JICA’s Approach on Private Sector and Development(East Asian Experience and Future Challenges)

2016.3.1
Yoshinobu Ikura
Director General,Industrial Development and Public Policy Department, JICA

FDI Stock in Asian Economies(USD at current prices and current exchange rate in millions)

Plaza Accord
New Aid Plan
FDI,Trade,Aid

Asian Financial Crisis
Linkage Industry & SME Dev.

ASEAN
Connectivity
2International Trade (1)Within East Asia, volume of trade expanded significantly and “IntermediaryGoods” became the major trade goods → East Asia is becoming “one factory”
Size of arrow: Trade volume
Color of arrow: Share of intermediary goods. (Darker the higher)

Flow of Trade Between Major Regions (unit: billion USD)
Source: White Paper on International Economy and trade 20123

Impact on Major Sectors (1)4Source: JICA, base data 1970-2009
Note: The percentages shown in the pie charts indicate JICA’ s contribution in the selected sector.
Photo : Thailand（ Yasuhiko OKUNO）, Indonesia（ Shinichi KUNO）

Impact on Major Sectors (2)Impact on Major Sectors (2)5(Base data 1970-2009)

Private Sector Development for JICA’s Vision
JICA’s Vision
Inclusive and Dynamic Development
EconomicDevelopment

SocialDevelopment

Private Sector Development
Create employment, revitalize region, generate income & wealthincrease savings & investment, develop human resources,
provide suitable goods & services
and strengthen industrial competitivenessTrade and Investment
Small and Medium
Enterprises (SMEs)

Local Industriesand Economies
6

JICA’s On-going Projects in Trade/Investment in Asia (*including
Investment Promotion Advisors)
Kyrgyz (2015-2017)
Investment Promotion Advisor

Vietnam (2014-2016)
Expert on Foreign Investment Promotion
Vietnam (2015-2017)
Investment Promotion and BusinessEnvironment Improvement Advisor for
the Southern Region

Pakistan (2015-2016)
Energy Efficiency Management
Program (EEMP) for Industrial
Sector in Pakistan

Laos (2014-2016)
Economic Policy/Investment Advisor
for Ministry of Planning and Investment

Pakistan (2013-2016)
Investment Climate
Improvement Advisor
Pakistan (2014-2017)
Trade Advisor

Thailand (2016-2018)
Regional Connectivity for ASEAN
Community 2015

India (2015-2017)
Advisor on Investment Promotion

Thailand (2015-2017)
Project for Promotion of Economic
Development and Connectivity in
the Western Region

Bangladesh (2014-2016)
Project for Development Study and Capacity
Enhancement of Bangladesh Economic Zone
Development Plan Authority

Philippine (2013-2019)
Comprehensive Capacity Develop-ment Project for the Bangsamoro

Bangladesh (2015-2017)
Investment Climate Improvement
Sri Lanka (2014-2018)
Investment Promotion Advisor

Indonesia (2015-2017)
Investment Promotion Policy
Advisor

Nepal (2014-2016)
Foreign Investment Advisor

Trade andInvestment
Promotion

Technical Cooperation Project

Myanmar (2014-2016)
Advisor for Investment Promotion

Advisor

Myanmar (2014-2016)
Project for capacity building of
Thilawa SEZ Management Committee

7

(Source: Cabinet Office of Japan, Nov. 14, 2014)

8

(Source: Cabinet Office of Japan, Nov. 14, 2014)
9The Way Forward

For “The Asian Century” (ADB, Asia 2050)
Industrial Human Resource Development
Regional Cooperation

Beyond East Asia: South Asia and Africa

PrivateSectorPartnership
Scheme“Kaizen” and Africa Business Education
Initiative for Youth (ABE Initiative)
Investment & Trade Promotion

10(Source: Ministry of Foreign Affairs of Japan, 2015)11

JAPAN CENTER
Developing Human Resources and Promoting Exchanges with Japan Japan Center was conceived in 1998 as a means to highlight Japan's
ODA activities and to serve as a base for developing human networks.
 10 centers have been established in 9 countries on East, Central andSoutheast Asia.
 Japan Centers implement 1) Development of Local Business HumanResources, 2) Formulation of human-based network between Japaneseenterprises and management personnel.

