JSAS Annual Conference 2021

CO-CREATING KNOWLEDGE FOR SUSTAINABLE,
INCLUSIVE, AND RESILIENT DEVELOPMENT- NEW AFRASIAN CONNECTIVITY FOR SHAPING A POST-PANDEMIC WORLD -Izumi Ohno
National Graduate Institute for Policy Studies (GRIPS)
July 3, 2021
This presentation incorporates insights gained through the ongoing research project of the JICA Ogata RI “Japanese Experiences of Industrial
Development and Development Cooperation: Analysis of Translative Adaptation Processes.”Evolution of Development Thinking andDevelopment Cooperation
COVID-19
Late 1980s-early 2000s

Pioneers
Confidence inbenevolent government

Neoclassicists
Reliance onmarket & prices

Institutionalists
Human capital,
Poverty reduction

End of World War II
Marshall Plan &reconstruction
End of colonialism
Bretton Woods institutions

Macroeconomic Turmoil
Oil shocks, Debt crises
Commodity price collapse
End of fixed exchange
rates

Collapse of USSR
Geopolitical change inEuropeEast Asian economic crisis
Stagnation in Africa

Cold WarACTIONEra of Engineers
Aid for large-scale capitalintensive infrastructure
projects

Era of Economists
Structural Adjustment
Loans (SALs) with
policy conditionalities

USSR 9.11 Attacks(US)
Collapse

LehmanShock

Era of Social Scientists
Millennium Development
Goals (MDGs)
Poverty Reduction
Strategies (PRS)(Source) Adapted and updated by the author, based on Figure 2 (p.21), Takamasa Akiyama, International Development Assistance:
Evolution and Current Issues, FASID 2006.

crisisNew Development Paradigm (2030 Agenda)

EVENTSMid-1970s-late 1980s

Rising role emerging economies & private sector
Globalization & digitalization

THEORY

Post-WW II-mid 1970

IMPORTANCE OF THE AFRASIAN PEOPLE IN
SHAPING THE GLOBAL FUTURE
The age of Afrasia: population dynamics of the world in 2100
 By 2100, over 80% of the world population will live in Africa and Asia
 Africa is the youngest continent (more than 1/3)

How the African and Asian people organize their dialogues willbe critical to the shaping of ourglobal future (Mine 2019)
Important to enhance
New Afrasian connectivity

Afrasiapop.

OUTLINE
1. What does the COVID-19 crisis mean for international
development ?
2. Building-back-better (BBB) for a post-pandemic world:prospects and challenges

3. Promoting knowledge sharing & mutual learning fordevelopment, through diverse channels
4. Final thought – enhancing new Afrasian connectivity

WHAT DOES THE COVID-19 CRISIS MEAN FOR
INTERNATIONAL DEVELOPMENT?
Considerable differences in national responses
 With no standardized treatment protocols available, each country has come up withlocalized solutions through trial and error.
 State-society relationship, trust and social norms matter.

The initial phase result (before the vaccination):
 Even low-income countries with little technological & financial resources managed tocontain outbreaks.

Knowledge flow “from North to South” is not necessarily superior
No “ready-made” solutions; importance of “localized” solutions
Need to go beyond traditional approach to development
cooperation

Death Rates shows the cumulative, reported, age-standardized to COVID-19 deaths
per 100,000 people in the 50 days following the date of the first death in that country.

Source: Report by an
Independent Panel for Pandemic
Preparedness and Response,
2021 (adapted from: Sawyer
Crosby et al, IHME, Think Global
Health).

COVID-19: DIVERSE NATIONAL RESPONSES,LOCALIZED SOLUTIONSPhoto:
Huyen Pham

Vietnam: Govt. mobilizing various resources forcontrolling COVID-19 (police & armed forces,
handwashing song with popular musicians, etc.)

Bhutan: Rapid & extensive roll-out of the vaccines.
 Prime Minister Lotay Tshering (doctor)’s leadership: setting up
1,200 vaccination centers; transporting vaccines to the remoteareas via helicopters.
 Health Minister: citizens’ "sacred duty" for the sake of theircommunities and protecting the monarch. (The King has decided totake vaccine only after every eligible person in the country
received their shots safely.)

Photo: AFP

LOCALIZED SOLUTIONS THROUGHKNOWLEDGE CO-CREATION
Ghana: Noguchi Memorial Institute for Medical Research(NMIMR) A central role in controlling infectious diseases in Ghana (NMIMR: built by
Japanese ODA in 1979).
 Implementing 80% of PCR testing in the country; providing guidance oftesting methods to other medical facilities; contributing to strengthening
national capacity of testing.

