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?