12

JICA’s Profile in Engineering Higher Education
India• Indian Institute of Technology
Hyderabad (IIT-H): Loan & TA

Afghanistan• Promotion and Enhancement ofAfghan Capacity for Effective
Development (scholarship): TAMongolia•National University of Mongolia &Mongolia University of Science &Technology: Loan
•Scholarship for governmental
officials (JDS): Grant

Laos•Scholarship for governmental officials (JDS): Grant•Faculty of Management and Administration in Savannakhet Univ: TACambodia•Institute of Technology of Cambodia: Grant & TA
•Scholarship for governmental officials (JDS): GrantVietnamEgypt•Hanoi University of Technology and Science (IT field): loan &TA•Industrial University of Ho Chi Minh City (heavy-chemical sector): TA•Scholarship for governmental officials (JDS): Grant• Establishment of Egypt-Japan
University of Science and Technology(E-JUST): TAKenya• Pan Africa University – Science,
Technology & Innovation (PAUSTI)@ Jomo Kenyatta Univ. of Agr. &Tech: TAMyanmar•Yangon Technological University & Mandalay Technological University:
Grant &TA•Scholarship for governmental officials (JDS): Grant

Rwanda• Tumba Technical College: TAMalaysia

Africa [54 countries]•Scholarship for twinning programs (HELP III): loan
•Malaysia Japan International Institute of Technology (MJIIT): Loan & TA

• African Business Education (ABE)
Initiative for Youth: Master’s
Program & Internship Program: TAPhilippines•Senior High School Modeling in Selected Tech & Vocational High School: TA•Scholarship for governmental officials (JDS): Grant

Southeast Asia Region•AUN/SEED-Net (ASEAN University Network/Southeast Asia Engineering
Education Network) Phase-3: TA (26 ASEAN univ. & 14 Japanese univ.)

Timor Leste•Capacity Development of the Faculty of Engineering, Science andTechnology, the National University of Timor-Lorosa‘e: TA & Grant

13

As of July 2014

Indonesia•Institute of Technology Bandung: Loan
•Indonesia University (health): Loan
2012年6月現在•Hasanuddin University: Loan & TA
JICA人間開発部•Scholarship for government officials (PHRDP III~V): Loan
•Institute of Technology Surabaya : TA
•Indonesia Accreditation Board on Engineering Education (IABEE): TA

13

JICA’s On-going Projects in Customs Administration in ASEAN (as of 2014)
Laos
Expert on Customs Administration (2012)
Strengthening of governance and trade facilitationin the field of customs(2013-15)
Cambodia
Advisors since 2002
Project on Customs Risk Management (2004-07)
Expert on Tariff Policy and Customs
Administration (2013-15)
Myanmar
Expert on Customs Administration (2012-15)
Project for National Single Window andCustoms Modernization by Introducing
Automated Cargo Clearance System(2014-2018)
Thailand
Project on Risk Management(Regional Project for Cambodia, Thailandnd Vietnam)(2008-10)
Program for Facilitation of Commerce Activity
Administration (2012-15)

Malaysia
Advisors since 1990s
Project on Risk Management (2006-08)
Policy Adviser to Director-General of Customs on
Trade facilitation (2011-2015)

Source: JICA (2014).

Vietnam
Advisors since 1996
Capacity Building of Master Trainers on CV, PCA and HS(2004-07)
Provision of X ray Inspection Facilities in HCMC andHai Phong (2008-)
Project for Strengthening the Training System (2009-2012)
Establishment of VNACCS/VCIS (Grant Aid) (2012-2014)
Project for Promoting E-Customs (2012-2015)
Philippines
Advisors since 1990
Project on Philippine Customs
Intelligence System (2007-10)
Project on Customs Post Entry Audit(2008-11)
Long-Term Expert for Enhancement ofCustoms Operations and Risk
Management (2011-2015)
Indonesia
Advisors since 1994
The Study on Trade Related Systems and Procedures (2004-2005)
Project for Improvement of Customs Administration (2004-2007)
Project fro Administration Improvement of Trade-related
Regulations, Systems and Procedures (2006-2008)
Project on Capacity Development for Trade-related Administration(2009-13)
Business Environment-Related Systems Improvement Program(2013-2015)

