OECD Strategy on Development

Mr. Chairman,

The Republic of Korea actively participated in the drafting process of the OECD Strategy on Development as co-chair of the Informal Working Group (IWG) and I am pleased to be here today to discuss how to better implement it.

(Ways to better support developing countries and emerging economies)

Based on the Strategy on Development, Mr. Chairman, we believe that the OECD can further promote the participation of developing countries in tackling issues especially relating to jobs, equality and trust in the following ways.

First, it should enhance mutual learning between the OECD and developing countries through evidence-based policy dialogues and support the capacity-building of developing countries in drafting their national development policies.

Second, the OECD should revitalize innovative knowledge-sharing networks. Such efforts should make best use of the OECD’s comparative advantage and strength in order to avoid duplication of work in other international organizations. The OECD should also promote coherence and synergy by establishing strategic partnerships with its member states and other international organizations based on their respective comparative advantages and strengths.

Third, the OECD could identify bottlenecks to growth in developing countries and provide policy recommendations for them by making use of the Multi-Dimensional Country Reviews (MDCRs) which take into account their unique circumstances and needs.

Based on its comprehensive partnership with the OECD, the Republic of Korea will continue to support the implementation of the OECD Strategy on Development in the areas where Korea has policy priorities and comparative strengths.

As part of this effort, we have made financial contributions to the program titled ‘Toward Green Growth in East Asia’ with a view to supporting developing countries in their efforts to promote green growth as an effective tool for sustainable development. Korea also has actively participated in projects related to ‘Global Value Chains (GVCs)’ and supported the ‘Knowledge Sharing Alliance (KSA)’.

(PCD agenda in OECD countries)

Mr. Chairman,

Since the Fourth High Level Forum on Aid Effectiveness held in Busan, Korea in 2011, the development cooperation paradigm has shifted from ‘aid’ to ‘effective development cooperation’.

To achieve the goal of ‘effective development cooperation’, donor countries need to fully comprehend the fact that not only aid policies, but non-aid policies as well, can have a substantial effect on the quality and impact of development.

The OECD Strategy on Development can play an important role in providing a greater impetus to raising public awareness of importance of Policy Coherence for Development (PCD).

In order to facilitate the creation of positive synergies and bigger impact on development, it is essential to introduce and strengthen a system for monitoring, assessment and feedback for PCD. Korea is ready to support the OECD’s efforts to this end.

On the other hand, a non-aid policy, even when PCD taken into account, can overstretch the capacity of developing countries, which can lead to unexpected negative consequences on development per se. Therefore, when drafting aid and non-aid policies for certain developing countries, it is necessary to thoroughly analyze their potential and capacities and design policies that will not negatively affect their development, but instead assist building their development capacity.

(External Relations)

Turning to the external relations, first of all, I would like to commend the OECD’s continuing efforts to spread its best practices and standards to key partners and other important countries and regions.

By and large, the OECD’s cooperation with key partners thus far has been taking place on an ad-hoc basis, depending on individual programs. In order to make it more effective, we need to institutionalize it through comprehensive cooperation agreements. The “Framework Agreement between the OECD and Indonesia” concluded in September 2012, is an excellent example. I look forward to the conclusion of similar agreements with other key partners in the future.

(South East Asian Regional Program)

Mr. Chairman,

In order to maintain the OECD’s standing as a center for global policy network, it is also essential to strengthen its ties with Southeast Asian countries, strategic importance of which has already been recognized by the OECD.

In this respect, the launch of the Southeast Asian Regional Program is a step forward in the right direction. We also welcome the decision to utilize the Part I budget for this program as it demonstrates the OECD’s firm commitment to this region. I sincerely hope that this program can lay a solid foundation for the Southeast Asian countries’ accession to the organization as its full-fledged members.

Korea’s priority areas in implementing this program are, among others, trade, regional integration, and public governance. We will positively consider voluntary contributions in these areas. We are also committed to supporting this program through the Korea-OECD Policy Center in Seoul.

We will continue to promote partnerships with developing countries and other emerging economies to make development happen.

Thank you very much. /End/