Germany-Japan: Partnershipfor “Quality Growth”
Sharing Experience of Industrial Development Cooperationin Partnership with the Private Sector

Izumi Ohno
National Graduate Institute for Policy Studies (GRIPS)

March 1, 2016

Seminar Objectives
 Introduce the approach and practices of German

and Japanese industrial development & private
sector cooperation, for mutual learning.
 Discuss how the two countries could (even)better contribute to quality growth in partnercountries, in light of opportunities & challenges
emerging in the new era of global development.
 Special attention:
 Partnerships with the private sector, industry-related institutions, local govt., and NPOs.
 Contribution to the 2030 agenda for sustainabledevelopment (SDGs).

Quality Growth Human resourcedevelopment
 Internalization of skills& technology Industrialcompetitiveness Social inclusion
 Environmental
sustainability,
etc…

The 2030 Agenda for
Sustainable Development--Broader, transformative agenda

Why Germany and Japan?

(1) Germany and Japan as Likeminded Development Partners
 Germany and Japan share common features

on development cooperation.

Concrete, process-oriented support on the ground Capacity development, human-centered approach Strength in industrial development cooperation—e.g.
manufacturing (monozukuri)-centered, jobs, SMEs, TVET,
excellence in quality & technology
 Sustainability & environmental concern Such features are essential to ensure qualitygrowth.

Structural transformation requires industry-andlocational-specific approach—not just macro, but meso &micro levels.

(2) Launch of New Development
Cooperation Policy Two countries recently formulated new policies toactively contribute to the 2030 agenda. G7 chair.
 Germany
Future Charter for German Development Cooperation“One World—One Responsibility” (Nov. 2014)
 Sustainable economic development: energy & climatechange, as well as attention to standards for humanrights, social welfare & the environment
 Japan

Development Cooperation Charter (Feb. 2015)
 Quality growth (inclusive, sustainable, and resilient G) &poverty eradication through such growth Strategic partnership with diverse actors, by mobilizing
their expertise and technologies(3) Learning from German
Experiences (esp. for Japan)<Changing domestic situation>
 Japan faces challenges, as we enter into

a new era of global development.

Internationalization of Japanese SMEs
 Need for deepening production networks
in emerging & developing countries Japanese SMEs have passion andtechnologies to contribute tosustainable development; butlack overseas experiences.
 Walls(?) btw. business &development teams.

Learning from German Experiences(cont.)<Changing landscape of int’l development>
 Some partners are graduating from ODA; but

wish to avoid/overcome “middle-income trap.”

Changing relationship: from “aid partners” to “economicpartners” (equal footing) Inclusive/BoP business could provide innovative

solutions for development challenges.

But, Japanese companies are mostly cautious in frontiercountries…

 Japan needs to sharpen its “core strengths” indevelopment cooperation—as diverse actors aregetting engaged in global development.

Issues for Discussions
 Supporting quality growth in partner countries

What are “core strengths” of your organization (orcountry)?
 Comparison btw. Germany and Japan (anysimilarities & differences?) Any challenges?
 Use of industrial expertise & ODA networks for“co-creative” partnerships



How could/should Germany and Japan effectively
mobilize industrial expertise & ODA networks(“assets” accumulated domestically & overseas) tocontribute to quality growth of partner countries?

Seminar Program
Introduction to the seminarPresentations
 Mr. Thomas Rolf, GIZ“Private sector and development—The German service portfolio”
 Mr. Michael Keleinbub, ZDH“The role of German business associations and TVET centers inindustrial development cooperation
 Mr. Hiroyuki Yoneda, JTECS“JTECS experiences of forging Japan-Thailand manufacturing
partnership<Coffee break>Comments and Discussions
 Mr. Yoshinobu Ikura, JICA
 Mr. Yuji Shimo-Osawa, HIDA
 Discussions, Q&A, with all the speakers
Closing remarks (by Ms. Shikibu Oishi, German Embassy)

Appendix

Germany Development Cooperation System(※GIZ established in Jan. 2011, by integrating GTZ, DED, InWent)

Federal Government

Lander(approx. 90% of ODA budget)(Federal state)

PolicyMOF
・EC contribution
・Debt relief

BMZ(Ministry of EconomicCooperation andDevelopment)

MOFA
Natural disaster
Humanitarian aid

OtherMinistries

GDI/DIE(Thinktank)

Implementation
Bilateral Cooperation
Technical &NPO/NGO,
Other HRPPP
Multilateral Financial
HR
Cooperation Cooperation Cooperation Cooperation (DEG, KfW, Party(CIM, SES, GIZ, SEQUA foundations,(KfW)
(GIZ)
etc.)
etc.)
etc.
DED-German Development Service; CIM-Centre for Migration and Development; SES-Senior Expert Service；
InWent-Capacity Building International; SEQUA- Foundation for Economic Development and Vocational Training;
DEG-German Investment and Development Cooperation

Features of ODA: US, UK, Germany and JapanUSUK

GermanyJapan$33,096 mn$19,306 mn$16,566 mn$9,266 mn(0.19%)(0.70%)(0.42%)(0.19%)

1.Sub-Saharan

1.South & Central

1.South & Central(2013-14: % of totalgross disbursement)

Africa (34.3%)
2.South &Central Asia
(12.8%)

1.Sub-Saharan

Major aid use

1.Social &1.Social &1.Social & admin.

1.Economic

Volume(ODA/GNI)(2014: net disbursement)

Regional
distribution(2013-14: % of totalbilateral commitments)

admin.
infrastructure(48.8%)
2.Humanitarianassistance(21.6%)

Africa (35.3%)
2.South &Central Asia
(17.8%)
admin.
infrastructure(49.9%)
2.Humanitarianassistance(15.0%)

Asia (19.0%)
2.Sub-SaharanAfrica (15.4%)

infrastructure(36.2%)
2.Economic
infrastructure(33.7%)

Asia (37.9%)
2.East Asia &Oceania (28.2%)

infrastructure(44.6%)
2.Social & admin.
Infrastructure(16.5%)

Grant share

100%

94.1%

71.9%

41.0%

NGO/ODA

20.2%

11.4%

7.5%

1.9%

(2013-14: % of total
ODA commitments)(2013-14:% of total
bilateral commitments)

Source: OECD Development Assistance Committee (Statistics on Resource Flows to Developing Countries, as of Dec. 22, 2015)