Prime Minister Shinzo Abe on a visit to in September 2017, attends the groundbreaking ceremony for the -Ahmedabad High Speed Railway (MAHSR) Project with Prime Minister Modi of India. (Photo: Cabinet Public Relations Office)

Chapter 1 Dynamism Created by combining “Two ” and “Two ”

Under the “Free and Open Indo-Pacific Strategy” announced by Prime Minister Abe at the Sixth International Conference on African Development (TICAD VI), held in in 2016, strategically utilizes ODA to contribute actively to the peace, stability and prosperity of the international community.

Section 1 Free and Open Indo-Pacific Strategy A free and open maritime order based on the rule of Strategy,” which aims to maintain and strengthen a free law is the foundation for stability and prosperity of the and open maritime order based on the rule of law across international community. In particular, the Indo-Pacific the Indo-Pacific , in order to make the region region, which stretches from the -Pacific through the “international public goods” that equally brings stability Indian to the and , is the core of and prosperity to all countries in the region. the ’s vitality, supporting more than half the world’s More specifically, Japan is moving forward on the population. It holds great potential to become an engine to actualization of this strategy by advancing its efforts on drive the growth of the global economy. three pillars: (i) the promotion and establishment of the It is of Japan’s view that the dynamism created by rule of law, freedom of , and free ; (ii) combining “two continents”—Asia, which is recording the pursuit of economic prosperity through enhancing remarkable growth, and Africa, which is full of poten- connectivity, including through “quality infrastructure” tial—and the “two oceans” of the Pacific and Indian development in accordance with international standards; Oceans hold the key to the stability and prosperity of and (iii) initiatives for ensuring peace and stability that the international community. Based on this idea, Japan include assistance for capacity building on maritime law has been promoting the “Free and Open Indo-Pacific enforcement, anti- and .

2 White Paper on Development Cooperation 2017 Chapter▼ 1 Dynamism Created by combining “Two Continents” and “Two Oceans” Section 2 Enhancing Connectivity via the Indo-Pacific Region

Ⅰ Free and Open Indo-Pacific Strategy “Free and Open Indo-Pacific Strategy” “ that takes a panoramic perspective “Proactive Contribution to Peace” 1 of the ” based on the principle of international cooperation Based on the accomplishments of the Abe Administration, Japan intends to further improve and expand these diplomatic concepts

“Free and Open Indo-Pacific Strategy” A key for stability and prosperity of the international community is dynamism that is created by combining “Two Continents”: Asia that is rapidly growing and Africa that possess huge potential of growth; and “Two Oceans”: Free and open and ⇒ broaden the horizon of Japanese foreign policy by envisioning the above as an overarching, comprehensive concept

Improve “connectivity” between Asia and Africa Africa Asia through free and open Indo-Pacific, and promote Full of potential ■ Increase of awareness of ・population around 1.1 billion stability and prosperity of the region as a whole ■ (15% of global population) confidence, responsibility and → around 2.5 billion in 2050 leadership, as well as democracy, ・account for 30,000,000 ㎢ rule of law and market economy (22% of global area） taking root in South East and South ・high economic growth rate (4.2% on average (2002-2013)) Asian countries ・rich in natural resources and promising ⇒ Currently expanding its success to markets Africa and bring out the potential of ⇒progressing as a “developing ” Africa as a “global main player” The Pacific Ocean whereas still challenged by poverties and through a free and open Indo-Pacific terrorism etc. “Free and Open Indo-Pacific Strategy”

Japan will provide nation-building The Indian Ocean Japan will expand infrastructure support in the area of development as development, trade and investment, well as politics and governance, in a way and enhance business environment that respects the ownership of African and human development from East countries, and not by forcing on or ※ To make the “Free and Open Indo-Pacific Strategy” into shape, Japan will Asia as a starting-point, to the Middle intervening in them strengthen strategic collaboration with India, which has a historical relationship East and Africa with , as well as the US, , NZ and ASEAN countries.

