Executive Summary. The following are the main findings of the evaluation on the strategy of the program:

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1 Executive Summary

2

3 Executive Summary The 2008 Accra High-Level Forum on Aid Effectiveness recognized civil society organizations (CSOs) as major donors and autonomous actors in development, highlighting their roles and effectiveness. NGO Support Program has been one of the established channels of development assistance in leading donor countries, enabling NGOs to play a differentiated role in international development from that of the government. There is a global trend in increasing opportunities for NGO participation in regions where government aid is difficult and for projects which can be better administered by NGOs. According to the Plan for the Advance of ODA, passed by the International Development Cooperation Committee in October 2010, KOICA will increase development assistance to NGOs to 90 billion won by 2015, about ten times the amount of funding given in KOICA has been running the NGO Support Program since In light of global trends in development cooperation and the sharp increase in Korean ODA, the program needs an overhaul to raise its effectiveness. Therefore, this study aims to: (1) contribute to the establishment of a Korean model of NGO Partnership by evaluating KOICA's current NGO Support Program; (2) propose plans to improve the procedure of the NGO Support Program to raise efficiency and effectiveness; (3) propose plans to improve the implementation of the program at the field through a comprehensive evaluation of the Mongolian and Tanzanian cases, through various means, including a broad literature review, field visits, interviews, surveys, and discussion meetings. The following are the main findings of the evaluation on the strategy of the program: (1) The current objective of the program, 'complementing inter-governmental. Executive Summary

4 international cooperation efforts,' needs to be revised. (2) The objectives of NGO Support Program stated in government papers on foreign aid policy are not perfect consistent with those of leading donors. (3) It appears that there is a lack of concrete strategy to link NGO support and KOICA's ODA programs to achieve the objective of 'complementation.' (4) The volume of funding to NGOs from KOICA is very small compared to other OECD/DAC members. (5) Building the capacity of NGOs is absolutely necessary in order to administer increased ODA funds effectively. (6) The existence of the ceiling fund to NGOs should be revised into a no-ceiling fund system to foresee into a long term structure. (7) It is applaudable that KOICA started to fund indirect costs of NGO projects. Although it is encouraged to increase that funding, KOICA must approach this matter carefully, by regarding the independence and integrity of NGOs. (8) Many NGOs welcome the increase in KOICA's funding for NGOs, but at the same time, they are concerned about the possibility of compromising their autonomy. (9) To maximize the effectiveness of projects by NGOs with proven track records, it is necessary to set up a separate block grant scheme. (10) KOICA should consider adopting the 'framework organization system', which many leading donor countries already adopted to reduce transaction costs and increase the effectiveness of the program. (11) In the future, KOICA should start a 'top-down' call for project proposals, meaning that KOICA will request NGOs to submit proposals on certain projects or geographic regions. (12) The eligibility of the current NGO Support Program must be expanded to include diverse civil society actors. (13) KOICA needs to encourage partnerships between Korean NGOs and local NGOs and officially provide support for capable local NGOs. (14) More consideration is needed for newer or smaller organizations applying to the program. (15) In the long term, KOICA should consider funding local NGOs directly to support the growth of NGOs in developing countries. (16) Countries/areas where traveling is restricted or prohibited are currently Evaluation of KOICA's NGO Support Program

5 unreachable for Korea's support. Under this circumstance, KOICA could consider supporting NGOs who have proven that they can work safely in these areas. These organizations will be able to work closely and effectively with the community, delivering aid where government aid is not possible. (17) The multi-year funding projects, adopted in 2010, will help increase effectiveness by guaranteeing the predictability and stability of supported projects. (18) NGOs asked KOICA as a deciding body to set the maximum duration of funding based on a case-by-case appraisal of the project, instead of imposing a universal time limit. (19) In terms of long-term effectiveness of projects, KOICA should reconsider the degree of flexibility on the duration of projects altogether. (20) Considering the multidimensional nature of poverty, the program must include a wide range of approaches besides basic human needs (BHN), such as human rights, sustainable development, democracy and alternative development. (21) It is high time that KOICA should consider supporting Korean CSOs' work on good governance in developing countries, including efforts to improve human rights and democracy. The following are the main findings of the analysis on the procedure of implementation: (1) NGOs mostly rely on their field offices in developing countries to identify projects to submit to the NGO Support Program. (2) When identifying projects, NGO headquarters and field offices rarely take the development plans of the central or local government of the host country into account. (3) On the other hand, most NGOs field offices identify projects that suit the needs of the local community. (4) While most NGOs closely communicate with the local government of the partner country through multiple channels, there is little discussion on the development plans of the central or local government. (5) KOICA overseas offices have little effects on roles in NGOs' project. Executive Summary

