principles by ensuring the performance of the contract, and transparency of the outcome. In this connection, it is necessary to refer to the best ODA practices of advanced countries and international financial institutions like the World Bank as well as the Public Procurement Service and KOICA in Korea.

4th High Level Forum in Busan
From 29 November to 1 December 2011, approximately 2000 delegates will review global progress in improving the impact and effectiveness of aid, and make commitments that set a new agenda for development.

The Fourth High Level Forum on Aid Effectiveness in Busan, Korea follows meetings in Rome, Paris and Accra that helped transform aid relationships between donors and partners into true vehicles for development cooperation.

Based on 50 years of field experience and research, the five principles that resulted from these fora encourage local ownership, alignment of development programmes around a country’s development strategy, harmonisation of practices to reduce transaction costs, the avoidance of fragmented efforts and the creation of results frameworks.

Looking ahead, diverse sources of finance, knowledge and expertise play a key role in the future of development - and broad, dynamic partnerships will continue to give these principles relevance.