Japan’s Development Cooperation in 2018 · 2020. 7. 20. · 2 White Paper on Development...

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Part I Japan’s Development Cooperation in 2018 Prime Minister Shinzo Abe announcing the “Tokyo Strategy 2018 for Mekong-Japan Cooperation,” (details on page 74) which sets out the future direction of Japan-Mekong cooperation, at the 10th Japan-Mekong Summit Meeting held in Tokyo on October 9, 2018 (Photo: Cabinet Public Relations Office of the Government of Japan) White Paper on Development Cooperation 2018 Japan’s International Cooperation

Transcript of Japan’s Development Cooperation in 2018 · 2020. 7. 20. · 2 White Paper on Development...

Page 1: Japan’s Development Cooperation in 2018 · 2020. 7. 20. · 2 White Paper on Development Cooperation 2018 Part I Japan’s Development Cooperation in 2018 In 2018, Japan made many

Part I

Japan’s Development Cooperation in 2018

Prime Minister Shinzo Abe announcing the “Tokyo Strategy 2018 for Mekong-Japan Cooperation,” (details on page 74) which sets out the future direction of Japan-Mekong cooperation, at the 10th Japan-Mekong Summit Meeting held in Tokyo on October 9, 2018 (Photo: Cabinet Public Relations Offi ce of the Government of Japan)

White Paper on Development Cooperation 2018

Japan’s International Cooperation

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Part I Japan’s Development Cooperation in 2018

In 2018, Japan made many efforts to realize a society in which “no one will be left behind,” the goal of the Sustainable Development Goals (SDGs), based on the concept of “human security,” which Japan has led in the international community over many years. Not only through providing conventional ODA to developing countries, but Japan has also carried out a number of initiatives on global issues, which need to be resolved urgently for both developed and developing countries, such as inequality and poverty, terrorism, refugees and displaced persons, environmental issues and climate change, and infectious diseases.

Examples of these initiatives include Japan’s proactive promotion of Universal Health Coverage (UHC), which seeks to provide all people, including those in developing countries, with affordable access to basic health services when needed. As part of this initiative, Japan has provided support to countries in Africa and across the world which have insufficient healthcare services and sanitation, and has strengthened its efforts to address infectious diseases, which can easily cross national borders and have grave effects on the entire international community as the world continues to globalize.

Also, due to the recent conditions in Syria, Bangladesh and Myanmar, the number of refugees and displaced persons has grown to approximately 70 million in the world, which hits a record high since the end of World War II, and securing the lives, dignity and safety of these

refugees and displaced persons is an issue of growing urgency. Japan is proactively providing humanitarian assistance to refugees and other people in vulnerable positions, such as women, disabled persons, and children in developing countries, as one of the priority issues, among others.

Foreign Minister Taro Kono announcing the provision of Japan’s grant aid totaling approximately $10 million, towards the Syrian citizens and refugees, as emergency and humanitarian aid through the WHO at the EU-hosted High Level Meeting on Syria in New York in September.

Furthermore, Japan has been strengthening its cooperation with a number of countries to realize the “Free and Open Indo-Pacific,” announced by Prime Minister Shinzo Abe in August 2016. Japan is carrying out an array of specific initiatives in fields such as freedom of

Prime Minister Shinzo Abe and Leaders of the Pacific island countries at the Eight Pacific Islands Leaders Meeting (Photo: Cabinet Public Relations Office of the Government of Japan)

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Part I Japan’s Developm

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Inavigation, the promotion and establishment of the rule of law, enhancing connectivity through quality infrastructure in accordance with international standards, and maritime security capacity building.

While prioritizing the aforementioned areas through development assistance, Japan continued its development cooperation across a wide range of projects in 2018. Based on the “Development Cooperation Charter,” Japan strives to tackle key issues, such as “Cooperation to achieve ‘Quality growth,’” which seeks to achieve economic growth that leads to self-reliant development in developing countries, “Sharing universal values and realizing a peaceful and secure society” to disseminate the shared values of freedom, democracy, basic human rights and the rule of law in developing countries, and thereby secure peace, stability and safety, and “efforts to address global challenges and the promotion of people-centered development.” Details on the achievements can be found in the subsequent section, Part II - Measures for Each Priority Issue.

