"Building True Co-creating Relationships Horizontally: The Direction Aimed by ODA and JICA"

(Translated reprint from 国際開発ジャーナル2024年10月号 | 国際開発ジャーナル社 International Development Journal (idj.co.jp) )

What will the world become in the future, and how will Japan respond to such changes? Japan’s ODA is one of the mirrors reflecting all of these. It is very and increasingly hard to foresee a future, and thus even if it doesn't amount to a "future prediction", I would dare to record what I am feeling about the future of Japan’s ODA.

The other day, in Kiev where I was on a business trip, executives of the Ukrainian government praised JICA as being "speedy and flexible". Even if it was half a diplomatic compliment, I was very pleased and at the same time their kind comments made me realise that the support for Ukraine reflected one aspect of what ODA and JICA should be in the future.

In the ever-changing situation in Ukraine, JICA is making various efforts to respond quickly to local needs. In so doing we have been in unison with a wide range of stakeholders, including consultants and procurement agencies, by fully utilizing available tools such as emergency needs surveys, technical cooperation, concessional lending, grant aid, and private sector investment finance. In addition, we have mobilised Japanese and international networks, experiences, and knowledge, such as cooperation with the Cambodia Mine Action Centre, and have successively materialised results. I believe that the compliments by the Ukrainian officials are a candid evaluation of these efforts.

With the rise of emerging donors and a wider space for business to provide solutions to social issues, developing countries have more options and are in a situation where quick and visible results are required. In order to be a "chosen Japanese ODA and JICA", I want to clearly position speed and flexibility as added values of Japan’s ODA. We need to be aware of and overcome our own "procedure-oriented DNA", face the partner countries, and respond quickly and flexibly to their needs. I don't want this to be a good example limited to Ukraine, but rather to make it a common standard for Japan's ODA.

A decade ago, the 2014 edition of the OECD Development Assistance Committee (DAC) annual report stated, "ODA, which is now only a part of the financial flows to developing countries, can only play a role in solving the enormous development challenges by leveraging and mobilizing other resources (funds and knowledge)."

At that time, among Japanese stakeholders, "leverage" and "mobilisation" were often seen as "financial matters". Successful examples of the "catalytic effect of ODA" are often pointed out, but the efforts of "leverage" and "mobilisation" that involve stakeholders with various interests, funds, and know-how, based on a clear intention from the planning stage and proceed together through the process of project implementation and scale-up are just beginning.

In the face of complex and enormous needs, including measures against climate change, project outputs that can be achieved by an individual ODA project is nothing more than a "point", and there are limits to scaling up on its own. Furthermore, budgetary constraints are increasingly strict. On the other hand, ODA can sometimes support the resolution of social issues through business. Under such circumstances, the importance of "leverage" and "mobilization" by ODA is being recognized anew in order to make the most of limited resources and lead to sustainable solutions or larger development outcomes.

In July this year, the Ministry of Foreign Affairs' Advisory Panel on New Financing for Development stated, "It is important to create and nurture an 'ecosystem' where diverse entities collaborate, and private companies and investors make investments based on economic rationality, which ultimately leads to the development of developing countries," and "It is necessary to create an ODA system based on the attitude of both the public and private sectors to truly co-create from the survey and formation stages of the project, and the continuation of dialogue and collaboration" (underline added by the author).

In response to this proposal, the Government of Japan and JICA are working on systems and organizations for the expansion of sustainable finance and are actively creating concrete examples. What is equally important is for us to recognize that the above-mentioned underlined way of thinking applies to all projects and the overall way JICA operates, not limited to financial cooperation, and also to change the way we work targeting development impacts by tens or hundreds of times the budget we spend by leveraging resources and wider stakeholders towards common goals. It is about us changing in this way.

What should ODA and JICA do to truly co-create with various players?

Traditionally ODA projects have been basically controlled by JICA, including the funds and personnel invested in them ("contractee-contractor relationship"). On the other hand, nowadays highlighted "co-creation" involves expanding contact points with organizations and companies that have traditionally had little involvement and creating new value together with them in a "horizontal" manner, requiring a paradigm shift from the "contractee-contractor (vertical) relationship".

I myself have been involved in business-related programmes of JICA: SMEs and SDGs Business Support Programme and Private Sector Investment Finance. Through my experiences of these programmes, I learnt a lot about collaboration with the private sector: projects driven by the companies not by JICA and hence inherent mismatches with JICA's standard procurement system; risk sharing mechanisms with other co-financiers and the occasional and subtle scuffle among stakeholders. Eventually I felt deeply that "this is what co-creation means (and how challenging it is)".

As a guide to the purpose and direction or scenario of development cooperation and co-creation, JICA has established the "JICA Global Agenda " and is promoting issue setting for each field, creating a platform for co-creation, creating business opportunities, mobilising resources and encourages a wide range of stakeholders to understand and participate in their realization. I also think it would be good if JICA could participate more in the scenarios of other players, making use of its own strengths.

Also, currently, almost all schemes of JICA are based on the business model of "The haves help the have-nots, and thus the rules for this are set by the haves." Assuming that the relationship between Japan and developing countries will become more horizontal in the future, and the importance of "co-creation with developing countries" and "recirculation to Japanese society" will increase, we are now at a major turning point in the model change of ODA.

The stirrings towards a "speedy and flexible", "leveraging", "evolving" ODA have already begun. At JICA, in addition to procurement reform, various initiatives are emerging: JICA DX Lab (a lab for co-creation using digital technology and JICA’s fields); JICA BLUE (”Break the Line, Unleash your Entrepreneurship” program for Japan Overseas Cooperation Volunteers); promotion of sustainability agenda ; "JICA Sandbox" (a community function to promote co-creation and a place to quickly experiment with innovative ideas); expansion of fundraising activities and etc. These are emerging one after another, all connected to resources and stakeholders outside of JICA, and are internally driven initiatives, valuing the initiative of young staff, and some are participated by national staff members from overseas offices. Though as a seasoned (or simply aged) person, I want to jump in to these and open up new horizons, not just watching from distance. I'm very excited about how these will develop in the future.

Finally, I would like to mention old Japanese expression "Fluidity and Immutability ". In the face of complex crises that are widening disparities and threatening the achievement of the SDGs, it is essential to reaffirm the principle of international cooperation set forth in the preamble to the Japanese Constitution and "Human Security" as the unshakable pillar of Japan's development cooperation, and to firmly address global issues and poverty alleviation. Also, the value of Japan and JICA's cooperation is indeed in "human interactions on the field ". Development is a long-term act towards a better future, and the true value of uniquely Japanese cooperation lies in staying close to the field, building trust with the people of the partner countries and moving forward together, which I believe will create the future of Japan living in the world.

While firmly strengthening our "core muscles" so as not to deviate from this "origin", we want to actively incorporate new directions.

With field presence in more than 90 countries and direct connections with people on the streets to high-ranking officials on the ground, I believe that the value of JICA, a truly unique entity, will increase in the future world.