What is in effect Japan’s version of the Belt and Road Initiative is being rolled out at an accelerating pace. But unlike China’s global infrastructure initiative, which mainly takes the form of highways, railways and sea lanes, Japan’s project is all about energy networks and supply chains.
It poses a further challenge to America’s waning economic and strategic influence in Asia, the world’s most populous, resource-rich and potentially powerful region. What is more, it is a cooperative venture with the World Bank, which lends multilateral credibility.
Japan’s project does not have a snappy title. Instead, its twin initiatives labour under the ponderous names of the Resilient and Inclusive Supply-chain Enhancement Plus (Rise+) and the Dynamic Response for Invigorating Value Chains and Energy Security (Drive).
Still, the Japan-World Bank cooperation is significant, as evidenced by the fact that World Bank president Ajay Banga travelled from Washington to Tokyo to sign an agreement with Japan’s finance minister, Satsuki Katayama, on June 1 on the latest phase of the scheme.
A statement issued by the World Bank after the signing announced that Japan would launch Rise+, a new US$20 million facility under Japan’s single-donor trust funds that will complement the original Rise partnership launched under Japan’s G7 presidency in 2023.
“Rise+ will help developing nations translate growing demand for key infrastructure development and private capital mobilisation for supply chains of critical minerals, including rare earths, into concrete public and private investment, leading to industrial development and quality jobs,” the statement said. “By coordinating public and private sector action, the initiative aims to help countries turn their natural resource wealth into lasting economic opportunity.”