Section 2 Enhancing Connectivity via the Indo- Pacific Region Japan has long been active in its efforts to enhance of the two corridors stimulates overseas exports from connectivity through the development of quality infra- this region by connecting the respective areas along the structure such as ports, airports, railways and roads, corridor to the South and Indian Ocean, and at particularly in Asia, with the goal of connecting recipi- the same time, motivates foreign direct investment from ent countries with other countries and , expanding overseas including Japan, thereby contributes to reducing economic zones by further activating the flow of goods disparities in the Mekong region. In addition, the devel- and people, and thus contributing to the economic devel- opment of ports is also an important aspect in view of opment of the whole region including Japan. In advancing strengthening logistics function for marine transport. In infrastructure development to enhance such connectiv- 2017, Japan decided to offer its support for the construc- ity, it has: (i) not only enhanced “physical connectivity” tion of the new Patimban Port in , as well as the through infrastructure development, but also enhanced (ii) development of a new container terminal at “institutional connectivity” such as facilitating customs Port, the only deep-sea port in . clearance as well as (iii) “people-to-people connectivity” such as human resource development and human resource exchanges. Through such efforts, it has further activated the flow of goods and people, while realizing “quality growth” through the transfer of technology and creation of employment. These are the characteristics of Japan’s quality infrastructure development. The development of the Southern and East-West Economic Corridors are at the core of Japan’s efforts to enhance connectivity in . The development of these corridors encompasses not only transport infra- structure such as roads and bridges, but also encompasses technical cooperation for introducing customs systems The Tenth Mekong-Japan Foreign Ministers’ Meeting was held in , and strengthening road maintenance capabilities through , in August 2017, with Foreign Minister Taro Kono presiding the utilization of Japanese technology. The development over the meeting.

White Paper on Development Cooperation 2017 3 In India, Japan is promoting wide-area economic development such as the Delhi Mumbai Industrial Corridor (DMIC) and the Bengaluru Industrial Corridor (CBIC). When Prime Minister Abe visited India in September 2017, Japan provided an ODA loan for the development of the Mumbai- Ahmedabad High Speed Railway, which uses Japan’s Shinkansen system, and the improvement of the northeast road network. These projects contribute to improving con- nectivity in the region. In Sri , Japan has provided continuous sup- port for the development of the Port Prime Minister Shinzo Abe and Prime Minister Modi of India visiting the rolling stock manufacturing of since the 1980s. When plant in Kobe City to see Shinkansen vehicles, in November 2016 (Photo: Cabinet Public Relations Office) Prime Minister Wickremesinghe visited Japan in April 2017, Japan decided to provide grant aid to procure relevant equip- in Kenya, which are excellent major ports ment for the development of Port of , which facing the Indian Ocean, and to develop roads and bridges is better suited as an anchorage. In , based on for the surrounding corridors. The respective ports play the Bay of Industrial Growth Belt (BIG-B) ini- an important role in connecting landlocked countries such tiative, Japan has advanced cooperation for developing as Uganda, Rwanda, Malawi, and Zambia to the Indian economic infrastructure, improving the investment envi- Ocean. In July 2017, Japan decided to provide an ODA ronment and enhancing connectivity. loan for the second phase of the construction of the sur- In Africa, Japan is engaged in ongoing initiatives rounding roads of the port of Mombasa. to develop the ports of Nacala in and

Japan’s Connectivity Initiatives

The Industrial Improvement of Growth Belt (BIG-B) North East Road Network Construction of Mumbai-Ahmedabad Yellow: Completed High Speed Railway Blue: On-going East-West Economic Corridor Delhi-Mumbai Industrial Corridor (DMIC)/ Dedicated Freight Corridor (DFC) · Construction of Hai Van Tunnel (Viet Nam) · Improvement of Da Nang Port (Viet Nam) · Construction of Second Mekong International Bridge (Laos) etc.

