Japans ODA to China - Research Paper Example

Japan’s ODA to China Introduction Japan’s Official Development Assistance has been crucial for the development of China as 60% of the ODA provided to China comes from Japan. (Wu, 2008) For the past twenty years Japan has been the major provider of ODA to China with the loans totalling 2,453.5 billion Japanese Yen in 1999. (Masuda, 2003) However after 1999, there have been changes in the strategy of the Japanese ODA. There are many reasons that are responsible for this fact. The most important one is the criticism that Japan is facing internally because it is in a state of deficit and the providing of such huge loans to China is further aggravating the situation when China is the providing of loans to countries of Africa. It is strange; however, that Japan has not completely ended its ODA efforts in China despite the problems that it is facing. It seems that Japan has a more well thought plan about ODA to China, a plan that is not affected by the short run but concentrates on objectives that could work out well for Japan as the Asia region become more stable. Working Hypothesis My hypothesis is that Japan wants to provide ODA to China because it seeks to create an atmosphere where it can prosper economically and politically. It is true that there have been instances where there was a chance of the removal of the assistance for example after the Tiananmen Square incident and during the war. However it seems that Japan is moving beyond an economic-centred foreign policy programme. Rather my hypothesis is that Japan is trying to play a tit for tat game here. It seeks to give additional aid to China so that China is willing to abide the international laws and norms. This would lead to the creation of both a political and an economic environment that may be helpful in the development of trade and foreign direct investment and may also be lead to the institutionalization of democracy. Historical and Literary Survey Japan’s ODA in China is a topic which has attracted a lot of attention. A lot of scholars have searched about the issue out of the curiosity of Japan’s actions. For many, Japan’s actions are an attempt to contribute towards world peace. For others, however, the acceptance of the giving of trade is a part of the strategic policy of Japan that aims to paint a rosy picture of Japan in international relations. Many scholars have studied the trends in the periods of Japan-China assistance. Wu, for example, divides them into three time periods, the development time, the adjustment time and the conversion time (Wu, 2008). The development time was from the year 1979 to 1989 when Japan was keen to establish itself as a peace loving company after what had happened in the Second World War. (Liping and Soderberg, 2005) This was the time when China and Japan were the closest and worked together for the betterment of mutual relations. But things changed drastically after the end of the Cold War. By the 1990s Japan had projected a diplomatic image in the world and although it did provide China with huge amounts of aid, the relations of both the countries were not as good as they had been in the eighties. (Reinhard, 2006) Some scholars also associate the Tiananmen Square incident with the change of Japan’s policy. This was because Japan, after establishing itself as a peace lover, could not keep cordial relations with the leadership that had caused such a huge massacre. For Japan, the support to China in those circumstances meant that Japan was supporting the aggressors and this way it would be criticised by the countries of the world, as at the end of the Cold War there was a general emphasis on peace keeping. It is interesting to note that Japan did not cease to provide aid even in such circumstances. For some scholars, this was because after the Cold War countries were freed from Cold War strategic considerations. Many countries by that time had changed their aid policies and instead of helping out the Third World Countries, started to invest in countries that promised market potential. (Sunaga, 2004) China was one such market and Japan, recognizing its potential, did not want to ruin its relations with China. Also, globalisation (which was highly welcomed in the 1990s) resulted in a need for global economic integration and so Japan could not go against all other countries during this period as it would have ruined its economy. The third time transition or more appropriately the convention time has been since 2000 till present. This has been the time when the relations between the two countries have deteriorated the most. For most of the scholars, this time has widened the gap between Japan and China and it is likely that Japan will end its program of ODA in China soon. (Kawai and Tagaki, 2001) A reason for this is the increased emphasis on aids to Africa by China. Japan has provided aid to Africa in the past but the aid was nothing compared to the aid given by Japan in Asia. The aid to Africa is often criticised by Japan because through the giving of aid, China is creating a political status in the international relations. This is of interest because Japan has been very critical of things where Japan itself did not have a comparative advantage. (King, 2007) Equally important is the fact that Japan, currently, is suffering from