Japan

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2006 Results

Aid

What it measures

Aid quality is just as important as aid quantity, so the CDI measures gross aid as a share of GNI adjusted for various quality factors: it subtracts debt service, penalizes “tied” aid that makes recipients spend aid only on donor goods and services, rewards aid to poor but relatively uncorrupt recipients, and penalizes overloading poor governments with many small projects.

Japan Overall
  • Score: 1.1
  • Rank: 21
Japan Strengths
  • Small share of tied or partially tied aid (6%; rank: 6)
Japan Weaknesses
  • Very low net aid volume as a share of the economy (0.14%; rank: 21)
  • Small amount of private charitable giving attributable to tax policy (rank as a share of GNI: 16)
  • Allows project proliferation; small average project size (rank: 15)



Trade

What it measures

International trade has been a force for economic development for centuries. The CDI measures trade barriers in rich countries against exports from developing countries.

Japan Overall
  • Score: -0.4
  • Rank: 21
Japan Strengths
  • Low agricultural subsidies (rank: 2)
Japan Weaknesses
  • High protection of agricultural commodities (rank: 21)
  • High tariffs on agricultural products (rank: 21)
  • High barriers against apparel (rank: 17)



Investment

What it measures

Rich-country investment in poorer countries can transfer technologies, upgrade management and create jobs. The CDI includes a checklist of policies that support productive investment in developing countries.

Japan Overall

  • Score: 5.6
  • Rank: 15
Japan Strengths
  • Provides wide official insurance against political risk
  • Employs foreign tax credits to prevent double taxation of corporate profits earned abroad
Japan Weaknesses
  • Imposes restrictions on pension fund investments in emerging markets
  • Negligent in identifying bribery and corrupt practices on the part of home country firms abroad



Migration

What it measures

The movement of people from poor to rich countries provides unskilled immigrants with jobs, income, and knowledge. This increases the flow of money sent home by migrants abroad and the transfer of skills when the migrants return.

Japan Overall
  • Score: 1.7
  • Rank: 19
Japan Strengths
  • Large share of foreign students from developing countries (96%; rank: 2)
  • Tuition for foreign students the same as for nationals
Japan Weaknesses
  • Decline during the 1990s in the number of unskilled immigrants from developing countries living in Japan (rank by share of population: 21)
  • Small number of immigrants from developing countries entering Japan in 2004 (rank by share of population: 16)
  • Bears small share of the burden of refugees during humanitarian crises (rank: 21)



Environment

What it measures

Rich countries use a disproportionate amount of scarce resources and poor countries are most vulnerable to global warming and ecological deterioration, so the CDI measures the impact of policies on the global climate, fisheries and biodiversity.

Japan Overall
  • Score: 4.3
  • Rank: 18
Japan Strengths
  • Low greenhouse gas emissions rate per capita (11 tons of carbon dioxide equivalent; rank: 7) )
Japan Weaknesses
  • Small decrease in greenhouse gas emissions rate in 1994–2004 (average annual growth rate/PPP GDP, –0.7%; rank: 18)
  • Low gas taxes (rank: 17)
  • No ratification of UN Fisheries Agreement
  • High tropical wood imports (rank: 21)



Security

What it measures

Since security is a prerequisite for development, the CDI rewards contributions to internationally sanctioned peacekeeping operations and forcible humanitarian interventions, rewards military protection of global sea lanes, and penalizes arms exports to poor and undemocratic governments.

Japan Overall
  • Score: 2.8
  • Rank: 18
Japan Strengths
  • No arms exports to poor and undemocratic governments
Japan Weaknesses
  • Small financial or personnel contributions to internationally sanctioned peacekeeping and humanitarian interventions (overall contribution rank over last 10 years by share of GDP: 21)
  • No protection of global sea lanes



Technology

What it measures

Rich countries contribute to development through the creation and dissemination of new technologies. The CDI captures this by measuring government support for R&D and penalizing strong intellectual property rights regimes that limit the dissemination of new technologies to poor countries.

Japan Overall
  • Score: 6.3
  • Rank: 3
Japan Strengths
  • Large tax subsidy rate to businesses for R&D (rank: 7)
  • No attempt to incorporate “TRIPS-Plus” policies in bilateral free trade agreements with developing countries
Japan Weaknesses
  • Allows patents on plant and animal varieties
  • Allows patents on software programs
  • Imposes strict limitations on anti-circumvention technologies that can defeat encryption of copyrighted digital materials