6 identification. (6) Many NGOs are generally satisfied about the information they receive through program presentation sessions. Still, there are difficulties for new organizations to follow up with the information and express their opinion. (7) The current application process, in which the NGO submits the proposal to KOICA headquarters, which, in turn, requests KOICA overseas office to conduct on-site pre-evaluation, needs to be improved. (8) KOICA overseas offices must support drafting of new project proposals and the applications by new organizations, i.e., by providing necessary information. (9) The current format of project proposals need to deal more on gender equality or environmental protection areas. (10) The effectiveness of the pre-selection on-site assessment conducted by KOICA overseas offices is insignificant, due to the difficulty in traveling long-distance, lack of clarity on the role of overseas offices, lack of understanding of NGOs, and an insufficient rating scale to grade the results of the assessment. (11) The application screening only checks the basic contents of proposals; only minimal applicants are dropped at this stage and majority of them should be interviewed later. Still, there needs to be a clarified criteria of application process. (12) It appears that sufficient time is allocated to each applicant at the interviews. There should be more consideration for the qualification of interviewers and the knowledge on each proposal. (13) It is advisable to identify certain patterns from disqualified proposals in the previous year and inform NGOs of these at the program presentation. (14) Many NGOs proposed for a prompt notification of project approval. (15) It is advisable to inform new applicants of 'things to do/not to do' when submitting proposals by using examples of proposals submitted the previous year. (16) The majority of NGOs were satisfied with the flexibility of KOICA showed in accepting changes in the implementation plan. (17) The majority of NGOs thought that the format of the final report was adequate in showing achievements. (18) The majority of NGOs replied that they had not received the results of Evaluation of KOICA's NGO Support Program

7 the evaluation. (19) The timeline of receiving plans or results of the annually conducted final evaluation should be reconsidered. (20) KOICA needs to develop evaluation methods suited for NGOs, in order to conduct a more comprehensive and systematic evaluation on the effectiveness of NGO projects. (21) Among the 49 NGOs surveyed, 89.8% have their own monitoring system. 71.4% have an internal evaluation system, and only 36.7% have an external monitoring system. (22) KCOC members were more dissatisfied with financial auditing by external firms than non-members. (23) 87% of 46 NGOs made regular financial reports to headquarters; 50% said that they did not conduct regular financial audits of field offices. (24) NGO headquarters need to systematically manage the finances of their field offices more. (25) To enhance accountability, it is necessary to conduct presentations on evaluation results attended by independent evaluators, NGOs, KOICA, the local government and the community, and later publish regular evaluation reports on the overall NGO support program. The following are the findings of the field evaluation in Mongolia and Tanzania: (1) Projects must incorporate the development plans of the host country and Korea's country assistance strategy (CAS) into implementation strategies to enhance the effectiveness of the program and ODA. (2) Under the situation of growing volume in NGO support, mid- to long-term development plans for KOICA needs to be established and be reflected in the action plans of KOICA overseas offices. (3) The roles and relationships between KOICA headquarters and overseas offices should be reestablished. (4) The working system of the KOICA overseas office should be reformed for more effective implementation of the program. (5) Measures need to be taken to increase personnel for conducting feasibility studies and enhance their expertise. (6) Channels of communication must be established between KOICA overseas. Executive Summary

8 offices and grantee NGOs. (7) Multi-year funding must be increased to strengthen its sustainability and effectiveness. (8) Support for the inclusion of sustainability and exit strategies in project plans and funding for the cost of external evaluation and indirect costs are needed. (9) NGOs must be trained to raise their awareness of gender and environment. (10) Institutional changes are needed to encourage other civil society actors besides developmental NGOs to participate and to fund them. (11) KOICA should consider participating in basket funding schemes like the one in Tanzania. (12) It is necessary to learn NGO support methods from advanced aid agencies and raise ODA effectiveness. Based on the evaluations above, this report proposes the following changes in NGO support policy: Suggestions for the NGO Support Strategy (1) Modify the program title to KOICA-Civil Society Partnership Program (KCSPP). (2) Revise the program objectives to 'poverty reduction, and economic and social development through the growth of civil society.' (3) Establish mid- and long-term strategies, and publish strategy/policy papers. (4) Increase ODA funding to NGO Support Program. (5) Reform current implementation system by establishing a stable human resources management system, enhancing expertise of KOICA staff, establishing an efficient division of labor between headquarters and overseas offices, and consolidating NGO-related work under the new Civil Society Partnership Program. (6) Establish a nine-track strategy. KOICA-Civil Society Partnership Program (KCPP) KOICA-Alternative Program (KAP) KOICA-Civil Society Development Awareness Program (KCDAP) KOICA-Civil Society Public-Private Partnership Program (KCPPP) Evaluation of KOICA's NGO Support Program

