Paper short abstract:

Japan and South Korea are some of the largest ODA donors to Asia, including the Philippines. This research paper aims to compare & contrast their ODA using the Philippine case. Their strategies on giving out ODA were analysed, and how the Philippines can better utilize their aid.

Paper long abstract:

When it comes to ODA, Japan has been a long established donor, while South Korea is still emerging. Nevertheless, both Japan and South Korea are some of the largest donors especially to Asia. Both have been previous recipients of development aid themselves. This paper aims to compare and contrast the official development assistance of both countries overall, and whether this applies to the Philippine case. It also aims to explore the ODA projects specifically towards the Philippines, and to analyse whether South Korea as an emerging donor is following Japan's footsteps in development aid. The researcher compiled data from the National Economic and Development Authority and listed all the ODA loans and grants of Japan and South Korea to the Philippines from 2010 to 2019, since South Korea became a member of OECD DAC from 2010. The findings show that the ODA of Japan and South Korea are very similar with each other. They are very similar in terms of focusing on bilateral aid rather than multilateral aid, on Asia particularly Southeast Asia, on lower middle income countries, on high tied aid, on larger number for ODA grants but higher aid amount for ODA loans, on collaboration with national businesses for ODA projects, and their ODA being in line with own national interests and recipient country national development plans & international sustainable development goals. For both countries, the infrastructure development projects have the largest portion of loans to the Philippines. However, both countries quite differ in terms of sectoral aid. Japan focuses on energy, transportation, communications, industries, community development, social reform, institutions, and governance, while South Korea focuses on rural development, health, and education. It is assumed that both countries are using their own model of development and expertise in giving development aid. With regards to the Philippines, it has accumulated a lot of debt through the ODA system, especially that a very high amount of it is allotted to loans. The Philippines needs to be wise and should invest in projects that are truly for long term sustainable development. Overlapping aid must also be avoided.

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