Author: Alexander Schmidt.

The landscape of international development has changed markedly, with the acceleration of global integration and the shaping of the post-2015 development framework. This paper discusses the new era of Japan’s development cooperation from two perspectives—broader and deeper partnerships with the private sector, as well as ‘cooperation and competition’ with Asian emerging donors. It proposes ‘network-based cooperation’ as a central pillar of Japan’s future development cooperation, based on the analyses of the nature of a new wave of internationalization of Japanese manufacturing foreign direct investment (FDI) which involves small-and medium enterprises (SMEs), as well as the extensive local human and organizational networks accumulated in Asia through sixty years of Japan’s official development assistance (ODA). Unique roles of Japan as a mature knowledge partner based on international comparative analysis and a quality leader in global business activity are also discussed. Japan should leverage its distinctive strengths in both the corporate and ODA sectors, and actively embark on the new era of development cooperation.