Japan Seeks Support Agency for Boosting Defense Exports

Published By : 27 Nov 2014 | Published By : QYRESEARCH

In a move to kill two birds with one stone, Japan is planning on securing government support for pushing its weapon exports and strengthening Prime Minister Shinzo Abe stance on the country’s security issues as China gets aggressive with its military arsenal.

To get the wheels rolling, the government will convene an advisory meet and consider the proposals that have been submitted to finance the military sales and support the Japanese industry cooperation. The chances are this government-supported agency will give concession to military projects which are based on self-financing Japan International Cooperation Agency (JICA) and Japan Bank for International Cooperation (JBIC). The advisory board will meet after the lower house election on December 14. The board will have 10 members, including those with legal and banking expertise and military academicians and executives from defense industry. The panel will view and scrutinize the proposals from all angles such as assessing the best deals, negotiating support, maintenance, and process.

The other idea being considered is, introducing a financing arm to the defense procurement body slated for 2015 or to extend JBIC’s budget for military projects. For financing energy projects JBIC issues its own bonds. It also assists the Japanese industrial firms to establish their business firms overseas by giving them loans. JBIC is overseen by the Finance Ministry. 

On the other hand, JICA is Foreign Ministry’s is important body that is responsible for allocating US$17 billion for overseas development aid. JICA is also responsible building schools, finance agriculture and healthcare projects, hospitals with Japanese engineers, other experts, and nurses
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