Annual Report on Japanʼs ODA Evaluation 2018

Summary of FY2017 MOFA’s ODA Evaluation

Evaluation on Japan’s Assistance to Connectivity in the Mekong Region with a Focus on the Southern Economic Corridor (Brief Summary)

Full text available here.
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Evaluators
(Evaluation Team)
Chief Evaluator Naonobu MINATO
Visiting Professor, International University of Japan
Advisor Manabu FUJIMURA
Professor, Aoyama Gakuin University
Consultant International Development Center of Japan Inc.
Period subject to Evaluation 2015 – 2017
Period of the Evaluation Study June 2017 – February 2018
Field Survey Country Thailand, Cambodia, and Vietnam

Background, Objectives and Scope of the Evaluation

The Mekong region is an important region in geopolitical and economic terms with strong historical and cultural ties to Japan. Maintaining and developing global competitiveness, and delivering “quality growth" across the region have significant implications for the peace and prosperity of Japan. To bring about stability and prosperity in the Mekong region, it is necessary to strengthen connectivity in the region. Recognizing this, this report evaluates Japan’s assistance to strengthening connectivity in the Mekong region with a focus on the Southern Economic Corridor. The aim of the evaluation is to obtain recommendations based on the evaluation results that will prove constructive for planning and implementing the assistance policies for the connectivity in the Mekong region in the future, and to ensure accountability to the nation.

Brief Summary of the Evaluation Results

1 Development Viewpoints

(1) Relevance of Policies (Evaluation Result: A–Highly satisfactory)

The aim of the policy, which is stability and “quality growth” in the Mekong region by strengthening connectivity, is highly consistent with Japan’s Development Cooperation Charter and related policies. It is also consistent with the development policies, development issues, and socioeconomic development needs in each Mekong country. There is also consistency with international priorities that aim for sustainable development through industrialization and the development of hard infrastructure. In terms of assistance with connectivity in the Mekong, Japan’s advantages are neutrality within the Mekong region, credibility with each country, quality infrastructure technology, and efficient aid schemes. Due to these advantages, Japan is expected to fulfill the role of a coordinator in the Mekong region. There are several corridors in the Mekong region and the development priorities differ depending on the country. Assistance that considers each country’s development needs and potential in more depth is advisable. It is also important to integrate the multiple policy documents related to the assistance to connectivity in the Mekong region, and bring them together into a unified form.

(2) Effectiveness of Results (Evaluation Result: B–Satisfactory)

In terms of hard infrastructure connectivity, the Evaluation Team confirmed the strong effects of shortening traveling time and increasing traffic/logistics volumes by developing infrastructure such as roads, bridges, and port facilities. In terms of soft infrastructure connectivity, the Team confirmed that streamlining legislation related to logistics and reducing logistics costs are remaining issues despite the streamlining of customs clearance procedures following the introduction of electronic customs clearance. Aside from ODA, cooperation with a range of relevant agencies including the private sector is required. Since it will take time before the effects of the assistance for industrial human resources development, one of the priority areas of the policy, emerge, monitoring with a longer-term perspective is necessary. In addition, setting clear targets and associated indicators in the policy documents allows consideration of more effective methods of assistance.

(3) Appropriateness of Processes (Evaluation Result: B–Satisfactory)

Based on sufficient coordination in Japan and in the Mekong region through the Mekong-Japan meetings, Japan’s cooperation with regard to strengthening connectivity in the Mekong is determined after collecting the opinions of various stakeholders. The evaluation rated highly on almost all studied items, but it is necessary to consider monitoring at the program level and information-sharing about policy level monitoring and evaluation results between MOFA and Japan’s diplomatic missions.

2 Diplomatic Viewpoints

Amid the increasingly severe security environment in Asia in recent years, further integration, prosperity, peace and stability in the geopolitically strategic ASEAN, which includes the Mekong countries, is extremely important for peace and stability in Asia and in the international community. For Japan, the Mekong region is also an extremely important market in terms of trade investment and overseas infrastructure development. Based on such political and economic aspects, assistance with the strengthening of connectivity in the region is diplomatically imperative. In addition to expressions of support from the ASEAN countries for Japan’s standpoint on security, investment from Japan in the Mekong region and the number of companies expanding to the region are increasing. Human exchanges between Japan and the Mekong countries have also been revitalized. It is difficult to clearly indicate the causality between Japan’s ODA for strengthening of connectivity in the region and the diplomatic impacts, but Japan’s ODA is strengthening relations with the Mekong countries, and there is a degree of diplomatic impacts from the political, economic, and social aspects generated by this.

Recommendations

1 Integrated Mekong-Japan regional cooperation policy (strengthen cooperation between MOFA and other ministries and agencies)

Where the relevant policy documents are concerned, strengthen sharing and cooperation between the related ministries and agencies in Japan and provide clear descriptions to the stakeholders in the Mekong region of the aims and methods of Japan’s assistance policy for connectivity in the Mekong region.

2 Strengthen the relationship between development policy in each Mekong country and corridor development cooperation

Verify development policy priorities based on the development policies and needs of each country, and implement development cooperation linked to strengthening international competitiveness in the region. Consider support not only for the manufacturing sector, but also for industrial development that leverages the special characteristics of each country. Aim to revitalize the regional economy by continuing support for institution building, etc.

3 Reinforce initiatives to strengthen connectivity in the Southern Economic Corridor

Continue assistance with developing hard infrastructure and quality maintenance management. Strengthen soft infrastructure connectivity to ease congestion near national borders, to streamline logistics and to facilitate trade.

4 Demonstrate Japan’s initiative in assisting the Mekong region

For Japan to take the initiative (with assistance to strengthening connectivity) in the Mekong region in the future, it is important to clarify policy aims involving the strengthening of connectivity, and to bring a long-term perspective to establishing indicators and action plans. Demonstrate how Japan’s role as a coordinator in the Mekong region differs from conventional bilateral cooperation. In addition, endeavor to understand China’s movement in Mekong regional cooperation as China has a large presence in the region. Make assistance with strengthening connectivity in the Mekong region more effective.

5 Review and continue the cooperation approach in ODA

Continue to assist governments of the Mekong region with policy formulation and institution building by dispatching policy advisors and other long-term experts. Promote regional cooperation through Triangular Cooperation that leverages each country’s field of expertise. Take a flexible approach when considering new cooperation schemes.