Japan is going to blaze a new trail in the exports of infrastructure. Having compared the level of national contributions to the roads, bridges, and other facilities in 2010, the authorities decided to have reached $272 billion yen to 2020. The remarkable date is not chosen accidentally. It should, definitely, be referred to the upcoming Olympics which require an appropriate level of preparation.
Some Facts to Consider
Japan would like to support the companies and corporations that are going to run the infrastructure project abroad. The conditions of such concept sound quite attractive. The total interest rate should not exceed 0.1% if the project refers to the countries where the population can’t boast of high level of life.
All the voluntary initiatives have to be awarded, as it has been announced by the government. Perhaps, among the countries where life might become better with the upcoming infrastructure projects there are African places. The export of projects will bring to life the areas which national authorities have never clapped eyes on.
Economic Growth Vs Global Influence
As well, if one keeps a tally on Japanese companies involved into such activities, it becomes evident that Japan has supported developing countries for many years. For instance, in 2013 Japanese Prime Minister Sindzo Abe claimed that in five-year period they were going to bring $31.9 billion (including $6.5 billion intended for development of infrastructure).
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We hope that collaboration will be prolific for both countries. Japan is interested in helping Africa to develop sustainable economics, – said Toshimitsu Motegi, Minister for Economic, Trade, and Industry in 2012-2014.
The plans are to be put into life. Especially attractive propositions to get loans on projects connected to introduction of infrastructure abroad also refer to the overseas corporations where Japanese companies have 20% stakes. Perhaps, it is going to muffle argument between Japan and China as well as struggle for Africa as a stepping stone of global economic competition. Though Chinese financial contributions are somehow bigger currently, Japan might win over with excellent quality of infrastructure projects.
Who is Going to Dominate at the Market?
Having in mind that purpose, Japanese government is about to support the best infrastructural projects. The toughminded principles of Japanese firms will allow competing for the loans. For a comparison, in 2017, Japan Bank for International Cooperation that has the backing of the government gave nearly $7 billion 600 million in the form of investments and loans on the projects of Japanese companies in Asia. Moreover, according to the information given by the bank officials, the stated amount is twice more than funds brought in yen tally, the previous year contribution.
Furthermore, they reported that the growing number of Japanese companies is taking part in the projects in the area of infrastructure, including construction of thermoelectric plants in the countries of South Eastern Asia where the economic growth is evident.
Well, what about the rivalry? It has been considered that China and South Korea, not to mention Europe and United States of America, dominate the industry of infrastructural projects. However, 2014 became a revolving moment in the history of urban culture. Apart from that, Japanese government wants to make infrastructural projects nationally-oriented. If the progressive technologies are able to pave the way in this country, by 2020 flying cars will have become a common thing to happen upon the liquidation of natural disasters. By the way, one of the reasons why this technology looks so attractive in the eyes of Japanese authorities is its introduction abroad. Definitely, Japan is about to flight off the foreign competition. Particularly, the inventions of such companies as Cartivator, Toyota Motors, NEC, etc, the idea is going to be put into life.
