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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. Japan ’ s Bilateral Aid Policy. -Brief History -Aid Policy -U.S. Influence -Economic vs. Political -Robert Orr
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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
Japan’s 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
ODA Charters • New ODA Charters • 1992 and 2003 • Focuses: • Environment-Energy Use per GDP • Peace- Armed Personnel • Democracy- Polity • Rich and Poor- Income Share
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
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?