Abstract
The landscape of international development in the age of the Sustainable Development Goals (SDGs) is significantly different from that in the time of the Millennium Development Goals (MDGs). The SDG age is characterized by more diverse actors. With accelerated globalization, the flow of private financing to developing countries has dramatically increased, and now exceeds the volume of official development assistance (ODA). As a result, the interface between business and development cooperation activities is growing. Against such background, this chapter reviews the recent global trends and various models of new development partnership, with special attention to new Japanese ODA initiatives introduced over recent decades. It also presents two types of case studies of new ODA initiatives: partnership with local governments and small-and medium enterprises (SMEs) for sustainable development; and Science and Technology Research Partnership for Sustainable Development (SATREPS). Compared to partnerships under the traditional Japanese PPP model, new development partnerships require much broader and deeper interactions with partner countries, and with stakeholders within Japan as well. Merely transplanting Japanese technologies may not be sufficient, and the localization process is critically important. Furthermore, the role of the private sector is becoming even more vital for ensuring “builds back better” recovery in a post-pandemic world with digital transformation. The case studies point to the importance of supporting SMEs and startup firms that possess advanced technologies and innovative ideas; however, patience and long-term perspectives are also needed to nurture development partnerships with the private sector.
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Notes
- 1.
Based on OECD-DAC statistics, ODA, non-ODA flows (other official flows (OOF), FDI, net grants by NGOs and foundations) are included.
- 2.
Porter and Cramer argue that the principle of shared value involves creating economic value in a way that also creates value for society by addressing its needs and challenges. Shared value goes beyond social responsibility and philanthropy and is a new way to achieve economic success.
- 3.
The German government (BMZ) established “develoPPP.de program” in 2009 by restructuring the PPP Facility which was set up in 1999 as a separate fund for development partnerships with the private sector. Development partnerships aim to combine the innovative power of business with the resources, knowledge, and experience of development work.
- 4.
Under the Boris Johnson administration, DFID was merged with FCO (Foreign and Commonwealth Office) to form FCDO (Foreign, Commonwealth and Development Office) in September 2020.
- 5.
AOTS supports industrial human resource development in developing countries, in partnership with the private sector and provides technical cooperation through training, expert dispatch, and other programs. The current AOTS, called HIDA (The Overseas Human Resources and Industry Development Association) during 2012–2017, was created in April 2012 through the merger of the Japan Overseas Development Corporation (JODC, charged with expert dispatch), the Association for Overseas Technical Scholarship (AOTS, charged with training), and other related structures within METI.
- 6.
A major turning point was the White Paper on Small and Medium Sized Enterprise, 2010, which discussed the need “to harness global economic development for Japan’s growth” and “to actively promote internationalization of SMEs in challenging conditions abroad” in order to further develop Japan’s SMEs.
- 7.
Foreign Minister Kishida gave a speech at the Press Club on March 28, 2014, entitled “An Evolving ODA: For the World’s Future and the Japan’s Future.” It is available at:
- 8.
For example, the ODA Review compiled under the guidance of Minister of Foreign Affairs Katsuya Okada put forward the concept of “enlightened national interest”; the Government of Yoshihiko Noda announced the Rebirth of Japan: A Comprehensive Strategy in 2012. It is available at: https://www.cas.go.jp/jp/seisaku/npu/pdf/20120821/20120821_en.pdf.
- 9.
In October 2010, METI established “Conference on Supporting SMEs in Overseas Business” to formulate strategy and strengthen the coordination functions to support SME overseas business expansion. At the implementation level, public agencies participating in this conference are expected to provide timely information to SMEs and make referrals to relevant agencies as necessary. Overseas, in selected countries, JETRO acts as a coordinating hub for the SME Overseas Expansion Platform, whose membership is drawn from the overseas offices of participating public agencies.
- 10.
The SATREPS is jointly managed by the Japan Science and Technology Agency (JST) which provides competitive research funds for science and technology projects for academia, the Japan Agency for Medical Research and Development (AMED), which provides competitive research funds for medical research, and JICA, which assumes the implementation in the recipient countries. JST and AMED, supervised by the Ministry of Education, Culture, Sports, and Science and Technology (MEXT), are responsible for funding the research activities in Japan, while the research activities in developing countries are supported under the framework of ODA-funded technical cooperation.
- 11.
We also benefitted from a comment from Prof. Jin SATO (a chief evaluator of the third-party evaluation team, also the author of chapter x in this book), via an online meeting on February 28, 2021.
- 12.
With its geographical proximity to Kyoto and Osaka, the province of Ohmi (now the Shiga Prefecture) had been home to the itinerant merchants (Ohmi merchants). In addition, the abundant water supply from the Lake Biwa had much contributed to the economic development of central Japan (such as Kyoto and Osaka).
- 13.
It stipulates the importance of 4 “Ss” (SDGs, STI, SATREPS, and Society 5.0) to promote the use of STI for social innovation and capacity building.
- 14.
See also the Interim Report of the Advisory Council on International Cooperation (January 2008) chaired by Professor Toshio Watanabe. As a private advisory body to the Minister of Foreign Affairs, the Council was convened between March 2007 and February 2009 to discuss and make recommendations on basic policy on international cooperation from a diverse range of perspectives.
- 15.
The UN Secretary-General António Guterres’s statement in his International Mother Earth Day message (April 22, 2020) that “We need to turn the recovery into a real opportunity to do things right for the future.” https://www.un.org/en/un-coronavirus-communications-team/un-urges-countries-%E2%80%98build-back-better%E2%80%99.
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Ohno, I., Uesu, S. (2022). New Partnership with the Private Sector in Japanese Development Cooperation. In: Kwon, Hj., Yamagata, T., Kim, E., Kondoh, H. (eds) International Development Cooperation of Japan and South Korea. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-4601-0_7
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