End Japan’s loans to Myanmar’s Tatmadaw

More than 3.5 years after the Myanmar military (Tatmadaw) attempted to seize control of the country through a coup, the Japanese government continues to provide Official Development Assistance (ODA) and public funds that benefit the military junta. Despite the sacrifices of the Myanmar people to end the Myanmar military’s decades-long oppression, Japan’s “assistance” risks burdening survivors with enormous loans that potentially enable the military to continue its atrocities against the very people it is meant to aid.
Since the 2021 coup, Japan’s response has been limited to expressing “grave concerns” and calling for the release of detained leaders like Aung San Suu Kyi. While Western countries imposed sanctions, Japan has taken hardly any punitive measures, showing leniency in the face of increasing its atrocities.
Like many countries, it supports international development through grants, loans and technical assistance. However, Japan favours providing aid in the form of bilateral loans, a method that constitutes a higher proportion compared to other donor countries that mostly offer grants. Within the Development Assistance Committee (DAC) of the Organisation for Economic Co-operation and Development — a key platform where the world’s major donor countries discuss development aid issues — Japan stands out as the largest provider of ODA loans. According to one study, from 1970 to 2020, among the 32 members of the DAC, Japan provided 71% of its bilateral aid in the form of loans, in stark contrast to the 22% provided by other DAC members. Japan’s reliance on loaning aid even surpasses that of multilateral organisations, which provided 52% of their aid as loans.
Japan’s role as a major donor to Myanmar is a testament to its aid strategy. Over the past decade, Japan has loaned an enormous amount of aid to Myanmar, unmatched by any other country. In 2022, only Japan and Korea continued to disburse ODA aid loans to Myanmar, with Korea’s contributions amounting to about 10% of Japan’s volume. By 2020, Japan had lent a cumulative total of US$2.7 billion to Myanmar.
Although no new ODA contracts have been signed since the coup, the finalisation of ongoing projects will increase Myanmar’s debt to Japan by an additional $5.12 billion.
Some of the projects funded by the sizable loan aid have been linked to Myanmar military’s businesses.
Yokogawa Bridge Corporation paid the Myanmar military-owned conglomerate, Myanmar Economic Corporation, for the Bago Bridge project. A UN fact-finding mission in Myanmar stated in 2019 that revenues from military-controlled businesses fund the military’s atrocities.
The Thilawa Special Economic Zone, backed by Japanese ODA, also risks entangling Japanese funds with the military since the chairperson of the zone’s Management Committee was replaced by the military shortly after the coup.
Other publicly-funded projects like the Y Complex Project have been linked to a venture that allows funds to flow to the Office of the Quartermaster General, which has been sanctioned by the United States, United Kingdom, European Union and Canada for its role in procuring arms and equipment for the military.
Since the coup, the Myanmar military has killed over 5,400 people, burning villages to ashes, committing massacres, torture and sexual violence. It has intensified airstrikes across Myanmar, displacing over 3 million people.
The survivors of these atrocities will be burdened with the enormous debt that could be funding the perpetrators.
Despite statements in 2021 suggesting a potential review of ODA if the situation in Myanmar deteriorated, the Japanese government has continued its aid, seemingly prioritising concerns over potential losses for Japanese companies.
During a hearing of the Committee on Audit on May 20, Foreign Minister Yoko Kamikawa stated, “If existing ODA is suspended and Japanese companies unilaterally terminate business contracts they have with counterpart institutions in the recipient countries, these companies may face demands for substantial penalties or could be subject to legal action. Therefore, a cautious approach is considered necessary”.
Instead of challenging the penalties and taking a firm stand on human rights, Japan appears more concerned with the interest of the companies involved in these projects.
Despite Japan’s lacklustre response to the crisis, many believe it can still influence change. Recently, a petition with over 11,500 signatures urged Japan to halt any aid benefiting the Myanmar military. A former Myanmar police officer now in Japan has called for a stronger stance from Japan, echoing sentiments expressed by many civil society organisations.
The Spring Revolution, sparked by the military’s 2021 attempt to grab power, is a historic, multi-faceted movement seeking to dismantle the military while building a federal democracy. Japan’s loan aid could undermine these goals. As Japan marks 70 years of ODA, it is time to end ODA loans and public funds that support the Myanmar military.
Yuka Kiguchi is the executive director of Mekong Watch — a Japanese NGO based in Tokyo. Mekong Watch combines research and advocacy to address and prevent the negative environmental and social impacts of development in the Mekong Region.