Japan's Foreign Aid Policy: A Capacity for Leadership?

Abstract

TN 1989 Japan was set to become the largest donor of foreign aid within the OECD's (Organization for Economic Co-operation and Development) Development Assistance Committee (DAC). An expenditure of US$9,134 million in 1988 was a substantial achievement, sinceJapan's Official Development Assistance (ODA) was only US$2,600 million in 1979 and Japan was then regarded as ajunior player in the aid stakes. Such a change in Japan's status as an aid donor brings with it a change in international expectations ofJapan regarding its responsibilities to the international aid community, especially in terms of its donor policies, and its responsibilities to the international financial institutions and to the recipient nations themselves. Japan's aid activities have, over the years, attracted much comment. Approval from other donors is now strong' but criticism is still commonly heard, particularly with regard to the quality of aid. This paper is concerned withJapan's actions as a donor, and whetherJapan has been able to show leadership in aid policy. HasJapan taken positive initiatives in aid? Has Japan helped shape international aid policy? Is Japan already considered a leader in the foreign aid field?