Japan's Official Development Assistance White Paper 2009
(3) Cooperation Between Trade, Investment, and Other Official Flows (OOF)
It is key that the private sector play a leading role for sustainable growth in developing countries, and therefore it is important to promote industry and vitalize private sector activities such as trade and investment. Yet in developing countries beset by numerous challenges it can sometimes be difficult to set in place an environment for attracting private investment, and so support from the international community is essential.
Japan utilizes ODA and Other Official Flows (OOF) to support efforts like promoting small and medium-scale enterprises in developing countries, transferring industrial technology, and economic policies. Moreover, it also supports the improvement of trade and investment environments and economic infrastructure in order to improve the export capabilities and competitiveness of developing countries. The WTO Doha Round Negotiations (The Doha Development Agenda) which started in 2001 emphasizes the promotion of development through participation in the multilateral trading system. Japan has contributed to the trust fund set up within the WTO in aiming for the implementation of the WTO agreements for developing countries and to improve their capacity to participate in negotiations.
Regarding access to Japanese markets, Japan carries out the Generalized System of Preferences (GSP), which adopts lower tariff rates than general rates for exports of products from developing countries. Duty-Free and Quota-Free measures (Note 25) are also implemented for Least Developed Countries (LDCs). Japan also actively promotes Economic Partnership Agreements (EPAs), and strives to facilitate economic growth in developing countries through these EPAs.
In recent years, discussions have been intensifying over Aid for Trade (AfT) at various international fora as a means of further promoting support by developed countries, including Japan. Japan announced its unique contribution measure of the Development Initiative for Trade 2009 at the WTO's Second Global Review Meeting on Aid for Trade in July 2009. This initiative includes support for trade-related ODA totaling approximately US$12 billion over the three-year period from 2009 to 2011, and has garnered high praise from numerous countries. In terms of specific initiatives, it donates trade-related infrastructure and provides technical cooperation, while also offering support, which relates to the One Village, One Product Campaign. In addition, Japan supports developing countries to facilitate private sector investment by finding common challenges among developing countries and recommending several measures to promote investment.
(25) The goods covered by the Duty-Free and Quota-Free measures for LDCs are expanding. The goods that can be imported duty-free and quota-free has increased to about 98% in terms of number and more than 99% in terms of trade value (as of December 2009).
One Village, One Product Campaign
This is an initiative that supports raising exports of products from developing countries by unearthing appealing products such as handicrafts, textiles, and toys that are brimming with the folk character of developing countries in places like Asia and Africa, and making more people aware of them. The aim is to vitalize local regions through the refinement of production methods, product development, and the expansion of sales channels, as well as by striving to cultivate world-class products. One Village, One Product Markets are run at major international airports in Japan to sell products from developing countries and introduce them to Japanese consumers.
Investment Promotion (The Philippines)
Japan dispatches an investment promotion advisor to the Board of Investments (BOI) in the Philippine Department of Trade and Industry. This advisor makes proposals regarding issues like organizational and service improvements to the chairman of the BOI. The advisor also offers advice and guidance related to revision work on the investment promotion plans of the government of the Philippines, and offers guidance for improving the BOI's marketing capabilities in overseas markets. In light of the fact that investments by Japanese companies are of great significance in the Philippines, the advisor also works to promote dialogue and strengthen partnerships between BOI and Japanese companies entering the Philippines. The advisor also works to improve the business investment environment through project formulation support in order to foster particular industries.