From Goa to Angola: Exploring Ideas and Mechanisms in Japan’s Kaihatsu-Yunyū

Abstract

AbstractThe chapter investigates the evolution, ideational background, and implementation mechanisms of kaihatsu-yunyū (the “develop-and-import” scheme). In exploring and historicising this little studied topic, the chapter first examines the earliest form of kaihatsu-yunyū as seen in the Goa formula first appeared in 1951. The Goa formula was essentially a long-term resource-backed credit agreement in which Japan exported the necessary capital goods and technology to India—formerly considered as part of Southeast Asia—in exchange for iron ore as repayment. The chapter then surveys kaihatsu-yunyū in the context of Japan’s economic cooperation during the 1950s and 1960s as a dual-purpose policy tool to rebuild trade relations with Southeast Asia by securing raw materials from it, and expanding exports to the region. It also examines kaihatsu-yunyū-style aid that was designed to promote trade with Southeast Asia. To conclude, the chapter briefly discusses the legacy and significance of kaihatsu-yunyū—particularly the influence of Goa on the “Aid for Trade” agenda and China's contemporary large-scale resource-for-infrastructure swap agreements under its Angola model.