Copyright 2011,

Japan, China, and South Korea:

Cooperation and Competition in

Foreign Aid

Center for Strategic and

International Studies (CSIS)

Naohiro Kitano

Japan International Cooperation Agency

1 March 16, 2012

• Ownership

• Self-Help Efforts

• Capacity Development

• Mutual Benefit

Principles of Asian Foreign Aid

2

Comparison of Net ODA Disbursement

3

Source : OECD DAC (2011) , “ODA by Donor”, URL: http://stats.oecd.org/Index.aspx?DatasetCode=ODA_DONOR

0

5

10

15

20

25

30

35

91

92

93

94

95

96

97

98

99

00

01

02

03

04

05

06

07

08

09

10

US

D B

illio

ns

UnitedStates

UnitedKingdom

Germany

France

Japan

Calendar Year

Growth of Korean and Chinese Foreign Aid

4

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

195

3

195

8

196

3

196

8

197

3

197

8

198

3

198

8

199

3

199

8

200

3

200

8

China official budget for external assistance

Eximbank concessional loans

0.0

0.5

1.0

1.5

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

US

D B

illio

ns

US

D B

illio

ns

South Korea

China

Growth rate in 2010 was

25.7%

2010

In 2010, foreign aid equaled approx.

USD 5.8 billion (40 billion Yuan)

Calendar Year

Calendar Year

Source : OECD DAC (2011) , “ODA by Donor”, URL: http://stats.oecd.org/Index.aspx?DatasetCode=ODA_DONOR

Source : Kobayashi （2007）、 Brautigam （2009）, extracting the figures from China Statistical Year Book and China Exim Bank Annual Reports

Strategy towards Emerging Countries

• Share best practices and lessons learned

• Exchange information to avoid duplication and

to allocate resources efficiently

• Explore opportunities for joint workshops,

training, research, and projects

Ultimate Goal: Maximizing development results

5

Multilateral Frameworks

• The first and second meetings of the Asian

Development Forum took place in Seoul in

November 2010 and in Tokyo last June,

respectively.

6

Second Asian Development Forum in Tokyo

JICA's President Meets with China's and

South Korea's Foreign Aid Leadership

7

JICA’s President Sadako Ogata and China‘s Vice Premier Li Keqiang (On the left photo)

KOICA’s President Park Daw-won (On the right)

• Annual consultations with KOICA in addition to ad-hoc

thematic meetings

• Periodic joint workshops with China’s Export-Import Bank

• Development Assistance Seminar for China’s Ministry of

Commerce (MOFCOM) staff

• Workshops among JICA, Korea Ex-Im Bank’s EDCF,

China Ex-Im Bank, and Thailand’s NEDA

8

Partnership Activities with South Korea and China

Second annual consultation meeting between

KOICA and JICA

Development Assistance Seminar for MOFCOM Four parties workshop in February 2012

Training Centers and Regional Offices

Changsha(Hunan)

Nanchang(Jiangxi)

Xi’an(Shaanxi)

Beijing

Shanghai

Jinhua (Zhejiang)

Fuzhou(Fujian)

Seoul

Okinawa

Sapporo

Tokyo

China:

Eight Centers

Annual: 16,000

Total: 120,000

South Korea:

One Center

Annual: 4,000

Total: 40,000

Annual number of trainees

Total number of trainees

Japan:

14 Centers and

Regional Offices

Annual: 10,000

Total: 370,000

Improved Product Quality & Productivity in Ethiopia

Kaizen 改善：

continuous improvement of

quality and productivity,

based on a process that

involves participation from the

entire workforce.

The 5‘S’s technique:

Sort, Set In Order, Shine,

Standardize and Sustain

QCC:

Quality Control Circles

10

Before Kaizen

After Kaizen

Political Support

• Strong leadership of Prime Minister

• Policy dialogue between Ethiopia & Japan

Technical Assistance

Pilot projects (30)

• Ministry level

• Hands-on

• Video

National plan

• Disseminate KAIZEN activities to manufacturing companies nation-wide

Outcome of KAIZEN

• Defect ratio: improved by 50 - 70%

• Lead time: improved by 16 - 90%

Knowledge

Sharing

Program

(KSP) by KDI

10

JICA’s Activities in Rice Development

*Supported by the

Consultative Group on

International Agricultural

Research (CGIAR).

Cameroon Upland Rice Development of the Tropical Forest Zone

China’s Agricultural Technology

Demonstration Center

Benin New Rice For Africa (NERICA) Experts in Africa Rice Center (Africa Rice) *

Olkaria Geothermal Power Project in Kenya

KENYA

Olkaria

OlkariaⅢ

OlkariaⅡ

OlkariaⅠ

OlkariaⅣ

Olkaria Geothermal power project 1

Drilling Service financed by CExim

Olkaria Ⅰ（1981～）

Present Generating Capacity :45MW

Future :185MW ( +140MW)

JICA ODA Loan:

The additional two units to increase the capacity by

140MW

China Ex-Im Concessional Loan:

Drilling services for production wells of Olkaria I

Partnership Activities emerging from Japan-China

Policy Dialogue on the Mekong Region

• Successive policy dialogues between Japan and China

on the Mekong region since 2008

• Possibility of development cooperation in the Mekong

region was discussed in the fourth dialogue in September

2011

• The Chinese government sent an expert to give a lecture

for the trainees, including those from Mekong region, in

JICA’s training program, ‘Rehabilitation of degraded lands

in Asia and Africa’ in December 2011.

14 Chinese expert in the lecture

15

Field Level Collaboration with South Korea

KOICA, JICA, volunteers from the two agencies, and the North South

University Earth Club jointly organized an International Earth Day program at

the NSU campus in Dhaka, Bangladesh in June 2011.

Source: KOICA

Future Engagement with South Korea and China

• JICA and KOICA continue to deepen their

dialogue on African development, joint research

and training opportunities, and collaboration

among volunteers

• More project-level cooperation with KOICA and

EDCF is expected in the future

• With China, collaboration is less advanced

• Dialogue, workshops, project site visits with

Chinese officials and researchers, and joint

training will continue

16

Implications for the U.S.

• Engagement is important

• Many opportunities for consensus

• Development cooperation can lead to stronger

bilateral relationships

• Competition makes us better providers of aid

(more responsive to our partners)

• Collaboration can enhance and expand

development impact

17

Copyright 2011,

Thank you for your attention.