· Improvement of National Road No.9 (Laos) Construction of Republic of · Improvement of East-West Economic Corridor () etc. Sindhuli Road Improvement of Delhi -Mandalay Railway Southern Economic Corridor ASEAN Connectivity Ahmedabad Mandalay Sea Lane · Construction of Neak Loeung Bridge (Cambodia) East-West Economic Corridor · Construction of Cai Mep-Thi Vai International Port (Viet Nam) Payra · Improvement of National Road No.1 (Cambodia) etc. Provision of Ferry Mumbai Chaopu Connectivity Yangon Thilawa · Improvement of National Road No.5 (Cambodia) etc. Da Nang Bengaluru Chennai Dawei Chennai – Bengaluru Ho Chi Minh Industrial Corridor (CBIC) Trincomalee Southern Economic Marshall Mombasa / Colombo Corridor Northern Corridor Thilawa Special Economic Zone Redevelopment of Mombasa Development of Papua New Nadzab Airport Mombasa Port etc. Development of Development of Colombo Port Sihanoukville Port Development of Apia Port Nacala Corridor Development of Development of Patimban Port Nacala Port etc. Trincomalee Port (Equipment Provision) Nacala Improvement of Port Vila Port Development of Toamasina Port

4 White Paper on Development Cooperation 2017 Chapter▼ 1 Dynamism Created by combining “Two Continents” and “Two Oceans” Section 3 Promoting “Quality Infrastructure” Development

Ⅰ Section 3 Promoting “Quality Infrastructure” Development 1 When developing infrastructure, the objective should be not to create the infrastructure itself, but rather, through its development, to contribute to improving the lives of people in the region, including the socially vulnerable, and stimulate economic activity in the country and region, and support “quality growth” in each country. With this under- standing, Japan is promoting the development of “quality infrastructure” and is working to contribute to its inter- national standardization. The following five elements for “quality infrastructure” were set out at the 2016 G7 Ise- Shima Summit: (i) economic efficiency and safety in view of lifecycle cost; (ii) local employment and transfer of technology; (iii) social and environmental consideration; Foreign Minister Taro Kono on an inspection tour of the Thilawa Special (iv) alignment with economic and development strategies, Economic Zone in Yangon, Myanmar, in January 2018 including the financial soundness of recipient countries; and (v) ensuring effective resource mobilization, includ- Partnership for Quality Infrastructure,” a program that ing the private sector. In addition, it is also vital to carry aims to supply approximately $200 billion in funds from out development and management infrastructure through both the public and private sectors, towards fulfilling transparent and fair procurement procedures so that infra- infrastructure demand not only in Asia but around the structure is open for everyone to use. world. Alongside further institutional improvements, he There is great demand for infrastructure development also announced initiatives to promote institutional rein- around the world, including in the Indo-Pacific region, forcements of governmental organizations that support and it is important to secure not only quality, but also an the above-mentioned initiatives, such as JICA. As part of adequate amount of funds. To fill this funding gap, Prime its efforts to expand the concept of “quality infrastructure” Minister Abe announced the “Partnership for Quality across the world, Japan co-hosted the First International Infrastructure” in May 2015, under which Japan would Economic Forum on Asia with OECD in April 2017, and cooperate with the Asian Development Bank (ADB) co-hosted the UN General Assembly High-Level Side to provide “quality infrastructure investments” worth Event: “Promoting Quality Infrastructure Investment” approximately $110 billion to Asia over five . At with the United Nations and the European . Going the same time, Japan decided to improve the ODA loan forward, Japan aims to work together with international system to provide even more attractive financing towards organizations such as the OECD and relevant countries to infrastructure demand in Asia. Furthermore, in May continue promoting quality growth through the develop- 2016, Prime Minister Abe announced the “Expanded ment of “quality infrastructure.”

Foreign Minister Taro Kono delivering an address at the “UN General Assembly High-Level Side Event: Promoting Quality Infrastructure Investment” co-hosted by Japan, EU, and UN, at the UN Headquarters in New York in September 2017

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