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Session 6Session 6：：Greater Mekong Delta subGreater Mekong Delta sub--regionregionSecond Global Review of Aid for Trade, WTOSecond Global Review of Aid for Trade, WTO

July 7, GenevaJuly 7, GenevaGo Shimada, Director Go Shimada, Director

Trade, Investment and Tourism DivisionTrade, Investment and Tourism DivisionIndustrial Development Department, JICA Industrial Development Department, JICA

Shimada.Go@jica.go.jpShimada.Go@jica.go.jp

© Shinichi Kuno and Kenshiro Imamura

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Birth of New JICA on October 1, 2008Birth of New JICA on October 1, 2008

Consolidation of ODA implementation tools for the new JICA1. The new JICA integrates JBIC’s operations covering Japanese ODA loans and overseas investment, and part of MOFA’s grants2. The new JICA provides more strategic and effective ODA as a single agency centrally managing technical cooperation, loans and grant aid

* Except for certain items retained by MOFA required for policy commitments

Grant aid*

MOFA

Technical cooperationJICA

ODA loans

JBIC(ODA)

Multilateral Assistance

Bilateral Assistance

Multilateral Assistance

ＯＤＡ

The new JICA

- T/C: US$ 1,596 million- ODA loans: US$ 8,402 million

- GA: US$1,118 million

New JICA: US$11,116 million

FY2008:JPY 103.5/USD (DAC rate)FY2009:JPY 97.60/USD (IFS rate for April 31, 2009)

FYFY20082008

US$1,016 million

US$1,486 million

US$7,440 million

FYFY20092009

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AfT accounts for over a half of total loans.AfT accounts for over a half of total loans.

Total Loans and Loans for AFT （2004-2008, USD million)

Exchange rate (DAC rate)2004: JPY108.1/USD, 2005: JPY110.1/USD, 2006:JPY111.6/USD, 2007:JPY117.8/USD, 2008: JPY103.5/USD

Technical Cooperation and Grant Aid

Europe2%

Asia46%

Africa23%

Middle East8%

America16%

Oceania4%

World1%

Asia Africa Middle East America Oceania Europe World

Loans

Oceania1%Middle East

4%

Africa14%

Asia81%

Asia and Africa are the main regions for JICAAsia and Africa are the main regions for JICA’’s AfTs AfT

. JICA’s Aid for Trade by Region （2007）

4

5

Technical Cooperation and Grant Aid

Tourism2%

Trade Policy and Regulations2%

Mineral Resources and Mining2%

Industry9%

Fishing5%

Forestry7%

Business Support Services andInstitutions

7%

Banking and Financial Services2%

Energy Generation and Supply6%

Communications8%

Transport and Storage16%

Agriculture34%

Transport and Storage Communicat ions Energy Generat ion and SupplyBanking and Financial Services Business Support Services and Inst itut ions AgricultureForestry Fishing IndustryMineral Resources and Mining Tourism Trade Policy and Regulat ions

Loans

Forestry10%

Communicat ion2%

Industry2%

Agriculture10%

Business SupportSevices andInstitut ions

3%

Transport andStorage

32%

Energy Generat ionand Supply

41%

JICA aims to improve aid effectiveness through synergy between JICA aims to improve aid effectiveness through synergy between loans, and technical cooperation and grant aidloans, and technical cooperation and grant aid

Economic Infrastructure

75%

Building Productive Capacity

68%

JICA’s Aid for Trade by Sector （2007）

Technical Cooperation and Grant Aid

Myanmar6%

Thailand6%Brunei

0.0006%

South East Asia0.3%

Indonesia22%

Malaysia4%

Philippines16%

Singapore0.1%

Cambodia14%

LaoPDR8%

Vietnam24%

Indonesia Malaysia Philippines Singapore Thailand BruneiVietnam Lao PDR Myanmar Cambodia South East Asia

Loans

Indonesia35%

Vietnam54%

Philippines9%

Cambodia2%

CLMV are the main focus in ASEAN regionCLMV are the main focus in ASEAN region

56%52.3%

JICA’s Aid for Trade: ASEAN by Country (2007)

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Technical Cooperation and Grant Aid

Agriculture30%

Forestry11%

Fishing5%

Transport and Storage17%

Communicat ions6%

Energy Generat ion and Supply7%

Banking and Financial Services4%

Business Support Services andInst itut ions

9%

Trade Policy and Regulat ions2%

Tourism1%

Industry7%

Mineral Resources and Mining1%

Transport and Storage Communicat ions Energy Generat ion and SupplyBanking and Financial Services Business Support Services and Inst itut ions AgricultureForestry Fishing IndustryMineral Resources and Mining Tourism Trade Policy and Regulat ions

Assistance for building productive capacity is provided through Assistance for building productive capacity is provided through technical cooperation and Grant Aid, technical cooperation and Grant Aid,

while Economic Infrastructure is through loans.while Economic Infrastructure is through loans.

