Sharing East AsianExperiences with Africa:
Japan’s Policy Dialogue and Korea’s
Knowledge Sharing Program

Izumi Ohno, GRIPS Development Forum,October 17, 2011

Background
JICA is currently preparing the 2nd-phase program ofindustrial cooperation in Ethiopia—(i) institutionalizationof Kaizen and (ii) industrial policy dialogue (II)—tosupport the implementation of the five-year development
plan, i.e., the Growth and Transformation Plan.
 An important new factor is South Korea’s engagement in
Knowledge Sharing Program (KSP)—followingPresident Lee Myung-bak’s visit to Ethiopia in July 2011.
 Japan welcomes the Korean initiative—because this will
greatly contribute to projecting the East Asian
perspectives into Africa’s development efforts.
What are the East Asian Perspectivesof Aid and Development?
-- Are Japan and Korea different from Westerndonors?

East Asian Perspectives of Aidand Development
Shared by Korea and Japan Non-Western donors, having “dual experiences”

of aid and development (recipients and donors)
 Latecomer perspectives, based on their own
catch-up experiences


Growth strategy with “real-sector concern” (e.g., trade,investment, industries, technology, human resources)
Respect for the uniqueness of each countryLong-term perspective; development is a long-term
undertaking and path-dependant in nature
Realistic and pragmatic approach in aid delivery

Dynamic Capacity Development

Dynamic Capacity Development
Improving capability with pride & hands-on experience

Goal orientation: long-term vision  phased
strategies (“roadmap”)  concrete action plans.
 Direct most effort to perfecting your strengths rather
than correcting your general weaknesses.
 Reform government (improve efficiency andorganization) to attain concrete policy targets
(e.g., Japan in the Meiji era, S. Korea under President Park, P.R.
China SEZ under Deng Xiaoping)Achieve successes one by one, and be proud.
 Eventually, graduate from aid and become a donorExample: Latecomer Japan
Beats British Textile Industry
1883 Establishment of Cotton Spinning Industry
Target: import substitution of cotton yarn (industrial input)
Actors: Eiichi Shibusawa (super business organizer)
Takeo Yamanobe (engineer studying in UK)
Action: establish Osaka Spinning Co. with sufficient scale andtechnical breakthroughResult: instant success with a large number of followers; Japanovertakes UK as top textile exporter by early 20th century;
The City of Osaka is called “Manchester of the Orient”

Shibusawa

Yamanobe

Example：： Korea’s Export-OrientedIndustrialization


In July 1965, 13 items were selected for export promotion that wereconsidered to be superior in terms of the effects on the international divisionof labor, the balance of payments, as well as, having spillover effects onother industries.
For each of these industries, a deputy director (in the Ministry of Commerceand Industry) was tasked with providing financial and technical assistance.
Monthly Export Promotion Meetings were also established in 1966, chairedby the President Park Chung-hee, with MCI serving as the secretariat.
Attended by high-ranking government officials and business
representatives, the meetings provided a forum to monitor progress anddevise institutional innovations and solutions to emerging problems.
From Despair to Hope: Economic
Policymaking in Korea 1945-1979
A Memoir by Kim Chung-yum, KDI (2011)

Monthly Export Promotion Meetings headed by President Park (in the late 60s)

What are comparative advantages ofJapan and Korea respectively?
-- How can the two countries collaborate
complementally?

