Japan’s Ministry of Foreign Affairs (MOFA) oversees overall bilateral official development assistance (ODA) through the Japan International Cooperation Agency (JICA) and multilateral ODA through the United Nations organization. The Ministry of Finance oversees bilateral ODA loans through JICA, together with MOFA, and multilateral ODA through multilateral development banks like ADB. JICA provides extensive development support to its neighbors in the Asia and Pacific region through loan aid, technical cooperation, and grant aid.
Japan’s development cooperation is founded on the Development Cooperation Charter, which was revised by Cabinet decision on 9 June 2023. The charter sets out four basic policies in development cooperation: (i) contribution to peace and prosperity, (ii) human security in the new era, (iii) co-creation of social values through dialogue and collaboration with developing countries, and (iv) leadership in the dissemination and implementation of international rules and guidelines based on inclusiveness, transparency, and fairness. In line with these basic policies, Japan’s ODA focuses on the following policy priorities: (i) quality growth and poverty eradication; (ii) peace, security, and stability; and (iii) leadership in international efforts to tackle increasingly complex and aggravated global issues.
The operational focus areas of the Japan International Cooperation Agency (JICA) are closely aligned with the priority areas outlined in Japan’s Development Cooperation Charter. It focuses on (i) realizing a free and open Indo-Pacific and demonstrating leadership in the international community, (ii) cultivating future leaders responsible for the development of their countries, (iii) strengthening initiatives for climate change and environmental issues, and (iv) contributing to revitalizing Japan’s economy and society while promoting understanding for cultural diversity within Japan.
In May 2017, ADB and JICA signed a memorandum of understanding to establish a strategic partnership for sustainable, resilient, and inclusive development by strengthening health security and promoting universal health coverage in Asia and the Pacific.
ADB also works with other ministries, such as the Ministry of the Environment, Japan (MOEJ) and the Ministry of Agriculture, Forestry and Fisheries (MAFF). In May 2020, ADB and MOEJ extended for the second time the letter of intent originally signed in June 2014, with the first extension signed in March 2017. It aims to strengthen, facilitate, and develop cooperation in the field of environment, with a focus on environmental protection and improvement. In September 2022, ADB and MAFF signed a memorandum of cooperation, complemented by a high-level policy dialogue, to promote sustainable, resilient, and inclusive agri-food systems in the Asia and Pacific region.
In 2024, Japan committed $292.2 million to nine trust funds: the Japan Fund for Prosperous and Resilient Asia and the Pacific, the High-Level Technology Fund, the Domestic Resource Mobilization Trust Fund, the Japan Fund for the Joint Crediting Mechanism, the Asia Pacific Project Preparation Facility, the Innovative Finance Facility for Climate in Asia and the Pacific Grant Trust Fund, the Japan Scholarship Program, Leading Asia’s Private Infrastructure Fund, and Leading Asia’s Private Infrastructure Fund 2.
In October 2024, the Japan Special Fund (JSF) Innovative Finance Facility for Climate in Asia and the Pacific Financing Partnership Facility (IF-CAP) Window was established as a separate, special purpose component of the JSF to channel contribution of the Government of Japan to the IF-CAP Guarantee Mechanism and as a vehicle to manage cash flows. In November 2024, the Government of Japan made $600 million of unfunded contribution to the IF-CAP guarantee mechanism through the JSF IF-CAP window as the second contributor to the IF-CAP guarantee mechanism.
Japan has been the top contributor to ADB special funds. Since joining ADB as a founding member, Japan has committed $16.1 billion to special funds, of which $13.7 billion is for the Asian Development Fund (ADF). The ADF provides grants to ADB’s low-income, developing member countries to help reduce poverty and improve quality of life.