Madagascar: Handwashing song A JOCV, together with local NGOs, created a song to raise awareness ofhandwashing practices among children.
 Minister of Water, Hygiene and Sanitation (ex-JICA national staff) supported
the DVD production with a popular musician and initiated campaign.
https://www.youtube.com/watch?v=xRzjhj7LWoc
Photo: JICA website

IMPORTANCE OF KNOWLEDGE AND TECHNOLOGYThe COVID-19 crisis also suggests the importance of knowledge &technology, particularly related to hygiene practices, public health &
vaccination (R&D, manufacturing production, technology transfer, etc.).
 Vaccine product development has proved successful.
 But, there is concentration of manufacturing capacity and of trials & knowledge
generation for vaccines, therapeutics, diagnostics & other essential supplies, in asmall number of countries.

Need to ensure technology transfer and build strong (regional)
capacities for manufacturing, regulation, and procurement of tools
for equitable and effective access to vaccines and related goods &services, etc.
Source: “COVID-19: Make it the Last Pandemic,” A report by an Independent Panel for Pandemic Preparedness & Response, 2021

Share of Population fully Vaccinated against COVID-19(as of 28 June 2021)

High Inequity in Access to COVID-19 Vaccines (as of 28 June 2021)

One dose 1.49%
Two doses 1.13%

COVID-19 IMPACTS AND PROSPECTS FOR BBBRECOVERY
Broad and global impacts, affecting the whole
economy & society—not only in short term, but
medium-long term.
Reversals of Fortune (WB 2020): Along with conflictand climate change, COVID-19 has slowed global
poverty reduction and reversed it for first time(over 20 yrs).
 Threatening countries’ hard-won human capital gains, with implications
from a life-cycle perspective (WB HCI update 2020)
 Big challenges for achieving the SDGs by 2030
Source: World Bank (2020)
Reversals of Fortune

What kind of recovery do we want to achieve ?
 Investment in education, digital skills, public health system, greening industries….
 The SDGs continue to serve as our compass for “building back better” (BBB) recovery.

IMF: WEO (April 2021)
 Divergent recovery paths are likely to create significant wider gaps in living standards

between and within countries, compared to pre-pandemic expectations.
 Accessibility to vaccines could affect the speed of economic recovery, leading to inequity.

TOWARD “BUILDING BACK BETTER”
When we endeavor for BBB recovery, it is important to understand thechallenges from country-specific contexts, distinguishing btw. Covid-19
induced (short-term) and structural (long-term) problems.
Our recent firm surveys on garment & textile sector show different impactsof the COVID-19 crisis on exports.
 Vietnam (31 firms): no or little negative impacts; becoming the top “China plus One”
country.
 Bangladesh (30 firms) & Ethiopia (10 firms): negative impacts. Especially, in Ethiopia,
firms reported many problems other than COVID-19 (e.g., forex shortage).

Overcoming the COVID-19 crisis does not guarantee a sustained economic
recovery, if other problems are serious and unattended.
Also, important to address growing concern about sustainability,
inclusiveness, and resilience.

DEVELOPMENT TRAPS
The nature of development challenges has not changed. Our analysis
of WB’s income classification data (193 UN member states, 19872019) shows a mixed picture: Good news: Many countries moved up WB’s income ladder for the past 30
years. Now, more countries belong to the upper middle- and high-income
categories.
 But, “development traps” exist at each stage; only a few emerging economies
caught up with traditional advanced countries. Also, some countries stagnate or
fluctuate btw. income categories.

Old problem (economic transformation) remains. More efforts areneeded for domestic value creation.
 Importance of human & firm capability building; the role of industrial policy.

World Bank Income Classification (Count)＞USD25,000: traditional OECD countries, plus
Lichtenstein, Kuwait, Singapore, Korea, Qatar,
Bahamas, Brunei, Israel.

200
180
160

＞USD12,535 to 25,000: mostly Eastern
European & LAC (Chile, etc.) countries moved
up.

140
120

＞USD4,046 to 12,535: 4 SSA (Botswana,South Africa, Equat.Guinea, Namibia) & 9 EA
countries moved up.

100

80

＞USD1,036 to 4,045: 4 SSA & 6 EA countries
moved up

60
40

＞USD1,035 or less: 22 (of 29) countries never
moved (incl. 22 SSA countries)

20

1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019

0

Low

Lower middle

Upper middle

High

Very highMoving Up & Down
15
10

5
0

Note: UN member countries only. Equatorial Guinea
which moved up two ranks from low income toupper middle income in 2004 is counted as two.