ASEAN Secretariat
ASEAN Customs Post-Clearance Audit Procedures Project (2004-2006) 14

•Policy Dialogue ofIndustrial Developmentin Ethiopia

 Fill the knowledge and experience gap ofEthiopia, and assist in the implementation of theGrowth and Transformation Plan 2010/112014/15 (GTP) and the planning of the next 5year plan (GTP2).

Three layers of Dialogue
with Ethiopia

Dialogue
withPrime Minister
High Level Forum
With Ministers andState Ministers
Operational Level

Policy Dialogue
1. Policy Visions
Democratic Developmentalism, Agriculture
Development-led Industrialization (ADLI)
2. Five Year Development Plans
PASDEP (05/06-09/10), GTP (10/11-14/15)
3. Sector Policies/Strategies
4. Cros-cutting Issues
 MSE Development Strategy
 Policy Making Process and Organizations
 National Movement of Productivity
 Export Promotion and Investment
promotion

Japan

EOJ

GRIPS

JICA

National Graduate Institutefor Policy Studies

15

Productivity Improvement (KAIZEN) Project in Africa(as of Jan 2016)
Tunisia
MoroccoAlgeria
Libya

Cape Verde

Mauritania

Mali

Egypt

Niger

SenegalEritrea
ChadGambia
Guinea-Bissau

GuineaDjibouti
Benin

Coted’Ivoire

Sierra Leone

Sudan

Burkina
Faso
Ghana

Nigeria
Ethiopia
Central African Rep.

Togo

LiberiaSouth Sudan

Cameroon

Somalia

Equatorial Guinea

Uganda

Kenya

Gabon
Sao Tome andPrincipe

Congo

RwandaBurundiDem.Rep.Congo

Tanzania

Seychelles

Comoros

AngolaZambiaMalawiNamibia

LEGEND
Projects Implemented/ing
Participated in training
courses in Japan and/or inMalaysia after 2009
SMEDevelopment

Zimbabwe

Mauritius
MozambiqueBotswana
Swaziland

Madagascar
South Africa
Lesotho

Source: modified from Homma (2013)16

Africa Business Education Initiative for the Youth (ABE Initiative)
Master’s Degree and Internship Program Implementation Image
Target Countries• FY2014～2017 54 African Countries (10 large batch countries)
Target Participants①②③

Private Sector Personnel Persons who should play a guiding role to strengthen the tie between Japan and Africa 60%
Government Official Young Officers who are in key positions for Industrial Development 30%
Academic Personnel Instructors of higher education institutions who contribute to the development of future industrial
personnel 10%

3 months

3mths2weeks

Application
Process

Selection
Process

Orientation
Program

Nomination by- Recipient Government-Japanese Companies-JICA-Japanese Embassy①WrittenExam,②Document
Screening③Interview-Company Visit-Basic Japanese
CourseFeature• Combination of Master’s course and Internship• Development of African Industrial Personnel who
have deep understanding on Japanese Society
after the long stay in Japan

Implementation Structure
1.
2.
3.
4.

2～3 years
Master’s
degree Course●Management●Agriculture●Engineering etc.
•••CompanyVisit
SummerInternshipStrengthening Network between AfricanIndustrial Personnel and Japanese Private
SectorPossibility of Recruitment by JapaneseCompanies
Capacity Development of African higher
education Institutions developing Industrial
Personnel

2 wks～half year
InternshipLeave
JapanLeaveJapan

Contribution to Industrial
Development by making use of
the vitality of Japanese Private
SectorAdvisory Committee（Tokyo・Once a year）：MOFA, MEXT, METI, KEIDANREN, JICA
Steering Committee（each country）：Japanese Embassy, JETRO, Japan Chamber of Commerce , Recipient Country, JICA
Secretariat：JICA
Support Organization： Support Organization (agency) will be recruited by JICA

