Germany- Japan Partnership for “Quality Growth”:
Sharing Experiences of Industrial Development Cooperationin Partnership with the Private Sector
Seminar Report
The GRIPS Development Forum Seminar, supported by the Japan International Cooperation
Agency (JICA), the Overseas Human Resource and Industrial Association (HIDA) and theEmbassy of the Federal Republic of Germany, was held on March 1, 2016, with approximately
60 participants (including panelists) from diverse background—diplomats, researchers,
representatives of private sectors, policy makers and practitioners—who were interested in theGerman and Japanese industrial development cooperation.
The seminar program consisted of: (i) three presentations by keynote speakers－Mr. Thomas Rolf,
Program Manager responsible for private sector development in the German Corporation forInternational Development (GIZ), and Mr. Michael Kleinbub, Advisor for Development
Cooperation (so called, “EZ Scout”) serving for the German Confederation of Skilled Crafts(ZDH), and Mr. Hiroyuki Yoneda, Executive Director of the Japan-Thailand Economic
Cooperation Society (JTECS); and (ii) panel discussions joined by two prominent Japanesepractitioners—Mr. Yoshinobu Ikura, Director General, Industrial Development and Public Policy
Department of JICA and Mr. Yuji Shimo-Osama, Director of the Board at HIDA. (See
http://www.grips.ac.jp/forum/newpage2008/event.htm for the details of the seminar program andthe profile of speakers/panelists.)
The below summarizes key points of the presentations and panel discussions.
1. Professor Izumi Ohno, National Graduate Institute for Policy Studies (GRIPS)――Introduction to the Seminar and Key Features of Japanese and German Industrial
Development Cooperation
Prof. Izumi Ohno, GRIPS Development Forum, explained the objectives of this seminar and key
futures of Japanese and German industrial development cooperation. The seminar aims tointroduce the approach and practice of German and Japanese industrial development and private
sector cooperation for mutual learning. It also aims to discuss how the two countries could (even)better contribute to quality growth in partner countries, in the light of opportunities andchallenges emerging in the new era of global development. Special attention will be paid topartnerships with the private sector, industry-related institutions, local governments, and nonprofit organizations (NPOs) because they are crucial players in contributing to the 2030 agenda
for sustainable development.
1Quality growth is a key ingredient of the Sustainable Development Goals (SDGs) which aremuch broader and transformative than the Millennium Development Goals (MDGs). It is multifaceted concept, including human resource development, internalization of skills and technology,
industrial competitiveness, social inclusion, environmental sustainability, and so on.
Then, Prof. Ohno stressed three reasons why it is timely and quite appropriate to shed light on
German and Japanese industrial cooperation. First, both Germany and Japan share common
features on development cooperation, which are essential to support quality growth. These include
concrete, process-oriented support on the ground; capacity development and human-centeredapproach; strengths in manufacturing (monozukuri) and technology, as well as sustainability andenvironmental concern. Secondly, two countries recently formulated new policies fordevelopment cooperation to actively contribute to the 2030 agenda. In the case of Germany, theMinistry of Economic Cooperation and Development (BMZ) formulated the Future Charter forGerman Development Cooperation (“One World—One Responsibility”) in November 2014. For
Japan, the Ministry of Foreign Affairs formulated the Development Cooperation Charter in
February 2015 (approved by the Cabinet), by revising the 2003 Official Development Assistance(ODA) Charter. Thirdly, Japan can learn a lot from German experiences because Japanesebusiness—especially small and medium-sized enterprises (SMEs)—increasingly faces challenges
of internationalization and overseas business expansion under the shrinking domestic market (dueto ageing and declining birth rates). It is also important that the Japanese business be actively
engaged in inclusive business (or the Base of the Pyramid business) which provides innovative
solutions for development challenges.
It is hoped that this seminar provides opportunities for mutual learning and also, simulates
thinking how Japan could sharpen its “core strengths” in development cooperation as diverse
actors are getting engaged in development cooperation.
2. Mr. Thomas Rolf, Product Development Senior Manager, GIZ (German Corporation forInternational Cooperation)――Private Sector and Development—German Service Portfolio
Mr. Thomas Rolf began by introducing GIZ, a federally-owned corporation for Germaninternational cooperation, commissioned by the German Federal Ministry for Economic
Cooperation (BMZ). Similar to JICA, GIZ provides the services worldwide in the field ofinternational cooperation and acts as an innovative partner for global sustainability challenges. It
has overseas offices in 130 countries, with the number of staff reaching 17,000 people. GIZ
promotes complex reforms and processes of change in different sectors such as sustainable2

economic development, environment, energy, biodiversity, climate, health, transportation andinfrastructure management. GIZ offers demand-driven, tailor-made and effective services forsustainable development.
