does japan use the asian development bank to conceal its mercantilist foreign aid policy? daniel...

Does Japan Use the Asian Development Bank to Conceal

Its Mercantilist Foreign Aid policy?

Daniel James WatsonECONOMIC DEVELOPMENT AND

INTERNATIONAL POLITICSINAF 100-14

-Brief History-Aid Policy-U.S. Influence

-Economic vs. Political-Robert Orr

-Why 1992?-Japan as top donor-Cold War ending-New ODA Charters

-Empirical Evidence-Small Donor Countries-Market Oriented

Japan’s Bilateral Aid Policy

•New ODA Charters• 1992 and 2003

•Focuses:• Environment-Energy Use per GDP• Peace- Armed Personnel• Democracy- Polity• Rich and Poor- Income Share

ODA Charters

Statistical Findings

• Significant for Single Variable• Better Correlations after 1992

• Not Robust

Current Economic Needs

• Waning Power• East Asian Financial Crisis• Remapping of the Region?– T.J. Pempel

• Stagnated Growth-Graph 1

Stagnated Growth:

Japanese Aid-Distributing Policy

• Several Ministries – Foreign Affairs– Finance– Trade and Industry

• Lack of clear goal• New coordination movements– Japanese International Cooperation Agency

• Changing Public Opinion– Orr vs. Woods

• International Influence (Rix)

Japan and the ADB• Influence– Voting shares– Key position

• Decreased Funding from Europe/U.S. – Table 1

Japan and the ADB- Influence– Voting shares– Key position

•Decreased Funding from Europe/U.S. – Table 1

•Increasing Relative Power of Japan– Ming Wan

•Empirical Analyses– Pre-1992 insignificance– Post-1992 significance– Robustness

The Asian Development Bank’s Policy

• Same as Japan?• Focuses:• Environment-Energy Use per GDP• Peace- Armed Personnel• Democracy- Polity• Rich and Poor- Income Share

• Thus far…Inconclusive

Conclusion• Japan’s Bilateral Policy– 1992-Charters– Evidence

• Current Economy and Politics– Motivation to continue– Ability to Change

• The ADB– Japanese Influence– Non-Responsive to New Japanese Policy

•Cover-Up?