{"id":415152,"date":"2026-04-28T17:01:09","date_gmt":"2026-04-28T17:01:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/415152\/"},"modified":"2026-04-28T17:01:09","modified_gmt":"2026-04-28T17:01:09","slug":"japan-is-charting-a-new-course-for-development-but-looking-in-the-wrong-direction","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/415152\/","title":{"rendered":"Japan is charting a new course for development \u2013 but looking in the wrong direction"},"content":{"rendered":"<p>Japan is testing a new approach to development cooperation that favours short-term dynamism over long-term stability.<\/p>\n<p>The last 12 months <a href=\"https:\/\/www.oecd.org\/en\/data\/insights\/data-explainers\/2026\/04\/a-historic-decline-in-foreign-aid-preliminary-2025-oda-data.html\" rel=\"nofollow noopener\" target=\"_blank\">saw the biggest ever drop in the amount of money governments devote to Official Development Assistance<\/a> (ODA) \u2013 down a quarter globally. Japan\u2019s cuts to foreign aid have been more modest than many of its peers. In real terms, its net ODA flows fell by more than US$5 billion, or 27%, between 2023 and 2025 \u2013 a smaller drop than the United States (57% over the same period) or Germany (39%). However, the composition of Japan\u2019s aid portfolio stands out for its high use of concessional loans rather than grants, making it arguably less generous but more financially sustainable.<\/p>\n<p>Tokyo recently announced <a href=\"https:\/\/www.mofa.go.jp\/ecm\/rs\/pageite_000001_01584.html\" rel=\"nofollow noopener\" target=\"_blank\">$10 billion in financial assistance<\/a> for developing Asian countries to tackle the energy crisis sparked by the Iran war. The package was staggering for its size \u2013 a mix of grants, concessional loans, private sector instruments, subsidies and export credits, mobilised to facilitate emergency procurement of crude oil and petroleum as well as invest in stockpiling and storage systems.<\/p>\n<p>That commitment alone is more than double <a href=\"https:\/\/seamap.lowyinstitute.org\/\" rel=\"nofollow noopener\" target=\"_blank\">Japan\u2019s annual spending in Southeast Asia<\/a> in previous years, as shown by the Lowy Institute Southeast Asia Aid Map. And it responds directly, and swiftly, to an urgent and even <a href=\"https:\/\/opinion.inquirer.net\/190601\/nation-on-brink-this-oil-crisis-may-destroy-everything-we-built\" rel=\"nofollow noopener\" target=\"_blank\">existential<\/a> crisis for Southeast Asian governments. Development cooperation, beyond provision of humanitarian assistance, is often criticised for being too slow in orienting to shocks and structural changes in the developing world, but Japan has successfully deployed a large-scale support mechanism within weeks of the onset of the energy crisis.<\/p>\n<p>The cost of that speed will be felt in the long term. The $10 billion package doubles down on fossil fuels, with a passing reference to \u201cdiversifying energy sources\u201d the only sign of clean energy investment. Development finance for renewable energy in Southeast Asia is at critical levels, just <a href=\"https:\/\/seamap.lowyinstitute.org\/analysis\/2025\/key-findings\/\" rel=\"nofollow noopener\" target=\"_blank\">6% of what is required<\/a> according to International Energy Agency estimates even before the collapse in spending since 2023. Making oil and petroleum supplies the focus of the response risks locking in the region\u2019s dependence on fossil fuels.<\/p>\n<p class=\"article-quote-right\">Less money for renewable energy and economic development, and more money for fossil fuels and defence equipment, is a combination unlikely to contribute to a safer, more stable region.<\/p>\n<p>This kind of trade-off is not new to Tokyo. In 2023 Japan created <a href=\"https:\/\/www.mofa.go.jp\/fp\/ipc\/page4e_001366.html\" rel=\"nofollow noopener\" target=\"_blank\">Official Security Assistance<\/a> (OSA), a category of spending on international security and defence assistance that is <a href=\"https:\/\/www.sciencedirect.com\/science\/article\/pii\/S2667111525000076\" rel=\"nofollow noopener\" target=\"_blank\">deliberately juxtaposed to ODA<\/a>. Levels of OSA spending have jumped in real terms from US$13 million in 2023 to US$44 million in 2025, with further rises to come. Grants for monitoring and surveillance equipment for Malaysia and the Philippines, or high-speed patrol boats for Indonesia, squarely address the region\u2019s well-founded anxiety about maritime security. But if this assistance comes at the expense of investments in human development and human security, at a time of the largest military build-up in Asia in decades, <a href=\"https:\/\/eastasiaforum.org\/2026\/04\/08\/japans-quiet-break-with-pacifism-is-about-to-get-louder\/\" rel=\"nofollow noopener\" target=\"_blank\">the question of whether OSA could have a destabilising effect in the long run<\/a> is worth taking seriously.<\/p>\n<p>Japan\u2019s bilateral aid to Myanmar provides a country-level example of its pragmatic approach. Virtually all other donors except for China have ceased development projects in the war-torn country to avoid financing the military regime. Yet Japan continues to finance infrastructure projects, usually implemented by Japanese contractors. There is a case to be made for maintaining presence and access, not least to allow dialogue with a pariah state. But the risk of <a href=\"https:\/\/www.mekongwatch.org\/PDF\/ODA_oped_202411.pdf\" rel=\"nofollow noopener\" target=\"_blank\">legitimising and resourcing the junta<\/a> will weigh heavily in the history books.<\/p>\n<p>The thread that ties these aspects of Japan\u2019s development model \u2013 the energy financing package, OSA, and the program in Myanmar \u2013 is a reckoning with tough new circumstances. In many ways it represents Tokyo\u2019s understandable attempt to tailor its offering to the region\u2019s demands in 2026. But will it be fit for 2036? Less money for renewable energy and economic development, and more money for fossil fuels and defence equipment, is a combination unlikely to contribute to a safer, more stable region.<\/p>\n<p><a href=\"https:\/\/www.lowyinstitute.org\/about\/programs-and-projects\/indo-pacific-development-centre\" rel=\"nofollow noopener\" target=\"_blank\"><img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/04\/IPDC-light.png\" data-entity-uuid=\"92a57429-8eac-4291-bfb3-e50d96e1610f\" data-entity-type=\"file\" alt=\"IPDC Indo-Pacific Development Centre\" width=\"331\" height=\"121\" border=\"0\" class=\"align-center\" loading=\"lazy\"\/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Japan is testing a new approach to development cooperation that favours short-term dynamism over long-term stability. The last&hellip;\n","protected":false},"author":2,"featured_media":415153,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[242,85,46,141],"class_list":["post-415152","post","type-post","status-publish","format-standard","has-post-thumbnail","category-environment","tag-environment","tag-il","tag-israel","tag-science"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/415152","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=415152"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/415152\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/415153"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=415152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=415152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=415152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}