Japanese Foreign Aid in a New Global Era

Abstract

As..iter occupying the position of predominant global aid donor since the advent of the Marshall Plan in the late 1940s, the United States finally gave way to Japan in June of 1990. Although absolute aid disbursements are bound to fluctuate in the coming years, with the United States and Japan perhaps trading first and second places several times, Tokyo has undeniably become a major factor in global economic development. This new influence will require Washington, other donors, and aid recipients alike to come to terms with a foreign aid apparatus and approach to development that is sometimes at variance with Western aid programs. For example, elements of the Japanese aid program are more compatible with the close relationship that often exists between the state and the private sector in developing countries. Although generally more sympathetic to the private sector, Japanese aid officials do not shriek in horror at the idea that government might be able to contribute to developmental goals. Instead, they believe that develop