The private sector increasingly plays an important role in development cooperation. So, GIZ
works with the private sector to create synergies for global challenges because climate changes,
poverty, and depletion of natural resources demand for common efforts. Mr. Rolf then explained
the service portfolio of the Unit for Private Sector Cooperation (to which he belongs). The
programs of the Unit for Private Sector Cooperation can be broadly categorized into five: (i)Consulting Services; (ii) Learning and Implementation Networks with the private sector; (iii)Manager Trainings; (iv) Innovative Cooperation Approaches; and (v) Project Implementation.
First, GIZ offers “Consulting Services” for business chambers, associations and corporations on
development cooperation instruments and (funding) programs. There are two types of advisory
services: EZ-Scouts and ExperTS. These services provide contact points for the private sector
and give advice of BMZ’s options for development cooperation. For example, EZ (Development
Cooperation) Scouts are seconded to business chambers, associations and corporations inGermany and act as contact persons linking their overseas businesses with development
cooperation (see Mr. Kleinbub’s presentation for the more details). ExperTS are dispatched tobusiness chambers and associations overseas.
Second, GIZ manages “Learning and Implementation Networks” with private sectors. These
include Alliance for Integrity (Afin), Global Compact Network Germany (DGCN),
Responsible and Inclusive Business Hubs (RIBHs), and Inclusive Business Action Network(IBAN). Third, “Manager Training” offers Global Business Exchange Program in selected
countries (Morocco, Colombia, and Peru).
Fourth, as one of the experiments under “Innovative Cooperation Approaches,” GIZ has recently
started ‘lab of tomorrow’. While many German SMEs are interested in business engagement in
Africa, they often lack business know-how, especially, in terms of finding right business partners
and exciting ideas. ‘lab of tomorrow’ provides them with guidance for innovative design andthinking method. GIZ organizes three-day workshops (both in Germany and Africa) by inviting
German SMEs, where opportunities are provided to think and design business solution to concrete
development challenges faced by African countries.
Finally, as “Project Implementation” in partner countries, BMZ has been funding the program
called develoPPP.de since 1999, to foster the involvement of the private sector at the point wherebusiness opportunities and development policy initiatives intersect. Under this program,3

development organizations and European (incl. German) companies are encouraged to jointlyplan, finance and implement projects in developing countries; if they request, GIZ can also
provide technical support. These companies are responsible for covering at least half of the overall
costs (50%-50% cost-sharing rule). All German and European companies, as well as theirsubsidiaries in developing countries are eligible for developPPP.de. There are three implementing
agencies based on respective comparative advantages: GIZ (technical cooperation), Sequa(technical and vocational education and training: TVET) 1, and DEG (financial cooperation)2. So
far, a total of 2,000 projects have been implemented under develoPPP.de, with about 700 projects
being handled by GIZ.
3. Mr. Michael Kleinbub, Advisor for Development Cooperation, EZ Scout, ZDH(Confederation of Skilled Crafts)――The Role of German Business Associations and TVET Centers in Industrial (German)
Development Cooperation
Mr. Kleinbub works for ZDH as EZ Scout by himself. BMZ and other German ministries offer
a variety of services to support entrepreneurial engagement in developing countries, and one ofmain supporting programs for private companies is EZ-Scout program. EZ-Scouts experts aredispatched in business associations and chambers within Germany as liaison officers working on
behalf of BMZ. Currently 25 EZ-Scouts are placed in assignments (9 EZ-Scouts for DIHK/IHKInstitutions of the Association of German Chambers of Industry and Commerce network, 11 EZScouts for VDMA-German Engineering Federation/GWP: German Water Partnership, 2 EZScouts for associations of German industry, 3 EZ-Scouts at German skilled crafts institutions).
They advise entrepreneurs on the cooperation options and networks of German development
cooperation and offer regional and sectoral networks, by combining their private sector
background.
