Water ODA for Sustainable Development - Korean Perspective- Professor Seungho Lee GSIS, Korea University Korea International Water Week 20th September, 2017

Outline Introduction Water & Sustainable Development Goals (SDGs) Historical Perspectives Korea’s Water ODA 2008-2012 Policy Implications Conclusion

Introduction Research Purpose Rationale To assess Korea’s commitment to water for sustainable development To highlight Korea’s strategies for water ODA & evaluate achievements of Korea in water resources management Rationale Beyond MDGs & on-going efforts for achieving SDGs Water as a sector in SDGs & critical for helping to achieve the other SDGs Korea’s experiences as good benchmarking case for developing countries recognizing water for sustainable development

Water & SDGs The magnitude of water for sustainable development Water for human survival, socio-economic development & environmental protection No development policies without adequate water management A cross-cutting issue A prerequisite for a launch of economic or ecological policies Call for actions Half success & half failure from MDGs: supply relatively satisfactory but sanitation, problematic, challenges remaining Forward-looking from SDGs: a stand-alone goal, more opportunities ahead

Sustainable Development Goals

Water & SDGs The Role of Water in SDGs Water quantity, water quality, flood & drought prevention, ecosystem protection as a sector: water & sanitation, water resources management, water quality control as outcomes from MDG 7.C & reconfirmation of IWRM agendas from the 2002 Johannesburg Helping to achieve other goals as an enabler: facilitating agricultural growth, energy generation, industry & commercial development, more jobs Supporting other sectors for achieving goals as a supporter: establishing and supporting development agendas through the change of international aid framework

Sub-goals related to No.6 Water & Sanitation 3.3 Reduction of water born diseases 3.9 Reduction of water pollution & decrease relevant diseases & death 11.5 Reduction of the number of affected people and economic losses caused by water-related disasters 12.4 Reduction of water pollution through adequate waste management 15.8 Conservation & sustainable use of freshwater ecosystem services 15.1 Protection from the intrusion of alien species in freshwater ecosystems

12. Sustainable Consumption 6. Water & Sanitation 1. No Poverty 2. End Hunger 3. Good Health 4. Good Education 5. Gender Equality 7. Energy 8. Economic Growth 9. Infrastructure 10. Reduced inequalities 11. Sustainable Cities 12. Sustainable Consumption 13. Climate Change 14. Life below Water 15. Life on Land 16. Peace & justice 17. Partnership for goals

Historical Perspectives Epitome for the linkage between water & SD Korean socio-economic development since the 1960s Water playing a pivotal role in providing the ‘bloodstream’ for the unprecedented economic growth in a short period of time A good practice for developing countries Economic development plans: the 1960s-the 1980s The 5 Year Economic Development Plan The 10 Year National Territorial Development Plan The blue prints for a fast catch-up of developed countries

Historical Perspectives 2 Main Development Strategies Input-driven & export-led development strategy Land development, centered on the rearrangement of the spatial structure & provision of infrastructure for economic growth Integration of economic growth & territorial policies through the plans Relevant programs and projects designed at different development stages

Economic Development Trend in Korea Source: Kim & Moon (2012)

Historical Perspectives Overview of Korean water resources Water scarce country with an annual precipitation per capita, 1/6 of the world average, concentrated in summer A high degree of regional & seasonal variation of water Frequent floods & droughts every year Efforts to overcome water challenges Large dam development: 1) to supply water for industries; and 2) prevent floods (typhoons)  multipurpose dams Multi-regional water supply systems for marginalized areas Water quality improved, contributing to enhancement of water & sanitation services More attention to ecosystem services since the mid-1990s

Historical Perspectives Development of Funding for water resources management Most of funding sourced from foreign aid Soyang Multi-Purpose Dam Project (1967-1973): foreign aid accounting for about 37% of the total construction cost The largest funding sources: the Economic Cooperation (policy loan from Japan), Asian Development Bank, Int’l Bank for Reconstruction and Development (IBRD), and Overseas Economic Cooperation Fund (Japanese foreign aid)  26% of the total funding for water projects from international organizations Such assistance useful for stable financing and an opportunity for learning advanced management skills

Bulk Water Supply System Financing sources for Early Water Resources Development Projects in Korea Unit: KW 100 million Year Project Total Domestic Overseas Int'l Funding Source 1960s Dam Soyang 32.1 20.3(63%) 11.8(37%) ECOP 1970s Andong, Daecheong, Chungju 751.1 489.8(65%) 261.4(35%) ADB, OECF, IBRD Bulk Water Supply System Seoul Metropolitan, Nakdong River 233.4 150.2(64%) 83.2(36%) ADB, IBRD 1980s Hapchon, Juam, Imha, Nakdong River Barrier 1155.2 973.4(84%) 181.7(16%) OECF, IBRD Geumgang, Daecheong, Seomjin, Namgang 157.5 99.6(63%) 579(37%) 1938.4 1483.5(77%) 454.7(23%) ECOP, ADB, OECF, IBRD Bulk Water Supply System 390.09 249.8(64%) 140.1(36%) 2329.3 1722.2(74%) 594.8(26%) Source: Koun (2013), p64.

Patterns of Korean Water Policy Non-Structural Measures 1980s Phenol discharge in Nakdong River Ministry of Environment established Rise of civil society groups 1990s 1970s After 2000 Multi-purpose dam construction Agricultural water supply Multi-regional water supply Local water supply and sanitation services Environmental regulations Structural Measures Basic Water Act, Reform in local water and sanitation services, Virtual water River restoration Water & Green Growth 4 Major River Project Certainty Uncertainty Emphasis on Economic Growth & Industrialization More Attention to Sustainable Development

Korea’s Water ODA Overview of Korea’s water ODA 2008-2012 Korea’s water ODA amounted to US$ 980 million  12.2% of the total ODA of Korea and 28.3% of the SOC & Services sector Much of the ODA concentrated in large & basic water & sanitation services projects, 87.9%, followed by policy & management and wastewater management & treatment Around 85% of the ODA provided through loans, and large-scale projects accounted for 95%

Korea’s Water ODA Regional focus 2008-2012 Focused on Asia, over 60% of the total water ODA in Korea Country Partnership Strategy – 26 countries selected & countries for water ODA, Laos, Bangladesh, Vietnam, Indonesia & the Philippines and Ethiopia Vietnam, over US$ 1.8 billion, Indonesia, US$ 700 million, Bangladesh, US$ 570 million, Ethiopia US$ 430 million, and less than US$ 100 million for the Philippines & Laos Transfer of Korea’s experiences to developing countries in water & sanitation, river basin management, water policy & institutional framework & water resources planning

Policy Implications Contribution of efficient water resources in Korea Steady water supply through dams to increase agricultural & industrial productivity Safe water and adequate sanitation services for social welfare Multipurpose dams for prevention of floods & droughts and electricity generation Eco-friendly development & policies for environmental sustainability A good practice to epitomize the positive linkage between water & sustainable development

Conclusion Water’s interconnectivity embedded in SDGs Water serving as a sector, enabler & supporter Water as a backbone for achieving sustainable development Water for Korea’s sustainable development The Miracle of the Han River possible with efficient water resources management Profound impacts by water to economy, society & the environment Future of Korea’s Water ODA Good benchmarking case for developing countries More investment to basic water & sanitation services in non-Asia regions & water-related disaster projects