-5
-10

1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019

-15

Up

Down

Source: Calculated by the author, based on theWorld Bank income classification data.

Sectoral Value Added (percentage of GDP)
Agricuture, forestry,& fishing value added(% of GDP)
2000
2019

Manufacturing, value
added (% of GDP)
2000

2019

Industry (incl.
construction), value
added (% of GDP)
2000
2019

Services, value added(% of GDP)
2000

2019

Sub-Saharan Africa

17.5

14.0

12.6

11.0

30.7

27.1

46.3

48.8

East Asia & Pacific(excl. high income)

14.8

7.8

5.3

25.4

44.1

38.0

40.0

53.1

Source: World Development Indicators (World Bank)

Employment Distribution by Broad Economic Activity(% of total employment, ILO estimates 2019)
120.0

100.0
80.0
60.0

30.7

36.4

38.6
53.2

10.2

46.9

10.7
22.0

40.0
59.1
20.0

25.8

25.3
52.9

39.4

27.3

21.5
0.0

Low income
countries

Lower middle
income countreis

Agriculture

Upper middle
Sub-Saharan Africa East Asia & Pacificincome countries(excl. high income)Industry

Services• Africa’s growth (pre-COVID-19) has not yet

translated into structural transformation.
• Manufacturing value added (% GDP) remains
low (premature deindustrialization).
• Economic transformation requires workforce
equipped with knowledge and skills to behighly productive.

KNOWLEDGE FOR DEVELOPMENT
Knowledge is at the core of our development efforts (WB: WDR
1998/99)
In particular, we attach high importance to two lines of thought—inlight of enhancing societal capacity for acquiring, adapting, anddisseminating knowledge for development.
Knowledge-centered development thinking: “Creating a Learning Society”(Stiglitz & Greenwald 2014)—significance of local learning and the role ofindustrial policy in development.
• Theory of translative adaptation (Maegawa 1994, 1998, 2000)—importanceof indigenous perspectives and local learning.
•

Source: Ohno, Hosono & Amatsu (2021 forthcoming), Ch.11 of the JICA Ogata RI research report (Industrial Policy):“Japanese Experiences of Industrial Development and Development Cooperation: Analysis of Translative Adaptation Processes”

CREATING A LEARNING SOCIETY(STIGLITZ & GREENWALD 2014)

A central focus of development policy should be closing that gap [a gap inknowledge]—and that means enhancing learning. This is, for instance, one of thecentral objectives of modern industrial policies, which seek to promote particularindustries and particular technologies with greater learning capabilities andgreater spillovers to other sectors. (p.22)
A critical aspect of “learning” is that it takes place locally and must adapt tolocal differences in culture and economic practice. (p.375)✓✓✓

Openness to trade: opportunity to learn foreign knowledge
Education: people’s capacity to use knowledge
Availability of communications infrastructure: people’s ability
to access useful information when needed.
Source: WDR 1998/99 (World Bank)INTEGRATION VIEWED FROM INSIDEINTERACTION OF DOMESTIC AND FOREIGN SYSTEMS

Keiji Maegawa
economic antholopologist

Imported from outside by:Invasion and colonization
Migration
Trade and foreign firms
Official aid and NPOs
World Bank, IMF, WTO

Translative Adaptation
A latecomer is not really weak if it
controls the type, terms and speed ofimportation of foreign things, using
them to stimulate the existing society
for new growth. Even as foreign
elements are added, the basic social
structure remains intact.

Foreign
Systems

Conflicts andadjustments

Government
must manage

Base SocietyInternal systemic evolution

Source: Adapted from Figure
1.2 in Kenichi Ohno (1998)

ROLE OF INDUSTRIAL POLICY THROUGH A LENS OF
TRANSLATIVE ADAPTATION
Dual role of the government as: (i) a learner (policy learning), and (ii) a facilitatorof learning by the private sector (technology learning) & the whole society.

Source: Adapted by the author, based on
Ohno, Hosono & Amatsu (2021 forthcoming),
Ch.11 for the JICA Ogata RI research report.

JAPANESE EXPERIENCES: KNOWLEDGE PARTNERSHIPETHIOPIA-JAPAN INDUSTRIAL POLICY DIALOGUE

Late PM Meles Zenawi asked GRIPS & JICA to start Kaizen & policy
dialogue in Ethiopia (2008).
◼ Kaizen (JICA support) – phase 1 (2009-11), phase 2 (2011-14) &phase 3 (2015-20).
• Based on successful pilots, Ethiopia Kaizen Institute (EKI) was established; National Kaizen
Movement has been launched; JICA is currently supporting advanced kaizen.
◼

Policy dialogue (by GRIPS & JICA) – phase 1 (2009-11), phase 2(2012-16) & phase 3 (2017-21).
• 17 sessions held so far with PM, ministers & operational level.
• Study concrete cases in Asia & Africa, and propose pragmatic policies based on Ethiopian
reality.
• Inviting practitioners from Thailand & Malaysia to policy dialogue. Sending a group of
Ethiopian senior officials to Malaysia.