Loans

Transport andStorage

52%

Energy Generat ionand Supply

43%

Communicat ions5%

JICA’s Aid for Trade: GMS by Sector （2007）

Economic Infrastructure

100% 68%

Building Productive Capacity

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JICAJICA’’s AFT Strategy to ASEANs AFT Strategy to ASEAN

Regional Integration

Peace in the Region

Equality amongMember Countries

Cross Border Transport Infrastructure

StrongEconomic Ties

Trade PromotionDevelopment of Regional Economy

Industrial Park Development

South-SouthCooperation

Infrastructure Development

Development ofInvestment and Business

Environment

9▲Map Ta Phut Port

▲Lam Ta Khong Pumped Storage Power Plant

▲Suvarnabhumi International Airport

▲★Sihanoukville Port

▲★Cai Mep-Thi Vai Port▲Leam Chabang Port

▲Tan Son Nhat International Airport

▲Phu My Thermal Power Plant

●National Road No.1

★Yangon Port

▲Yangon International Airport

▲●Baluchaung Hydro Power Plant

●National Road Route 6 and 7

East-West Economic Corridor

Southern Economic Corridor

North-South Economic Corridor ▲●Nam Ngum Hydropower Station

▲Nam Leuk Hydroelectric Power Plant

●Vientiane International Airport

▲Cai Lan Port

▲Pha Lai Thermal Power Plant

▲Hai Phong Port

▲Hai Van Tunnel▲Da Nang Port

●Pakse Bridge

●Bridge over the Mekong River

▲Second Mekong International Bridge

Major Economic Infrastructure and JICA Projects

●National Road Route 9

▲Loans ●Grant Aid ★Technical Cooperation

Mekong River

Naypyidaw

Vientiane

Bangkok

Phnom Penh

Hanoi

Kampong Cham

Siem ReapSisophon

Mawlamyine PhitsanulokMukdahan

Pakse

Hue

Da Nang

Hai PhongChiang Rai

Vung TauHo Chi Minh

DevelopmentTriangle

Thailand

Lao PDR

Vietnam

Cambodia

Myanmar

Trat

Yangon

Nong Khai

Savannakhet

Kunming

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Myanmar

Cambodia

China

Lao PDR

Thailand

Vietnam

GRDP(USD/person)1,500 -1,200 - 1,500

900 - 1,200800 - 900500 - 700400 - 500300 - 400200 - 300100 - 200

0 - 100

GRDP per capita in GMS Countries and Regions

00 4040 80 (h)80 (h)

(A) A Few Years Ago(A) A Few Years Ago

(B) After CBTI/CBTA (B) After CBTI/CBTA CompletionCompletion

MyanmarMyanmar

ThailandThailand

Lao PDRLao PDR

ChinaChina

VietnamVietnam

CambodiaCambodia

Source: Univ. of TokyoSource: Univ. of Tokyo

Time Distance Between GMS Countries

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Second Mekong International Bridge

People arriving at Savannakhet from Thailand. The bridge changed the movement of goods and people

One stop service is provided at the custom office of Laos Boarder

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GDP and Infrastructure Stock Per CapitaGDP and Infrastructure Stock Per Capita

Diversification and Spatial Expansion ofOpportunities of Social & Economic Activity

Poverty Reduction and Attainment of MDGs

Delivery of Basic Infra Service

Provision of Infra Services

Economic Growth

Poverty Reduction and Attainment of MDGs

Full and Various Manifestations of Latent Abilities Security against Risks and Vulnerabilities

Negative ImpactDirect Impact

Environmental degradationIncome disparityRegional disparity

Measures to alleviate regional disparityPro-poor measures (poverty and gender gaps)Environmental con-servation measures

Diversification and Spatial Expansion ofOpportunities of Social & Economic Activity

Supportive Policy Responses

Economic Growth

Diversification and Spatial Expansion ofOpportunities for Social & Economic Activity

Poverty Reduction and Attainment of MDGs

Indirect Impact

Support to Sustainability