Japanese AID Diplomacy

Abstract

The thesis Japanese Aid Diplomacy in Nepal attempts to explore both the reasons and benefits of Japanese Aid to Nepal. Japan is one of the most significant actors in global politics. In response to global demands and for its national interest, Japan has contributed to the peaceful order of other nations and regions by enhancing liberal norms and regimes. Japan views South Asia with strategic geopolitical interest and places a high priority on working with the region to create peace and stability underpinned by rules that comply with liberal universal values. Japan provides aid less than the United Kingdom and the United States but still, Japan is a significant aid provider to Nepal than its neighbours. Unlike western power, Japan does not have significant stakes in Nepal. There is a demand for shifting income from rich to poor countries with different International Program like bilateral aid, multilateral aid from International organisations, technical assistance and grants at below market rates. Japan’s renewed focus on South Asian countries can also be noted through the latest ODA white paper, released in April 2016. In view of Japan’s standoff with China in the East China Sea and Beijing’s relentless and assertive claims in the South China Sea, Japan actively promotes the notion of freedom of navigation of sea lanes and aims to develop a network of like-minded nations in the region. To achieve Japan’s objectives of the rule of law, maritime security, cyber security and peace- building measures, the white paper notes the importance of South Asian nations as partners. The use of aid to bolster its national interest is another key policy change in Japan’s ODA objectives. While national interest implicitly guided Japan’s aid policy in the past, it is the first time that it has been stated in a Government document and defended by the Ministry of Foreign Affairs and Japan’s aid agency, the Japan International Cooperation Agency (JICA). Japan has redefined its aid orientation to serve its geostrategic and national interests, largely due to the changes in the global geostrategic environment, especially in the wake of China’s rise, Tokyo also remains strongly committed to the conventional aid philosophy and puts significant financial and human resources into social and humanitarian issues confronting developing societies in Asia, Africa and elsewhere. The thesis perceives the Japanese Aid to Nepal as a positive-sum game as the growth of Nepal increases the capacity of Nepalese to buy Japanese products on one hand while it also helps grow Japanese soft power in the country on the other. JICA was established in 1978 and is playing a significant role in the socio-economic development of Nepal. In the present context, Japanese assistance covers almost all aspects and dimensions of the Nepalese economy. Japan has been providing grant aid, loan and technical assistance and a large number of details could be found from the reports and data from JICA’s official website. Japanese loan and grant assistance started in Nepal in 1969 and 1970 respectively. From 1970 onwards, Japan has been providing technical cooperation with the dispatch of Japan Overseas Volunteers in implementing and handling technical cooperation projects. All potential data have been looked for and has been analysed to create a strong case of the thesis. Japan has been seen to have a keen interest in construction and the discussion of the B.P Koirala highway has been discussed on multiple occasions. Japan has helped by loans in hydro-power, cement plant project, and Kulekhani Disaster Prevention Project The thesis suggests that Japan has started to increase its interest in the South Asia region as a whole and India specifically is the largest aid receiver since 2008.