Scandinavian Working Papers in Economics

EIJS Working Paper Series,
Stockholm School of Economics, The European Institute of Japanese Studies

No 157: CHANGES IN JAPANESE FOREIGN AID POLICY

Marie Söderberg ()
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Marie Söderberg: European Institute of Japanese Studies, Postal: Stockholm School of Economics, P.O. Box 6501, S-113 83 Stockholm, Sweden

Abstract: The main part of Japanese aid is directed to Asia and there has been a strong emphasis on economic infrastructure, that is building railways, roads and ports etc. Recently however there is a refocusing towards environmental aid and “softer” types of aid such as poverty alleviation and social infrastructure. ODA that used to be based on the request from the recipient countries has become much more politicised, with Japan itself making country assistance plans indicating what fields they are willing to provide aid in. This is not always popular with the recipient government as in the case of China. In this case it has actually made Japan’s already complex relation with China even more complicated. The paper will start with a short historic review of Japanese ODA policy and the characteristics of Japanese aid. This will be followed by an explanation of the changes going on in Japanese foreign aid policy and finally we will see how this how this effect aid to China and the role of aid in the future Japan-China relationship.

Keywords: Japan-China relations; Japanese ODA policy; foreign aid; environmental aid; poverty alleviation; social infrastructure; country assistance plans

JEL-codes: O10; O20

15 pages, October 1, 2002

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