FOOD CRISIS: Japan promised to increase aid to Africa during the recent Tokyo International Conference on African Development. The conference focused mostly on the worldwide food shortage, which affects Africa disproportionately.

Most African countries are extremely poor, so rising oil prices puts food beyond the reach of many people living in cities where it must be trucked in. Even in countries considered relatively advanced, such as South Africa, unemployment and poverty has led to riots.

The conference drew 2,500 people from 51 African countries, 74 international organizations, numerous Asian countries, and members of the Group of Eight (G8).

Rich Japan Agrees to Help Poor Africa

Japan is the world's second-largest economy. Last year only 1.5% of its foreign aid went to Africa, mainly Egypt and South Africa.

At the fourth Tokyo International Conference on African Development (TICAD IV), Japan agreed to rectify this. It promised a significant amount of aid to Africa over the next five years, including:

The aid comes as a combination of grants and loans. Most African leaders admit their countries need the help, but they'd prefer Japan encourage its industries to invest in Africa. African countries don't want to be burdened with loans they might not be able to repay.

Jakaya Mrisho Kikwete, president of Tanzania and chairman of the African Union said, "This must change and it is possible for that change to happen. There can be more investments and trade between us. I know we in Africa have to go the extra mile to convince Japanese investors to come to Africa." (Business Daily, 5/28/08)

What's In It for Japan?

No country gives away money without wanting something in return. Japan's generosity is no different.

With few natural resources of its own, Japan competes with China for many of Africa's resources, including oil. China, with its aggressive development policy, has already increased its diplomatic presence in Africa.

To counter China's influence and expand Japan's, Japanese Prime Minister Fukuda ...

• held one-on-one talks with 40 African leaders about increasing Japan's diplomatic influence in Africa and accessing its raw materials;
• announced a $2.5 billion fund through the Japan Bank for International Cooperation to spur Japanese investment in Africa; and
• said he will present Africa's concerns to the Food and Agriculture Organization's conference held in Rome next week and to the G8 summit, which Japan hosts in July.

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Question for Readers:

Do you think conferences like the recent TICAD in Japan help anybody?