Kaizen, in Japanese management, means “continuous improvement” of productivity and quality
without additional cost, in a participatory process and a bottom-up approach.

With PM
Meles

High Level Forums (ministerial level)
With PM
Hailemariam

Lecture at
Civil Service
University

At Finance
Ministry

Photo: Author

Industrial Policy Dialogue & Kaizen

KAIZEN: HISTORY OF DIFFUSION AND TRANSLATIVE ADAPTATION OFQUALITY & PRODUCTIVITY IMPROVEMENT METHOD (JAPAN)
Learning from the US & Europe (post-WW2 era): The original US model was adapted to the Japanese way, spread among Japanese companies (incl.
SMEs), and became known as Kaizen.

Spreading to East Asia along with globalization of Japanese biz. activities (1980s- ): Japanese companies taught Kaizen practices to their local partners.
 JICA, AOTS, JUSE, JPC, APO etc. began Kaizen assistance.
 Singapore as the first country which received JICA assistance (via. JPC); the Japanese model was
adapted to the Singaporean way.

Promoting Kaizen beyond East Asia (1990s) & more recently to Africa (early 2000s- ): Ethiopia as a serious learner: adapting the Japanese & Singaporean models to the Ethiopian way,
initiating the national movement.
 JICA is now supporting “Africa Kaizen Initiative” in partnership with AU/NEPAD.
Source: GDF (2009) “Introducing Kaizen to Africa”; Jin & Ohno, Ch. 1 (2021, forthcoming) for the JICA Ogata RI
research report (QPI improvement)

JICA’S KAIZEN SUPPORT IN AFRICA

26

Tunisia

LEGEND

MoroccoOn-going/Past Project
Algeria

Libya

JICA Training in Japan or
Malaysia
Cape Verde

Source: Modified from Toru Homma, JICA (2019)

Mauritania

Mali

Niger

SenegalEritrea
Chad

GambiaGuinea-Bissau

Egypt

GuineaDjibouti
Benin

Nigeria
Ethiopia

Coted’Ivoire Ghana

Sierra Leone

Sudan

Burkina
Faso

Liberia

Togo

Central African Rep.

South Sudan

Cameroon

Somalia
Uganda Kenya

Equatorial Guinea
Gabon• JICA has been implementing Technical Cooperation Projects
in 9 countries.
• Every year, more than 60 officials from Africa participate in
KAIZEN related trainings conducted in Japan and Malaysia.
• From 2009, JICA received officials from 25 countries for
KAIZEN trainings.
• Since 2017, AUDA-NEPAD and JICA jointly and actively
conducts “Africa Kaizen Initiative” region-wide 10-year
program.

Sao Tome andPrincipe

Congo

RwandaBurundiDem.Rep.Congo

Tanzania

Seychelles

Comoros

AngolaZambiaMalawiNamibia

Zimbabwe

Mauritius
Mozambique

Botswana

Swaziland
Madagascar
South Africa
LesothoKaizen in Ethiopia
Driven by strong initiative of PMwith JICA’s support

Tire factory

PVC pipe factory

Shoe factory

Photo: Author

PROMOTING INDUSTRIAL HRD THROUGH TRANSLATIVE
ADAPTATION (THAILAND)
Technology Promotion Association (TPA): Established in 1972 by Thai alumni
who studied at Japanese engineering universities and/or AOTS.
 Promoting technology transfer of Japanese monozukuri methods to Thai people & firms
by Thai experts (industrial technology, company diagnosis, Japanese language, etc.)
 Supported by Japanese ODA and private sector (incl. JTECS)

Thai-Nichi Institute of Technology (TNI): Established in 2007 by TPA, as a
monozukuri University by Thai people for Thai people.
 Courses of automobile, electronics, production technology, ICT.
 Emphasis on practical knowledge, internship with Japanese firms/
organizations in Thailand & Japan.
 High employment rate, mostly at Japanese companies or
local suppliers affiliated with Japanese companies.
Photo: TNI website

TEACHING MONOZUKURI KNOWLEDGE &MINDSET IN A LOCALIZED WAY (VIETNAM)
Mr. Tuyen, President of Hai Phong company, provides preparatory training
for Vietnamese youth who wish to work in Japan as technical intern (ginojishu sei)
 Emphasis on attitude, 5S, skill, Japanese, and mindset & life-long plan.
 Training methods have been developed based on his own experiences of working astechnical intern in Japan. (Mr. Tuyen graduated from TVET in Hanoi)

Importance of having a life-long plan with clear motivation why going towork in Japan Not just to earn temporary income, but learn the Japanese way to enrich your own
future.

