Summary of FY 2018 MOFA’s ODA Evaluation
Evaluation of Japan’s ODA to Costa Rica and Nicaragua (Brief Summary)
Note: The following was prepared by ODA Evaluation Division based on the report provided by the evaluation team. Full text is available here:
https://www.mofa.go.jp/policy/oda/evaluation/FY2018/pdfs/costarica_nicaragua.pdf 
| Evaluators (Evaluation Team) |
Chief Evaluator | Yasunaga Takachiho Professor, North Asia University |
| Advisor | Tomomi Kozaki Professor, Senshu University |
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| Consultant | Koei Research & Consulting Inc. | |
| Target Period | 2006 - 2017 (Costa Rica) / 2007 - 2017 (Nicaragua) | |
| Evaluation Period | July 2018 - March 2019 | |
| Field Survey Country | Costa Rica | |
Note: The field survey was not conducted in Nicaragua due to the social-political instability during the planned survey period.
Solar panels installed with cooperation of Japan (Costa Rica)
Background, Objectives, and Scope of the Evaluation
Since Japan established diplomatic relations with Costa Rica and Nicaragua in 1935, Japan has had a longstanding relationship with both countries except during World War II. Japan’s ODA to Nicaragua and Costa Rica began in 1964 and 1973, respectively. The objectives of the evaluation are to obtain lessons and recommendations for formulating and implementing future ODA policy, as well as contribute to improvement of ODA in order to enhance accountability.
I. Costa Rica
Brief Summary of Evaluation Results
● Development Viewpoints
(1) Relevance of Policies (Rating : Highly Satisfactory)
As a whole, the relevance of policies is extremely high in terms of consistency with Japan’s high-level ODA policies, priority areas of the national development plan of Costa Rica, international priority issues, and complementarity with other donors’ assistance. Japan’s ODA to Costa Rica has been formulated in consideration of Japan’s comparative advantages, such as dispatching Japan Overseas Cooperation Volunteers in supporting the socially vulnerable and technical cooperation for geothermal development in the environmental sector. Furthermore, Japan has been cooperating with the Inter-American Development Bank in supporting Costa Rica through co-financing program in geothermal development. Such co-financing program shows high mutual complementariness with other donors.
(2) Effectiveness of Results (Rating: Satisfactory)
A certain level of contribution was confirmed in general, although the degree of effect was different depending on the priority area. The evaluation team found that the degree of effect in the environmental sector was particularly high due to the largest input among all sectors. The evaluation team also highly regarded the effects of Japan’s support for the socially vulnerable, such as enacting the law on independence of persons with disabilities. However, the Rolling Plans of Japan’s ODA for Costa Rica should be sorted more logically for a clear indication of the degree of contribution achieved.
(3) Appropriateness of Processes (Rating : Satisfactory)
Japan’s ODA policy for Costa Rica was formulated through appropriate discussions between the two countries. Although both Evaluation of Japan’s ODA to Costa Rica and Nicaragua (Brief Summary) governments recognized the formulation of a cooperation project as time-consuming, they have been coordinating well to design projects with careful consideration of their conditions.
● Diplomatic Viewpoints
(1) Diplomatic Importance
It is essential to continue Japan’s ODA to Costa Rica in order to maintain and reinforce the good bilateral relationship since Japan’s ODA is a foundation for a favorable bilateral relationship. Japan’s ODA to Costa Rica, known as an internationally significant country in the environment sector, and its collaborative work of both countries convey Japan’s contribution to combat climate change to the international community, which has significant importance for Japan. Japan regards promoting the regional integration of Central America essential. Therefore, ODA to Costa Rica, one of Central American countries, has high diplomatic significance to contribute to promoting regional integration.
(2) Diplomatic Impact
Japan’s ODA could promote bilateral relationship in both public and private sectors and help foster people with a favorable feeling towards Japan, which can be a foundation of mutually trusting relationships between the two countries. Further, the implementation of triangular cooperation has improved Japan’s presence in Latin America. Japan’s ODA can also facilitate business expansion of Japanese companies in Latin America and could contribute to Japan’s economic development.
