Japan and the EU: Development Partners

1. Japan and the EU: Development Partners A comparative analysis (mainly based on DAC peer reviews) Geert Laporte European Institute for Asian Studies, Brussels 28 May 2013

2. WHAT IS ECDPM? Independent foundation working on EU-Africa relations for more than 25 years: • Non-partisan facilitation of dialogue 2. Practical and policy relevant analysis 3. Linking key players in the EUand Africa, through networks and partnerships 4. Capacity building in Africa to bring more balance in the partnership with the EU 5. Building alliances with non-EU players in development (Japan, BRICS, USA, South Korea, Switzerland…)

3. STRUCTURE OF PRESENTATION THREE PARTS: • The changing development context • Comparative analysis Japan-EU • Where can Japan and EU join forces? ECDPM

4. THE CHANGING DEVELOPMENT CONTEXT Global financial and economic crisis, particularly affecting EU Declining aid budgets (ODA) but increasing needs for different sources of financeto tackle development and global challenges (e.g climate change) New players in development (BRICS, G-20, private sector, development foundations,…) A more political vision of development: Busan: “…it is essential to examine the inter­dependence and coherence of all public policies – not just development policies…” ECDPM

5. PLACE IN GLOBAL LANDSCAPE JAPAN • Economic power-house but little political power • Losing influence to new competitors, mainly in Asia (China, Korea,…) • EUROPEAN UNION • Trade giant but political dwarf (in spite of Lisbon Treaty) • “EU is a payer not a player” • Losing influence to emerging economies (BRICS etc) ECDPM

6. PLACE IN DEVELOPMENT JAPAN • From biggest aid donor (1991-2000) to 5th donor (2013) • Presence in some 140 countries • Not considered to be a leader in the policy debates and agenda-setting but quite an effective implementer • EUROPEAN UNION • EU “formidable player” (DAC): 60% of all aid in the world (EU & MS) & largest humanitarian donor…but declining budgets • Network of 136 Delegations • Strong on policy and strategy development (EU Consensus on Development, Agenda for Change,…)…but weak on implementation ECDPM

7. POLICY ORIENTATIONS JAPAN • Focus on economic transformation (“self help” + own development experience ): economic growth, infrastructure, industrial production, agriculture,..) • Commercial and business interests • Fragile states and human security has been added • Strong focus on technical cooperation • Principle of non-intervention • EUROPEAN UNION • Poverty reduction • Value driven agenda (good governance) • Inclusive growth • Support to regional integration (own role model) • Rather normative development approach (…with double standards) ECDPM

8. GEOGRAPHIC FOCUS JAPAN • Key focus = (East) Asia (but also doubling of aid to Africa in recent years ) • Focus on middle income countries • EUROPEAN UNION • Key focus=Africa • Least developed countries (“direct aid where it is most needed”) • Increasing differentiation: no more aid to upper middle income countries ECDPM

9. VOLUMES & MODALITIES JAPAN • 0,18% of GNI (approx 10 billion $) • Rather traditional approach: projects ratherthan programmes, loans, technical cooperation, tied aid,… • Strong preference for bilateral earmarked aid (84% in 2008) • Need to increase use of programmatic approaches and core/institutional funding • EUROPEAN UNION • 0,44% of GNI (2010) = 70 Billion $ ODA • Collective ODA level of 0,7% of GNI will not be reached in 2015 • Strong focus on regional organisations • Need to increase use of flexible core funding ECDPM

10. ORGANISATION AND MANAGEMENT JAPAN • Quite centralised and hierarchical • More responsibility to implementation and coordination agency (new JICA) • Need to delegate more authority to the field • Separate and additional reporting for Japanese earmarked funds= high transaction costs • EUROPEAN UNION • Complex institutional architecture (unclear role division and duplication EEAS-DEVCO) • Several financial instruments with heavy procedures • Increased devolution of authority and staff to the field • Intense scrutiny by EP, Council, European Court of Auditors, think tanks, NGOs ECDPM

11. COORDINATION & HARMONISATION JAPAN • ‘go-it alone approach’ • Resistance to harmonisation • EUROPEAN UNION • Strong declarations but little action on coordination and complementarity ECDPM

12. POLICY COHERENCE FOR DEVELOPMENT (PCD) JAPAN • No explicit policy statement, institutional mechanisms and monitoring and reporting systems on PCD • EUROPEAN UNION • In spite of solid strategic framework with appropriate institutional mechanisms, independent analytical capacities and tools to track progress … little concrete progress has been achieved ECDPM

13. PARTNERS & PUBLIC SUPPORT JAPAN • Key focus on national governments • Low involvement of civil society organisations/NGOs (only 3% of budget) • Rather modest pro-development lobby and limited involvement of Japanese NGOs in implementation • EUROPEAN UNION • Key focus on governments and CSOs • Structured dialogue with CSOs and local authorities • Strong public support for development in most EU countries ECDPM

14. WHERE CAN JAPAN AND EU JOIN FORCES? • Africa increasingly important for both partners • TICAD V (1-3 June 2013 Yokohama)- EU-Africa Summit (April 2014) • Common concerns, priorities and interests that could be different from emerging development players • Complement “traditional” MDG development focus with new Post 2015 development vision ECDPM

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