Japanese ODA Research Articles

Responding to the crisis: Japan’s changing foreign policy and ODA to Ukraine (2014–2023)

The Russian aggression on Ukraine (2022) has marked a significant critical juncture for Japan’s foreign and security policies, and Japanese government has deployed a multitude of political, economic/financial, and limited military measures to support Ukraine. The article investigates a less-explored aspect of Japan’s foreign policy change in the post-2022 crisis setting, namely the development assistance provided to Ukraine. The manuscript discusses this subject from a long-term perspective, exploring the trends in—and directionality of—Japanese development assistance to Ukraine in the context of Japan’s evolving role in the international community between 2014 and 2023. It utilises a role theoretical approach to explore the frictions between the ambitious proactive contributor to peace national role conception promoted by PM Abe Shinzō (2012–2020) and the issue-specific role conceptions guiding Japan’s foreign policy behaviour towards Russia that shaped Japan’s response to the Ukraine-Russia tensions. The article elucidates how the fluctuations in Japanese ODA flows to Ukraine may contribute to our understanding of role conflict and how it was managed, as well as the rebalancing of and changes in Japanese foreign policy that have been occurring since 2022 under PM Kishida Fumio’s leadership.

Does Japanese ODA really contribute to economic growth for ASEAN countries?

Japan has provided ODA funding for promoting economic development in ASEAN countries for long time. However the percentage of the fund has been descending for over a decade. This paper therefore aims to verify how Japan's ODA contributes to economic growth, proxy by GDP, for the ASEAN region in the period 2008-2020. Based on the Cobb-Douglas production function, we build our model to estimate the effects of the ODA factor. We employed a wide range of quantitative econometrics models to properly determine the link between financing assistance and the economic expansion of those Southeast Asian nations. The results suggest that ODA exhibits a significantly positive relationship with economic growth for this region over 13 years. A 1% increase in the ODA inflow contributes to the economic growth of 0.226%. In addition, both determinants, such as capital and labor, become important factors driving the growth in GDP while the FDI has a negligible impact. Finally, ODA is seen as a complement to the recipient's efforts as well as a driving force for the giver. From this point, some policies are drawn to harmonize the official development assistance and economic growth.

Effect of foreign aid on private investment: The case of Japanese ODA in Sri Lanka

Effect of foreign aid on private investment: The case of Japanese ODA in Sri Lanka

Japanese Agricultural ODA and Its Economic Impacts: Technological Assistance for the Rice Green Revolution in Sub-Saharan Africa

Since 2008, JICA has made great efforts toward doubling rice production in Sub-Saharan Africa in 10 years. This study explains JICA's approach and projects and reviews the research findings on JICA's rice training projects. The trainings on rice cultivation practices increased the rice production of the training participants, not only in the short term but also in the long term. The training benefits seem to spill over to the neighbors within the same irrigation scheme. When introducing upland rice to areas where rice was not grown, selecting areas suitable for rice cultivation is a key for sustainable adoption and production.

Comparative analysis of Japanese and Korean ODA investment in Vietnam

Comparative analysis of Japanese and Korean ODA investment in Vietnam

Has ODA contributed to growth? An assessment of the impact of Japanese ODA

Japanese ODA is uniquely different from that of Western countries in its strategic focus on economic growth. This paper examines whether it has indeed contributed to economic growth in its partner countries, as an attempt to respond to the question of how ODA can promote growth. It employs an econometric analysis using a panel dataset of 117 countries from 1980 to 2010 and disaggregated ODA flows from five major donors and the sum of all the other donors. Our study finds that Japanese ODA is positively associated with industrial growth in its partner countries, through which it has contributed to their economic growth.

Help the Poor, Help Ourselves Merging Individual and Collective Interests in the Official Discourse on Japanese ODA since 2000

Japanese ODA has attracted much attention in the last three decades. This paper aims to shed light on the intellectual evolution of the official discourse on Japanese ODA based on the analysis of two main ‘modes of thought’ at the foundation of it, namely national interest and international affiliation. Based on a detailed content analysis of official documents and public debates, the paper will take the role of institutional actors – Japanese political leaders, foreign ministers and intellectuals – into consideration. The role of such “entrepreneurs” has been crucial for shaping the current official discourse on Japanese foreign aid. The paper will argue, in fact, that the official discourse is a juxtaposition of two clashing ideas carefully shaped to enlarge the consensus (both domestic and external) toward the Japanese government’s policies.