Then, he explained the function of ZDH. The goal of ZDH is to create political and legal
frameworks which give SMEs freedom they need to develop their potential as employers andtrainers. ZDH emphasizes education policy for the skilled craft sector. It believes that a guaranteeof success for the skilled crafts sector and the competitiveness of German industry in general isprovided by the “German dual system” of vocational qualification. ZDH’s future challenges are
1 Sequa’ is a non-profit company located in the city of Bonn. Sequa’s shareholders are Germany’s top four businessorganizations: BDA, BDI, DIHK and ZDH (51%) as well as GIZ (49%). Sequa acts as a hub between international
cooperation and the private sector. Sequa’s objective is to create an enabling environment for the private sector inpartner countries, with a view to improving the livelihoods and working conditions of as many people as possible. Its
agenda also includes strengthening business organizations, establishing sustainable social standards and improving
access to vocational education.
2 DEG is finances investment by promoting enterprises in developing countries and emerging economies and also
promote entrepreneurial initiative in order to contribute to sustainable growth.

4demographic change such as aging society and shortage of skilled workers. ZDH has been making
efforts to secure skilled personnel and enhance attractiveness of vocational education by theirprograms. About 50,000 skilled crafts companies are exporting products and services, and another
70,000 companies have potentials to embark on exports. The most important target markets forGerman SMEs are located in neighboring countries.
Mr. Kleinbub summarized seven categories of development cooperation services for privatecompanies as follows.
(1) Investment funding, preparation and support
German Investment and Development Corporation (DEG) is a subsidiary of German
government’s development bank (KfW) and provides not only finance but also advice on longterm investing projects. DEG is responsible for “Climate Partnerships with the Private Sector”
program on behalf of the German Federal Ministry for the Environment, Nature Conservation,
Building and Nuclear Safety (BMUN). Its main focus is to promote the transfer of know-how andtechnology to support the emergence of a climate-friendly economy. DEG contributes as
maximum of 50% of project costs up to EUR 200,000 (grant assistance). German and European
companies are free to participate, also in cooperation with local companies.
(2) International calls for tender/development projects
Germany Trade and Invest (GTAI) offers an overview of current invitations to tender by KfW andother international donors such as the World Bank, EU, and many other bilateral and multilateral
donors. GTAI also provides information in the early stage of development projects such asenvisaged project content, promotion volumes, deadlines and contact addresses.
(3) Joint projects/development partnerships
develoPPP.de program targets companies interested in investing in developing countries andemerging economies, by seeking ways to shape their corporate commitment to the long term
development. For development partnerships, BMZ provides financial support up to 50% of the
project costs.
(4) Import promotion/sustainable sourcing
Import Promotion Desk (IPD) is an import promotion service provider in Germany, operated
on behalf of BMZ. IPD is a joint project run by Sequa and the Federation of German Wholesale,and Foreign Trade and Services (BGA). IPD brings together the interests of German importers
with those of exporters in selected developing countries and emerging nations. Its aim is topromote imports of specific products from selected partner countries with sustainable andstructure manner, while complying with high quality, social and environmental standards.
5(5) Export loan guarantees
On behalf of the German Federal Ministry for Economic Affairs and Energy (BMWi), consultant
companies and think tanks such as Euler Hermes AG and Price and PricewaterhouseCoopers(PwC) AG grant government export loan guarantees for exporting goods and service. These
effectively safeguard economic and political risks of payment default.
(6) Capacity development and experts program Partnerships with business chambers and associations (Sequa): It aims to improve project
partner’s structures and management, by offering long-term and short-term advisory services,training course, study and delegation trips, funding for equipment and PR work.
 BBP 3 : Vocational Education and Training Partnerships Programme (Sequa): The BBP
programme is targeted at contributing to sustainable economic development and poverty
reduction in the BMZ partner countries by improving the local vocational education and training
system. BBP projects are mobilizing the know-how of German business membershiporganizations and their VET Centers for development cooperation, they build on private sector
initiatives and they promote the cooperation of civil society actors in accordance with theprinciple of subsidiarity. Right now around 20 skilled crafts organizations take part in the
program.
 DAAD4 practical partnerships: DAAD supports academic exchange of students. It promotes
cooperation between companies and universities from both Germany and developing countries.
 Senior Experts Service (SES): SES seconds honorary specialists who are no longer active intheir profession for worldwide assignments. SES has more than 11,500 senior members who arefrom industrial companies and crafts businesses to organization and municipalities. There are
more than 50 industrial sectors, and they provide advice and hands-on support. Its assignments
usually last for three to six weeks; the maximum duration is six months.
