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The economics of development assistance
In the early 1960s, Japanese borrowing from the World Bank ranked second only to India. The year after Japan paid the final installment on these loans (1990), it overtook the United States to become the world's largest aid-giving country on a net disbursement basis. This unique history is unparalleled in the annals of aid.
To explain Japan's official development assistance (ODA) program, the authors place it within both its international and historical contexts.
give an overview of the aid programs of other leading donor countries. Seen in this light, certain aspects of Japan's aid program, an emphasis on Asia, for ex- ample, turn out to be not as unusual as is sometimes thought.
Japan's own experience with economic development dating back to the late 18th century, on the other hand, has crystal- lized into an aid philosophy based on the importance of "self-help." Another feature of Japanese ODA is the role of "small government." Despite the volume of Japanese aid, ODA appropriations consume a smaller percentage of gov- ernment revenues than they do in other donor countries. This has a direct effect on both lending practices and the aid im- plementation system.
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