[Ohno handout #1]

Evolution of Japan’s Aid to Africa: Five Phases
PhasesJapan’s Aid Policy

Aid Policy to Africa

1st Phase:
1954 (participation inColombo Plan) - 1972

・ Pursuitofshort-term ・ Concentration of aid in Asia
theeconomic interests
・ Absence of aid policy to・ Establishment
ofAfrica“request-based” approach
2nd Phase:・ Expansion of aid linked to ・ Growing interest in Africa to1973 (1st oil shock) -1980
economic security
secure natural resources andincreased aid to Africa
・ Aid policy to Africa linked tobuild support for Japan’s rolein UN
3rd Phase・ Using aid as a means to ・ Increased aid to Africa and1981 (5-year Doubling Plan ofrecycle Japan’s economic
co-financing of SALODA) - 1988
surplus and increase its ・ Supporting hunger relief andglobal contribution
food securityth4 Phase:・ Becoming top donor and ・ Becoming a major donor in1989 (top donor) - 2000
using aid for broad policy
Africainitiatives as part of global ・ Engagement
inpoliticalcontribution
sphere,includingthedispatch of SDF
・ Hosting TICAD and exploring
new aid initiative in Africa
5th Phase・ ODA budget cut and policy ・ Debt forgiveness to HIPCs
2001 (US replacing Japan aschanges
・ Linking aid to peace buildingtop donor) - Present
・ Development partnerships
・ Supporting NEPAD/AU
Source: Makoto Sato (2004) “Japan’s Aid Diplomacy on Africa” in The Study on the African
Economy, eds. Katsuhiko Kitagawa and Motoki Takahashi, Minerva Shobo, Table 11-1 (p.245)

Trends in Japan’s Bilateral ODA by Region
100%
Other

80%

EuropeOceania60%

Latin America
Africa40%

Middle EastAsia

20%
0%1970198019901995

2000

2003

YearNotes: (1) In 1970, net disbursement to Latin America was negative (-0.4%).
(2) ODA to Europe since 1990 includes aid to Eastern Europe.
Source: Ministry of Foreign Affairs, White Paper on ODA 2004.

[Ohno handout #2]

Figure: Development Priority Matrix (DPM)<Upstream>
Policy&Institutions

・・ Critical assessmentof SAL conditionality
・ Fungibility issue

・・Establishment of(sector-specific) policy andinstitutional framework

Macroeconomic stability
Inter-sectoral budget allocation(e.g., consistency with PRSP priority)
Establishment of core government
functions & systems (e.g., budgetmgt, civic service systems)

・Sector & Local
Administration②①③④

・ Improvement of public service
delivery (quantity & quality)
・ Strengthening of implementation
capacity（managerial & technicalaspects）

・

Macroeconomic
PolicyStrengthening of implementation
capacity（e.g., public financial
management, monitoring &evaluation）

Critical assessment ofparallel systems＆ transaction costs<Downstream>
Implementation

Figure:Two Types of Governments
Capacity of the public sector[Case 1: Government with complete functions][Case 2: Government
restricted functions]Publicsector
domainImplementation

severelyPolicy & Institutions

Policy & Institutions

Sector& Local
Admin.

withMacroeconomic
PolicySector &Local
Admin.

?
Implementation

Macroeconomic
Policy[Ohno handout #3]

Japan’s Bilateral ODA to Sub-Saharan Africa by Type
US$ million
1200

1996
1999

1000

2003

800
600
400
2000-200
Loan aid

Grant aid

Technicalcooperation

Total
disbursements toAfrica

Source: Ministry of Foreign Affairs, White Paper on ODA 1997, 1999, 2004.
Note: The ODA amount is calculated on a net disbursement base.

Geographical Distribution of Japan’s Bilateral ODA (2003)(%)

Oceania,
0.9Europe,
3.6China,12.6
Other, 18.5

Middle East,
6.9
Latin
America,
7.7

Africa,8.8

Other Asia
(excludingChina),
41.0

Composition by Type (2003)• ODA loans: 59.9%• Technical cooperation: 39.5%• Grant aid: 9.6%
China is the 3rd largest recipientof ODA loans (26.3% of the total
net disbursement and 18.9% of
the total commitment in FY
2003).

Source: Ministry of Foreign Affairs, White Paper on ODA 2004.
Note: The ODA volume is calculated on a net disbursement base.

[Ohno handout #4]
Japan’s ODA to Ghana
Unit: Millions of Trends of ODA by Top 5 Bilateral Donor Countries and Japan
Proportion of Grants and Loans (1998-2002)
US Dollars
160.0

1998

140.0

2000

2002

120.0
100.0

Loans

80.0

Grants

60.0
40.0
20.0
Germany

Denmark

Netherlands

USUKJapan

Germany

Denmark

Netherlands

USUK

Japan

Germany

Denmark

Netherlands

USUK

Japan

0.0

Notes: (1) Net disbursement is used for grants, while gross disbursement is used for loans.
(2) The World Bank is the largest donor in Ghana.
Source: OECD(2004) Geographical Distribution of Financial Flows to Aid Recipients 1998-2002.