Inclusive Industrial Development and Development Aid of Japan – New opportunities for pro-poor regional cooperation through inclusive business in the Mekong region Go Shimada1 Associate Professor, University of Shizuoka Visiting Scholar, Columbia University
[email protected],
[email protected] Summary. – This paper aims to analyze the factors that have made the economic growth of Japan inclusive in the post-World War II period. The factors identified in this paper are: (1) the GHQ policy to transition Japan from the old regime to a democratic, non-autocratic and non-military country; (2) inclusive industrial development, especially through productivity movement, transferring the relationship with labor from confrontational to constructive; and (3) social security policy, such as UHC (Universal Health Care), to protect people from poverty and starvation, and to improve living standards. These factors are reflected in Japanese ODA policy on poverty reduction. This paper focuses mainly on inclusive industrial development because this is one aspect that East Asian countries have in common, and a good common ground to consider possible future collaboration among East Asian countries to reduce poverty in the region. For future possible collaboration among Japan, China and South Korea, this paper proposes the “horizontal collaboration” approaches. In horizontal collaboration, each donor will implement projects independently, but in parallel under the coordination of the ADB. The projects could be implemented geographically in any sector. The new programs and projects should be implemented in a “starting from small to grow bigger” approach (or a “gradual” approach). This paper proposes to start from an exchange of ideas, good practices, and history, among staff members of donor agencies.