On June 9, 2023, the government of Japan, the world’s third largest foreign aid provider, announced a complete revision of its Development Cooperation Charter in order to implement official development assistance (ODA) policies in a “more effective and strategic manner”.
According to Hayashi Yoshimasa, the Minister for Foreign Affairs, the revision was prompted by the need for enhanced engagement with developing countries as the international community is at a “historic turning point” and is facing “compound crises.” To this end, inter alia, Japan will develop an “offer-type” cooperation with ODA beneficiaries, while continuing to provide ODA on the basis of requests from partner countries.
The new charter asserts that loans by “emerging donors” are “not contributing to the growth” of developing countries. It also pushes for further enhanced coordination and mobilization of funds from the private sector.
Priority tasks for the new charter include “quality growth” in areas such as climate change, health, economic resilience, digital transformation, and humanitarian crisis as well as promoting a “free and open international order” that is based on the rule of law, specifically the New Plan for a Free and Open Indo-Pacific (FOIP) policy document formulated by Japan’s Foreign Ministry earlier this year.
Japan first formally set a policy on its official development assistance (ODA) in 1992 with what was then known as the ODA Charter. In 2003, the charter was amended to reflect the growing importance of ODA as a fundamental part of Japan’s foreign relations policies. In 2015, the ODA Charter was slightly reworked and renamed the Development Cooperation Charter, with no new changes expected until 2025, making this year’s revisions highly significant.
New approach
In December 2022, Japan adopted a new National Security Strategy, which outlined a goal of doubling defense spending over the next five years. The National Security Strategy stated that Japan faces a number of new threats, including “unilateral changes to the status quo” in the East and South China Seas area. The National Security Strategy also warned that China’s “external stance and other activities” are matters of “serious concern for Japan.”
In March 2023, Japan adopted a “New Plan for a Free and Open Indo-Pacific” (FOIP). The three pillars of the FOIP are: upholding the “rule of law”, specifically mentioning that “the weak are not beaten by force,” addressing “challenges” in the Indo-Pacific, including issues surrounding climate change and food security, strengthening cooperation with countries in South Asia (particularly India and Bangladesh) as well as island nations in the Pacific, and expanding Japan’s maritime presence in the region, both militarily and economically.
Japan’s newly revised Development Cooperation Charter is specifically designed to work hand-in-hand with its New Plan for a Free and Open-Pacific (FOIP). It stated among others that “Japan will provide assistance to ensure the security and stability of societies, including for maritime security”. It went on to say that in order to contribute to the establishment of the rule of law, “Japan will support the development of legal systems, including assistance in drafting laws and regulations, institutional development, and human resources development”.
Japan’s ODA amount
Japan’s official development assistance programs first began in the 1950s, largely serving as post-war reparations after World War II. In 2023, Japan budgeted approximately $ 17.5 billion in ODA.
Yet, despite ranking third in the world in terms of ODA allocations in 2022, Japan’s ODA contributions have stalled in recent years at 0.4% of GNI despite the international benchmark to spend 0.7% of GNI on development assistance.
