By Edited by Yasutami Shimomura Edited by Machiko Nissanke
Via comparative stories of aid-supported infrastructure initiatives in East Asia and Sub-Saharan Africa, the booklet examines how relief may well support improvement approaches by way of facilitating improvement of neighborhood endogenous associations.
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Extra resources for Aid as Handmaiden for the Development of Institutions: A New Comparative Perspective
Unfortunately, donors have not valued, and have paid very scant attention to, the strengths of local institutions on the ground in Sub-Saharan Africa. Instead, donors have urged the replacement of these institutions, identifying the weaknesses, deficiencies and shortcomings of local institutions as unsuitable for efficient infrastructure deliveries. Hence, sadly, chances to explore and nurture local institutions and intellectual assets which are valuable for endogenous development and poverty reduction have been largely missed in Sub-Saharan Africa.
In particular, Japan’s aid targeting infrastructure investment and heavy industries played a major role in expanding exports and inward direct foreign investment in China (Ma 2007: 347–52). Furthermore, it was noted by several specialists in China that Japanese aid to China and Southeast Asia has effectively allowed Japan’s own industries to benefit from ODA ( Jin 2002: 63; Ma 2007: 352–3). Based on these observations, Zhou Baogen, senior economist of the Ministry of Commerce, claimed that mutual benefit, or ‘win-win’, could be achieved from a trinity of aid, direct investment, and trade, or ‘the Trinity Development Cooperation’ as known and launched by the Ministry of International Trade and Industries (MITI) of Japan in 198721 (Zhou 2010).
In this light, the chapter moves on to examine several distinctive features of South-South Cooperation with a focus on Chinese operations in the region. As concluding remarks, the chapter explores the future directions to move the aid effectiveness debate forward as well as opportunities and challenges facing African policy makers arising from intensified activities in South-South Cooperation. The first two chapters of case studies, Chapter 3 by Fumiharu Mieno and Chapter 4 by Yasutami Shimomura, examine the Eastern Seaboard Development Plan (ESDP) successfully implemented in the 1980s in Thailand as an example of large-scale infrastructure projects, which made export-oriented industrialization feasible and realizable in East Asia.