Japan’s Role in the New AidArchitecture
Marie Söderberg, Professor and Director of the European Institute ofJapanese Studies at Stockholm School of Economics

Fundamental Changes are ongoing• From the MDGs to the SDGs
• 10 times as much money is needed• ODAs share of all official and private flows are shrinking• Private Development Assistance has reached the same level as ODA• DAC encourage strategic assistance to get private business involved• New donors• Japanese development cooperation is very much in the forefront

Historic development of Japanese Assistance• More than 60 years history• Joined DAC in 1961
• The concept of economic cooperation (aid, FDI and other officialflows)• Motivation by the end of 1970s to contribute to peace and stability
and to secure natural resources• Heavy emphasize on infrastructure and Asia
• An export of the Japanese model for development• 1989 Japan became the worlds largest donor

The first ODA Charter in 1992
• Environmental conservation and development should be pursued intandem• Any use of ODA for military purposes or for aggravation ofinternational conflicts should be avoided• Full attention should be given to recipient countries’ military
expenditures, their development and production of mass destruction
weapons and missiles, their export and import of arms
• Full attention should be given to efforts for promoting
democratization and the introduction of a market oriented economy,
and the situation regarding the securing of basic human rights andfreedoms in the recipient countries

The 2003 ODA Charter”The objective of Japan’s ODA is to contribute to the peace anddevelopment of the international community and thereby to help
ensure Japan’s own security and prosperity• Afghanistan US$ 5 billion during a 5 year period• four priority issues were set out; poverty reduction, sustainablegrowth, addressing global issues and peace buildingThe Third Development Cooperation Charter• Announced in February 2015 – the term ODA is gone and development
cooperation refers tointernational cooperation activities that are conducted by the government and its
affiliated agencies for the main purpose of development in the developing regions• An objective of development cooperation is toensure Japan’s national interests (both economic and security)• Basic policy is summarized in three points1. Contributing to peace and prosperity through cooperation for non-military
purposes
2. Promoting human security
3. Cooperation aimed at a self-reliant development as well as dialogue andcollaboration based on Japan’s experience

The Third Development Cooperation Charter• Japan should take leadership in Proactive Contribution to Peace• development assistance should be implemented bearing in mind thecountries new national security strategy adopted in 2013
According to the Security Strategy Japan should step up its activities
and in the future make ‘proactive contribution to peace’ which
stipulates ‘strategic utilization of ODA’. A New National Security Council
directly under the Prime Minister’s Office has been inaugurated with a
new secretariat in charge of planning and coordinating security issues.
This will also include utilization of some of the ODA funds.

The Third Development Cooperation Charter• A new whole of government approach• Promotion of private led growth – aid as part of Japan’s economic
revitalization plan
• Stronger focus on ASEAN although their income level do not qualifythem

Concluding remarks• The new whole of government approach is likely to increasecooperation between defense, diplomacy and development• At the implementation stage backtracking to the old days when theconcept of economic cooperation was used – development
cooperation is becoming part of Japan’s economic revitalization
strategy• Quality growth is a priority area and poverty alleviation is mainly seen
as a result of that but the economic theory of trickling down has beenheavily criticized…. and to have quality growth that is sustainable,
inclusive and resilient might actually be easier said than done.

Concluding remarks• Japan that used to be the odd man out within the OECD DAC now
seems to be ahead of others• Chinese development cooperation has assisted the Japanese model• Japan will enhance synergies between ODA and non-ODA
finance/cooperation to achieve as much effectiveness as possible inits development assistance something DAC now also suggest forachieving the SDGs
• Japan taking a new leadership role?