Chapter 2

Section 2. Current Status of Japan’s Assistance for Each Region

1. East Asian Region

Japan’s bilateral ODA to the East Asian region in 2002 was approximately $2.62 billion, 39.0% of total bilateral ODA²⁰.

Japan has been carrying out assistance in the East Asian region placing importance on the following points, as stated in “Japan’s Medium-Term Policy on ODA” (hereinafter to be referred to as the “medium-term policy”) formulated in 1999.

The East Asian region is the region that Japan has traditionally regarded as the priority region. The revised ODA Charter also designates the East Asian region, including ASEAN as a priority region. This is because Japan and the East Asian countries are in a closely interdependent relation in all aspects including those of policy, economy and culture, etc. and the development and stability of East Asia are extremely important for the stability and prosperity of Japan. Based on these concepts, Japan has contributed to the region’s remarkable development by promoting economic cooperation in which ODA and investment and trade are organically coordinated. The cooperation includes the dynamization of private-sector investment and trade through economic infrastructure development, etc. by using ODA.

East Asia has attained rapid economic growth, and some countries, such as the Republic of Korea (ROK) and Singapore, have already been transformed from aid recipients into aid donors. On the other hand, there are still some least developed countries (LDCs) such as Cambodia and Laos. And there is a movement for Japan to modify its ODA priority sectors against a background of dramatic economic growth, etc. in some countries like China. Japan is carrying out assistance fully taking into account the diversity of the Asian countries’ socio-economic conditions and changes in their respective assistance needs, etc.

Japan is actively using its ODA to reduce the disparities within ASEAN region, which are becoming more apparent as membership expands, and to implement cooperation in sectors such as institution building for the facilitation of trade and investment, support for economic and social infrastructure development, human resources development, promotion of environmental conservation, policy formulation for economic restructuring, decentralization and governance, and measures to deal with terrorism, piracy and other transnational issues, etc. In pursuing these tasks Japan is giving careful consideration to enhancing economic partnership, etc. in East Asia.

In the ASEAN region, Japan is carrying out cooperation based on the development situation of each country, aiming at the complete recovery of the ASEAN region from the economic and financial crisis and the reduction of economic disparities within the region. In particular for less developed countries such as Cambodia, Laos and Viet Nam, Japan is continuing to provide support for their transition to a market economy, implement assistance in social development sectors like poverty reduction and Basic Human Needs (BHN) and also provide support for development of various economic infrastructures such as roads and electricity grids. Japan is also actively working on the Mekong Region Development, which contributes to reducing disparities within the region. (Refer for details.)

Meanwhile, partly because Japan has continued its support for Indonesia, the Philippines, Thailand, and Malaysia focusing on the development of economic and social infrastructure mainly by using ODA loans, the movement of goods, people-to-people exchanges, flow of information, etc. within the ASEAN region are becoming smoother.

Furthermore, in addition to bilateral assistance, Japan is actively promoting South-South cooperation based on cooperation within the ASEAN region and Partnership Programs^*1 with Singapore, Thailand, and the Philippines from the perspective of strengthening ASEAN integration. Japan also attaches importance on the promotion of Asia-Africa cooperation. For example, it is providing support for African countries such as productivity improvement through third country training.

Concerning Mongolia, Japan has actively supported its democratization and transition to a market economy and carried out human resources development, etc. Moreover, Japan decided to provide funds for the “The Project for Improvement of Shortwave Radio Broadcasting Network” through grant aid believing that such a project widely benefits the nomadic herdsmen who live throughout the vast land area of Mongolia and account for the majority of the country’s population. It is expected that this project will make it possible to widely provide the people of Mongolia, including the nomadic herdsmen with information such as information on the national policies of Mongolia and meteorological and disaster.

Concerning China, Japan is carrying out assistance in accordance with the Economic Cooperation Program for China formulated in October 2001. The majority of Japan’s ODA loans to China in fiscal year 2002 was allocated to environmental projects and their amount declined approximately 25% in monetary value terms from the previous fiscal year (Exchange of Notes (E/N) basis). (Refer for details.)

The Initiative for Development in East Asia (IDEA) is one of Japan’s new efforts. At the first IDEA Ministerial Meeting proposed by Japan and held in Tokyo in August 2002, Japan, China, ROK, and the ASEAN countries held very meaningful discussions. For example they frankly exchanged views about the direction of economic partnership and regional cooperation in the East Asian region. As follow up to this meeting, Japan held a side event at the World Summit on Sustainable Development (WSSD) in Johannesburg (the Johannesburg Summit) at the end of August 2002 to present the content of IDEA, and the growth-orientated development modality of East Asia that relies on the utilization of ODA to promote trade and investment attracted a lot of attention among officials of African governments. Refer for details about the Ministerial Meeting.

As cultural cooperation in the East Asian region, in the fields of preservation and restoration of the Angkor ruins, which is universally admired worldwide, Japan has been implementing the “Project for the Preservation and Restoration of the Angkor Monuments” (currently in Phase II) since 1994 through the United Nations Educational, Scientific and Cultural Organization (UNESCO) by utilizing UNESCO Japanese Trust Fund for the Preservation of the World Cultural Heritage. Japan is dealing with not only the preservation and restoration of the ruins, but also the training of the Cambodians. Japan’s assistance is contributing to the cultural reconstruction of Cambodia and is also highly appreciated by the international community.

Assistance for Countermeasures against terrorism and the Consolidation of Peace in the East Asian region

East Asia is an important region from the perspective of eradicating international terrorist activities. In October 2002 the Bali bombing occurred in Indonesia, in the Philippines, etc., terrorist incidents are also taking place and the extension of Islamic extremists’ power is being blamed. Japan is placing importance on support for countermeasures against terrorism in this region, and also is cooperating in enhancing these countermeasures through support for police, provision of equipment, etc. in Indonesia and the Philippines. Furthermore, Japan is implementing cooperation for poverty reduction in East Asia with a view to eliminating hotbeds of terrorism.

And various issues requiring the “consolidation of peace” are also present in the East Asian region, for example the Aceh issue in Indonesia and the Mindanao issue in the Philippines. Japan is carrying out support for movements toward peace in these areas. (Refer to Part III for details.)

20. Disbursements are from DAC statistics (calendar year). (DAC statistics are also used in the rest of this section.)