Japan's Official Development Assistance White Paper 2005
Next PageBox I-1. Outline of Discussions and Research Concerning Infrastructure
Throughout the 1990s, assistance for infrastructure construction decreased as development aid began focusing more on the social sector. However, in recent years, as the role played by infrastructure development in the achievement of growth and poverty reduction has been reexamined, international agencies and donor countries like Japan have been actively holding discussions and conducting research on the issue of infrastructure development. The following section outlines some of the major works.
Infrastructure Action Plan (World Bank)
An action plan was presented by the World Bank at the World Bank/International Monetary Fund (IMF) Joint Development Committee in September 2003. At the Committee in April 2003, the decline of the private-sector infrastructure investment was discussed, as well as the fact that an infra-gap (a gap between the supply and demand for infrastructure) is becoming apparent. Moreover, it was found that investment climates for mid- to low-income countries had been improved through the building of infrastructure, and therefore infrastructure development meets the necessary requirements for development and contributes to sustainable growth and the achievement of the MDGs. The World Bank took this opportunity to switch to an approach of actively providing infrastructure assistance, drawing up an infrastructure action plan which includes the following main points as future direction for assistance:
- Promote increases in the budget for infrastructure-related projects and include infrastructure development in Poverty Reduction Strategy Papers (PRSP) and the Country Assistance Strategy (CAS).
- Develop standardized databases related to infrastructure and introduce the country-by-country analysis operation.
- Review the structure and mechanism within the World Bank in order to effectively advance infrastructural development.
- Conduct empirical studies on the relationship between infrastructure and poverty reduction.
Discussions within the Network on Poverty Reduction (OECD-DAC)
Under the theme of Poverty Reduction through Economic Growth, active and concrete discussions are taking place regarding the issue of infrastructure within the Network on Poverty Reduction (POVNET) of the Organisation for Economic Co-operation and Development/Development Assistance Committee (OECD-DAC). Specifically, the Infrastructure Task Team established under POVNET is compiling the "Guiding Principles" which are to be carried out by donors within the infrastructure sector. The following are the basic points which are expected to be emphasized within the "Guiding Principles:"
(1) Framing and implementing infrastructural assistance plans in line with the development strategies of the recipient countries' infrastructure sector.
(2) Improving the benefits of infrastructure assistance to the poor population by such means as appropriately setting target beneficiaries and improving the access of the poor population to the infrastructure service.
(3) Operating and managing the overall infrastructure sector in the developing countries.
(4) Importance of procuring funds for developing infrastructure.
Connecting East Asia: A New Framework for Infrastructure (Joint research by JBIC, ADB, and the World Bank)
JBIC, ADB, and the World Bank have regarded positively the fact that infrastructure contributes to economic growth and the Poverty reduction in East Asia, and have been conducting research to identify ways to respond to future infrastructural needs. Specifically, regarding the role of infrastructure in economic development, the division of duties between the public and private sectors concerning infrastructure, the demand for infrastructures and procurement of funds, and the impact of changes on the future social structures based on issues and challenges that surfaced through East Asia's experience of economic development and currency crisis, research was conducted regarding the following four points:
(1) Issues regarding infrastructural development in East Asia;
(2) Development that benefits everyone;
(3) Mutual adjustments between relevant entities;
(4) Accountability and risk management.
Furthermore, 12 measures have been presented regarding future directions such as the importance of planning and adjustment functions of the central government in infrastructure development, public financial allowances for infrastructural development, the need for private funding, the importance of developing a domestic financial market, and the possibility of donors acting as catalysts for infrastructural development.
Making Infrastructure Work for the Poor: Synthesis Report of Four Country Studies (in progress)
(Joint research between Japan and the United Nations Development Programme)
This includes research on the community-level efforts related to infrastructure in developing countries. Specifically, through analyses of the correlation between small-scale infrastructure, poverty, and governance research is being advanced on the role played by small-scale infrastructure in reducing poverty.
Under this research project, four countries-Bangladesh, Senegal, Thailand, and Zambia-were examined as case studies. For instance, under the research on Bangladesh, the role played by small-scale infrastructure on the achievement of the MDGs was studied by examining case examples, such as one in which roads and bridges allowed girls to safely commute to school and made hospitals more easily accessible.
In the research on Zambia, a water supply project was used as a case example to analyze its effect on poverty reduction and its relationship to the degree of community participation.