17JICA’s On-going Projects in Trade/Investment in Africa(*including Investment Promotion Advisors)
Morocco (2015-2016)
Business Development Advisor

Senegal (2015-2017)
Advisor for the Development of theExport Competitiveness and Local
ProductsEthiopia (2011-2016)
Survey on Policy Dialogue of Industrial
Development Phase 2
Ethiopia (2015-2017)
Data Collection Survey

Cote d’Ivoire (2014-2016)
Advisor for CEPICI on Foreign
Investment Promotion
Ghana (2015-2017)
Advisor for Capacity Development
to Attract Foreign Direct Investment
to Ghana

Kenya (2015-2017)
Advisor for Industrial
Development

Cameroon (2015-2017)
Data Collection Survey

Rwanda (2015-2017)
Data Collection Survey

Republic of Congo (2015-2017)
Data Collection Survey

Technical Cooperation ProjectAdvisor
Trade andInvestment
Promotion

Mozambique (2016-2020)
Project for Enhancing Capacity of Investment
Promotion/Facilitation

Survey18

One Stop Border Post (OSBP) in Africa
West Africa Growth Ring
(ECOWAS, UEMOA)• Abidjan - Ouaga,• Accra - Ouaga,• Lome - Ouaga• Abidjan - Lagos

Nile Corridor,
Djibouti-Addis Ababa
Corridor（IGAD）

MoroccoSouth Soudan Custom
Capacity Development
Project (Provisional)(2015～2017)

Algeria
Libya

UEMOA Capacity
Development forCustoms★Cape VerdeAdministration(2012～2015)
GambiaGuinea-Bissau

Mauritania

Mali

Egypt

Eritrea

Niger
ChadGuinea

Sudan

Burkina
Faso

Djibouti

Northern and Central
Corridor (EAC)

Benin Nigeria
Coted’Ivoire Ghana

Sierra Leone
Liberia

Togo

Ethiopia

South Sudan
Central African Rep.
Cameroon

Kenya

Equatorial Guinea

UgandaRwandaGabon
Sao Tome andPrincipe

Congo

BurundiDem.Pep.Congo

Tanzania

SomaliaInternational
Trade
Facilitation Project for EAC
Region(2013.12～2017.12)
Seychelles

Comoros

AngolaZambiaMalawiNamibia

JICA’s Assistance on
Custom Sector
Improvementof Business
Environment

5 Major Economic
Corridors

Botswana/Namibia OSBPFacilitation & Custom
Capacity
Building(Mr.TAKAHASHI)(2015～2017)★Zimbabwe

Mauritius

Mozambique

Botswana
Swaziland

Madagascar

South Africa
LesothoNorth-South Corridor, NacalaCorridor (SADC)）

19

JICA’s Schemes based on proposals by Private Sector

Information Collection/Study
SME Partnership Promotion Survey
 To support Japanese SMEs that seeks
to conduct new business which
responding to development
challenges .
 Up to 8.5 mil JPY

Feasibility Study with the Private Sector
for Utilizing Japanese Technologies inODA Project To examine the potential use ofJapanese companies’ products andtechnologies for Japanese ODAprojects.
 Up to 30 mil JPY or 50 mil JPY

Preparatory Survey for BOP
Business Promotion

Preparatory Survey for PPPInfrastructure Projects

 To promote private sector BOPbusiness (inclusive business) which
responding to development
challenges .
 Up to 50 mil JPY

 To support companies that seek toconduct PPP infrastructure projects
in developing countries.
 Up to 150 mil JPY

20

JICA’s Schemes based on proposals by Private Sector

Verification/Promotion of ProductVerification Survey with the Private Sectorfor Disseminating Japanese Technologies

Collaboration Program with the PrivateSector for Disseminating JapaneseTechnology

 To verify the usefulness of selected
Japanese products and technologies
through actual installation andoperation of products.
 Up to 1 mil JPY

 To introduce products, techniques,
know-hows and systems of theJapanese private sector throughinviting relevant officials to Japan andholding workshops/seminars indeveloping countries for the future
adaptation
 Up to 20 mil JPY2121