WHAT IS THE DEVELOPMENT ASSISTANCE COMMITMENT?

In 2005, Japan stated that it intended to increase its ODA volume by $10 billion (¥1.1 trillion) in aggregate over the next five years, and it committed to double its ODA to Africa over the next three years. Having met this unambitious target, in May 2008 Japan made a new commitment to double bilateral ODA to Africa, net of debt relief, by 2012.

In order to be on a straight-line trajectory from 2007 to 2012, Japan’s target for bilateral ODA to sub-Saharan Africa for 2010 (the deadline for the collective G8 Gleneagles commitment to Africa), is $1.004 billion (¥104 billion).

OVERALL ASSESSMENT

Japan’s ODA, both globally and to sub-Saharan Africa, increased significantly in 2008. In the course of the year Japan made a new, but unambitious, pledge to double bilateral ODA to Africa by 2012, and is on track to fulfil this commitment: it has already fulfilled a derived interim 2010 target for it. Despite this year’s significant increase, Japan’s original commitment and the 2008 commitment were both the weakest among the G8 as measured by ODA/GNI. However, for the first time since 2005, Japan’s global ODA, net of bilateral debt relief, increased in 2008 compared with the year before.

In May 2008, Japan made several new sectoral commitments to Africa, including doubling rice production in the continent within a decade and training 100,000 health workers, but there were no monetary commitments specifying how these commitments will be financed. Though Japan recently increased its commitment to the Global Fund to Fight AIDS, Tuberculosis and Malaria, its pledges from 2008 to 2010 are below its proportionate share. On trade, it has done little to integrate its trade policy with development to create opportunities for African countries.

LOOKING AHEAD

Last year, Japan hosted the Fourth Tokyo International Conference on African Development (TICAD IV), a Japanese government-led conference devoted to African development, and also chaired the G8 Summit. This was a unique opportunity to show global leadership on the continent’s development. Japan's new commitments were welcome, but its pledge is not in line with its proportionate share in order to achieve the aggregate G8 Gleneagles commitment of an extra $25 billion by 2010.

Japan is expecting a general election in 2009. Although the country's overall global development policies, including the implementation of its commitments to Africa, are not expected to change even if there is a change of government, there may be some shift in emphasis across different sectors and regions.

As the global financial crisis grew towards the end of 2008, the Japanese government moved swiftly to secure funds for its Asian neighbours. Japan proposed that the Asian Development Bank triple its capital to $165 billion, and indicated that it will contribute about ¥60 billion ($671.3 million) in cash and provide a line of credit as the rest of its contribution. The capital increase was endorsed by the G20 Finance Ministers and approved by the Board of Governors of the Bank in April 2009. Meanwhile, Japan’s commitment to the African Development Bank was much weaker - to increase disbursement from $120 million to $140 million over five years.

Japan's significant increase in ODA to sub-Sahara Africa was welcome, but it must continue this scale of increase and must make a new commitment that is more commensurate with its leadership role in the global economy.

SEE THE ODA CHART

JAPAN ODA to sub-Saharan Africa and 2010 target

Click to enlarge
 

IS JAPAN DOING ITS PART TO MEET THE G8's SECTORAL COMMITMENTS?
 

ON TRACK
DEBT
  • Along with other G8 countries, Japan agreed to cancel 100% of qualified debts for the poorest countries, first through the HIPC and then through the MDRI process.
  • An important measure of progress on debt is the extent to which donors fulfil their commitments to compensate the IFIs for lost reflows due to lost revenue from debt servicing. Japan is on track with such commitments. In total, Japan has made pledges to cover the cost of multilateral debt cancellation worth $4.947 billion through to 2044, which fully meets its share.
  • As part of these pledges, Japan has committed to contribute $1.392 billion between 2006 and 2019 to compensate IDA for reflows lost due to MDRI. As of 30 June 2008, Japan had made an unqualified pledge of $331.5 million - 24% of the compensation needed. Japan is therefore on track but will have to continue to turn qualified pledges into firm ones.
  • Japan has cancelled 100% of bilateral debt owed by completion point HIPC countries, with one important exception: it has not cancelled its post-cut-off-date commercial claims and therefore has not delivered as much as other G8 countries.
WATER AND SANITATION
  • This report interprets the G8 commitment on water and sanitation to mean that a donor should direct 5.5% of its ODA to sub-Saharan Africa to this sector. With 6.78% of its ODA to sub-Saharan Africa going to water and sanitation ($260 million), Japan is on track with its commitment to the sector.
  • The 6.78% of Japan's ODA to sub-Saharan Africa that was spent on water and sanitation in 2007 represents a significant increase from the 4.22% the country dedicated to the sector in 2006. This is significant because of Japan's large ODA increase this year.

