This paper critically reviews Japan’s experience from being an aid recipient after the World War Second to becoming a leading donor of Official Development Assistance (ODA) since the 1990s. Of particular significance is the new trend of Japanese aid policy in which Japan stressed the importance of human capital rather than physical capital. Under the new guidelines which were first announced in 1991, Japanese government has paid more attentions to spend their money for human capital investment in developing countries, such as educations, health care, rather than physical investment, such as constructions of dams or highways.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
5654.
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