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 > 2. South Asia
2. South Asia
< Record for FY2006 >
Japan's bilateral assistance to South Asia in 2006 was approximately US$518.01 million, 6.9% of total bilateral ODA.
< Features of South Asia >
The South Asian region includes countries that have high rates of economic growth and huge economic potential, particularly India, the world's largest democracy. Accordingly, this region's position in the international community is becoming more prominent. South Asia is located on the marine transport route linking Asia with the Middle East, and thus is strategically important to Japan. It is also an important region from the viewpoint of dealing with global environmental issues. In addition, the region is of great concern to the international community, including Japan, due to the issue of weapons of mass destruction possessed by India and Pakistan and for its role as the front line in the "fight against terrorism."
However, the South Asian region suffers from a serious lack of infrastructure essential to sustainable socio-economic development, and in India, which has been maintaining high economic growth, there is a need for basic infrastructure development, including roads, railroads, and ports. Moreover, South Asia, which has a population of 1.4 billion people, is one of the world's poorest regions with more than 500 million people living in poverty. The region includes such LDCs as Bangladesh, Nepal and Bhutan, and even in India, despite its rapid economic growth, about 30% of the population lives in poverty. Thus, poverty in the region is serious. The countries of South Asia are beset by social and political problems due to the diversity of religion and ethnicity. In addition to development of basic infrastructure and poverty reduction, problems that must be dealt include growing populations, low adoption rate of primary education, inadequate healthcare facilities, insufficient measures against infectious diseases, and the unestablished rule of law. Thus, South Asia is, alongside Africa, a crucial region where achieving the MDGs is critical.6
< Japan's Efforts >
The ODA Charter sets forth sustainable development and poverty reduction in developing countries as important issues. In order to harness the economic potential of South Asia and achieve well-balanced economic growth in order to ease disparities which is rather widening between the rich and poor, Japan believes that assistance to South Asia for developing socioeconomic infrastructure is important.
Particularly in its relationship with India, Japan is promoting cooperation and disseminating its knowledge in a wide range of fields including politics, security, economic partnership,7 and exchange of people based on the Strategic Global Partnership, an alliance sharing basic values. In addition, Japan will promote India's economic growth by strengthening Japan-India economic relations, and will support infrastructure development which has not kept pace with rapid economic growth as well as poverty reduction and development of the social sector. Furthermore, Japan intends to deepen cooperation with India and Bangladesh in the areas of the environment, climate change, and energy, because the former's continued economic growth is expected to lead to increased emissions of greenhouse gasses and the latter will be affected by global warming.
Chart II-33. Japan's Assistance in the Southwest Asia Region
< Initiatives Aimed at Aid Coordination >
In the South Asian Region, efforts aimed at aid coordination in the various countries are moving forward. Progressive measures are being implemented in Bangladesh in particular. In March 2005, Japan enacted the joint country strategy for Bangladesh along with the World Bank, ADB and the UK's Department for International Development (DFID), and all are working toward collaboration in assistance under this strategy. In addition, the major donor countries and agencies are promoting coordination and collaboration in order to effectively assist the poverty reduction paper enacted by the Government of Bangladesh. Specifically, collaboration is advancing in sharing development issues, information exchange and implementation centered on Local Consultative Group (LCG) and sub-groups organized for each issue.
< Recent Trends >
The South Asian Association for Regional Cooperation (SAARC) composed of South Asian countries is directing its efforts toward infrastructure development, poverty reduction, and economic liberalization in the region. In April 2007, Japan officially participated in the 14th SAARC Summit as an observer for the first time. Then Foreign Minister Taro Aso, who attended the conference, positioned South Asia at the center of the Arc of Freedom and Prosperity and indicated that Japan will provide support for promoting democratization and peacebuilding, regional cooperation and people-to-people exchange.
In August 2007, then Prime Minister Shinzo Abe visited India, and the leaders of both countries shared a common awareness that Japan's assistance must continue to play a major role in such fields as infrastructure development, the environment and energy cooperation, poverty reduction, and the social sector development.
Japan is providing assistance to Bhutan and Nepal, both LDCs, mainly through grant aid with priority to basic human needs sectors including agriculture, healthcare, medical treatment, and education, while collaborating with technical cooperation.
Assistance through loan aid is provided for developing economic infrastructures such as electricity and transportation that will improve the trade and investment climate, and social infrastructures such as education, water supplies, and sewerage systems. India, in especially, was the largest recipient country of Japan's loan aid for four consecutive years from FY2003. In April 2007, it was decided to provide loan aid to Bhutan for the first time to assist the development of a power distribution network for regional electrification.
In Nepal, the Lower House was reinstated in April 2006 and in November of the same year a comprehensive peace agreement was signed between the Government of Nepal and the Communist Party of Nepal (Maoist), who had been conducting armed insurgency. In January 2007, the Interim Constitution was promulgated and the Interim Legislature formed, and the Interim Government was established in April of the same year. Thus, the progress was seen in restoring human rights and democracy and reviving the peace process. To support these moves toward democracy, Japan has actively extended cooperation in the form of financial and personnel support. It has provided assistance for constituent assembly elections by dispatching Self-Defense Forces personnel to the UN Mission in Nepal and by providing ballot boxes, and by providing assistance for the reintegration of children associated with armed forces and groups into society.
In order to support the peace process in Sri Lanka, where it has not advanced a far as expected, Japan is providing assistance for improving the living standards of residents in the northern and eastern provinces, which have become impoverished due to conflict.