TOKYO - BY ASIA INSIDER - Oct 17,2023

The Japanese government recently announced the establishment of the Official Security Assistance (OSA) framework on April 5, 2023. This program is designed to assist the militaries and related organizations of friendly developing countries and is partially based on Tokyo's experience with Official Development Assistance (ODA). 

The National Security Strategy (NSS) paper, released on December 16, 2022, provides the basis for the new initiative. It states that OSA will enhance defense capabilities and security and deterrence capabilities of like-minded countries, preventing unilateral attempts to alter the status quo by force, maintaining peace and stability in the Indo-Pacific region, and creating a desirable security environment for Japan. 

 

Furthermore, Japan plans to provide necessary military-based materials and equipment to strengthen its security requirements. Bangladesh, Fiji, Malaysia, and the Philippines are among the countries being considered for OSA assistance, according to Chief Cabinet Secretary Hirokazu Matsuno.

 

Despite the advantages of the OSA framework, implementing it effectively will be a significant challenge for Japan. This is because both Japan and OSA recipients must comply with the Three Principles on Defense Equipment Transfers. Additionally, Japan will face stiff competition from other countries that have provided military aid packages to various Indo-Pacific countries.

The Three Principles on Defense Equipment Transfers dictate that military hardware can only be provided for non-international conflict-related areas. As a result, Japan expects OSA recipients to comply with the conditions of using the aid to ensure peace and stability.

This includes refraining from transferring any military equipment to countries under UN arms sanctions or certain states.

Examples of such stability-related activities include counter-terrorism, anti-piracy, search and rescue (SAR), and peacekeeping operations. The Japanese Ministry of Foreign Affairs (MOFA) has put in place policies to ensure the proper implementation of OSA packages, including transparency on the type of aid provided and strict guidelines against transferring military hardware to third parties or for extra-purpose use.

 

However, competition with other countries that have provided similar military aid packages is a major concern for Japan. The high costs associated with Japanese military equipment may make developing countries reluctant to purchase it. These countries may instead consider other countries that provide arms and military vehicles through financing, discounted prices, or even for free.

For example, in December 2016, China provided the Philippines with military assistance for free, alongside a $500 million long-term soft loan. Similarly, on May 29, 2022, the United States Embassy in Fiji donated four vehicles worth approximately $224,000 to the Republic of Fiji Military Forces (RFMF) as part of a Global Peace Operations Initiative (GPOI) package that included 11 vehicles, two forklifts, and four generators.

 

One potential solution to the challenges facing Japan's OSA program is the implementation of a flexible defense credit line. This would allow for tailored support based on each country's security needs and future demands, provided that lethal military hardware is not purchased. However, the high cost of Japanese military equipment remains a concern.

There is some promise, however, as Kawasaki Heavy Industries Global Aerospace Defense Business Manager Jun Tomiyama announced on March 20, 2023, that production costs for the C-2 aircraft would be lowered in response to concerns raised by the Japanese Ministry of Defense and potential export customers.

 

Despite the potential benefits of OSA assistance for developing countries, the program is likely to face challenges. In addition to adhering to strict rules on the use of Japanese military hardware, the high cost of such equipment may limit its accessibility for some countries.

Finding solutions to reduce the financial risk for OSA recipients will be crucial in enabling them to acquire Japanese military hardware. However, the restrictions on using such equipment in international conflicts may become increasingly difficult to uphold as the global security environment continues to evolve.