Historical Review of Japan's Foreign Aid to Laos

Abstract

Laos is a poor country located in Indochinese peninsula who has been dependent on foreign aid since its rough independency in 1945 and Japan has been providing aid to Laos since late 1950s and become the biggest donor since 2000. This paper reviews the history of foreign aid from Japan to Laos. During late 1970s and early 1980s, Laos witnessed the huge deduction of foreign aid from Japan as well as from other donors. The paper, so that, focuses on finding the main cause of this decline. Main variables are explored: Japanese aid policy, Japan-Lao economic and politic ties, and the communist influence in Laos. The economic motive of Japans aid is emphasized as the first assumption in the study. The paper found out that the main reason for the aid deduction was from the politic-security as Japan concerned more about the security within Laos and its neighbors. The socialist movement of Lao government and the huge influence from communist Vietnam and Soviet bloc in late 1970s had posed uncertainty to Lao economy, democracy, human rights and diplomatic relationship with its regional states. It learns that the economic ties of the two countries is so weak and cannot be proved as the main cause of Japanese foreign aid deduction.