 Manager training program ‘Global Business Exchange (GloBus)’: German company receives
manager level of workers in developing countries and supports them to train German realbusiness in Germany for 3-6 months. After training has been completed, it could contribute tobusiness connection between both companies. Most of cases in this program are made a business
contract after finishing training.
 Alumni portal Deutschland: It provides access to international experts who have studied orworked in Germany.

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Berufsbildungspartnerschaften der Dautschen Wirtschaft (BBP) which means Vocational Education
and Training Partnership Programme.
4 The German Academic Exchange Service (DAAD) is the world’s largest funding organization for the international
exchange of students and researchers. The DAAD budget is primarily comprised of funds from various ministries
within Germany, most notably the Federal Foreign Ministry (AA), the Federal Ministry of Education and Research(BMBF) and BMZ. Additional funds are provided by EU as well as by various enterprises, organization and foreign
governments.

6 German-Tunisian Mobility Pact: This program supports young Tunisian people who are welleducated but are unemployed, to respond to the Tunisian Revolution in 2011. German SMEs
receive them as intern. They can get Blue Card (a work permit in Germany), if those SMEs
evaluate them as highly qualified workers.
 Afrika kommt ! －Africa is coming !: It aims to link German business and industry withmanagers and future leaders from Sub-Saharan Africa. African young professionals are received
in German companies and trained for one year (examples: Volkswagen AG, BASF SE, Bayer
AS, Bosch, Siemens Hausgerate, BMW AG, etc.). Companies assume 100% of the costs,
regarding it as investment in African future business elites.
(7) Information and contact facilitation
ExpertTS is one of development cooperation programs with the German Chambers of Commerce
Abroad (AHKs), Delegations of German Industry and Commerce and Bilateral Business
Associations that are financed by BMZ with the Association of German Chambers of Commerceand Industry (DIHK). The network of the ExperTS is mirrored by EZ-Scouts in Germany.
ExperTS are dispatched in 30 countries, and they are familiar with the local market and its
development potentials, as well as the needs of German companies. Priority areas include: (i)setting up chambers of industry and commerce; (ii) promoting climate protection; (iii) sustainableeconomic development, and (iv) vocational education and training.
4. Mr. Hiroyuki Yoneda, Executive Director, the Japan-Thailand Economic Cooperation
Society (JTECS)――JTECS-TPA-TNI Model—Introduction of Successful Case of Technical Cooperation inJapan
Mr. Yoneda explained JTECS experiences of forging Japan-Thailand manufacturing partnership,
through tripartite partnerships among Japanese and two Thai non-profit organizations (NPOs).
JTECS was established on July 7, 1972, to contribute to industrial development of Thailand andthe neighboring countries by implementing economic cooperation programs, as well as thepromotion of friendship between these countries. To this end, JTEC collaborates with andprovides necessary support to Technology Promotion Association (TPA) and Thai-Nichi
Institute of Technology (TNI).
Mr. Yoneda summarized the history of JETCS. In 1971, Mr. Goichi Hozumi, the first presidentof JTECS, visited Thailand and heard voices from the Thai alumni members and local industrial
circles. In those days, there was severe anti-Japanese movement in Thailand (due to massive
exports of Japanese products), and Mr. Hozumi deeply understood their concern and desire tostrengthen the Thai local industry. He was convinced that Japan must change its economic
cooperation model from not just promoting Japanese exports, but better adapting to the needs of7

the Thai private sector. (Note: Mr. Hozumi held other position such as head of the Asia Students
Cultural Association (ASCA) 5 and the Association for Overseas Technical Scholarship(AOTS)6.) Mr. Hozumi submitted his findings to the Ministry of Economic, Trade and Industry(METI) in Japan and proposed that: (i) one organization should be created in Japan as thecounterpart of TPA to support Thai organizations; and (ii) one association should be established
to contribute to Thai industry by the Thai people. In this way, JTECS was inaugurated in Japan
with the renewed principle of equal-partnership and respect of Thai autonomy. Then, TPA wascreated by many young returnees from Japanese universities. JTECS received financial support
from METI and private companies in Japan and has coordinated with TPA and TNI as a facilitator
in Japan.