In 2018, Japan hosted a number of international conferences related to development issues in developing countries, such as the “Eighth Pacifi c Islands Leaders Meeting” (PALM8) in May, the “Mekong-Japan Summit Meeting,” and the “Tokyo International Conference on African Development (TICAD) Ministerial Meeting” in October, and has advanced Japan’s development-related initiatives to address the challenges faced by each region. Japan’s initiatives in regions and countries throughout the world, including the aforementioned conferences, are introduced in Part III – Assistance for Each Region.

Foreign Minister Taro Kono giving a speech at the Tokyo International Conference on African Development (TICAD) Ministerial Meeting

Until now, the Government of Japan and the Japan International Cooperation Agency (JICA) have served as the central drivers of ODA as part of Japan’s development cooperation, but in recent years there is an increasing

1 The amount of disbursements for 2018 is planned to be fi nalized at the end of 2019.

2 Gross and net disbursements are differentiated as follows: Net disbursements = gross disbursements – amount recovered (repayment amounts of government loans from recipient countries to donor countries) Net disbursements are usually used in international comparisons of aid disbursements.

need for a variety of actors (as implementing bodies), such as private corporations, NGOs, local governments and universities to each contribute their respective advantages in close cooperation. Japan is closely cooperating with a diverse range of domestic actors in efforts to address a number of development challenges. Recently, Japan has been cooperating with other donor countries to address key issues in development, as well as providing assistance through a wide range of international organizations.

Additionally, with the purpose of utilizing ODA even more effi ciently and effectively, in 2018 Japan held a total of four meetings of the Advisory Board for ODA, which resulted in useful recommendations from experts on topics such as, “the division of roles in overall development cooperation, and consolidation of competition and cooperation.” Strengthening cooperation among diverse actors like this is becoming more essential day by day. The outcome of cooperation with a diverse range of actors in 2018, can be seen in Part IV, including columns on specifi c topics.

Furthermore, Japan is focusing on the development and strengthening of human resources who can succeed on the global stage in the fi eld of development cooperation. Japan conducts the Junior Professional Offi cer (JPO) Programme, which dispatches young Japanese people to international organizations, who wish to become staff of international organizations, and allows them to accumulate experience, with the aim of attaining regular staff positions after their tenure. As such, Japan strives to nurture human resources that can be active in international organizations, including in the area of development cooperation.

� Japan’s Offi cial Development Assistance in Terms of DisbursementIn 2017 1 , Japan’s gross ODA disbursements amounted

to approximately $18,461.20 million (¥2,071.0 billion). This represents an approximate 9.8% increase on a dollar basis (13.2% on a yen basis) compared to the previous year (2016). Japan’s net ODA disbursements, which are gross disbursements minus repayments of loan aid 2 , amounted to approximately $11,462.65 million (¥1,285.9 billion). This represents an approximate 10.0% increase on a dollar basis (13.5% on a yen basis) compared to the previous year. Japan ranked third, higher than the previous year, among the member countries of the Development Assistance Committee (DAC) of the Organisation for Economic Co-operation and Development (OECD), following the United States and Germany in terms of gross disbursements. In net disbursements, Japan ranked

1 The amount of disbursements for 2018 is planned to be fi nalized at the end of 2019.

2 Gross and net disbursements are differentiated as follows:

1 , Japan’s gross ODA disbursements amounted

2

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fourth 3 , the same as the previous year, following the United States, Germany, and the United Kingdom.

A breakdown of 2017 disbursements shows that in terms of gross disbursements, bilateral ODA accounted for approximately 81.7% of overall disbursements, while ODA towards international organizations accounted for approximately 18.3%, and in terms of net disbursements, bilateral ODA accounted for approximately 70.5% of overall disbursements, while ODA towards international organizations accounted for approximately 29.5%. Bilateral ODA is expected to contribute to the strengthening of Japan’s relations with recipient countries. Meanwhile, ODA towards international organizations enables Japan to support international organizations which have expertise and political neutrality and thereby, enables us to support countries and regions where direct assistance from the Government of Japan is diffi cult to reach. Japan is making fl exible use of these types of assistance, as well as

3 Excluding disbursements to graduated countries. For more information regarding disbursements that include graduated countries, refer to page 132.

initiating coordination between them, while making every effort to ensure the “visibility of Japan” through properly providing aid.

