'Japan's donor rank to keep falling'
Japan slips behind Britain to become the world's third largest donor
By Agencies |
TOKYO: Japan's foreign minister on Friday regretted that the country has slipped to become the world's third largest donor and voiced concern about the declining aid budget. Britain overtook Japan on a list of top donors released Tuesday by the Organisation for Economic Cooperation and Development (OECD).
"It is highly likely that (Japan) will drop further to fourth or fifth place this year. I'm wondering if that's okay for a country which has been in second place," Foreign Minister Taro Aso told reporters. The United States remained the top donor, with France ranked fourth followed by Germany, according to the OECD.
Japan, which is officially pacifist, has relied on development aid as a key tool of its foreign policy. In recent, years it has redirected spending to countries, many in Africa, seen as pivotal in its cherished bid for a permanent seat on the UN Security Council. At the same time, Japan's overseas aid expenditure has declined for the past seven years as the government tries to reduce a huge fiscal deficit left over from stimulus packages following recession in the 1990s.
The foreign aid budget is set to shrink another four percent to 729 billion yen (6.2 billion dollars) for the current fiscal year to March 2008. The OECD lists nations based on foreign aid budgets in absolute financial terms. One popular alternative is the Commitment to Development Index of the Washington-based Center for Global Development, which adjusts countries by size and looks at the quality of aid along with other factors such as openness to trade. This alternative index last year ranked Japan last among 21 wealthy nations, with the Netherlands coming in first.
"It is highly likely that (Japan) will drop further to fourth or fifth place this year. I'm wondering if that's okay for a country which has been in second place," Foreign Minister Taro Aso told reporters. The United States remained the top donor, with France ranked fourth followed by Germany, according to the OECD.
Japan, which is officially pacifist, has relied on development aid as a key tool of its foreign policy. In recent, years it has redirected spending to countries, many in Africa, seen as pivotal in its cherished bid for a permanent seat on the UN Security Council. At the same time, Japan's overseas aid expenditure has declined for the past seven years as the government tries to reduce a huge fiscal deficit left over from stimulus packages following recession in the 1990s.
The foreign aid budget is set to shrink another four percent to 729 billion yen (6.2 billion dollars) for the current fiscal year to March 2008. The OECD lists nations based on foreign aid budgets in absolute financial terms. One popular alternative is the Commitment to Development Index of the Washington-based Center for Global Development, which adjusts countries by size and looks at the quality of aid along with other factors such as openness to trade. This alternative index last year ranked Japan last among 21 wealthy nations, with the Netherlands coming in first.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
