Japan, which has long relied on foreign aid to boost its diplomatic clout, lost its decade-old ranking as the world's most generous donor to the United States in 2001, a spokeswoman for the prime minister said on Wednesday.
Japan had held onto its spot as world's top donor for the preceding 10 years, but its official development assistance (ODA) in dollar terms was outstripped by that of the United States last year, mainly due to a dive in the value of the yen.
"Japan has been the biggest donor for 10 years, but it appears that America will be the world's number one," said Misako Kaji, a spokeswoman for Prime Minister Junichiro Koizumi.
Figures can be affected by the timing of payments, as well as by exchange rates, she said.
"I don't know what will happen in the future, but this time around the exchange rate had a big influence," Kaji said.
Aid figures for 2001 will not be available until the Organisation for Economic Cooperation and Development (OECD) releases its official statistics on May 13
In 2000, Japan handed over US$13.5 billion in ODA, compared with just under US$10 billion from the United States.
The dollar battered the yen during 2001 and 2002, rising from a low of around 104 yen in 2000 to a high of 126 yen in 2001.
BUDGET CUTTING
Japan has begun to cut its aid budget under pressure from recession-weary voters and burdened by a public debt totalling 140 percent of gross domestic product.
Japan cut its ODA budget for the fiscal year starting in April 2001 by three percent and by another 10 percent in the current fiscal year. The United States in March promised to provide about US$10 billion in extra aid over a three-year period.
Overseas aid has earned something of a tarnished image among Japanese after a ruling party lawmaker's alleged involvement bid-rigging for development projects.
The problem remains in the public eye as calls continue for the lawmaker, Muneo Suzuki, to resign as a member of parliament. Suzuki has already left Koizumi's Liberal Democratic Party, which dominates the ruling coalition.
(China Daily May 9, 2002)
