KOICA’s New Models for Develop-ment

March 1, 2017

Sangback, LeeAssistant Country Director

CONTENTS

I Introduction to KOICA

II KOICA’s new development models

2

3

Introduction to KOICA

Korea’s past and presentSeoul in 1950s

4

Korea’s past and present

5

Today in Seoul

< Jangchung Arena, 1963 >< Food Aid in 1950s >

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Aid to Korea in past

As a recipient country, Korea received ODA from foreign countries total amount of 12 billion USD. Ranging from emergency relief to structural read-justment program, ODA significantly contributed to Korea’s economic and so-cial development.

7

Korea as a recipient country

Foreign in-vestment

1945Liberation

1950-53Korean War

1960-70s1980-90s

Economic growth

Humanitarian relief

reconstruction

2000Excluded from the list of ODA recipient countries.

In 1963 Korean hosted training program for public officials of developing countries for the first time funded by the U.S. To respond to the growing de-mand from partner countries, the Korean government gradually funded more of its assistance projects on its own budget.

1963Invite

trainees1967Dispatch experts

1977Start

Grant aid

1987Establish

EDCF 1991Found KOICA

2010Join

OECD/DAC

Basic ODA struc-ture

With USAID spon-sorship

Provide Ko-rean equip-

mentUSD 1 million

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Korea as a donor country

<1991-2015>

581,939,078 dol-lars

15,596,190

dollars

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KOICA development assistance efforts

US$197 million

KOICA Philippines Office

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1994 Philippines office opened

2016 20 million dollars

Project/DEEP (55)

Trainees (2,528)

Volunteers (5,499)

Total of 25 personnel

- 12 Korean Staff

- 13 Local Staff

Project (17), Trainees (163), Volunteers (40)

1990 1st batch of KOVs dispatched

History

Ongoing Projects (Total of 15 projects) in 2017

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Infrastructure Education4 Projects 2 Projects

3 Major Priorities

“Country Partnership Strategy”

Agriculture5 Projects

Health4 Projects

Project (Total of 15 projects)

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Adapting to Climate Change Impacts through the Construction of Water Impounding Facili-

ties (‘10-’17)Integrated Agricultural Development

Projectin Quirino(‘13-’16)

Enhancing the Capacity of Production and Dis-tribution of High-quality Rice Seeds (‘13-’17)

Rehabilitation of the Felipe Abrigo Memorial Hospital and Strengthening of the Guian Inter-Local Health Zone

(‘15-’18)

Establishment of Interoperable Health In-formation System for Region 4A-CAL-ABARZON (‘14-’17)

Reconstruction and Strengthening of the Visayas State University

Tolosa Campus (‘14-’17)

Integrated, Equity Focused Service De-livery for Accelerated Improvement of

Maternal and Newborn Health (‘15-’18)

Panay Island Upland Sustainable Rural De-velopment Project (‘15-’19)

Northern Iloilo Comprehensive Fishery Re-habilitation and Development Project (‘15-’17)

The Iloilo Geographically Isolated and Dis-advantaged Area(GIDA) Health System Strengthening Project (‘13-’16)

Automation of Flood Early Warning System for Disaster Mitigation in Greater Metro Manila (‘15-’17) Support to Typhoon Recovery and

Resilience in the Visayas: Waste Management, Vocational Training, and Cash-for-Livelihoods ('14-'17)

<Entire Region> - Updating of the Master Plan on the Development of Aids to Navigation in the Central Part of the Philip-pines (‘14-’17)- Enhancing Criminal Investigation Capability of the Philippines National Police (‘16-’18) ……

Agricul-tureInfrastruc-ture

Health

Educa-tion

Better Life for Out‐of‐school Girls to Fight Against Poverty and Injustice

in the Philippines (’17-‘20)

Korea Overseas Volunteers (KOVs) –Total of 38 volunteers as of Feb 22, 2017

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Ilocos Sur (1)Mt. Province(1)Ifugao (1)

Quirino (2)

Aurora (1)Zambales (4)

Manila (1)

Camarines Sur (8)

Albay (1)

Guadalupe (4)

Negros (4)

Cebu (5)

Bohol (2)

Leyte (2)

