Japan's ODA cooperation with ASEAN countries

This article examines the creation, role and change of approaches to Japan's Official Development Assistance (ODA) organization in recent times. It also contains new opportunities and tools provided for the ASEAN countries. This article also provides details from the official sources in Japan and in South West Asia with lots of examples and statistics. The author discloses the main point of Japan's organization in the region. The aim of the article, according to the author, is to trace how Japan is cooperating with ASEAN nowadays and how the set objectives are being reached. The author shows how Japan began to increase volumes of trade and economic cooperation with developing countries, especially with Asian countries. The author thinks that cooperation with ASEAN countries is one of the highest priorities in Japanese ODA. In the course of time, in August 2003, a new version of the ODA National Charter was passed by the Cabinet of Japan. In the document, Japan announced three priority areas of cooperation between Japan and ASEAN (cooperation to strengthen ASEAN integration, cooperation to enhance the economic competitiveness of ASEAN countries, including investment promotion, cooperation in control of terrorism, piracy and other transnational problems). It is expected that the scale of aid will exceed $1.5 billion over the next three years. In addition, some exchange programs are planned involving approximately 40,000 people for the same period. In such a manner, Japan was the guarantor of the sustainable development of important countries of East and South-East Asia. Interdependence was expressed in the further development of a common space (Japan signed agreements on free trade zones with virtually all ASEAN countries and with the organization itself). In the development of monetary and financial cooperation, ASEAN+3 is reflected in the new format of the "joint venture", the Chiang Mai Multilateral Initiative (CMMI), which is meant to minimize the negative consequences of the crisis phenomena in the global and regional economies. In such a manner, the countries of East Asia - and all the ASEAN's ten member sates - successively combine forces in the protection of the region from monetary and financial shocks coming from outside. An important motive for the implementation of CMMI is the reduction of financial dependence on global institutions and leaders (IMF, USA). The author comes to a conclusion that the Official Development Assistance is foreign aid to the developing countries. Further development of ODA will only be possible if agents are trained, new technologies begin to spread, the earning power of real assets in transportation and communications increases along with increased investment in irrigation and marketing development.

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