FOREIGN POLICY ALIGNMENT WITH THE WAR ON TERROR: THE CASE OF JAPAN'S FOREIGN AID PROGRAM

AbstractMany scholars have suggested that Japan aligned its foreign policy with the US War on Terror. Part of Japan's alignment is said to have involved disbursement of foreign aid to support the US in Afghanistan and Iraq, and with other security interests associated with the War on Terror. To date, however, there has been little empirical study of this question. Employing a data set on Japanese aid to 133 countries between 1995 and 2008, we examine the War on Terror and Japanese ODA. We find that Japanese aid was aligned with some security interests in the War on Terror, but the effects were mixed.

Japan’s Yen Loan, Prerequisite to Mass FDI from Japan

Japan initiated the TICAD process in 1993. In 2016, it was held for the 6th time in Kenya, where Japan promised to invest USD 30 billion in the African continent by 2019. Examining the relationship between ODA and FDI from Japan for the case of Asia, it was clear that Japanese ODA results in a “vanguard effect” on FDI; yen loan, one of the types of ODA, helped the recipient Asian countries to attract three times larger FDI than the total amount of yen loans. In order to attract increased FDI from Japan, African countries need to win yen loans from Japan if wishing to get more Japanese FDI. Although Japan’s tied aid projects can facilitate Japanese companies’ expansion to the recipient countries, it is crucial for them to take into account the OECD-DAC rules. Specifically, upper middle income countries are not eligible for tied loans. Also it is beneficial to keep in mind Japan’s priorities for yen loan such as Global Environmental Problems and Climate Change, Health/Medical Care and Services, Disaster Prevention and Reduction and Human Resource Development. In addition, Japan’s new national effort to export high quality infrastructure (for example, by the Japan Overseas Infrastructure Investment Corporation for Transport and Urban Development (JOIN)) can benefit African countries that urgently need to upgrade urban infrastructure.

Evolution of Japanese ODA 1945-2015: An Analysis

When Japan emerged as a global economic power, it increased its role in shaping the development of the international community through bilateral and multilateral economic cooperation. The history of Japanese ODA began after gaining its independence from the United States in 1952. Japan began building its ODA program beginning with the payment for war reparations as well as economic and technical cooperation to Asian countries it formally colonised. Until the end of 2015, Japan was still actively adapting its ODA to support the process of socioeconomic development of recipient nations. This article examines the evolution of Japanese ODA from 1945 to 2015. This research is significant in assessing the disbursement trend, the challenges and direction of Japanese ODA in the 21st century. There are five time periods of analysis for the history and evolution of Japanese ODA, firstly being that of Japan’s economic restructuring after the war from 1945 to 1953. Throughout this time period, Japan received aid from the United States and the World Bank. The second period spans 22 years and is known as the quantitative development and expansion of ODA from 1954 to 1976. This period was also known as the war reparation period. Japan provided foreign assistance in the form of reparation as well as economic and technical assistance to former colonies. The third period was 14 years of systemic expansion from 1977 to 1991. Japan adapted 4 goals during this period in order to increase the amount of aid to recipient countries. The fourth period was the development of ODA philosophy and policy from 1992 to 2002. The global ODA charter was introduced in this period, aimed to explain the Japanese ODA philosophy and promote its aid activities in line with its foreign policy. Japan’s role could clearly be established during this period. The last period, challenges in the new era of ODA, began in 2003 until the present time. This was when the ODA charter was re-evaluated for the first time after 11 years on August 23, 2003, in order to shape a more comprehensive global cooperation policy. The re-evaluation of the charter was relevant as the global challenges have increased Japan’s role and improved the relation between Japan and its aid recipients.

