The IDB and Japan

Japan is the largest shareholder in the Inter-American Development Bank outside of the Western Hemisphere and plays a prominent role in all phases of Bank operations.

As the largest bilateral source of cofinancing for IDB funded development projects, Japan provided about $6.5 billion in cofinancing for 43 IDB-supported projects in 11 countries between 1993 and 2003. These resources supported a diverse range of projects and sectors, including infrastructure, environmental protection, education and health.

Japan is one of the two main contributors to the Multilateral Investment Fund, a member of the IDB group that supports private sector growth with grants and investments. Japan's contribution of $500 million to the MIF matched the amount provided by the United States.

The Japan Special Fund, a trust fund administered by the IDB, is the Bank's largest source of untied bilateral technical cooperation financing. In recent years the fund has financed nearly $9 million in projects specifically targeted at poverty reduction. Another fund, the Japanese Trust Fund for Consultancy Services, provides resources that enable Japanese consultants to contribute their expertise for Bank-supported projects in areas such as environmental protection, infrastructure, health and business and financial development. Altogether, the Japanese trust funds provided $230 million for approximately 350 projects between 1988 and 2004.

The Japan Program founded in 1999 promotes the exchange of knowledge, experiences and best practices in development between Latin America and the Caribbean and East Asia.

The Japan-IDB scholarship program has awarded approximately 500 scholarships since its inception in 1991 to support students from Latin America and the Caribbean pursuing master's degrees in fields related to social and economic development.

Japan is an active member of the Inter-American Investment Corporation, an IDB affiliate that provides loans and investments to support small and medium-sized enterprises. Japanese private institutions have loaned resources to the IIC and have participated in the IIC's loan syndications and investment and lending programs.

Japanese investors have played a prominent role in participating in IDB's annual multibillion-dollar bond sales, which raise resources on international financial markets to support the Bank's lending operations.

Japan joined the IDB in 1976, becoming the Bank's first Asian member. In 1994 Japan's participation in the IDB's capital was increased from 1.1 percent to 5 percent, and simultaneously Japan was assigned a permanent seat on the Bank's Board of Executive Directors. Japan was host to the 1991 Annual Meeting of the IDB in the city of Nagoya, and in 1995 a permanent IDB office was established in Tokyo to promote economic and cultural exchange between Bank member countries and Asia.