Evaluation of Japan’s ODA to the Kingdom of Thailand

Link to the full report

Background, Objectives, and Scope of the Evaluation

The Kingdom of Thailand located in the center of the Indo-China Peninsula and facing both the South China Sea and the Indian Ocean, occupies an important geopolitical position. Japan and Thailand have close ties in several areas, including politics, economics and culture. In particular, the two countries have strong economic ties. In 2022, the prime ministers of both countries agreed to upgrade the bilateral relations to a ‘Comprehensive Strategic Partnership’ based on the progress of bilateral ties in several areas. They confirmed their intention to further strengthen cooperation. Meanwhile, although Thailand has become an upper-middle-income countries, there are issues to be addressed for sustainable development, such as human resource development in the industrial sector, capacity building in research and development with a view to increasing the added value of industry, high-quality infrastructure development, promotion of flood control and disaster prevention measures, and measures for energy, the environment, and climate change. In addition, cooperation with Thailand, which is an aid donor country, as a development partner, utilizing the strengths of both countries, will be effective in building a model for development cooperation with upper-middle income countries.

The purpose of this evaluation is to assess Japan’s recent Official Development Assistance (ODA) policies and assistance to Thailand based on priority areas, to obtain recommendations and lessons learned for the formulation and implementation of the country development cooperation policy toward Thailand, which is scheduled to be revised in Japanese Fiscal Year 2024, and to fulfill accountability to the public by publicizing the evaluation results.

Summary of Evaluation Results

● Development Viewpoints

(1) Relevance of Policies

Japan’s ODA policy towards Thailand is consistent with Thailand’s development policies and needs, Japan’s higher-level policies, and international priorities, respectively. Japan and major donors and agencies have positioned Thailand as a strategic partner. They have formulated assistance policies in line with Thailand’s Five-Year National Economic and Social Development Plan being implemented in accordance with 20-Year National Strategy (2018-2037) and been working together to achieve Thailand’s vision of ‘a developed country with security, prosperity and sustainability in accordance with the Sufficiency Economy Philosophy’. Furthermore, the planned assistance in Thailand, which plays a central role in the Association of Southeast Asian Nations (ASEAN) and the Mekong region, is highly consistent with Japan’s regional policies in that it is related to improving ASEAN connectivity and reducing disparities within the region. In addition, based on Japan’s long track record of providing assistance from soft to hard aspects and the mutual trust with Thailand that Japan built as a top donor, Japan’s ODA policy leverages its comparative advantage in terms of planning and implementing projects in areas where Japan has knowledge and experience, such as infrastructure development, industrial human resource development, research capacity building, environment and climate change, and social security, as well as in the use of diverse cooperation modality and actors (ODA loan, grant aid, technical cooperation projects, dispatching JICA experts, Japan Overseas Cooperation Volunteers, science and technology, training programs, private partnership programs, Grant Assistance for Japanese NGO Projects, JICA Partnership Program, etc.). Accordingly, the relevance of policies is evaluated as ‘Highly Satisfactory’.
(Evaluation Result: Highly Satisfactory)

(2) Effectiveness of Results

It was confirmed that the aid results (inputs) and outputs (results of activities such as the number of people trained and infrastructure constructed) were realized as planned. Once planned, the projects under Japan’s ODA have been implemented as planned. This experience can be positively evaluated as contributing to the ‘high level of trust in Japan’ that was often heard from local aid agencies. As a concrete outcome, the staff of those agencies commented people are very satisfied with the quantitative and qualitative expansion of transportation capacity through hard and soft support for railway stations and subways, and the development of industrial human resources focused on science and technology personnel. Additionally, support is being provided to address new challenges such as digitalization, and Third Country Training Program (training for neighboring countries supported by Japan and implemented by Thai aid agencies) is expected to become increasingly important in the future. Although there are some issues with monitoring and evaluation, it is generally satisfactory. Comprehensively evaluating these results and their importance, the effectiveness of the results can be evaluated as ‘Highly Satisfactory’.
(Evaluation Result: Highly Satisfactory)

(3) Appropriateness of Processes

At the time of this evaluation, Japan’s ODA policy is consistent with the needs of Thailand, and the relationship between Thai and Japanese relevant agencies and ministries is well established. Based on these points, it can be judged that the policy formulation process was appropriate. Regarding the aid implementation process, it is appropriate that Japan and Thailand work together to manage the projects, for example, improving procedures to increase the efficiency of ODA request surveys, establishing a Joint Coordination Committee (JCC) during project implementation, and conducting periodic monitoring and evaluation by the JCC. It is appropriate that public relations activities are actively conducted by selecting and utilizing social media with high visibility in the local community. There are some cases where ODA projects have become joint projects with Japanese private companies or local governments, which is a characteristic of Thailand as an upper-middle-income country. The new bilateral initiatives, such as Thailand and Japan working together to implement loan project for neighboring country, could be a model for ODA for other upper-middle-income countries. Therefore, the appropriateness of process can be judged as ‘Highly Satisfactory’.
(Evaluation Result: Highly Satisfactory)

*Ratings: Highly Satisfactory; Satisfactory; Partially Satisfactory; Unsatisfactory

● Diplomatic Viewpoints

(1) Diplomatic Importance

From the perspective of diplomatic importance, Thailand plays a central role in the stability and development of the ASEAN / Mekong region, and in the realization of the ‘Free and Open Indo-Pacific (FOIP)’ promoted by the Government of Japan. It is in a geopolitically important position. Japan and Thailand have long had a friendly relationship. Japan’s development cooperation has been praised by the Thai government and other aid agencies. The development cooperation implemented in Thailand contributes to Thailand’s economic and social development and Japanese private companies operating in Thailand and, by extension, to Japan’s economic development. Thus, maintaining and developing the mutual cooperative relationship between Japan and Thailand is extremely important for Japan’s national interest.

(2) Diplomatic Impact

From the perspective of diplomatic impact, Japan aid to neighboring countries in Thailand through the Third Country Training Program, in which participants from ASEAN countries receive technical training in Thailand and acquire Japanese knowledge and experiences. It can be said that it is an impact through learning experience. Furthermore, in terms of bilateral relations, many high-level officials and representatives have visited Japan and expressed their gratitude for Japan’s development cooperation, which can be said to have contributed to a certain extent to strengthening mutual trust between the two countries. Although Thailand has adopted a diplomatic stance that maintains a balance by avoiding excessive dependence on any particular country, it has been pointed out that the country tends to rely on Japan in important situations. Hence, Japan’s development cooperation has an impact on Thailand and neighboring countries, contributing to the maintenance of good bilateral relationship between Thailand and Japan.

Recommendations Based on Evaluation Results

(1) Considering new ways of development cooperation for upper-middle-income countries that will become emerging donors.

(2) Improving the public relations approach.

(3) Improving monitoring and evaluation of Third Country Training Programs.

(4) Direction of future development cooperation for Thailand: Strengthening support for better governance.

Bang Sue Grand Station, built with Japanese assistance. There is a plaque inside the station indicating that it was constructed with Japan’s ODA.