Does Japan Use the Asian Development Bank to Conceal Its Mercantilist Foreign Aid policy? Daniel James Watson ECONOMIC DEVELOPMENT AND INTERNATIONAL POLITICS INAF 100-14

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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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Japans Bilateral Aid Policy

• -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

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ODA Charters

• New ODA Charters
• 1992 and 2003
• Focuses
• Environment-Energy Use per GDP
• Peace- Armed Personnel
• Democracy- Polity
• Rich and Poor- Income Share

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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 Banks Policy

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

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Conclusion

• Japans 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?