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 > 6. Latin America and the Caribbean
6. Latin America and the Caribbean
< Record for FY2006 >
Japan's bilateral assistance to Latin America and the Caribbean in 2006 was approximately US$431.52 million, about 5.8% of total bilateral ODA.
< Features of Latin America and the Caribbean >
The countries of Latin America and the Caribbean constitute for Japan an important partner with which it shares values such as democracy and free market. The Latin American and Caribbean region is geographically remote from Japan. However, with immigrants from Japan and their descendants serving as a "bridge", it is a region which has traditionally forged friendly relations with Japan. In addition, the region has a population of 550 million, nearly the same as ASEAN, and comprises a large market with a regional gross production of US$2.95 trillion (2.8 times as large as that of ASEAN). It is now expanding its presence through moves toward regional integration such as SICA,14 MERCOSUR,15 CARICOM,16 and CAN17 and the conclusion of free trade agreements with other countries. Moreover, as a result of the sharp rise in metal and energy prices in recent years, the region is attracting attention as an important supplier of mineral resources and energy (e.g. iron, copper, silver,18 crude oil, natural gas, and biofuels) and food (e.g. meat and soybeans). The region is becoming Japan's trusted economic partner, as demonstrated by the conclusion of EPAs with Mexico and Chile. One characteristic of the region is that while there are many countries whose average income level is comparatively high, they suffer from the large gap between the rich and poor.
In 2006, elections were held in 12 countries and it is notable that the winning candidates included the expansion of social policies in their campaign pledges. While this indicates that free, open economies will be maintained, it also shows that dealing with such historical problems as persistent poverty and disparity between the rich and poor are the challenges that remain after the achievement of democracy in the region.
< Japan's Efforts >
In order to promote stability and development in the Latin America and Caribbean region, Japan provides assistance for resolving such historical problems as poverty and disparity between the rich and poor, for building peace, for dealing with global environmental issues, and for promoting sustainable economic development and regional integration.
When providing assistance, Japan places emphasis on effective and efficient operation. From this perspective, Japan formulates region-wide projects, which benefit multiple countries, on development issues common to the region. In addition, Japan is strengthening collaboration with other donor countries and is utilizing South-South Cooperation.
Chart II-39. Japan's Assistance in the Latin America
< Issue-specific Efforts >
● Reducing poverty and income disparities
These historical problems are dealt with by assisting the formulation of appropriate social development policies by recipient countries in areas including healthcare and medical treatment, education, water and sanitation, and rural development.
● Environmental issues
In Latin America and the Caribbean, there are concerns regarding the environment pollution that has accompanied economic development in each area, and the region also contains tropical rainforests such as the Amazon. Given the importance of measures against global environmental issues, Japan supports anti-pollution measures and measures to preserve the natural environment.
● Peacebuilding
Due to the continuing political instability and domestic armed conflict in such countries as Haiti and Columbia, Japan provides assistance aimed at peacebuilding, including assistance for holding elections and for providing vocational training to internally displaced people.
● Supporting sustainable economic growth in the region
In order to support sustainable economic development in the Latin American and Caribbean region, Japan has extended cooperation in various sectors, such as development of infrastructure for improving the business environment, promotion of supporting industries, development of small and medium-scale enterprises, and provision of vocational training. In FY2006, Japan provided grant aid for the New Macara International Bridge Construction Project on the border between Peru and Ecuador and technical cooperation for the Vocational Training Improvement Project in Ecuador. In addition, because the region contains abundant resources and offers expanding economic opportunities, Japan is supporting toward resource and energy development using official financing (Other Official Flows (OOF)) to contribute to regional development and to support the activities of Japanese enterprises.
Through its assistance, Japan is also supporting small and medium-scale enterprises and supporting industries, and extending technical cooperation in the environmental sector in connection with the Japan-Mexico Economic Partnership Agreement (EPA) which entered into force in April 2005. Up to now, Japan has assisted in strengthening the capacity to monitor air pollution and coastal water quality, and plans to operate a small-scale CDM project model using bio-gas in a farming community region. Japan is also holding consultations with the Government of Mexico relating to human resources development in small and medium-scale enterprises.
● Promoting assistance for regional integration and region-wide cooperation
Japan has been extending cooperation for regional integration initiatives such as the Plan Puebla Panama (PPP), in the Central America region, and the Initiative for the Integration of Regional Infrastructure in South America (IIRSA)19. The implementation of the Project for the Construction of the Japan-Central America Friendship Bridge started from FY2006 as a part of PPP project.
< Providing Effective and Efficient Assistance >
● Region-wide cooperation
Japan has been proactively working toward eradicating Chagas disease, which is an endemic disease found throughout the Central American region. After the cooperation started in Guatemala in 2002, the target region expanded to include El Salvador and Honduras as well in 2004. Another example of region-wide cooperation is the highly acclaimed Project for the Improvement of Teaching Methods in Mathematics (PROMETAM),20 which was implemented in Honduras in 2003 for raising the basic academic ability of the region, and has been expanded to more countries such as Guatemala and Nicaragua.
Japan has implemented a technical cooperation project21 aimed at the Caribbean Community and in FY2006 initiated the first region-wide development study22 with the Caribbean Community as the partner agency. Japan has also implemented a development study23 and a technical cooperation project24 for MERCOSUR. Japan has dispatched experts to SICA, CARICOM, and the PPP Secretariat.
Japan is also taking a region-wide approach in its assistance system. In Central America, it has formed country-based ODA taskforces whose principal members are the local offices of implementing agencies such as embassy staff and the representatives of JICA, and JBIC. In addition, it has added concerned parties in Tokyo to the members of these country-based ODA Taskforces to establish region-wide taskforces in Central America, and since March 2006, has held discussions aimed at collaboration and project formulation on a region-wide basis. Japan is also coordinating with SICA and seeks to provide assistance that recognizes the importance of region-wide cooperation.
See Section 6 also concerning Country-based ODA Taskforces
● South-South Cooperation
Japan has formed partnership with Chile, Brazil, Argentina, and Mexico and is providing third-country training and dispatching experts from those countries to other countries in the Latin American and Caribbean region primarily in the field of economic and social development. Japan is extending technical cooperation to the countries of the Latin American and Caribbean region, particularly Central American countries, in a joint arrangement with the Government of Mexico under the framework of the Japan-Mexico Partnership Programme (JMPP) signed in October 2003.
Column 12 From Japanese Paper to Amazon Paper
— Junpei Kanazashi of Minamata Haguregumo Crafts Center, who introduced handmade papermaking in Brazil's Amazon Region —