OFF TRACK
AGRICULTURE
  • Japan has failed to reverse the decline in funding for agricultural development. In order to meet the commitment, Japan will have to steadily increase funding for agriculture in sub-Saharan Africa in 2008 and beyond. The G8 commitment to agriculture remains weak.
  • Japan provided $174.52 million to agriculture in sub-Saharan Africa in 2007, a decrease of almost 18% or $38 million from 2006.
  • In 2007, Japan spent $154.6 million on food aid for sub-Saharan Africa, an increase of 134% over 2006 levels. This did not include the region's share of the $185 million for food aid committed in 2008 at the height of the food crisis.
  • Agriculture and food assistance has become one of Japan's priority areas. Its commitments in this sector include ODA increases to improve agricultural productivity. However, there has been no monetary commitment on resources that will enable this to happen. At the fourth Tokyo International Conference on African Development (TICAD IV) in 2008, Japan pledged to help Africa double rice production, in part by increasing the use of NERICA (New Rice for Africa), a high-yield, drought-resistant rice variety, in addition to improving crop varieties, irrigation systems and the application of technology.
EDUCATION
  • Japan spent $167 million for primary education in sub-Saharan Africa in 2007, falling far short of the $427 million it needed to be on track to deliver its proportionate share to achieve UPE in the region. 52% of Japan's ODA to education in sub-Saharan Africa was spent on primary education in 2007.
  • To get on track to meet its Gleneagles commitment on education, Japan will need to commit $394 million to primary education in sub-Saharan Africa in 2007, scaling up to $764 million in 2010.
TRADE
  • With the world's second largest economy, Japan is an important player in WTO negotiations. However, as with the EU, sensitivities in the agricultural sector, combined with market opening interests in the manufactured goods sector, continue to impede the progress of negotiations in the pro-development agenda.
  • Japan provides more than 98% duty-free and quota-free access to LDCs, with notable exclusions for agricultural products (such as rice and sugar) and certain fish products.
  • In 2005, at the WTO Ministerial Meeting in Hong Kong, Japan committed to spend $10 billion on aid for trade to all developing countries, some of which may be in the form of loans. According to OECD figures, Japan has sharply increased its aid for trade funding for Africa to $1.246 billion, becoming the second largest contributor among WTO members. As part of its aid for trade efforts, Japan has launched its 'One Village One Product' initiative in Africa, which focuses on building capacity.
  • Japan is one of the world's largest subsidisers as a single country, spending $39.7 billion in subsidies to support its farmers in 2007, according to the OECD. This was significantly higher than its global ODA (net of bilateral debt relief) of $6.8 billion in the same year.

PROGRESS REPORT
HEALTH
  • Total health sector spending for sub-Saharan Africa in 2007 was $348.2 million, a 16.61% increase over 2006 and a $105.4 million (43.4%) increase over 2004.
  • Of total 2007 health spending, Japan spent $203.17 million (58.4%) on infectious diseases; $113.15 million (32.5%) on health systems; $24.69 million (7.1%) on basic health; and $7.19 million (2.1%) on reproductive health.
  • Japan pledged and contributed $183.8 million in 2008, and has pledged to provide $194.4 million for 2009 to the Global Fund.
  • Japan contributed $20.32 million to the Global Polio Eradication Initiative in 2007, although this contribution dropped to $14.95 million in 2008.