Abstract

Purpose: This paper analyzes the ODA management system, including the internal communication system, partnership structure, and policy decision-making and implementation process, of Lao PDR, Indonesia and Vietnam, which are Korea’s key partner countries in Asia. Based on the analysis, the paper aims to draw policy recommendations for donors to enhance aid effectiveness. Originality: This study analyzes recipient countries’ ODA management system from aid effectiveness perspective, which is relatively understudied compared to donors’ aid management system. It specifies the scope of aid management system by developing a new analytical framework based on the four elements consisting of legalization and legislation, key implementing agencies, communciation and partnership, and monitoring and evaluation process. Methodology: The study conducts literature review on the relationship between aid effectiveness and recipient countries’ governance. Based on the analytical framework, case studies on Korea’s three key aid recipient countries, i.e. Lao PDR, Indonesia, and Vietnam are conducted. The study utilizes official government documents and academic literature, and incorporates feedback from experts. Result: Although the three countries had different aid management systems, following similarities were found: mid-long term national development strategies having close linkage to the aid management system; recipient countries strengthening governance and institutional basis for enhanced ownership and transparency; while the role and capacity of key implementing agencies leading to different types of aid inefficiency issues. This implies that ODA management system has direct impact on aid efficiency and effectiveness. Conclusion and Implication: The study shows the importance of donors’ approach to recipient countries based on the latter’s context. Also, in-depth understanding of recipient countries’ aid management system can help donors better identify potential areas of cooperation and design new projects through ODA. The same applies to Korea, which is a key donor in all three country cases.

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