Photo: Author

PROMOTING MCH HANDBOOK THROUGH TRIANGLECOOPERATION: ROLE OF EMERGING DONORS (INDONESIA)The Indonesian version of Maternal & Child Health (MCH)
Handbooks was developed by JICA trainees, who learned
Japanese experiences with MCH handbook.

In 1994, JICA started support to MCH Handbook Project, in one
district in Central Java, which was integrated into the national
system (2004), and later expanded to all provinces (33) inIndonesia (2006).
Since 2007, the Indonesian govt (MoH) has been implementing
third-country training programs, sharing its experiences with
MCH handbook adaptation & dissemination.
 Palestine, Afghanistan, Vietnam, Laos PDR, East Timor, Bangladesh, andMoroccoSource: Based on JICA information

30

Emerging Donors in Asia (bilateral aid)
CountrySouth Korea

China

Policy formulation/coordination

Implementation

Type

Ministry of Economy & Finance (MEF)*Economic Development Cooperation Fund (EDCF): 1987

L

Ministry of Foreign Affairs (MOFA)*Korea International Cooperation Agency (KOICA): 1991

G, T ODA*Ministry of Commerce (MOFCOM)G, T*EXIM-Bank of China: 1994

L

*Various minsitries, scholoarship programs, etc.

G, T

China International Development
Agency (CIDCA): 2018
NESDB, Ministry of Finance (FPO)

ThailandCooperation Agency (NEDA): 2005
Ministry of Foreign Affairs (MOFA)

Malaysia

Singapore

Indonesia

India*Neighboring Countries Economic Development

Economic Planning Unit (EPU)*Thailand International Cooperation Agency (TICA): 2004
*Malaysia Technical Cooperation Program (MTCP): 1978
Working with training & eductaional instituitons

L, G
T
T

Note
DAC member
No standard
definition of ODA
Long history of S-S
cooperation
ODALong history of S-S
cooperation

Ministry of Foreign Affairs (Technical*Singapore Cooperation Program (SCP): 1992, G-G basis

TLong history of S-S

Cooperation Directrate) & Ministry of*Singpore Enterprise Program (SCE): 2006, fee basis

Tcooperation

Trade & Industry

Working with training & educational instituitons

No standard

Ministry of Foreign Affairs*Indonesian Agency for International Development (AID):
2019

Ministry of Finance (MOF)*EXIM-Bank of India (line of credits to various LDCs)

L

Ministry of External Affairs (MEA)*Bilateral aid to neighboring and other developing

L, G definition of ODA

countries*Indian Technical & Economic Cooperation (ITEC): 1964

G, T Long history of S-S*Special Commonwealth Assistance Programme for Africa

G, T cooperation(SCAAP)
Source: Elaborated by the author, based on the available information.
Note: (L) concessional loans, (G) grant aid, (T) technical cooperaton.

PROMOTING KNOWLEDGE SHARING AND MUTUALLEARNING, THROUGH DIVERSE CHANNELSThe COVID-19 experiences highlight the need to revisit approach tointernational development (beyond North-South knowledge transfer).

It is important to increase knowledge flow among Afrasian people(Asia & Africa).
 Some Asian countries are interested in sharing their development experiences,as emerging donors (distinctive patterns of learning, diverse paths todevelopment, etc.)
 Co-creating practical knowledge for development

Greater attention should be paid to a perspective of translative
adaptation and the process of local learning.
 How to adopt and adapt ‘foreign models’ suitable to each country.

FINAL THOUGHT – ENHANCING NEW AFRASIANCONNECTIVITY
How can we increase the flow of knowledge among Afrasian people,
while building capacity for translative adaptation ?
How can we promote knowledge sharing and co-creation in the ageof digitalization ?
 Today, new knowledge and technologies are available more easily and quickly
in a standardized format.
 What kind of capabilities are required at individual, organization, government,
and societal levels ? How can we create a learning “mindset” ?
 How can we ensure the fair access to and the use of communication
infrastructure to avoid digital divide ?

How can Japan play a meaningful role, based on its own experiencesof development and development cooperation ?