Mr Satoru Miyamura

　African Development　　and 　Japan’s Partnership: 

　African Development　　 and 　Japan’s Partnership Satoru Miyamura, Ambassador of Japan to Kenya JJ/WBGSP Scaling-Up Program Regional Conference Nairobi, Kenya, Nairobi Serena Hotel, May 11, 2006

Fundamental Question:: 

Fundamental Question: “How best can we assist in reducing poverty and promoting economic development in Africa? My career relating to African development 1978-1980 Assistant to Executive Director for Japan, WB (World Bank) 1989-1991 Director in charge of multilateral development banks including WB, MOF (Ministry of Finance) 1995-1998 Director of Tokyo Office, WB 1998-2000 Executive Director for Japan, WB 2004- Ambassador to Kenya, Eritrea, Seychelles, Rwanda, and Burundi

Slide3: 

East Asia Sub-Saharan Africa Trends in ODA Disbursements of DAC Countries to Asia and Sub-Saharan Africa Source: Geographical Distribution of Financial Flows 2005 (OECD) US$ million ODA : Official Development Assistance DAC : Development Assistance Committee

Slide4: 

East Asia Sub-Saharan Africa Trends in GDP per Capita in East Asia and Sub-Saharan Africa (US$) (Calendar Year) Source: World Bank Development Indicators 2005 (World Bank)

Analysis by William EasterlyThe Exclusive Quest for Growth: 

Analysis by William Easterly The Exclusive Quest for Growth None of the assistance efforts below has been effective in economic growth and poverty reduction . . . - Assistance in investment, education, and population control - Structural adjustment loans - Debt relief . . . Because the assistance has been provided without attention being paid to incentives

New Approach to Development by Easterly: 

New Approach to Development by Easterly Measures to enhance growth incentives for the private sector Promote : 　Democracy and the rule of law 　Independent central bank and finance ministry 　Sound macroeconomic policy 　Free and fair trade policy 　 Good public service 　　　Importation of technology and knowledge Measures to eliminate growth disincentives for the private sector Remove : 　High inflation 　Black foreign exchange market 　Negative real interest rate 　Big budget deficits 　Taxation on future income Trade barriers Factors with negative effects on growth 　War and internal conflict, corruption, class struggle, ethnic rivalry

Points Emphasized by HattoriDonor Countries and Recipient Countries: For the Growth of Africa: 

Points Emphasized by Hattori Donor Countries and Recipient Countries: For the Growth of Africa Africans have a desire for a better life. Africans act rationally and make self-help efforts to realize their desires. Donors should think like Africans and work out development assistance policies that appeal to Africans’ desire for a better life and for profits. Excessive charity is a vice.

Why does Japan give aid to Africa?: 

Why does Japan give aid to Africa? Because “There will be no stability and prosperity in the world of the 21st century unless the problems of Africa are addressed and resolved.” (words of Japan’s former prime minister Mori)

Slide9: 

What Is TICAD ? Tokyo International Conference on African Development Co-organizers : Japan, the United Nations (OSAA & UNDP), the Global Coalition for Africa, and the World Bank Participants : African countries, G8 countries, Asian countries, international agencies, private sector, NGOs, etc. TICAD I (1993)　 Functioned as a way to bring the international community’s attention back to Africa TICAD II (1998) Emphasized the importance of “African countries’ ownership and international communities’ partnership” TICAD III (2003) Presented the three pillars of African development

Slide10: 

Three Pillars of TICAD III Consolidation of Peace Assurance of security; establishment of political governance framework, reconstruction　and development Poverty Reduction through Economic Growth Agricultural development, infrastructure development, promotion of trade and investment Human-Centered Development Health, education, water, food assistance Asia-Africa Cooperation (south-south cooperation) Human Security Approach

Slide11: 

Progress Since TICAD III TICAD Asia-Africa Trade and Investment Conference (November 2004) G8 Gleneagles Summit, Message from Prime Minister Koizumi (July 2005) ・Commitment to double Japan’s ODA to Africa in the next 3 years ・Promise to strengthen support for health, consolidation of peace, 　　　　 　　　green revolution, and trade and investment ・Promotion of Asia-Africa cooperation Development Initiative (December 2005) ・ Comprehensive approach to create an upward spiral of trade and development in developing countries TICAD Conference on Consolidation of Peace (February 2006)

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Trends in Japan’s Bilateral ODA Disbursements by Region Asia Middle East Africa Latin America Oceania Europe Other (Calendar year) Note: 1. ODA to the European region since 1990 includes aid to Eastern Europe. 2. If the repaid amount exceeds disbursements, the figure can be negative.

My Concerns About Recent Development Measures: 

My Concerns About Recent Development Measures Debt Reduction - May create moral hazard among HIPCs (Heavily Indebted Poor Countries) - May create a sense of unfairness among non-HIPCs Budget Support - May reduce incentive to collect tax revenues - May lead to perpetuated dependency on foreign aid unless there is a proper exit strategy Aid Coordination - Are there sufficient incentives among donors?

Slide14: 

How Can Japan’s Assistance Be Made More Effective ー My own thoughts ー Except for emergency humanitarian aid, Japan should give aid only for the self-help efforts of the recipient country and its citizens. Japan should use the lessons learned from its own experience in its modernization process, its dramatic economic recovery and growth after World War II and its development assistance to East Asian countries. Japan’s development assistance should reflect the assets Japan possesses.

Examples of Lessons Learned from Japan’s Historical Experience: 

Examples of Lessons Learned from Japan’s Historical Experience ・Establish strategies and goals for the country through 　government leadership ・Promote national unity to achieve goals ・Import knowledge and technology from developed 　countries ・Strengthen the market economy system ・Maintain a sound macroeconomic policy ・Encourage savings to secure money for investment ・Develop necessary infrastructure ・Encourage exports ・Establish equal employment regulation ・Stress the importance of math and science education

Assets of Japan Possibly Useful for Africa: 

Assets of Japan Possibly Useful for Africa Good working spirit and professional ethics Bottom-up approach and consensus in decision making Endless endeavor for perfection Good time management Public morality to keep the street tidy and clean Fondness for peace and harmony with others