Davao (1)

General volunteer (18)

Senior volunteer (12)

Saemaul volunteer (8)

23-49 years old

50 years old and above

Contribute to rural development as a team

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KOICA’s new devel-opment models

Background of New Model for Development

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01 Emerge of BOP Mar-ket The number of people who live on less than $2 a day (BOP, Bot-tom of the Pyramid) is estimated to be 4 billion Growth of inclusive business which targets BOP market of $5 trillion

Inclusive Innovation : Pursuit of “More from Less for More”

02 Post-2015 Development Cooperation Agenda & Scientific Innovation SDGs ReportEmphasis on scientific technology as a method of implementation for pro-viding solutions for economic & social problems in developing countries Promoting knowledge shar-

ing and regional & interna-tional cooperation in the field of scientific technology

03

Discover, verify, and spread a variety of creative solutions through open challenge pro-gram, such as GCD&DIV of US-AID

Open Innovation Plat-form Open platform which actively ac-cepts ideas from outside, in order to enable “Value Creation”

KOICA tried to solve development problems with many meth-ods such as projects, fellowship programs, public-private partnership programs and volunteer programs for 25 years.

BUT there are many challenges these conventional methods cannot solve in recent times.

Searching for new development models

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DEEP(Development Experi-

ence Exchange Partner-ship)

PPP(Public Private Partnership)

KOICA realized that we needed to reflect Fresh ideas & Technology from new players such as Private Sectors, Enter-preneur, the Youth etc.

We needed Innovators & Start-up companies to come and participate in the development field.

We needed an Open innovative platform with Interna-tional partners they could easily access.

Searching for new development models

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Development Action Program (DAP)

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KOICA’s ODA expertise

Development of Science Technol-

ogyCorporate Finance

Business Know-how

CTS IBS GlobalPartnership

Development Action Program

Comparing classic ODA method with DAP

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Division Classic ODA method New DAP

ProcessRecipient country’s official request project plan by KOICA search Korean company suitable for the project

Project draft plan made by com-pany KOICA selects or co-plans with the company chosen by con-test or nonscheduled search

Donated goods

• Unilateral traditional ODA ma-chineries donations

• High-quality and high-efficiency innovative products owned by Ko-rean start-up companies• Merchandise agricultural products using value-chain

Partnership •Recipient country•Korean supplying company

• Start-up companies• Innovators and Social enterprises• Private investors and global fi-nance investors• Advanced ODA institutions, IN-GOs, and foundations

Recipient • Recipient country or recipient in-stitutions

• Focused on final beneficiary• Participating company benefiting by entering global market

Result • Economic development of recipi-ent country

Economic development+ Increase in household income+ Participating company’s entry to global market

Finding Solutions for various development challenges in the world, with Creative Ideas and Innovative Technology

Promoting Inclusive Innovation To tackle and reduce inequalities between countries and between

social classes Strengthen the effectiveness of development through science,

technology and innovation

1. Creative Technology Solution (CTS) Pro-gram

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1. Creative Technology Solution (CTS) Pro-gram

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Cutting edge Tech. $40,000

Innovative Tech. $350

1. Creative Technology Solution (CTS)

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This is Odón device.Guess what it is for,

And who made it.

1. Creative Technology Solution (CTS)

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This is what this $50 device is for.

2. Inclusive Business Solution (IBS)

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2. Inclusive Business Solution (IBS)

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Establishing business value chain for each industries in partner countries Empowering product value chain by utilizing know-how of

Korean companies. Providing job or entrepreneurship training liked with labor

market by applying core capacity of institutions.

Production Processing Distribution Merchandising

2. Inclusive Business Solution (IBS)

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2. Inclusive Business Solution (IBS)

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Activating partner countries’ small and medium sized business model Revitalizing social enterprises Increasing small business experiences by improving the ac-

cessibility to finance

3. Global Partnership

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- Education Above All (EAA) Foundation in Qatar

- Max Planck Society in Germany

3. Global Partnership

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Grand Challenges for Development by USAID Providing 1 million USD/year for 5 continuous years Multi-organizations co-funding one initiative Challenge Pro-

grams (ex : Saving Lives at Birth)

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Thank you