This story is from July 19, 2010

Japan wants to exit aid politics as China muscles in

Japan has indicated it wants to exit from the system of aiding poor countries. The move comes at a time of weakening US economy, and China’s drive to enlarge its role in the arena of aid politics in both Africa and Asia.
Japan wants to exit aid politics as China muscles in
BEIJING: Japan has indicated it wants to exit from the system of aiding poor countries. The move comes at a time of weakening US economy, and China’s drive to enlarge its role in the arena of aid politics in both Africa and Asia.
"The Japanese representative made a maverick presentation saying Japan is suffering from an aid fatigue. He asked people not to expect any anti-poverty funds from his country,” Manish Tewari, Congress spokesman, said on Monday after attending the International Conference of Asian Political Parties in southwest China’s Kunming city.

On the other hand, Chinese officials at the conference pressed ahead with the need to create an Asian fund to support anti-poverty schemes across the continent. The move is significant because China is already emerging as a principal donor in Africa replacing the United States.
China was supported by most Asian nations, who feel that the weakening economy will mean a sharp reduction in the flow of funds from the United States, D.Raja, national secretary of the Communist Party of India, who also attended the conference, said.
An official of the Communist Party of China recently revealed Beijing’s desire to take on the leadership of anti-poverty programs worldwide. He described the ICAPP was a good platform to develop "political party diplomacy" and supplement the government’s efforts at State-to-State diplomacy.
"Most Asian countries are governed by political parties. Therefore the exchanges between the political parties become an important means of communication and exchanges among countries. Despite they are in power or not, they need to maintain relationship with each other in order to keep advancing." Li Zhongjie, researcher with the Party History Research Center of the CPC Central Committee, said.

"The Chinese told us their success stories. I think it was accepted by most Asian countries,” Raja said. The idea of Asia specific funds also found mention in the joint declaration adopted at the meeting because most participants felt that China has played a “leading role” in the fight against poverty by helping millions to rise above the poverty line, he said.
Tewari clarified that Chinese officials did not want other countries to adopt their model of poverty alleviation because of the vast diversities in political and economic situations in Asia.
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Saibal Dasgupta

Author of Running with the Dragon: How India Should Do Business with China

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