A Study on the Role of Sogo Shosha in Japanese ODA

A Study on the Role of Sogo Shosha in Japanese ODA

Japanese ODA Policy and Human Security: focusing on the relationship between domestic discourse in Japan and international norm formation

Japanese ODA Policy and Human Security: focusing on the relationship between domestic discourse in Japan and international norm formation

Ls South Sulawesi a Center of Growth in Eastern Indonesia? Japanese ODA Strategy Revisited

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Japanese Legal Assistance: An East Asian Model of Legal Assistance and Rule of Law?

Japan offers its aid recipients an approach to legal reform that in some ways mirrors, and in others diverges, from the Western approaches to rule of law aid. As a consequence, Japan challenges Western legal assistance generally, and rule of law aid in particular. More particularly, after close scrutiny of the history of Japanese ODA and its mode of legal sector support developed over the last twenty years, we argue that Japanese legal assistance exhibits a range of traits including: in-crementalism; comparativism; different aid personnel; focus on self-help; budget restraint; and humility. This approach has attracted robust critics. Nevertheless, this paper asks the question whether the East Asian model of rule of law assistance challenges the West’s apparent addiction to rule of law aid.

Environmental ODA to Africa: Policies, Determinants and Implications

We explore the trends and policies of environmental ODA - that is, aid with a focus on the environment - and empirically analyze the determinants of Japanese and Swedish environmental ODA for Africa utilizing the OECD CRS(Creditor Reporting System) data. We find that each country has its own environmental ODA policies. Various models were used, moreover, to assess the determinants for Japan and Sweden’s environmental ODA. The Hausman test reveals that the random effect model is most fitting for Japan, and the fixed effect model for Sweden. This means that for Japan, observable characteristics and unobservable heterogeneity have no correlation; consequently, these two factors are not simultaneously considered when determining environmental ODA to Africa. On the other hand, the fact that Sweden’s environmental ODA to Africa is determined based on the fixed effect model means that a correlation exists between unobservable heterogeneity and observable characteristics, which is in turn because Sweden considers both observable and unobservable factors when determining environmental ODA to Africa.

ODA (Environmental ODA to Africa: Policies, Determinants and Implications)

Korean Abstract: 빈곤문제 해결은 환경문제 해결과 긴밀히 관련되어 있다. 예를 들어 빈곤층은 경작지를 넓히기 위해 울창한 산림을 베어내거나 땔감을 확보하기 위해 벌목을 하고 곡물 생산을 위해 토양을 과도하게 사용하는 경향이 있다. 그 결과 농지가 황폐화된다. 이런 과정이 반복됨에 따라 기후변화가 가중되고 사막화, 가뭄, 토양유실을 초래해 결국 빈곤층은 ‘환경 함정(environmental trap)’에 빠진다. 그러나 환경보존을 위해 빈곤층의 경제활동을 규제한다면 그들의 삶은 더욱 어려워질 것이다. 특히 빈곤율이 가장 높은 아프리카 대륙의 특성을 고려할 때 환경보존 전략과 경제개발 전략을 동시에 구사하기가 어려울지라도 적절한 균형점을 찾아야 한다.English Abstract: We explore the trends and policies of environmental ODA and empirically analyze the determinants of Japanese and Swedish environmental ODA for Africa. We choose two countries, Japan and Sweden; Japan is the largest donor of environmental ODA, and Sweden is a role model of this type of ODA provision. From the CRS data, we find that many major donors have expressed interest in environmental ODA as time passes. However, each country has its own environmental ODA policies. The Japanese environmental ODA determinants and its policies can be summarized as follows. First, whereas Japan is the world’s largest donor of environmental ODA, the amount of giving to Africa has been relatively small. That is, Japan has not been interested in the environmental issues in Africa for years. Second, the amount of trade significantly affects the decision to grant environmental ODA for Africa. This implies that the economic relationship between Japan and its recipient countries is a major factor in determining whether Japan provides environmental ODA or not. Third, recently Japan seems to have changed its environmental ODA policy for Africa. For example, Japan announced that it would increase the amount of environmental ODA for Africa at the 3rd and 4th TICADs. Fourth, Japan provides environmental ODA for resource-poor rather than resource-rich African countries. For instance, Nigeria, a major oil exporter, got relatively little environmental ODA from Japan, while it is the number 1 recipient country in Africa of ODA from Japan.On the other hand, the Swedish environmental ODA determinants and its policies can be summarized as follows. First, Sweden, with extensive experience providing ODA, has focused on environmental mainstreaming, even though the size of ODA is relatively small. Second, the Swedish environmental ODA has been meeting the needs of recipient countries. To investigate their individual needs, Sweden often holds a policy dialogue with recipients. Fourth, the ratio of the total amount of ODA to environmental ODA continues to maintain a certain level and converges to a small number. However, Japan’s number does not; this number is stable due to the fact that Sweden many times has held policy dialogues to persuade the recipient countries to satisfy their needs. Our findings give the following implications. First, Korea has to reflect the issues of the environmental mainstreaming to the ODA policy. By doing so, Korea can grow to become one of the significant donors in this field. In particular, Korea must note that Japan has expressed the will to take part in environmental mainstreaming through the announcement at the 4th and 5th TICADs. Second, Korea has to hold more policy dialogues with recipient countries. Policy implementation is a totally different process from policy making. When the Korean government determines that it will give environmental ODA to African recipients, the distinct features of Africa should be understood. In particular, the causes of environmental deterioration differ across regions, as the poor in Africa have different reasons that they remain poor across residential regions. Hence, the causes should be explored in a dynamic view to provide suitable treatments, rather than in a static view. To do so, more policy dialogues with African recipient countries are required.