Recommendations
(1) Continuation of the Cooperation for Climate Change Mitigation
Japan should continue the assistance to Costa Rica in climate change mitigation, especially to reduce greenhouse gas emissions by 25% from 2012 to 2030 in the urban transportation sector which has a growing need for continuous assistance. It is, particularly, worth examining possibility of Japan’s cooperation to facilitate alternative public transportation, such as train system, which could contribute to a notable reduction of greenhouse gas emissions by using Japan’s technology and experiences of cooperation in other countries.
(2) Cooperation to Vitalize Rural Areas
Japan should extend the cooperation nationwide to reduce disparities between urban and rural areas. Based on the experience of cooperation, Japan could support systematization of diffusing the “livelihood improvement approach” and also provide technical assistance for promotion of Micro, Small, and Medium Enterprises (MSMEs) in rural areas.
(3) Making use of the Experiences of Costa Rica for Better ODA Policy Elaboration for Other Middle-Income Countries
Although Costa Rica has experienced steady economic expansion and become a middle-income country, it struggles with various problems that hinder it from becoming a developed country, such as financial crises, economic disparity among citizens, and educational inequity. Other middle-income countries are also facing similar issues. Thus, implementing a study to sort out and identify critical issues in Costa Rica as a middle-income country may enable to specify the relevant themes and means of ODA. Such findings can be useful in the formulation of development cooperation policies for other middle-income countries.
(4) Promoting Triangular Cooperation with Costa Rica as a Partner
Costa Rica currently promotes triangular cooperation actively. Japan should implement triangular cooperation with Costa Rica to other Latin American countries in order to strengthen the capacity of Costa Rica to implement cooperation. It is beneficial for Japan to cooperate with other Latin American countries through Costa Rica for smooth communication of skills and knowledge due to the use of same language and similarity in culture. In addition, it could be more cost effective and reduced workload for Japan than implementing bilateral cooperation. It could be effective for Japan to provide technical training in the environmental sector, such as geothermal development, in particular, where Japan has advanced technology and experience.
(5) Examining PR Strategies Targeting a Wide Range of Population
It is necessary to develop PR strategies to generate greater exposure of the assistance and raise public awareness of Japan’s ODA in a wide range of the population. For example, it is essential to share PR strategies with Costa Rican stakeholders and obtain their cooperation and involvement in PR activities in order to efficiently promote Japan’s ODA. Moreover, Japan should implement more effective PR, such as the regular use of social media, including YouTube videos and publicizing outcomes of the assistance by the project, in order to reach people of all ages.
II. Nicaragua
Brief Summary of Evaluation Results
● Development Viewpoints
(1) Relevance of Policies (Rating: Highly Satisfactory)
As a whole, relevance of policies is extremely high in terms of consistency with Japan’s high-level ODA policies, priority areas of Nicaragua’s national development plan, international priority issues, and in terms of complementarity with the direction of other donors’ assistance. Japan’s ODA comprehensively covers all priority areas of Nicaragua and emphasizes transportation infrastructure development such as bridge and road development where Japan has comparative advantages.
(2) Effectiveness of Results (Rating: Satisfactory)
A certain level of contribution was achieved in all priority areas. The contribution was significant in the area of bridge construction, which is known to be symbolic of Japan’s ODA. It was highly recognized among citizens and other donors in Nicaragua. Contributions in health and education sectors were also confirmed. Moreover, it was confirmed that the approach of technical assistance to cultivate local human resources coincided with the needs of Nicaragua to empower the community, which helped the sustainability of the project.
(3) Appropriateness of Processes (Rating: Satisfactory)
Overall processes of formulating and implementing Japan’s ODA policy were deemed to be appropriate. In the Rolling Plan of Japan’s ODA policy for Nicaragua, the relevance between priority issues and some cooperation projects was not clearly shown in some projects; however, the cooperation programs and contents were reviewed and reorganized to clarify the direction of the country assistance strategy in 2017.
● Diplomatic Viewpoints
(1) Diplomatic Importance
Japan’s ODA to Nicaragua has diplomatic significance in two aspects: geopolitical importance and responding to global issues. Considering the regional economic potential and the geopolitical importance of Nicaragua, Japan finds it important to support for regional integration through the Central America Integration Organization (SICA) and to reinforce the bilateral relationship based on the development cooperation with each country of the region. Also, continuation of Japan’s ODA to Nicaragua is diplomatically important due to the need for international contributions to global issues.
