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Does Japan Use the Asian Development Bank to Conceal
Its Mercantilist Foreign Aid policy?
Daniel James WatsonECONOMIC DEVELOPMENT AND
INTERNATIONAL POLITICSINAF 100-14
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-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
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•New ODA Charters• 1992 and 2003
•Focuses:• Environment-Energy Use per GDP• Peace- Armed Personnel• Democracy- Polity• Rich and Poor- Income Share
ODA Charters
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Statistical Findings
• Significant for Single Variable• Better Correlations after 1992
• Not Robust
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Current Economic Needs
• Waning Power• East Asian Financial Crisis• Remapping of the Region?– T.J. Pempel
• Stagnated Growth-Graph 1
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Stagnated Growth:
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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)
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Japan and the ADB• Influence– Voting shares– Key position
• Decreased Funding from Europe/U.S. – Table 1
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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
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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
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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?