Korea: Strengths
Strong leadership commitment to development
cooperation


President Lee Myung-bak: “Korea through international
cooperation would become a guiding light for developing
countries in the 21st century.”
G20 Seoul Development Consensus (2010); hosting theOECD/DAC Busan High-Level Forum for Aid Effectiveness (2011)
Increasing ODA significantly

High global attention and expectation on the role of
Korea, based on its achievements
 Ability to offer the latest successful experiences ofcatch-up, serving as a bridge between the developedand developing worldsSharing Korea’s Development Experiences Knowledge Sharing Program (MOSF/KDI),(i) Modularization (database on exemplary cases & best practices); and(ii) Policy consultation

Source: Korean Development Institute (KDI)

 Consultation Program (MOFAT/KOICA), based on

the Korean Development Model
MOSF: Ministry of Strategy and Finance / KDI: Korean Development Institute
MOFAT: Ministry of Foreign Affairs and Trade / KOICA: Korea International Cooperation Agency

Example: KSP Modularization(Source) Taeyong Yoon, Director General, International Economic Affairs Bureau, Ministry of Strategy and Financeof Korea, “Bilateral Knowledge Sharing: What works with Korea’s Knowledge Sharing Program (KSP)?”,
presentation at the OECD Workshop on Knowledge Sharing, July 11-12, 2011.

Example:
KSP Policy Consultation
Combination of joint research, study tours, andseminars, with the involvement of senior
government officials in both sides (-- systematized)Each year, a different topic will be selected, and relevant expolicymakers, researchers, consultants will be mobilized.
Priority countries have 3-year program, while other countries startwith 1-year program (which can be extended).
Rapid expansion: 11 countries (2009) 16 (2010) 26 (2011)32 (2012 planned)

Dilemma?: As the number of KSP countries
increases, how to engage a group of experts familiar
with a particular country and have continuous
dialoguesJ.

Japan: Strengths
Remains a large donor (-- despite recent ODA cut) A trusted intermediary (ODI: Menocal and Denney 2011)

Sensitivity, humility and understanding in its engagement withrecipient partners

Japan’s policy dialogue, conducted as an integral partof JICA technical cooperation
Long-term and open-ended engagement; while lesssystematized, flexibility embedded

With sufficiently long experience of being a donor,
positioned to provide “Network-based Cooperation”
mobilizing knowledge and human assets accumulated
through its past ODA to Asia
 Positioned to provide global & regional public goods tothe developing world.
E.g., Kaizen, science & math education, disaster management,
energy saving, environment, aging

Trends of Net ODA from G7 Countries + Korea:
1981-2010 (net disbursement basis)
35 000in millions of US dollars30 000

CanadaItaly
United StatesFranceJapan
South Korea

Germany
United Kingdom

25 000

20 00014,48915 00013,50813,23910,952

13,126
12,163

11,25910,640

10 000

11,151

8,965
7,342

9,134

9,439

9,358

8,880
8,922
9,847

9,069

11,045
11,1369,601 9,457

9,283

5,634

7,679

4,319

5 000
3,171 3,023

3,761

3,797

Year

Source： OECD Development Assistance Committee - Statistical Annex of the 2011 Development Co-operation Report,(CRS online database)

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

1986

1985

1984

1983

19821981-Emerging (?) Donors in East Asia
PolicyKorea

ChinaImplementation

Instruments

KEXIM EDCF (1987)
Ministry of Strategy &Finance (MOSF)
KOICA (1991)
Ministry of Foreign
Affairs & Trade (MOFAT)Concessional loans

Ministry of Commerce(MOFCOM)

China EXIM (1994)

Concessional loans

MOFCOM (2003)

Grant aid, technicalGrant aid, technicalcooperationcooperation

Thailand

Malaysia

NESDB
Ministry of Foreign
Affairs (MOFA)
Economic Planning Unit(EPU)

Singapore Ministry of Foreign

NEDA (2005)

Concessional loans,grant aid
TICA (2004)

Technical cooperation

MTCP (1980)

Technical cooperation

SCP (1992)

G-G based technicalAffairs (MOFA)

cooperation
SCE (2006)

Fee-basedtechnicalcooperation<Korea> EDCF: Economic Development Cooperation Fund, KOICA: Korea International Cooperation Agency<Thailand> NESDB: National Economic and Social Development Board, NEDA: Neighboring Countries Economic Development
Cooperation Agency, FPO: Fiscal Policy Office, TICA: Thailand International Cooperation Agency<Malaysia> MTCP: Malaysia Technical Cooperation Program<Singapore> SCP: Singapore Cooperation Program (G-G basis), SCE: Singapore Cooperation Enterprise (fee basis)