TPA was established on January 24, 1973 in Bangkok, Thailand, as a NPO. Its main objectives
include: (i) human resource development of Thai industry; (ii) technology transfer from Japan;and (iii) promotion of Thailand-Japan relationship. The activities of TPA evolved step by step. In
the first stage (1973-1981), TPA focused on “technology transfer” which was primary
introduction of Japanese technology. This included a school of languages and cultures (bothJapanese and Thai), as well as seminars on Japanese technology by inviting Japanese experts(with TPA members acting as translators. Textbooks were published in Thai language. In thesecond stage (1982-1997), TPA served as “technology promoter” by educating and training Thai
experts, trainers and consultants by Thai people themselves. TPA experts disseminated QC
activities, Kaizen, and TPM, and started Industrial & Laboratory Instrument Calibration Center.
During the third stage (1998-2006), TPA acted as “technology disseminator” and started
diagnosis and consultancy services. It trained SME management consultants (shindanshi),
expanded instrument calibration services and increased many kinds of training programs.
Now, TPA has reached the fourth stage (2007 to present) and become “technology educator.” Itis particularly notable that TPA members realized their long-time dream to establish a universitythat produces highly qualified graduates in industrial technology and business management, basedon Japanese manufacturing method (monozukuri). This is how TNI was established by TPA in
2006, with the support of Thai and Japanese governments and private industrial sector. (TNI wasapproved by the Office of the Commission on Higher Education, the Ministry of Education in
September 2005.) Key features of TNI are: (i) adoption of Japanese monozukuri style teaching;
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ASCA was established in 1957. Since its founding 50 years ago, the Association’s objective has been to provide aplace where scholars and students from the developing countries of Asia, Africa, Latin America and young Japanese
students could live together like a multi-cultural family in a healthy, sincere atmosphere where mutual understanding
could be deepened and friendships nurtured.
6 The Association for Overseas Technical Scholarship (AOTS) was established in 1959 with the support of the METI
as the first technical cooperation organization on a private basis in Japan. AOTS has been merged with the Japan
Overseas Development Corporation (JODC) in March 2012, and established one organization as HIDA. Therefore,
HIDA made a new start as a general incorporated foundation on April 1, 2013.

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(ii) teaching of Japanese and corporate culture; (iii) support from both Thai and Japaneseindustries in human resource development; and (iv) strong networks of Japanese universities andinstitutions. TNI’s faculty includes engineering (automotive engineering and productionengineering, etc.), IT, industrial management, and business administration, and so on. As of 2014,
5,059 students are enrolled.
By now, TPA and TNI are widely recognized in the Thai society. As such, Mr. Yoneda believes
that the JTECS-TPA-TNI model can be regarded a successful example of monozukuri partnership
between Japan and developing countries.
Finally, Mr. Yoneda shared his thought of future prospects of JTECS. JTECS works together with
TPA and TNI, and all they should play an active role in supporting the education of highly
qualified Thai people. TPA and TNI should develop industrial design and development programfor engineers and entrepreneurs. JTECS has tried to facilitate Thailand participate in industrial
human resource development in neighboring countries by transferring Japanese monozukuri
method and providing hands-on service to neighboring countries by the Thai people.
5. Comments and Discussions (moderated by Izumi Ohno, GRIPS)(1) Mr. Yoshinobu Ikura, Director General, Industrial Development and Public Policy
Department, Japan International Cooperation Agency (JICA)
Mr. Ikura explained JICA’s approach to private sector and development, with specific reference
to the East Asian experience and future challenges. In East Asia, the volume of trade expanded
significantly with “intermediary goods” becoming major trade goods. In this sense, it is fair tosay that East Asia has become “one factory.” Japanese ODA in East Asia went along with various
stages of FDI inflow into this region—such as the New Aid Plan (trinity of FDI, trade and aid)
and the subsequent promotion of FDI-local industry linkage and SME development (since the late1980s after the Plaza Accord), and more recently, the support to ASEAN Connectivity (from theearly 2000s onward). Typically, Japan has significantly contributed to the development of
infrastructure such as transportation, communication and electricity in East Asia, having major
impacts in respective countries
JICA embraces the overall vision of “Inclusive and Dynamic Capacity Development.” Private
sector development vitally contributes to the realization of this vision through employment
creation, regional revitalization, income and wealth generation, increase of saving and investment,
human resource development, provision of goods and services, and strengthening of industrial
competitiveness. There are three pillars of JICA’s support to private sector development in9

developing countries: (i) trade and investment promotion (including the dispatch ofinvestment promotion advisors), (ii) SME development; and (iii) development of local
industries and economy.
