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    Japan
     Jul 17, 2007
Page 2 of 2
More proof of the Rising Sun's eclipse

By Hisane Masaki

military spending. In its annual report released last month, the respected Stockholm International Peace Research Institute (SIPRI) said world military spending had risen by 37% in the past 10 years to $1.2 trillion - a trend that was largely led by the US. The report also said that the rising trend is unlikely to taper off soon.

United Nations Secretary General Ban Ki-moon has called on developed nations to do their own part in a bid to achieve the



Millennium Development Goals set in 2000, which call for, among other things, halving the global number of people living in extreme poverty by 2015. About a sixth of the world's population still live in extreme poverty, earning less than $1 per day, and nearly a seventh of the world's population face starvation.

Japan's per capita ODA was 15th among the 22 major donors in 2005, at $102.9. This means Japan's relatively large population has so far made it possible for Japanese people to boast of their nation's status as a leading ODA donor while shouldering a lesser burden than their counterparts in many other industrialized nations on a per capita basis.

Although the widening gap between rich and poor and the growing ranks of "working poor" have been hotly debated in Japan lately, many Japanese seem to be more inward-looking than before, showing little interest in the acute issues of global wealth gap and poverty.

Japan has continued to slash its ODA budget in the past decade amid its tight fiscal condition. The government's general-account budget for fiscal 2007, which started in April, includes ODA spending of 729.3 billion yen (about $5.9 billion), is down 4% from the fiscal 2006 budget. The fiscal 2007 ODA budget represents a whopping 38% decline from the nearly 1.2 trillion yen in fiscal 1997. ODA accounts for less than 1% of the fiscal 2007 general account budget, which totals about 83 trillion yen.

To be sure, spending for public-works projects, widely seen as a main target for budget reductions, has been axed in recent years amid strong public criticism of pork-barrel projects. But the size of cuts in spending for public works projects made in the past decade - 19% - is smaller than that for ODA spending. ODA is not a vote-winner for politicians, and resistance to spending cuts has not been so strong.

To be sure, the volume of ODA projects includes yen loans from such special accounts as the Fiscal Investment and Loan Program (FILP), widely dubbed as the "second budget", and debt forgiveness, as well as spending from the general-account budget. So cuts in ODA spending in the general account budget do not necessarily mean an overall reduction in the volume of ODA projects.

But if ODA spending is actually trimmed by between 2% and 4% annually until fiscal 2011, as stipulated in the Council on Economic and Fiscal Policy's 2006 report, it would be extremely difficult - and perhaps impossible - for Japan to fulfill its commitments.

The Liberal Democratic Party's select commission on strengthening Japan's diplomatic might, which was established last year with former prime minister Yoshiro Mori as its chairman, released a 10-point action plan last month recommending that the nation expand ODA in terms of both quantity and quality ahead of the next Group of Eight summit to be held in the Lake Toya hot-spring resort area of Hokkaido next July. The year 2008 will have particular significance for the development issue because it is just a halfway point toward the 2015 target date for the UN's Millennium Development Goals.

To be sure, resource-poor Japan is also desperately seeking strengthened relations with resource-rich countries to ensure stable supplies of oil, gas and other resources. But Japan, the self-proclaimed champion of democracy in Asia, cannot go China's way. Japan cannot turn a blind eye to poor records on democracy and human rights in many African countries. Japan has applied strict criteria for aid provision to developing countries in Asia, Africa and elsewhere in the world, with democracy and human-rights protection being stipulated in the ODA Charter as basic conditions.

Meanwhile, Japan has already decided to stop offering fresh low-interest yen loans to China before the 2008 Beijing Summer Olympics. The yen loans account for the bulk of Japanese ODA to China. Japanese ODA money began to flow into China in the late 1970s, when China embarked on a policy of reform and openness.

But Japan is expected to continue to provide technical cooperation in such areas as environmental protection and human-resources development. Yellow sand and acid rain originating in China have affected parts of Japan.

Hisane Masaki is a Tokyo-based journalist, commentator and scholar on international politics and economy. Masaki's e-mail address is yiu45535@nifty.com.

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