Japan's Official Development Assistance White Paper 2013
Section 3 ODA for Investing in the Future
As explained in Section 1, ODA is investment in the future for both Japan and the entire international community. This concept is made clear in the “Japan Revitalization Strategy” approved by the Cabinet in June 2013. Japan’s growth-focused development cooperation in East Asia has, for example, contributed to the dramatic growth and development of the region. This has brought significant benefits to Japan and East Asia as a whole. Japan’s ODA functions effectively, precisely as “investment in the future,” and can be said to be one of the best practices which have proven to deliver. The section below describes cases of international cooperation that functions as investment in the future.
In developing countries, including emerging countries, experiencing rapid growth, infrastructure demand has risen sharply. Japan views that for supporting the infrastructure development of developing countries, combining ODA with exports of infrastructure systems would achieve both economic development in the partner country as well as robust economic growth in Japan. To make this feasible, it is essential that Japanese companies are awarded contracts not merely to export equipment, but also to provide infrastructure design, construction, operation, and management as a “system,” as well as to carry out diverse businesses, including the enlargement of business investment. Exports of infrastructure systems do not only directly benefit companies that are awarded the contracts. Such exports generate multiple effects, including the development of the regions to which Japanese companies have expanded their businesses and the strengthening of the supply chain. Along with the growth of partner countries through infrastructure development, the transfer of Japan’s advanced technologies, knowhow, and systems to partner countries contribute to resolving issues that partner countries are facing. In particular, developing countries highly esteem Japan’s technologies and systems in sectors Japan excels at, including environmental measures and disaster management, leading to the receipt of requests for assistance from many countries. For example, countries which have introduced early warning technologies for disasters, including volcanic eruption and rainstorm, have resolved the problem of evacuation delays, which in turn has contributed to significant reductions in casualties. In this light, the use of ODA for exports of infrastructure systems is “investment in the future” that generates benefits for both Japan and partner countries.
Based on this concept, in May 2013, the Japanese government established the “Infrastructure System Export Strategy” regarding various initiatives, including ODA. To increase infrastructure system exports, measures including the following are implemented in connection with ODA:
●Improvement of ODA schemes to facilitate further utilization of Japanese technologies (improvement of STEP scheme);
●Improvement of the ODA Loan scheme, including introduction of ODA Loans with Currency Conversion Option;
●Proactive utilization of JICA Private-Sector Investment Finance;
●Creation of master plans in coordination with the private sector;
●Participation of local governments in overseas projects (local governments and developing countries build up relationships through ODA, and by mobilizing the knowhow of local companies, ODA becomes the foundation of local companies’ overseas businesses);
●Business environment enhancement, e.g., development of legal systems for overseas infrastructure operations; and
●Development of global human resources, and establishment of a human resources network.
Not only infrastructure, but also healthy people and a workforce comprised of healthy people are essential for a country’s stability and economic growth. It is important that all people are guaranteed access to basic health and medical services and that efforts are made to improve their health, and to ensure that payment of medical fees do not force them into poverty. Furthermore, being healthy increases opportunities for people to attend schools and find employment, which in turn promotes their country’s economic development. International cooperation in the health and medical field is not only a fundamental initiative that is directly linked to the lives and health of the people; it is human investment in nation-building, and by extension, investment in the building of a peaceful society and stable economic and social development, i.e., “investment in the future.”
In recent years, helped by international efforts, health indicators have improved, including the world’s average longevity and infant mortality rate, and the health of people in developing countries has increased. Nevertheless, in many countries and regions of the world, access to health and medical services has been inadequate amid their poor sanitation environment and the spread of infectious diseases. In short, the health gap has widened. These countries need assistance targeting specific health issues as well as further assistance for strengthening their health systems.
In May 2013, the Japanese government established “Japan’s Strategy on Global Health Diplomacy.” The strategy identified common global health issues as a priority of Japan’s foreign policy, and presented a policy to strengthen efforts towards the realization of “Universal Health Coverage (UHC).” UHC means ensuring that all people are able to obtain basic health services when necessary, including preventive, curative, and rehabilitative health services, without having financial hardship. Japan, having a track record in achieving the world’s No. 1 healthy and longevity society by adopting various initiatives, including the universal health insurance system, and coping with an aging society, is able to harness this experience and its high level of technologies. In September 2013, Prime Minister Shinzo Abe contributed an article on “Japan’s Strategy on Global Health Diplomacy” to The Lancet, the world’s reputed leading medical journal – the first time any G8 leader contributed an article to this journal, in which Japan’s views were explained in detail. As the world’s disease status and health needs change and diversify, not only treatment of specific diseases but also policies and assistance tailored to the situation in each country or region are indispensable. Under this strategy, Japan will continue to support the achievement of MDGs. Furthermore, to achieve UHC, which is vital for realizing human security, Japan will implement bilateral aid effectively, form strategic tie-ups with global initiatives, and strengthen global health human resources. In tandem with these efforts, Japan promotes the internationalization of Japan’s medical technologies and services – one of the components of Japan’s growth strategy – to improve the quality of health and medical services. The public and private sectors will make concerted efforts to contribute to solving global health issues. These efforts will include the transfer of Japan’s world-leading medical technologies, introduction of advanced medical equipment and pharmaceuticals, and the promotion of mutual understanding regarding Japan’s experience with the public health insurance system that realized universal health coverage and regarding the process from development to approval of pharmaceuticals and medical equipment.
Investing in women contributes to the promotion of gender equality and to women’s participation in society, and is deemed a highly effective investment in the future.
Many regions in the world still have large gender disparities in school attendance rates. Women’s access to education can, of course, lead to improvements in their own health and livelihoods. Moreover, having knowledge about childbirth and child-rearing and recognizing the importance of education can lower the morbidity rate of their children and have a positive impact on growth. Additionally, women who received education will more easily find employment, and by extension, increase their incomes. There is a high tendency for women to use incomes for their children’s education, nutrition, and health and hygiene, among other areas. Thus, if women earn incomes and manage their incomes, this would lead to children receiving better education and maintaining better health. Investment in women which contributes to women’s participation in society is precisely investment in their children who will be responsible for the future.
In September 2013, in his address at the General Debate of the UN General Assembly, Prime Minister Shinzo Abe pledged to strengthen assistance that will contribute to women’s active engagement and capacity enhancement to create “a society in which women shine,” and to implement ODA in excess of $3 billion over the next three years. Japan will implement steady assistance through bilateral cooperation and in partnership with international organizations based on the following three pillars of this commitment: “Facilitating Women’s Active Role/ Participation in Society and Women’s Empowerment,” “Enhancing Japan’s Efforts in the area of Women’s Health Care as a part of its Strategy on Global Health Diplomacy,” and “Supporting Women’s Participation and Protecting their rights in the area of Peace and Security.”
Prime Minister Shinzo Abe delivering an address regarding “a society in which women shine” at the 68th session of the UN General Assembly (Photo: UN Photo / Evan Schneider)