Japan-UK Aid Partnershipfor 2008 and beyond
GRIPS Development ForumMarch 2008
Izumi Ohno, National Graduate Institutefor Policy Studies (GRIPS)

About GRIPS Development
Forum (GDF)
Launched in 2002, within the National
Graduate Institute for Policy Studies (GRIPS) A research unit dedicated to policy studies
and networking in the area of int’ldevelopment and aid
Industrial policy and globalization
Development administration and aid management Growth support in Africa
 ODA policy and reforms, etc.


http://www.grips.ac.jp/forum-e/ (for GDF activities)1

2008：The “Year of Destiny” ofJapan’ Aid
TICAD IV (Tokyo International Conference forAfrican Development): May 28-30
 Hosting G8 Summit: July 7-9
 OECD H/L Forum on Aid Effectiveness:
September (Accra) New JICA: October UN Conference on Finance for Development:
November (Doha)ÎExcellent opportunities to demonstrate Japan s renewed

commitment to aid and share its development visions

GoJ Preparation for 2008


TICAD IV Towards a Vibrant Africa


Boosting economic growth in Africa
Ensuring Human SecurityAddressing environmental issues/climate change

G8 Summit Hokkaido, Lake Toya

Poverty reduction towards achieving MDGs
Peace and stability, and democratization

Climate change/environment, as priority agenda
A new financing mechanism being explored (totaling $10billion for five years)

Related activities
A proposal by the Foreign Minister s Advisory Committee on
International Cooperation (Jan. 2008)
 JICA/JBIC study on Lessons from Asian Economic Growthfor African Development (July 2007 - Spring 2008)
2

Our Observation
Japan s promise of doubling ODA to Africa (2005-07)
at the 2005 Gleneagles Summit: likely to be achieved,
if debt relief is also included Political inertia continues (except for several
supporters in LDP); Japan s vision for future ODA
strategy and volume for Africa remains unclear
 Modest public interests in the African agenda,compared to climate change/environment
 Concerns expressed by African Diplomatic Corps inTokyo, academia, CSOs (TCSF, TNNet, CCfA), etc.
 Japan 2008 G8 NGO Forum (Jan. 2007- ),intensifying advocacy efforts and preparing commonplatformTSCF: TICAD Civil Society Forum / TNNet: TICAD IV NGO Network /CCfA: Civic Commission for Africa

GDF s Initiatives for 2008
Private ODA ManifestoJapan-UK Aid Partnership Report3

GDF Initiatives for 2008 (1):
Private ODA ManifestoMonthly discussion forum among aid
stakeholders on Japan’s ODA renovation
July 2006 - October 2007 (met 12 times) Over 120 participants

Voluntary initiative by those professionals
who share a sense of crisis in Japan s ODA
and the importance of 2008
 Formulated 30 concrete proposals forrenovating Japan s ODA (issued in Oct.
2007)

http://www.grips.ac.jp/forum/oda_salon/index.htm
http://www.grips.ac.jp/forum-e/ (for English version)

Our Private ODA Manifesto:
Main Issues
Clarify the vision and strategies
Satisfy the needs of developing countries and strengthen thefield-level functions of ODA implementationz Lead the global development debatesz Promote the understanding and participation of citizensz Restructure and strengthen the systems for ODA policy
implementationz Reform and improve the administrative systems andproceduresz Increase the ODA budget and reform its funding mechanismsz Develop the career paths and improve the human resources
development systemz Enhance collaboration with the private sector and form
public-private alliancesz Clarify the vision and sharpen the focus of Japan s aid toAfricazz

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GDF Initiatives for 2008 (2):Japan-UK Aid Partnership Report

ODA policy report (published in Feb. 2008):
Serving as the conceptual basis for Japan-UKpartnership Assisting GoJ in formulating key messages in the2008 events

Independent research initiative by GDF, incollaboration with the interested parties in UKAuthors: researchers, policymakers andpractitioners in UK, Japan, Asia (Malaysia) andAfrica (Uganda)

Japan-UK Aid Partnership:
Key Concept

Donor collaboration based on the principle of“diversity and complementarity”
 Arguments for strategic and instrumental
diversityComparative advantages of donors
 Non-fungibility of ideas
 Inseparability of content and instrumentsÎ Japan-UK bilateral aid partnership should bealso guided by this principle

5Comparative Advantages ofDonors
Is global convergence to a single idea or
approach desirable? (Ílarge swings indevelopment vision in the past decades)

Heterogeneity of partner countries, as well as
the donor community
 Each donor has different strengths andweaknesses relative to others
 Donor diversity likely to increase in the future Importance to seek an inclusive approach toenhance combined aid effectiveness

Distribution of Sector Allocable ODA toLow Income Countries and Sub-Saharan Africa(commitments, period averages, %, 1990-2004)
Low Income Countries
11%
26%

11%

10%

15%

12%

Sub-Saharan Africa
14%
24%

26%

12%
19%

29%

33%

1990-1994

10%

15%
26%

34%

29%

12%

52%

39%

1995-1999

50%

47%
33%

2000-2004

Multisector
Production
Inf rastructure
Social sectors

1990-1994

1995-1999

2000-2004

Multisector
Production
Infrastructure
Social sectors

Source: IDA (2007) Aid Architecture: An overview of the main trends in official development
assistance flows. p.11, Chart 7.

