Japan's Foreign Aid

1228 Words 5 Pages
I. Case Study
1.1 Definition of Foreign Aid and How Japan Implement its Foreign Aid.
Foreign aid was established for the first time in the United Nation Charter. It was ratified in the time of the conference of San Francisco on 26th of June in 1945. Foreign aid itself was made to underlay its purpose, includes; urging social development, to put a standard of life in a wider scale of freedom, as well as make the use of international machinery in order to promote people’s economic and social advancement (Ramiarison, 2010). In International Relations, foreign aid could be defined as a delivery of assistance in the form of goods, services, and capital within an international dimension, the sender and the receiver of the foreign aid itself
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First approach is differentiated approach, in this attitude, Japan will give aids in a different form depends on the recipient state’s development level as well as the recipient country’s special needs. Japan will also choosing precedence area in order to obtain its assurance of the productiveness as well as alacrity of Official Development Assistance. Second attitude is comprehensive approach, in this attitude Japan has widened its attitude with a spacious point of view that cover economic support, commerce, headlong investment, arrearages relief strategy. Third attitude is balance approach. Japan has been designed and performed three types of balance approach. First, a balance between prevalent area and new areas of assistance need to be given attention. Prevalent area includes infrastructure development as well as civilian needs, while new area of assistance includes global events such as environmental and population issues. Second is a balance between substantial aid project (infrastructure development) and small assist project (project at minor level). Third is a balance between two kind of aid, which is hardware and software. The purpose of the hardware one is to expand physical stock and the software one is aimed for developing the recipients country’s human resources (Ministry of Foreign Affairs of Japan, …show more content…
Being the largest nation in ASEAN, makes the general headquarter of ASEAN located in Indonesia, which raise up the importance of Indonesia to Japan (Purba, 2001). Both countries relations have been running well since the end of World War II despite of the invasion by Japanese to Indonesia. The official relationship was started in 1951 that Indonesia acquired ¥288 billion from Japan after Tokyo reached a decision to remunerate war restitution to South East Asian countries, and had an agreement for economic cooperation between two nations with total ¥140 billion (Malmström, 1996). In addition, Indonesia received Japan’s foreign aid for the first time in 1968. Japan sent its technical support, provided yen loans to Indonesia, which made Indonesia as the number one beneficiary of yen loans, and place Indonesia as the fourth or fifth largest receiver of Japanese grant aid. Those fact makes Japan replaced United States position as the main donator for Indonesia in early 1970s (Malmström, 1996). Moreover, in 2004 a massive tsunami surged Aceh, Indonesia, leveled almost the entire city. In response to the disaster, Japanese authorities provide US$500 to help Indonesia to tackle the issue. Furthermore, two years after (2006 to be exact) Japanese Prime Minister, Junichiro Koizumi set US$10 million to be offered as an urgent

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