Japan's Official Development Assistance White Paper 2007
Next PageMain Text > Part II ODA RECORD FOR FY2006 > Chapter 2 Details about Japan's Official Development Assistance > Section 3. Assistance for Each Region > 1. East Asia
1. East Asia
< Record for FY2006 >
Japan's bilateral ODA to East Asia in 2006 was approximately US$1,343.53 million, 18% of total bilateral ODA.
< Features of East Asia >
East Asian countries have a close relationship with Japan in all aspects including politics, economy, and culture. As such, the development and stability of the East Asia region has great significance for the safety and prosperity of Japan. Japan has supported infrastructure development and human resource development in the region through office aid, and facilitated private sector investment and trade through means such as enhancing economic partnerships. Through these measures Japan has thus far contributed to the remarkable economic development in the East Asia region by advancing economic cooperation that coordinates development assistance with investment and trade. For providing assistance, Asia is continuously designated as a priority region.
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 donors. On the other hand, there are still some least developed countries (LDCs) within East Asia, such as Cambodia and Laos. There are also countries like China, which still has internal disparities even though its economy has grown dramatically in recent years, or Viet Nam, which is in the process of transitioning from a centrally-planned economy to a market economy. In extending assistance, Japan fully takes into account such diversity in socio-economic conditions and changes in the respective assistance needs in each country.
< Japan's Efforts >
Japan's assistance activities in the East Asian region are aimed at advancing interregional cooperation and integration in line with shared basic values, promoting mutual understanding, and ensuring stability. To meet these objectives, cooperation is needed in establishing a stable process of democratization; reinforcing protection of human rights; building legal institutions; and developing infrastructure in order to promote economic growth, and functional cooperation in fields such as finance, energy, disaster prevention and infectious diseases is also necessary. In addition, exchange between people is important for furthering mutual understanding, and Japan is promoting such exchanges, particularly among young people, as well as providing assistance for Japanese-language training with an aim to foster pro-Japanese group. Moreover, correcting disparities in the East Asian region through promoting integration of the Association of Southeast Asian Nations (ASEAN) and development of the Mekong region will lead to stability in the region and by extension benefit Japan. From this perspective, it is important to strengthen collaboration with the Asian Development Bank (ADB), which is working to foster various types of regional cooperation in Asia.
Indonesia is building a close relationship with Japan as its strategic partner in the political and economic sphere. In August 2007, Japan and Indonesia signed the Japan-Indonesia Economic Partnership Agreement (EPA). Japan has resolved to further promote the improvement of an investment environment and engagement in cooperation relating to energy. Bearing in mind that memories of the tsunami triggered by the earthquake off the coast of Sumatra are still fresh, Japan is pursuing cooperation in the area of disaster prevention. Japan is also playing a role in countermeasures against piracy and terrorism in the Strait of Malacca.
In the Mekong region, spanning parts of Cambodia, Laos and Viet Nam, Japan is focusing on assistance in developing a socioeconomic base, building institutions, and creating a regional network with a view to promoting integration and collaboration in the regional economy. Japan is also taking steps for the sake of expanding trade and investment with Vietnam by promoting EPA negotiations and building legal frameworks. By means of such efforts, Japan is supporting interregional integration through sharing of basic values such as those of democracy, market economy, and the rule of law, promoting poverty reduction and lessening of disparities within the ASEAN region.
In addition to these efforts, it is also important to work toward regional stability by promoting peacebuilding in Mindanao in the Philippines, Timor-Leste, and Ache in Indonesia.
Senior Vice-Minister for Foreign Affairs Hitoshi Kimura (left) meeting with Vietnamese Prime Minister Nguyen Tan Dung
Chart II-31. Japan's Assistance in the East Asia Region
< South-South Cooperation >
Japan is promoting South-South Cooperation based in Malaysia and Thailand, which have risen to prominence as new donor countries. Japan is also advancing the Japan-Singapore Partnership Program in which Japan extends technical cooperation to developing countries jointly with Singapore, a country that received assistance in the past.
< Recent Trends >
Since the 1st East Asia Summit (EAS) in December 2005, regional cooperation and interregional cooperation have been moving forward in a more dynamic fashion. A series of summit conferences have been organized, including the 2nd EAS held and the 10th Japan-ASEAN Summit in Cebu in the Philippines on January 14-15, 2007. In this series of conferences, then Prime Minister Shinzo Abe expressed Japan's fundamental principle of promoting regional cooperation based on shared universal values with a view to building an open, energetic and innovative East Asia region. To achieve this, he also announced an East Asian regional cooperation initiative on disaster management, measures against avian influenza, the expansion of assistance for the Mekong region, and human resources development in the peacebuilding field. Furthermore, he announced an energy cooperation initiative in which Japan would provide approximately US$2 billion in energy-related assistance over a three-year period beginning in 2007, principally aimed at improving energy access in the East Asian region and cooperating in energy efficiency and conservation measures. Japan has already provided assistance amounting to US$950 million1 to countries such as Indonesia, Viet Nam, and the Philippines. In addition, he announced a ¥35 billion exchange program in which 6,000 young people, mainly from East Asia, will be invited to Japan every year over a five-year period (The JENESYS Programme).2 This project is expected to promote deeper understanding of Japan among the younger generation in the region.