As for the way forward, Mr. Ikura presented three broad directions. First, for East Asia, it isimportant for JICA to firmly support the realization of “The Asian Century” (ADB, Asia 2050),
through industrial human resource development and regional cooperation. Secondly, for thosecountries and region beyond East Asia (such as South Asia and Africa), JICA is providing support
to human resource development through “Kaizen” and African Business Education Initiative for
Youth (ABE Initiative), as well as investment and trade promotion. Thirdly, JICA has recently
introduced private sector partnership scheme, to mobilize expertise and technology of Japanesebusiness (including SMEs) to solve developmental challenges. He then gave various examples of
JICA’s ongoing support in these directions—industrial human resource development cooperation
initiative (e.g., practical technical skills, design and product development skills, innovation
capability, management and planning skills), Japan Centers, engineering higher education,customs administration, industrial policy dialogue (Ethiopia), productivity improvement (Kaizen),
One Stop Border Post in Africa, and so on.
Lastly, Mr. Ikura shared his views on similarities and differences between German and Japan
industrial development cooperation. As for similarities, both countries achieved dynamic
economic growth after the World War II. They have a strong manufacturing basis known formomozukuri and German skilled craft, embracing philosophy such as diligence, discipline andquality education. Nevertheless, there are differences between two countries. Germany attaches
importance to “Made in Germany”, and there are many German SMEs (known as “Mittlestand”),
which are globally competitive, manufacturing nitch-top products. Also, the German governmentis open to receive foreign workers to satisfy the labor market needs. On the other hand, Japanemphasize “Make in Asia” and promotes outgoing FDI, with large corporations establishingproduction networks in East Asia. In this way, Japanese business model is different from that ofGermany. Moreover, Japan remains reluctant to receive foreign workers even though it faces
shrinking population year by year. The Japanese government needs to formulate a strategy totackle this problem in order to open bright future for the young generation.
(2) Mr. Yuji Shimo-Osawa, Director of the Board, The Overseas Human Resources andIndustry Development Association (HIDA)
Mr. Shimo-Osawa began with general introduction of HIDA. HIDA is a Japanese organization
dedicated to industrial human resource development in developing countries and emerging
economies. It provides technical cooperation through training, experts dispatch and other10

programs. HIDA was established on March 30, 2012 through the merger of the Association for
Overseas Technical Scholarships (AOTS) and the Japan Overseas Development Corporation(JODC). It then made a new start as a general incorporated foundation in April 2013. The head
office is located in Tokyo, and there are two training centers in Tokyo and Osaka. HIDA has
overseas offices in Bangkok, Jakarta, New Delhi, and Yangon.
HIDA’s activities consist of three pillars: (i) government-subsidized program; (ii) entrusted
program; and (iii) self-financed program. Mr. Shimo-Osawa primarily explained the first pillar(i), which is the focus of this seminar. HIDA conducts two types of training programs in Japan—
technical training and management training. Technical training begins with an introductory
program, where trainees learn Japanese language, culture and Japanese society. This is followed
by on the job training (OJT) inside companies, and trainees are sent to host companies in Japanto acquire specialized technical skills based on plans made by individual companies. Management
training provides lectures on production management, quality management, and innovation
management etc. The majority of trainees come from Asian countries. The data on HIDA training
in Japan (during FY2008-2014, government-subsidized program) show that before coming toJapan, trainees held the positions of engineer (34%), manager (17%), and general manager (11%)
in their own companies and that after coming to Japan, they received training in such areas as
automobile (22%), other electric equipment (10%), and industrial machinery (4%).
HIDA has been making major efforts to build and strengthen networks with alumni who
participated in training programs. This initiative started at the time of AOTS, its predecessor. For
example, it occasionally organized the HIDA-AOTS Success Story Convention (2009 and2014). HIDA-AOTS Alumni Societies are composed of registered members and companies ofthe participants of HIDA and AOTS training programs. There are 71 Alumni Societies in 43
countries. In this regard, TNI is a good benchmark model for HIDA-AOTS Alumni Societies, as
explained by Mr. Yoneda, JTECS. As such, Mr. Shimo-Osawa emphasized that HIDA has
contributed to economic development of developing countries and emerging economies, as wellas the promotion of friendly relationship between Japan and these countries.
