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Although Japan’s capacity to support other countries is decreasing due to worsening fiscal conditions, official development assistance (ODA) remains an important diplomatic tool for Japan.
Many developing countries still face problems such as poverty, famine and infectious diseases. In addition to economic assistance, Japan needs to strengthen support in the medical and health fields, which are its strong points, and contribute to the stability of people’s lives.
The Japanese government has released the White Paper on Development Cooperation for 2024.
In light of the fact that 2024 marked the 70th anniversary of the start of Japan’s ODA, the white paper gave a detailed account of its significance. It emphasized the history in which Japan has built good relationships with developing countries through infrastructure development, and ODA also contributing to the growth of the Japanese economy by helping companies expand overseas.
Japan can be proud that the public and private sectors have worked together to continue providing steady support and have built up trust in this country among recipient nations.
However, the environment surrounding ODA is becoming increasingly severe. Its budget peaked at about ¥1.17 trillion in fiscal 1997 and has now almost halved.
According to a survey conducted last year by the Cabinet Office, the percentage of respondents who said that development cooperation should be “actively promoted” in the future was 25%, the lowest in the last 10 years.
It appears that an increasing number of people are wondering whether Japan should be providing aid to other countries when Japanese households are struggling with their finances due to high prices.
However, only 20% of ODA is grant aid, which developing countries are not obliged to repay, while around 60% is yen loans, which are repaid with interest. The government should thoroughly explain this reality and the significance of ODA.
But beyond that, there is an increasing need to strengthen support in intangible fields, such as human resource development and improvement of legal systems in developing countries, in close cooperation with businesses and nongovernmental organizations.
There are some examples of failures in ODA projects, such as a fish market in Africa that was built with great effort but was not utilized for a long time after completion due to low accessibility. This was because local circumstances were not fully taken into consideration.
It is vital to make efficient use of ODA, even with a small budget.
There is also a growing trend in Europe and the United States to scale back foreign aid.
The administration of U.S. President Donald Trump has suspended most of the projects of the U.S. Agency for International Development, which is responsible for foreign aid, on the grounds that there is too much waste. Britain intends to cut down on foreign aid to increase its defense spending.
Meanwhile, many developing countries are complaining that developed countries are responsible for climate change and frequent natural disasters. In order to prevent divisions from widening, this is a time when Japan’s contribution, focusing on the stabilization and improvement of people’s lives, is required more than ever.
