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In 2009 Hubbard and Duggan published their book ‘The Aid Trap’ which argued that a thriving private business sector in the recipient country must be encouraged. Otherwise foreign aid simply reinforces debt, poverty and dependency. This debate between neoliberal and neo-Keynesian approaches influenced the formation of effective foreign aid `strategies from new ODA donors such as South Korea. South Korea’s role in the ODA debate represents a more general geopolitical shift by emerging nations. The paper provides a critical assessment of South Korea’s state-led and soft power ODA policies by focusing on initiatives on aid effectiveness and fostering private/public partnerships (PPP’s). The paper goes on to critically consider and judge these eliteled ODA initiatives by addressing a grassroots NGO perspective.
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