Mr. Shimo-Osawa briefly mentioned the third pillar (iii), namely the activity of HIDA ResearchInstitute (HRI). HRI was established in April 2013 as a self-financed arm of HIDA. HRI
manages “Global Interface Japan,” which acts as cross-border business to business promotion
platform by linking industries between Japan and developing countries. Under the Global
Interface Japan program, HRI facilitates information sharing, conducts oversea research, andpromotes business exchange. There are mostly fee-based, and HRI can make profits from them.
HIDA-AOTS Alumni Societies Network plays a critical bridging role in this program. In recent
years, Japanese companies (including SMEs) are accelerating the expansion of their international
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businesses, particularly in emerging countries. With the emergence of a full-fledged globalization,
HIDA seeks to become a core institution capable of performing the function of global humanconnectivity.
(3) Discussions and Q&A—with the speakers/panelists from GIZ, ZDH, JTECS, JICA, andHIDA
Differences and similarities between Germany and JapanMr. Shimo-Osama (HIDA): Germany has a well-established system of vocational training(before entering into the labor market), combining school education with internships at companies.
While there are many vocational training schools in Japan (both public and private), they may beless systematized compared to Germany. On the other hand, Japanese individual companies
dedicate significant time to training their workers through OJT. Japan places greater emphasis on
OJT at companies (after completing schools) because it is more informal, flexible and tailored to
the needs of respective companies. HIDA supports this kind of OJT, especially through technicaltraining program. There is wide acceptance of Japanese culture and Japanese-style production andmanagement among the trainees who are sent from companies in East Asia. This is one ofimportant strengths of Japanese technical and vocational training.
Mr. Ikura (JICA): JICA has several industrial cooperation programs similar to those of Germany.
For example, JICA dispatches “Senior Volunteers” (those retired, senior professionals) to variousorganizations in developing countries to share their accumulated expertise with them. This issimilar to “SES” explained by German speakers. JICA also provides assistance to Japanesecompanies (both corporates and SMEs) which are interested in overseas business expansion. This
assistance is targeted at private companies which would like to utilize their technologies to solve
developmental challenges in partner countries. JICA covers the costs of their implementing
preparatory surveys, feasibility studies for business plan development, verification surveys forpilot operations, and so on.
Prof. Kenichi Ohno (GRIPS): Japan regards its neighboring Asian developing countries aspartners of production rather than the markets. This is the biggest difference between Japan andGermany. Many Asian countries are interested in Japanese methods such as monozukuri andkaizen. For example, central/local governments in Vietnam highly regard Japanese companies astrustworthy because they teach Japanese business methods to the Vietnamese. Japan should takethis advantage and consider next step for Japanese overseas business expansion.
Comments from a participant: As a Japanese researcher who used to live in Germany, I feelstrongly that Japan needs to change more dynamically, learning from Germany which is leading“Industry 4.0” and various innovations. I have an impression that in Asia, the Japanese way—12

including the terminology of monozukuri—is increasingly viewed as old-fashioned. Japan should
become more future-oriented, without adhering to its traditional way of doing things.
Made in Germany
Mr. Rolf (GIZ): Our vison of “Made in Germany” was invented by the British after the WorldWar II. Initially, British consumers did not buy German products because they were uncertain
about the quality. They started buy German products after finding out that these were of highquality with good prices. Japan must have had same experience like Germany. Once consumers
know that products are of high quality with reasonable prices and satisfy sustainability standards,
they will start to buy them. At present, Africa is becoming a big market. This is the time to go
there and do business with African partners. Germany as well as Japan should not miss thisopportunity.
Factors for success of the JTECS-TPA-TNI Model
Mr. Yoneda (JETCS): There are several factors that have contributed to success of the JTECSTPA-TNI model. Mr. Hozumi (the founder of JTECS) worked together with Thai members andthe most important one is their strong desire for promoting Thailand’s industrial development bylocal ownership. This motivated the Thai people very much and fostered trustful relationshipbetween JTECS and TPA/TNI. Thai members never attempted to make profits for JTECS or
himself by supporting TPA/TNI. JTECS has served for the benefits of Thai industry and Thai
people. In the future, JTECS would like to provide similar cooperation programs in othercountries, as well.
Business with Africa
Mr. Ikura (JICA): In the past, Japanese companies have never thought about investing in Africa.