When examined by aid scheme, the disbursements for bilateral ODA calculated as grant aid totaled approximately $2,616.53 million (¥293.5 billion), or approximately 14.2% of the total ODA gross disbursements. Among these grants, grant aid through international organizations accounted for approximately $1,344.94 million (¥150.9 billion), or approximately 7.3% of the total. Technical cooperation accounted for approximately $2,883.40 million (¥323.5 billion), or approximately 15.6% of the total. With regards to government loan, loan disbursements accounted for approximately $9,578.89 million (¥1,074.6 billion), or approximately 51.9% of the total gross disbursements of ODA. Net disbursements, which are loan disbursements from which repayment amounts are subtracted, accounted for approximately $2,580.35 million (¥289.5 billion).

3

3 Excluding disbursements to graduated countries. For more information regarding disbursements that include graduated countries, refer to page 132.

Chart I-1 Japan’s ODA by Type, 2017

2017 (Calendar year) Dollar basis (US$ million) Yen basis (¥100 million)

Type Current year Previous yearChange from the previous

year (%)Current year Previous year

Change from the previous

year (%)

Grant aid 2,616.53 2,806.95 -6.8 2,935.31 3,054.04 -3.9

(Debt relief) (19.10) (15.32) (24.70) (21.43) (16.67) (28.57)

(Grants through multilateral institutions) (1,344.94) (1,598.82) (-15.9) (1,508.79) (1,739.56) (-13.3)

Technical cooperation 2,883.40 2,775.70 3.9 3,234.68 3,020.04 7.1

Total grants (A) 5,499.93 5,582.66 -1.5 6,169.99 6,074.08 1.6

Loan aid (D)=(B)-(C) 2,580.35 1,465.81 76.0 2,894.71 1,594.84 81.5

(Amount disbursed) (B) 9,578.89 7,856.80 21.9 10,745.90 8,548.41 25.7

(Amount recovered) (C) 6,998.55 6,390.99 9.5 7,851.19 6,953.56 12.9

Total bilateral ODA (Gross disbursement basis) (A)+(B) 15,078.82 13,439.45 12.2 16,915.89 14,622.49 15.7

Total bilateral ODA (Net disbursement basis) (A)+(D) 8,080.27 7,048.47 14.6 9,064.70 7,668.92 18.2

Contributions and subscriptions to multilateral institutions (E) 3,382.38 3,368.34 0.4 3,794.46 3,664.84 3.5

Total ODA (Gross disbursement) (A)+(B)+(E) 18,461.20 16,807.79 9.8 20,710.35 18,287.33 13.2

Total ODA (Net disbursement) (A)+(D)+(E) 11,462.65 10,416.80 10.0 12,859.16 11,333.76 13.5

Preliminary estimate of nominal Gross National Income (GNI) (US$ billion, ¥ billion) 5,038.44 5,114.54 -1.5 565,227.80 556,475.60 1.6

% of GNI 0.23 0.20 0.23 0.20

Notes: - Due to rounding, the total may not match the sum of each number. - [—] indicates that no assistance was provided. - Excluding assistance to graduated countries. For more information

regarding disbursements that include assistance to graduated countries, see “Statistics and Reference Materials 2(1) Japan’s ODA by Aid Type and Currency” (page 132).

- “Grant aid” here includes debt relief and grants provided through international organizations (those that can be classifi ed by country).

- Debt relief refers to exemption from commercial debts, and does not include debt deferral.

- Conversion rate: 2016 US$1=¥108.8027, 2017 US$1=¥112.1831 (Exchange rates designated by the OECD-DAC)

- Graduated countries are countries that have been removed from the DAC List of ODA Recipients, see Chart I-7/DAC List of ODA Recipients (Countries and Regions) (page 9).

- Japan has a record of disbursements to the following 12 graduated countries and regions that are not DAC members: United Arab Emirates, Oman, Saudi Arabia, Singapore, Saint Christopher and Nevis, Trinidad and Tobago, [New Caledonia], Bahamas, Barbados, [French Polynesia], Brunei, [Hong Kong].

