Main characteristics of Japanese Official Development Assistance (ODA) flows
At the end of the 1990s, the Japanese government distributed annually more than US$10 billion as foreign aid directly or indirectly to developing countries. Japan’s ODA can be divided into the following four groups: 1) Bilateral Grants, 2) Technical Co-operation, 3) Multilateral Aid, and 4) Bilateral Loans. In 2001, Bilateral Grants made up 19.3 percent of Japan’s total ODA budget; Technical Co-operation constituted 29.7 percent; Multilateral Aid and Bilateral Loans accounted for 24.7 percent and 26.3 percent, respectively. There have been criticisms that Japanese ODA loans have been provided mainly for economic infrastructure projects only. In response to these criticisms, the Japanese government claims to have made efforts to channel these loans into various social sectors, such as agricultural projects or rural development.
The Role of Non-governmental Organisations (NGOs) in Japan’s Foreign Aid Policy
The reinforcement of the Non-governmental organisations’ role in Japan’s ODA program is a challenging task. However, if this objective is achieved, at least three advantages could ensue. Firstly, Japanese NGOs would be able to independently carry out the small-scale aid projects that directly address the needs of local communities in aid recipient countries. These grassroots aid projects could complement the government-supervised large-scale aid projects. Secondly, the Japanese government could utilize NGOs’ staff as an alternative source of information. Finally, effective co-operation between NGOs and the government could help enhancing the transparency of Japan’s foreign aid policy. Under the current system, bureaucrats dominate the policymaking process so that it is difficult for outsiders to access the information on Japan’s ODA program.
Buying Power: The Political Economy of Japan's Foreign Aid
This text analyses Japan's use of its bilateral foreign aid to achieve the strategic objectives of its economic and foreign policies. Japan has used its ODA to facilitate the structural transformation of its domestic economy and the construction of an international division of labour.