But, now that the domestic market is unlikely to grow, Japanese companies need to expand
business all over the world including Africa. It may be difficult to directly utilize their Asianbusiness model to Africa. In new business, partnership and network building will be a key to theirbusiness strategies. Japan has started to strengthen human relationships with African youth
through the scholarship program called the ABE Initiative. Those young students can become
future business partners for Japan, once they have completed respective studies at Japanese
universities.
Prof. Kenichi Ohno (GRIPS): Japan is very slow in going to Africa. However, once Japanesecompanies have established production bases, they will not leave so easily. This is a big difference
from the business model of some emerging countries which are willing to take high risks for quick
returns; but they may not stay permanently.
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Industry 4.0 and JapanMr. Shimo-Osawa (HIDA): It is yet to be seen how “Industrial 4.0” will change the industry
sector in developing countries. At present, there is a huge gap in the industrial capacity between
developing countries and advanced countries like Japan. The latter uses high engineering
technology. Nevertheless, Internet of Things (IoT) or IT-based software has potential to bringchanges in developing countries because it will influence how to transfer information. IoT may
demand more innovation for industry. I hope that Japanese high technology can support the
introduction of such innovative software to developing countries.
The scope for Manager Training Program
Mr. Kleinbub (ZDH): This program is implemented by GIZ with the funding of the Federal
Ministry for Economics and Technology. It covers management training, business practice andinitiating business. Regarding the latter, the scope of business contracts varies by company. It canbe about selling goods, imports and exports, or developing common products, etc.
Final comments—future possibility of German and Japanese cooperation for industrial
development and private sector partnership
Mr. Ikura (JICA): JICA is always interested in sharing experiences and activities with German
partners. Also, there is a possibility of collaboration in the areas of German engineering expertiseand Japanese monozukuri.
Mr. Shimo-Osawa (HIDA): HIDA is not a governmental agency but non-governmental technicalcooperation organization. So, we always had to take care of not only cost effectiveness of ourgovernment-subsidized and entrusted programs but also creation of wealth by conducting selffinanced programs as part of HRI activity. HRI is keen to enhance its ability of formulating new
and innovative projects in partnership with business. Therefore, this seminar has given us a good
opportunity to learn German methods, and we should continue sharing mutual experiences.
Mr. Rolf (GIZ): GIZ is pleased to collaborate with Japan. It is clear from today’s seminar that
Germany and Japan have different competitive advantages in respective cooperation programs.
For example, GIZ organizes workshops for discussing development challenges of Africa frombusiness perspectives (‘lab of tomorrow’), in both Germany and Africa. Probably, there is noequivalent to such program on the Japanese side. GIZ welcomes Japanese private sector toparticipate in this program.
Mr. Kleinbub (ZDH): Germany is always keen to learn from Japan to deepen mutual
understanding. It may worth considering a possibility to exchange experts who could contributeto facilitating collaboration in the area of industrial development cooperation.
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Mr. Yoneda (JTECS): Building on their success, TPA and TNI have reached the stage to think
about next challenges and future direction, including their enhanced roles in the neighboring
Asian countries. So, it will be useful to continue sharing respective experiences with German
partners for mutual learning.
6. Closing remarks
Ms. Shikibu Oishi, Senior Advisor for Trade Policy and Economics, Embassy of the Federal
Republic of Germany, Tokyo
Ms. Oishi mentioned that this seminar was a great opportunity to learn the experiences of German
and Japanese industrial development cooperation in partnership with the private sector. She wasglad that fruitful discussions took place among many participants. The German government
collaborates with German Chambers of Commerce to promote German business. German
Chambers are actively engaged in advancing cooperation with Japan, as well as that with third
countries. German companies are increasingly interested in doing business in emerging countries,
and the German government considers seriously how to improve mutual economic partnerships
with these countries. At the same time, the German government understands that it is important
to start with improving the business environment on the ground before building high-level
economic partnerships. Therefore, this discussion was quite relevant and touched upon key issues
for the German economy in the near future.
This year, the G7 Summit will be held in Ise-Shima, Japan in May. Ms. Oishi expects that
discussions will include industrial cooperation and business expansion in emerging potential
markets in the world. Three years ago, TICAD V was held in Yokohama with the participation ofover 50 African countries. The participants from African governments and private sector
organizations emphasized the importance of changing the nature of partnerships from aidcentered to those based on trade and investment. To this end, it is very important to build industrial
capacity of African countries. This seminar covered all these issues related to forthcominginternational meetings. Thank you very much.
[END]

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