JAPANESE financial assistance to the Philippines will continue to pour in despite a policy change in its official development assistance (ODA) charter that was implemented in February.
The Japanese Embassy to the Philippines said on Thursday that Tokyo is supportive of the development goals of its Southeast Asian neighbor, so much so that it could increase its financial assistance, especially in budding development areas.
It also announced that its ODA program is now called official development cooperation, changing its policy from pure assistance to partnership.
“The change in charter, from assistance to cooperation, will not affect immediately the direct ODA to the Philippines because we understand that the Philippines is still in need of assistance,” the Japanese Embassy said.
In the long run, however, Japan will extend cooperation agreements, instead of purely granting financial aid. The partnership will not end until the Philippines has achieved inclusive growth and has achieved its goal of reducing poverty, if not eradicate it.
“Of course, in the far-away future, the Philippines will surely develop, then you will no longer need the ODA,” the embassy said. “But there is no intention to decrease Japan’s ODA but we can increase depending on the need.”
The ODA program has immensely benefited the Philippines in a wide range of priority areas, including maritime cooperation, peace building, governance, education, healthcare and construction and youth leadership training programs.
The East Asian country has been the top donor of the Philippines for several years now. The total assistance that Japan has been extending to the Philippines is at ¥5.17 trillion as of end-2012.
In 2012 alone, Japan donated roughly ¥69.97 billion in a mix of grants, loans and technical cooperation.
The Japanese ODA assistance policy mainly revolves around the idea of aiding the Philippines to achieve inclusive growth. It has three priority areas, namely: to achieve sustainable economic growth through further promotion of investment, to overcome vulnerability and stabilizing bases for human life and production activity and to develop peace in Mindanao.
The international aid flow from Japan was responsible for the construction of big-ticket infrastructure projects in the Philippines, such as the Ninoy Aquino International Airport Terminal 2, the Subic-Clark Tarlac Expressway and the Arterial Road Bypass in Cabanatuan, among others.