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Non-fungibility of Ideas
Policy ideas are often non-fungible evenunder harmonized procedures.
 In light of diversity of donors and partnercountries, we should be open to various
possibilities and explore ways most suitablefor each case.
 Importance of providing alternatives
 Country ownership, based on policy
multiplicity.
Non-fungibility of Ideas(Examples)Debate over transition strategy: “big bang”
vs. “gradualism”
Different strategies adopted by China, Vietnam, ascompared to Russia, Eastern Europe

Some East Asian countries took advantagesof non-fungibility of policy ideasDeliberately seeking a variety of competing advice
from different donors to match country needs anddonor expertise (e.g., Thailand’s Eastern Seaboard
Development Plan, Malaysia s response to financialcrisis)

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Inseparability of Content andInstruments

Different degree of specificity and transaction
intensiveness in public sector activities


Pritchett and Woolcock (2002); Fukuyama (2004)

Different development objectives call fordiverse aid instruments
Conflict with the need for instrumental
harmonization?
 Need to match aid modalities with development
priorities of each countryInseparability of Content andInstruments
It is important to match country needs, instruments,
and comparative advantages of donors
Projects

Budget Support

Instruments Addressing specific

Providing large resource
transfers (incl. recurrent
expenditures), generating
multiple policy andinstitutional reforms in asynergic manner

problems, seeking policy
innovation, implementing
pilot activities (for welldefined objectives)

DonorsPreferred by donors whoemphasize field-based
process support, as anentry point

Preferred by donors who
excel in policy dialogue andadministrative reform

8How Different?: Japan s Bottom-up
Approach to Quality Improvement
JICA Project
ProjectObjectives
MainActivities

EU Project

Strengthening international competitiveness ofTunisian industries

Quality improvement
Assistance for firms toguidance at the production acquire ISO certification
floor of model firms(int l standards)

Features of Different approach forAssistance each firm (order made)Instructors required tohave practical experienceson the production floor
Formulation of M/Pthrough the bottom-up
approach, deriving fromthe production floor

Common approach for all
firms (ready made)Instructors not required
to have practicalexperiences
Focus on quality
management & document
management systems
(Source: Kikuchi 2007)

How Different?: Japan-UK as Donors
Volume (ODA/GNI)(2006: net disbursement)

Regional distribution

1.

(2004-05: % of total grossdisbursement)

2.

Major aid use

1.

(2004-05: % of total
bilateral commitments)

Grant share

Japan

UK

$ 11,187 mn(0.25%)$12,459 mn(0.51%)

East Asia & Oceania (40.7%)
Middle East & North Africa(19.3%)

Economic infrastructure(26.8%)
2.Social & administrative
infrastructure (21.4%)

1.
2.

Sub-Saharan Africa (53.6%)
South & Central Asia (21%)

Social & administrative
infrastructure (30.0%)
2.Humanitarian aid (8.1%)
1.

48.8%

96.5%

5 countries

17 countries(2007)(2004/05)

1.7%

9.2%

(2005: % of total ODAcommitments)

Budget support
ODA through NGOs
(2004-05: %of total bilateralcommitments)

Source: OECD/DAC (Development Cooperation Report 2006, CRS online database)9Features of Japanese Aid
Dual identity as donor and latecomer: growth
aspiration, real sector concern
 Field-based, concrete thinking; pragmatism
 Passive ODA policy; clumsy speaker

Ethical debts to neighboring Asian countries
Fragmented aid system (both policy and implementation)
Weak political interest in ODA policymaking

Modest stance in aid relations can contributeto fostering relationships of mutual trust?
 Currently, reforms underway, on ODA
institutional framework
New Institutional Framework for Japan s ODA
1.

Overseas Economic Cooperation Council (OECC)

Tooyama
Chief Secretary

Prime Minister

MOFA Minister

MOF Minister

METI Minister

2. Strengthening of MOFA s policy planning and coordination capacity
MOFA Minister
Global Issues Dept.
Development

Policy Planning for
Int l Cooperation

UN Admin.

ECB

ICB

Foreign Policy
BureauRegionalBureaus

3. New JICA with multiple aid menu <From Oct. 2008>
JBIC
OOF

ODA
loans

Source: Ministry of Foreign Affairs

JICA

MOFA

New PFITA

GrantsPublic Financial
OOF
Institutions

New JICA
ODA
TA
loans

Grants

Notes: ECB: Economic Cooperation Bureau / ICB: International Cooperation Bureau

10Features of British AidDFID, widely seen as effectively leading global
development debates; coherent and organizedapproach to aid delivery
 Good at designing policy frameworks andinstitutional architecture; strong drive forinnovative approaches
 Sometimes perceived as promoting its own
model? (DAC Peer Review 2006)
 “Policy-rich”; but driven by idealism, detachedfrom field-based practices?
Why Japan-UK AidPartnership Now?
Japan and UK are important players in the donor
community (2nd & 3rd largest DAC donors) Because the two are very different, there exists a
great potential for productive cooperation
 2008 offers a window of opportunities forpromoting fruitful collaboration, esp. in growth
support in Africa
 The two can also make important contributions
to engaging Asian “emerging donors” insupporting African development
The END11