Network-based Cooperation: Mobilizing
assets accumulated through Japan’s past ODA(1) Singapore: Productivity Development
The first country where JICA provided comprehensive
technical cooperation for Productivity Development
Project (PDP) during 1983-90 -- at the request of thenPrime Minister Lee Kuan Yew.
In 1979, LKY lamented: “Workers here were not as proudof or as skilled in their jobs compared to the Japanese orthe Germans.”

Successful example of internalization, scaling-up,
institutionalization of Productivity Movement.
 Singapore now offers consultancy in this area todeveloping countries, including the ASEAN countries
and Africa.
Singapore’s International Cooperation for Productivity
Mr. Lo Hock Meng, Executive Director ofDevelopment
Singapore Productivity Association (SPA),
who was one of the counterparts of JICA project.
83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08
Productivity Development Project (PDP)
JICA-Singapore Partnership Projects (JSPP 21)
Japan-ASEAN Training Program
Management Diagnosis Training ProjectManagement Diagnostis Training Project(advanced)
Productivity Development Training Projectin Hungary
Productivity Development Training Projectfor African countries
Quality and Productivity Training Projectfor SMEs
Management Diagnosis Traing Projectfor SMEs Development

Singaporean Govt. Projects
Assistance for ASEAN countries
Assistnace for South Africa and Kenya
Assistance for Botswana

Source: JICA/IDCJ/IDJ, Data Collection Survey on Strategy Formulation on Human Resource Development,
Final Report, February 2010, p.4-25, Table 4-5.

(2) Thailand
King Mongkut's Institute of Technology
Ladkrabang(KMITL) 1970
1960
1980
1990
Level:

DiplomaBachelor

Master50 years
Anniversary

2000

2010

Doctor

SEED-NetKMITL(1982-)

Interregional
networking

King Mongkut’s
Instituteof Technology(1971-)

Telecommunications
Training Center(1960-)
Grant:
Constructionof facilities(1960-61)

Telecommunications
College (1964-)

TC project(1960-65)

Grant:
Constructionof facilities(1974-75)

TC project(1978-83)(1997-02)

Grant:
Constructionof facilities(1984-86)

ASEAN
UniversityNetwork /Southeast Asia
Engineering
EducationDevelopment
NetworkTC project(2003-2013)(Source) Senichi Kimura, ”Perspective of Asian ODA: JICA’s View”, May 26 2011,
presentation at the Policy Dialogue session, International Symposium:
Styles of Foreign Assistance, held in Seoul, South Korea.

(3) Malaysia-Zambia Cooperation:
Triangle of Hope (TOH)

JICA implemented “Triangle ofHope” Project during 2006-09 tosupport the improvement ofbusiness environment in Zambia
Dato Jegathesan was Deputy DGof the Malaysia Industrial
Development Authority (MIDA),
under ex-Prime Minister Mahathir.
TOH project formulated 12
concrete policy recommendations,and catalyzed Malaysian
investment in Zambia (a cedularcompany).
Currently, JICA is supporting
capacity development of Zambia
Development Authority (ZDA).

Japan-Korea Collaboration


Operational collaboration, already started (KOICA-JICA,EDCF-JICA), including:More recently, collaboration is expanding intothe policy and research areasConsultations and seminars for information sharing (various levels)Afghanistan (vocational training, gender)
Mozambique (Nacala Corridor)
Tanzania (transmission networks), and a few other countries.

Asian Development Forum (May 2011)
Preparation for the OECD/DAC Busan High-Level
Forum for Aid Effectiveness (Nov. 2011), etc.

In the future industrial policy dialogue
with Ethiopia, we would like to explore
a possibility of inviting experts fromKorea and emerging Asian countries.