The Position of MDGs in Japanese ODA

The Position of MDGs in Japanese ODA

Environmental ODA to Africa: Policies, Determinants And Implications

We explore the trends and policies of environmental ODA - that is, aid with a focus on the environment - and empirically analyze the determinants of Japanese and Swedish environmental ODA for Africa utilizing the OECD CRS(Creditor Reporting System) data. We find that each country has its own environmental ODA policies. Various models were used, moreover, to assess the determinants for Japan and Sweden’s environmental ODA. The Hausman test reveals that the random effect model is most fitting for Japan, and the fixed effect model for Sweden. This means that for Japan, observable characteristics and unobservable heterogeneity have no correlation; consequently, these two factors are not simultaneously considered when determining environmental ODA to Africa. On the other hand, the fact that Sweden’s environmental ODA to Africa is determined based on the fixed effect model means that a correlation exists between unobservable heterogeneity and observable characteristics, which is in turn because Sweden considers both observable and unobservable factors when determining environmental ODA to Africa.

Япония и Мьянма: история “особых отношений”

Burma and Japan had long held the strongest ties among Asian countries. Such “historically friendly relationship” were based also on the sentiments and experiences of the leaders of both countries. Young Burmese patriots were trained by the Japanese army officers leading to the birth of the Burma Independence Army. Huge official development assistance provided by the Japanese government also cemented this “special relations”. However the military coup (1988) and Japanese ODA Charter (1992) drastically changed this favorable ties. Japan’s government and business have shown a keen interest in Myanmar since the establishment of a formally civilian government (2011) and beginning the rapid political reforms.

TICAD and the National Interest of Japan

At TICAD (Tokyo International Conference on African Development) IV in 2008 Japan began to approach the TICAD process with a stronger focus on its own economic interests rather than as a consultative forum on development cooperation. The Japanese business community had started to explore the economic opportunities available in Africa around 2006, with the result that more Japanese firms were expanding into the region. Consequently, the 2008 TICAD summit was designed to suggest, if not emphasise, Japan's national interest in the context of the African development process. In that sense TICAD IV was the first TICAD that the Japanese private sector took active part in; this resulted in TICAD IV gaining wider media coverage in Japan. Effectively, the significance of Africa for Japan has undergone a historical change, but to some extent this is a product of the recent role of China in Africa's economic development and indeed of the state of relations between China and Japan. TICAD IV may also be seen as an epoch-making event for Japanese ODA policy, which was changing under the new circumstances. Japanese overseas development aid policy is now in transformation and TICAD V, expected in 2013, will follow the line surveyed at the last summit.