With the most ambitious goal being the formation of an ASEAN community by 2015, ASEAN is taking steps to reduce intraregional development disparities. Japan, in its relations with ASEAN, is giving priority to assisting the underdeveloped Mekong region. Thus, it announced the Japan-Mekong Region Partnership Program, which rests upon the following three pillars: (1) integrating economies of the region and beyond; (2) expanding trade and investment between Japan and the Mekong region; and (3) pursuing universal values and common goals of the region. Under this program, Japan announced an expansion of assistance to each CLV3 country as well as to the region as a whole for three years from this fiscal year. In addition, Japan announced a new contribution to the ASEAN Secretariat of US$52 million to promote Japan-ASEAN economic partnership, of which US$40 million in assistance would be allocated to CLMV.4 Approximately US$20 million, one half of the total amount for CLMV would be used to assist the "Development Triangle," the CLV border region, which is one of the poorest parts of the Mekong Region. These moves were based on the idea that in order to promote economic partnership between Japan and ASEAN, it was important both to assist the economic growth of ASEAN's underdeveloped Mekong Region and create an environment in which the benefits of the economic partnership between Japan and ASEAN could be reaped. In response to these positive efforts by Japan, the CLV countries expressed their gratitude at the Japan-CLV Foreign Ministers' Meeting held on January 12, 2007.
In Viet Nam in September 2007, many people died or were wounded by the collapse of the Can Tho Bridge, which was under construction and financed by a loan aid. The Government of Viet Nam has established National Committee to investigate the causes of the collapse. While cooperating on efforts to investigate the causes, the Government of Japan established a Review Meeting on Prevention of the Recurrence of the Can Tho Bridge Collapse and is reviewing points to be improved in supervising future projects and studying measures to prevent recurrence of accident.
< Relations with China >
Since 1979, Japan's assistance to China has helped the infrastructure development of China's coastal areas, environmental measures, improvement in the basic human needs sectors including health and medical care, and human resource development, among other efforts that contribute to the steady development of the Chinese economy. As such, Japan's assistance has played a significant role in promoting and sustaining China's reform and open-door policies. Most of this assistance has been provided to China in the form of loan aid. Such assistance to China can be valued as having supported the development of economic relations between Japan and China, and having supported the multilayered Japan-China relationship as one of the main pillars. Regarding this point, the representatives of China, including at the summit-level, have expressed their gratitude on many occasions.5
In light of China's dramatic economic growth, at the Japan-China Foreign Ministers' Meeting in April 2005 both Japan and China came to a shared understanding regarding ending the provision of new loan aid by the start of the 2008 Beijing Olympics.
On the other hand, environmental issues and infectious diseases in China have become global issues that have the potential to directly affect Japan as well. Including these issues, the people of Japan and China face many common challenges. Moreover, increasing the mutual understanding between the people of Japan and China has also become an important issue from the view of facilitating the sound development of Japan-China relations.
In light of this situation, grant aid is currently being implemented with its focus narrowed to: (1) areas conducive to resolving common challenges faced by the people of Japan and China such as the environment and infectious diseases, and (2) areas conducive to promoting mutual understanding and increasing exchanges between Japan and China. Moreover, technical cooperation through people-to-people exchanges is an important means for transmitting Japanese values and culture to China. As such, in addition to the above mentioned areas, technical cooperation is also being used to carry out projects which are conducive to transitioning to a market economy and observing international rules, and promoting good governance.
The Overseas Economic Cooperation Council established in the Cabinet has held discussions concerning the role of economic cooperation with China and has specified an approach whereby after the ceasing of loan aid to China, Japan would provide assistance strategically in light of Japan's national interest. In the future as well, economic cooperation to China must be implemented on the basis of proper judgment from a comprehensive and strategic viewpoint; wider Japan-China relations and the circumstances surrounding China should be taken into consideration, and cooperation should be extended in a manner that is consistent with the national interests of Japan itself.
A New Trend by China
In the past, China has provided assistance to other developing countries while receiving assistance from developed countries, but in recent years the amount of assistance provided by China has increased dramatically. This change is similar to the one Japan experienced after World War II when it shifted from a position of receiving assistance to one of providing assistance. This increased assistance by China should now be welcomed since it contributes to the amount of development assistance from the international community as a whole. However, at this point in time, assistance by China is still not transparent enough for other countries to understand, and in the international community a variety of concerns have been pointed out the manner in which the assistance is provided. At the Japan-China Summit Meeting held in April 2007, then Prime Minister Shinzo Abe stressed the importance of providing assistance transparently and in line with international standards. In response, Prime Minister Wen Jiabao stated that China will comply with international rules and cooperate with Japan. It was also decided that Japan and China will study measures whereby the two countries could cooperate in providing assistance to third countries. Japan will promote further dialogue and cooperation and stress the importance of dialogue with new donor countries, including China, in venues such as G8 and OECD-DAC.
In the past, China has provided assistance to other developing countries while receiving assistance from developed countries, but in recent years the amount of assistance provided by China has increased dramatically. This change is similar to the one Japan experienced after World War II when it shifted from a position of receiving assistance to one of providing assistance. This increased assistance by China should now be welcomed since it contributes to the amount of development assistance from the international community as a whole. However, at this point in time, assistance by China is still not transparent enough for other countries to understand, and in the international community a variety of concerns have been pointed out the manner in which the assistance is provided. At the Japan-China Summit Meeting held in April 2007, then Prime Minister Shinzo Abe stressed the importance of providing assistance transparently and in line with international standards. In response, Prime Minister Wen Jiabao stated that China will comply with international rules and cooperate with Japan. It was also decided that Japan and China will study measures whereby the two countries could cooperate in providing assistance to third countries. Japan will promote further dialogue and cooperation and stress the importance of dialogue with new donor countries, including China, in venues such as G8 and OECD-DAC.
Chart II-32. Trends in Loan Aid to China