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IJapan’s bilateral ODA by region is as follows in the order of gross disbursement, net disbursements and percentage of total disbursements (The following disbursements include disbursements to graduated countries.)◆Asia: $9,009.43 million ($3,600.48 million) (59.7%)◆Middle East and North Africa: $1,735.16 million ($1,079.33 million) (11.5%)◆Africa: $1,7030.29 million ($1,594.70 million) (11.3%)

◆Latin America and the Caribbean: $372.45 million ($343.91 million) (2.5%)◆Oceania: $321.74 million ($230.61 million) (2.1%)◆Europe: $192.75 million ($124.96 million) (0.6%)◆Assistance covering multiple regions: $1,849.94 million ($1,849.94 million) (12.3%)

Chart I-2 Trends in Japan’s Bilateral ODA by Region

3.0

8.8

10.8

7.8

15.3

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12.4

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0 20 40 60 80 100

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1980

1990

2000

2010

2013

2014

2015

2016

2017

(Calendaryear)

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Asia Middle East And North Africa Sub-Saharan Africa Latin America and the Caribbean

Oceania Assistance encompassing multiple regionsEurope

(%)

Gross disbursements

Notes - ODA since 1990 includes aid to graduated countries. - Assistance encompassing multiple regions includes assistance that cannot be classified by region, such as the dispatch of survey groups to multiple

regions.

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Chart I-3 Trends in the ODA of Major DAC Countries

Gross Disbursements

(Calendaryear)

(Calendaryear)

Japan United States Italy Canada(US$ million)

Net Disbursements(US$ million)

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

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02015 2016 201720142013201220112010200920082007200620052004200320022001200019991998

2015 2016 201720142013201220112010200920082007200620052004200320022001200019991998

10,640

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22,414

9,483

9,20310,417

11,463

15,02816,808

18,461

15,925

United Kingdom FranceGermany

Japan United States Italy CanadaUnited Kingdom FranceGermany

Source: DAC statistics on OECD.STATNotes: - Excluding assistance to graduated countries.

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I

778.3707.0

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New ZealandJapanSpain

Republic of KoreaPortugalSloveniaGreece

Czech RepublicSlovakiaPoland

Hungary

(US$ million)0 200 400 600 800 1,000

Chart I-4 Per Capita ODA in DAC Countries (2017)

Source: DAC statistics on OECD.STATNotes: - Net disbursement basis. - Excluding assistance to graduated countries.

1.021.000.99

0.740.70

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0.11

0.0 0.2 0.4 0.6 0.8

0.7

1.0 1.2Sweden

LuxembourgNorway

DenmarkUnited Kingdom

GermanyNetherlandsSwitzerland

BelgiumFrance

FinlandIreland

ItalyAustriaIceland

CanadaAustralia

New ZealandJapanSpain

PortugalUnited States

SloveniaGreece

Czech RepublicRepublic of Korea

PolandSlovakiaHungary

(%)

Chart I-5 Ratio of ODA to GNI in DAC Countries (2017)

Source: DAC statistics on OECD.STATNotes: - Net disbursement basis. - Excluding assistance to graduated countries. - In 1970, the UN General Assembly set a target of 0.7% of GNP (currently of GNI) for ODA.

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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

ODA disbursements ODA as % of GNI

(Calendar year)

(US$ million) (%)

2007

Chart I-6 Trends in Japan’s ODA and as Percentage of GNI

Notes: - Net disbursement basis. - Excluding assistance to graduated countries.

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ODA Topics

The idea of a “Free and Open Indo-Pacific,” proposed by Prime

Minister Abe in August 2016, has been widely recognized by the

international community over the past two and a half years, during

which concrete progress has been made toward its advancement. In

order to bring stability and prosperity, equally and fairly to each and

every country in the vast Indo-Pacific region, which extends from the

Asia-Pacific through the Indian Ocean, to the Middle East and Africa,

it is necessary to respond to the immense demand for infrastructure

development and enhance connectivity in the region through quality

infrastructure development as well as strive to eliminate factors such

as piracy and terrorism that inhibit prosperity. Japan continues to work

hand in hand with various countries to promote a “Free and Open

Indo-Pacific” by utilizing ODA effectively.

