Prolonged crises for partner countries

Latin America and the Caribbean have a population of some 650 million^*1 and a GDP of over $4.7 trillion,^*2 about 1.9 times the size of ASEAN.^*3 They constitute an important place in the world both as a home to rich nature, as highlighted by the Amazon region, and as a world center of agricultural production.

The region shares with Japan universal values such as freedom and democracy and also is home to the largest Nikkei (Japanese emigrants and their descendants) community in the world, making an important partner for Japan in addressing common challenges.

Although the region generally enjoys high income levels, economic disparities are large among and within the 33 countries in the region. The region faces such challenges as the exodus of Venezuelans in 2019 and the issue of illegal immigrants in northern Central America. These challenges are exacerbated by adverse socioeconomic impacts of the global COVID-19 pandemic and the Ukrainian crisis, among others. This situation in turn is affecting the political arena as well, complicating issues which countries in the region face.

Strengthening both cooperation for Building Back Better and links with various stakeholders

JICA’s cooperation for this region places emphasis on (1) developing infrastructure for economic development; (2) reducing disaster risks and coping with climate change; and (3)improving the urban environment and reducing disparities. Additional focus is placed on fighting the pandemic under JICA’s Initiative for Global Health and Medicine as well as on Building Back Better for the post-COVID era.

In fiscal 2021, JICA provided (1) budget support ODA Loans and Private-Sector Investment Finance for social and economic recovery, (2) Technical cooperation and Grants for fighting the pandemic, and (3) support for Nikkei as well as other people in their neighboring communities through Nikkei organizations.

In addition, JICA implemented a comprehensive survey with an eye on the post-COVID era. JICA analyzed the impact of the pandemic on each country, identified new and emerging issues and their solutions, and set up pilot projects applying DX technology in addressing these issues. JICA also worked with the Inter-American Development Bank (IDB) to launch a platform called “Transformational Start ups’ Business Acceleration for the SDGs Agenda (TSUBASA)” to seek out Japanese business startups that have innovative ideas and help them expand their business in the region.

Furthermore, JICA collaborated with the World Bank and such regional development partners as the Central American Integration System (SICA) and the Caribbean Community (CARICOM) to step up efforts to address some of the region’s common issues, including disaster risk reduction, logistics, the environment, and gender. It also conducted studies related to hydrogen and other renewables and offered training for future leaders of countries in the region through its scholarship programs and the JICA Chair.

※1-2　World Bank Group, DataBank Microdata Data Catalog (2020)
※3　International Monetary Fund, "World Economic Outlook Database" (2020)

Total value of JICA programs by country : Central America and the Caribbean

Total value of JICA programs by country : South America

Note) The above tables list only countries with program value of ¥100 million and over. Totals may not add up due to rounding. Panama: A lab technician conducting a genome analysis of the coronavirus using equipment provided by JICA under the Project for Strengthening Surveillance and Diagnostic Capacities for COVID-19 and Other Emerging Diseases in Panama.