(2) Diplomatic Impact
Community-based cooperation by JICA experts and volunteers has contributed to promoting pro-Japan views and friendship between the two countries. Furthermore, three bridges constructed through Japan’s Grand Aid on the roads leading to the neighboring countries are deemed to enhance Nicaragua’s trade with other Central American countries. The activation of logistics and distribution in Central America would accelerate regional integration in the medium to long term, which could make the region more favorable for Japanese companies to expand the business and even enhance Japan’s economy.
Lessons Learned
(1) Maximize the Impacts of Cooperation on “Disaster Risk Reduction” in Socially and Economically Vulnerable Countries
Socially and economically vulnerable people are generally even more vulnerable to natural disaster. Therefore it would be useful to combine the elements of social development with the project, rather than focusing on disaster risk management alone. Moreover, it could be more efficient to strengthen their prevention ability to raise their awareness as part of a cooperation project.
(2) Effectiveness of Infrastructure Development Cooperation with Japanese Superior Technology
Cooperation in the infrastructure development using Japan’s technology fosters development in recipient countries along with economy in Japan when implemented by Japanese companies. Further, Japan’s high quality technology has been appreciated among the population and would lead Japan’s reliability and presence.
III. Lessons Learned from Cooperation toward Both Countries
(1) Supporting the Initiative of the Recipient Country
It is certainly effective to support the priority sectors where the government of the recipient country takes initiatives in leading development. Because the government takes the lead to strengthen the surrounding institutional environment to bring about the outcome effectively, and there is high probability that the government commits to sustain and enlarge the outcome. For example, the government of Nicaragua promoted the National Program for Sustainable Electrification and Renewable Energy (PNESER), where the government demonstrated high commitment and brought out remarkable outcomes.
(2) Collaboration with Inter-American Development Bank (IDB)
Collaboration with IDB was confirmed to be effective in Latin America for the following reasons: 1) Co-financing with IDB could produce greater development impacts by securing larger fund scale than implementing relatively small-scale projects on bilateral basis. 2) Since IDB is influential and has a close relationship with the Latin American and Caribbean countries, collaboration with IDB can help Japan in negotiating or persuading the recipient government. 3) It is easier for Japan to formulate and implement projects. 4) It is also efficient to collaborate from project formulation stage, because it can reduce the cost for feasibility study and other administrative costs of the recipient government.
(3) Strategic Inter-Scheme Combination to Achieve Synergy Effect
Combining relevant schemes in Japan’s ODA in one common program could generate synergy and greater impact than applying one scheme alone. For example, Japan firstly provided the Grand Aid to Costa Rica to construct a training center, and then dispatched the experts to the center in order to promote capacity development. In Nicaragua, mathematics textbooks and teacher’s guidebooks were developed through the technical cooperation project, then they were utilized and disseminated by JOCVs, which produced some positive results.
(4) Points to be considered in Cooperating toward Multiple Countries or Regions
Japan should consider the best way of approaching each theme when cooperating toward multiple countries or regions. For example, in case of specific themes such as health or education, it would be more efficient to apply knowledge, lessons learned, and results obtained in one country to third countries, rather than cooperating to multiple countries simultaneously. The Chagas disease control project in Nicaragua was an excellent case where the successful cases in neighboring countries were applied to Nicaragua, which contributed to reliable outcomes.
On the other hand, when approaching the regional common issues that cannot be addressed by a single country, such as improving logistics within the region, it would be more effective to cooperate through a regional coordinating agency as a point of contact, which has an advantage in facilitating the unification of standards and procedures within the region. Also, more opportunities to contact senior officials representing each country can be expected to improve Japan’s presence in the region.
(5) Establishing Specific Development Goals and Target Values at Program Level
It is useful to formulate policy objectives more clearly as well as develop specific indicators to each cooperation program goals in order to properly evaluate ODA results at policy level. It would make it easier to assess the achievement of development goals as well as results of the policy, which would be beneficial in improving the policy.