Enhanced regional connectivity through the development of ports

and harbors, railroads, roads and other infrastructure contributes to

economic development of the entire region, by activating the flow of

goods and people and expanding the economic sphere. However, it is

possible that infrastructure projects with poor quality, or projects putting

pressure on financial conditions would instead prevent the growth of

the region. It is therefore important to promote quality infrastructure

development. In Southeast Asia, the core of Japan’s cooperation is the

development of the East-West Economic Corridor and the Southern

Economic Corridor, which link Myanmar, Thailand, Laos, Cambodia

and Vietnam. Japan has been driving the development of these two

corridors connecting the Indian Ocean and the Pacific Ocean for many

years, and currently engages in the construction work on numerous

projects, including improving National Highway 5 in Cambodia to

double its traffic capacity, and repairing bridges in central Myanmar.

In Southwest Asia, Japan works to introduce a high-speed railway in

India, applying the technology of Japan’s Shinkansen. It is expected that

travel times, which initially took approximately seven hours by existing

limited express lines, would be reduced to approximately two hours, by

using the high-speed rail. At the same time, through the advancement

of technology transfer through human resources development, as well

as stations area development, it is expected that this project will lead

to further economic growth and job creation, which will ultimately

result in poverty reduction in India. Moreover, as for the development

of Mombasa Port in Kenya, which connects the landlocked countries

of Africa to the Indian Ocean, Japan promotes technology transfer by

employing as many as 2,000 Kenyans, while driving the development

not only of the port itself, but also the surrounding areas including

roads, giving utmost consideration to environmentally-conscious

technology and reduction in maintenance and management costs.

In order to turn these two oceans into an ocean that brings stability

and prosperity to the entire region, countermeasures are necessary to

address various factors which prevent economic development such

as piracy, terrorism, proliferation of weapons of mass destruction

(WMD), natural disasters and illegal fishing, as well as to enhance the

connectivity of the region. For example, in order to ensure the safety

of maritime transport through capacity development of maritime

law enforcement agencies of the coastal countries in the Indo-Pacific

region, Japan has provided financing for patrol vessels and coastal

monitoring radar equipment to the agencies of the countries in the

region. At the same time, Japan invites the personnel of such agencies

to training programs in Japan, and also dispatches Japanese experts to

those countries. In June 2017, when a joint exercise was undertaken

in combating piracy by the Japan Coast Guard and the Philippines,

in the vicinity of the Mindanao Islands, the patrol vessels provided by

Japan which took part in the exercise yielded an immediate success in

a piracy case that occurred the following day.

Japan has implemented a variety of projects and collaboration

with its partners toward a “Free and Open Indo-Pacific,” and in 2018,

progress was achieved in collaborating with various partner countries.

A series of discussions have been held between Japan and the United

States on how to collaborate in supporting the key countries in the

region, and together, they released a list of Japan-U.S. cooperation

at the Summit Meeting in September 2018. Also, Japan and India

have agreed to deepen their concrete cooperation, beginning with

further strengthening regional connectivity, and released a factsheet

on Japan-India cooperation, upon Prime Minister Modi’s visit to Japan

in October of the same year. This factsheet incorporated a variety of

collaborations in strengthening connectivity through the development

of quality infrastructure, and in fields such as energy. Furthermore, at

the Japan-Mekong Summit Meeting in November of the same year,

many collaborative projects in the Mekong region were identified as

cooperation to promote a “Free and Open Indo-Pacific.” Japan has

already agreed to strengthen cooperation with a variety of partners

including Australia, the United Kingdom, France and the EU. Going

forward, Japan will collaborate closely, and establish multi-layered

cooperative relationships with those partners, and further accelerate

efforts aimed at pursuing a “Free and Open Indo-Pacific.”

Toward the Realization of a Free and Open Indo-Pacific

1

Technical guidance to personnel of the Philippine Coast Guard (Photo: JICA)

The new container terminal at Mombasa Port in Kenya, built through an ODA loan (Photo: Toyo Construction)