a budget deficit and the giving of additional loans to China has disturbed most of the Japanese. (Masuda, 2003) Thirdly, scholars also believe that Japan might change its policy overall to invest in other countries like India where it can benefit from a comparative advantage. (Jain, 2004) Despite the above mentioned reasons it is interesting how Japan still provides China with ODA. Through the providing of ODA both the countries have signed three treaties that help enhance the relations of both the countries. However, the money being provided to China has been used in the making of museums, for example the Nanking Massacre Museum, which portray the atrocities of the Japanese during the Sino Japanese War. (Pu, 2005) Still, Japan has not protested and is keener to establish better relations with China, for some, because of the permanent seat of China in the UN. Many scholars also believe that Japan seeks to contribute towards collective security despite the problems that it has been facing presently. This is what I believe too and would elaborate upon in my essay through the following theoretical model. Theoretical Approach The rational actor model proposes that a country is a unitary actor that makes rational decisions. (Gintis, 2009) These decisions include the setting of proper goals, the consideration of options, the assessment of consequences and also profit maximisation. The rational actor model is very much applicable to the case of Japan. Japan’s decision of allowing ODA to China is one that is based on the proper assessment of consequences. The Japanese leadership is well aware of the fact that the removal of assistance may hinder the stability that is presently prevalent in the region due to the giving of assistance to China. It is true that the leadership is facing internal pressures because of the presence of a deficit yet it has decided to act on a long term strategy. Japan’s leadership is rational in a way because it is well aware of the fact that the removal of ODA from China would further deteriorate the economy. Also, there would be a constant threat of aggression from China. Precious resources may be lost in trying to remove the rivalry between the two. It is due to this fact that Japan kept on providing ODA to China despite the fact that both countries were at war. Research Methodology In order to ponder over the reasons why Japan is still keen on investing in China, I would carry out secondary research. It is important to consider authentic sources and for that purpose I would mostly consult scholarly articles. There has been a lot of debate about the prospects of the present situation between the two countries and a lot of scholars have researched about the matter. However, scholarly articles at times are not very up to date. Therefore, I would also concentrate on media reports especially newspaper reports that seek to establish a link between the behaviours of the two countries. This would enhance my knowledge to the recent developments that have taken place with respect to the ODA, to a greater deal. Expected Conclusion Through my research, I am going to conclude that Japan’s emphasis on an environment of collective security in the region is the reason why Japan still provides aid to China. Japan considers it essential to create an atmosphere where the security and prosperity of Japan is not threatened in any way and the environment is open to cooperation. (Sunaga, 2004) Downs believes that collective security of any region is essential for the rational acting of individual states as it leads to a lesser spending on war, a greater deal of cooperation and higher stability and prosperity. (Downs, 1994) For me, it seems that Japan is acting on Downs principles and rather than fretting over issues that tend to destabilize the region, is trying to create and environment that is dependent on cooperation with China. Works Cited Downs, George. Collective Security beyond the Cold War. Michigan: Michigan UP, 1994. Print. Jain, Purnendra. Japan to shift aid focus from China to India. Japan: Asia Times Online, 2004. Print. Kawai, Masahiro. and Shinji Takagi. Japan’s Official Development Assistance: Recent Issues and Future Directions. Washington: Woodrow Wilson International Center for Scholars, 2001. Print. King, Kenneth. China’s Aid to Africa: A View from China and Japan. China: University of Hong Kong, 2007. Print. Gintis, Herbert. Game Theory Evolving: A Problem-Centered Introduction to Modeling Strategic Interaction. Princeton: Princeton University,2009. Print Liping, He. and Soderberg, Marie. Oda For China: Seed Money And A Window For Contacts. China: Beijing Normal University, 2005. Print. Masuda, Masayuki. Japan’s Changing ODA Policy Towards China. Japan: China Perspectives, 2003. Print. Pu, Xiaoyu. The Nanking Massacre, Justice and Reconciliation: A Chinese Perspective. China: Overseas Young Chinese Forum, 2005. Print Reinhard, Drifte. The ending of Japans ODA loan programme to China—Alls well that ends well? UK: Routledge, 2006. Print. Sunaga, Kazuo. The Reshaping of Japans Official Development Assistance (ODA) Charter. US: FASID Discussion Paper on Development Assistance No.3, 2004. Print. Wu, Zhigang. Research on Japan’s ODA to China and It’s Contribution to China’s Development. China: Liaoning University of Technology, 2008. Print. Read More