9 KOICA-Civil Society Volunteer Service Program (KCVP) ODA-Civil Society Partnership Program (OCPP) KOICA-Direct Funding to Local Civil Society Organization Program (KLCP) KOICA-Civil Society Organization Capacity Building Program (KCCBP) KOICA-Civil Society Relief Program (KCRP) (7) Institutionalize partnerships through KCOC as a framework organization. (8) Establish an NGO capacity building system through KCOC. (9) Improve monitoring and evaluation methods. (10) Establish a regular dialogue channel with civil society. Suggestions on Implementation Procedures (1) KOICA overseas offices should cooperate with and assist NGOs in project identification. (2) Separate presentations must be held for previous grantees and newly participating organizations. (3) It is advisable for KOICA overseas offices to involve significantly in the process of drafting proposals, and for NGOs to submit the proposals simultaneously to both KOICA headquarters and overseas offices. (4) Include gender equality and environment components in the proposal format, selection criteria and evaluation criteria so that NGOs will incorporate them in project design. Human rights concerns should also be included in the long run. (5) Application review and pre-selection on-site assessment are conducted after KOICA overseas offices receive proposals from NGOs. The assessment results will be rated on a numeric scale and will be eventually reflected in the final selection. The assessment criteria must specify whether applicants referred to PRSPs, national development plans and local development plans in the project design. The pre-selection assessment will be conducted by the director, deputy director, and KOICA-NGO desk of the overseas office, and NGO experts may be invited as needed. (6) Clear standards need to be established for the application review by KOICA headquarters. The overseas office will look at the project's suitability to local needs, the applicant's level of preparation, expertise, appropriateness. Executive Summary

10 of the budget plan and the implementation plan, while the headquarters' NGO Team will focus on the capacity of the NGO headquarters, financial plan and project implementation. (7) Increase the share of interviewers from non-government sectors; include more experts in various fields with an understanding of international development and NGOs and people with field experience in NGO work; experts on human rights, gender and environment must be included in the long term; and finally, modify the interview criteria to judge whether applicants have a clear grasp of local needs based on national and local development plans of the partner country and the CAS of other countries. (8) If approval from the National Assembly and the Ministry of Foreign Affairs and Trade becomes delayed, one of the solutions could be executing the budget with provisional clearance from KOICA. Selection results may be notified by sending official letters to all applicants or notifying disqualified organizations by letter or telephone. Rather than telling each applicant the specifics of the selection results, it is better to identify certain patterns from disqualified proposals and inform NGOs of these at the following year's program presentation. (9) Monitoring (mid-term evaluation) and final evaluation results must be conveyed to NGOs. These will be shared at the next year's program presentation to provide feedback. Also, in addition to current evaluation, external evaluation by independent experts must be adopted. Discussion sessions on evaluation results, attended by stakeholders such as NGOs, KOICA, the local government and community, should be held to increase accountability. Regular evaluation reports need to be published to reflect the results in institutional improvement. (10) Select external financial auditing firms with an understanding of NGOs and development work, and encourage the participation of reliable financial auditing firms from the partner country. Suggestions for Improving the Implementation System in the Field, in which the KOICA overseas office Plays a Central Role (1) Clear division of labor between the NGO Team of the headquarters and the overseas offices is needed. (2) Effective implementation requires legal, institutional and organizational reform. Evaluation of KOICA's NGO Support Program

11 Most importantly, KOICA needs to establish the KOICA-NGO desk and recruit necessary personnel. (3) Provide training and technical assistance to KCSPP grantee NGOs through experts working on KOICA ODA projects in related fields. (4) Provide other NGOs besides KCSPP grantees with information and opportunities for training. Also, collaborate with other agencies supporting NGOs in evaluating their projects.. Executive Summary

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