by ANDREW LUMSDEN
Japanese Prime Minister Shinzo Abe
In July 2014, Japanese Prime Minister Shinzo Abe embarked on a historic 11-day tour of five countries in Latin America and the Caribbean, culminating in the first-ever summit between Japan and the Caribbean Community (CARICOM). CARICOM is an organization of states and dependencies in the Caribbean, with a total of 28 members, associate members and observers. At the summit, held in the Trinidadian capital of Port of Spain, Abe affirmed Japan’s commitment to “more proactively” contribute to “peace, stability and prosperity” in the region.[i]
He set forth “three pillars” upon which Japanese policy towards the Caribbean will be founded, the first being the development of the region’s renewable energy sector and addressing environmental vulnerabilities. The second pillar is the development of cultural and educational exchanges, and the third is further cooperation between Japan and CARICOM in the global arena.[ii]
Japan is not a newcomer to the Caribbean, having trade and investment relationships with a number of states in the region going back to the 1960s and 1970s. However, Japan’s critical economic slump during the 1990s resulted in a more than a decade-long lapse in the country’s economic engagement with the Caribbean community.[iii] As Japan’s own economic fortunes have improved in recent years, it has vigorously begun to re-engage with Caribbean nations. The renewable energy expertise, cutting-edge technology, and unique, bottom-up approach to investment that Japan brings to the table opens up new possibilities for growth and development in the region.
A Renewable Energy Future: The First Pillar
Over the course of his premiership, Abe’s government has strongly promoted and heavily invested in renewable energy, both in Japan and abroad.[v] In 2014, Tokyo announced that is investing $15 million USD in eight Caribbean countries with the aim of mitigating the impact of climate change, reducing energy emissions, and ending overdependence on expensive imported fossil fuels.[vi] Japan will be transferring advanced, low-emission technologies to participating countries to assist community-based pilot projects tackling issues such as water resource management, agricultural sustainability, the creation of resilient, environmentally friendly infrastructure, and the development of energy from renewable sources.[vii]
Some of these Japanese investments include a commitment of over $100,000 USD for the installation of solar panels on primary schools in Barbados, which is estimated to reduce the schools’ energy costs by between 10 and 30 percent.[viii] Other investments also include training, equipment, and technical assistance to facilitate the creation of renewable energy infrastructure, such as solar farms, wind farms and geothermal plants in St. Kitts and Nevis, Jamaica, and Trinidad and Tobago.[ix] If these planned renewable energy installations are completed, Caribbean nations could potentially profit from “infra-tourism”, a practice gaining popularity in Japan, in which tourists are encouraged to visit and tour large-scale infrastructure utilities. Lastly, this past April, Japan announced an additional $3 billion USD investment in renewable energy development and energy efficiency projects throughout Latin America and the Caribbean.[x]
This partnership is expected to create jobs and improve livelihoods for residents across the Caribbean. High energy costs, resulting from dependence on expensive imported fossil fuels, are having a seriously damaging impact on many Caribbean residents and is becoming a significant hindrance to economic growth. The World Bank has stated that energy costs pose “a daily hardship” for millions in the region, and the International Monetary Fund (IMF) reports that energy costs and fossil fuel dependence are “dampening Caribbean competitiveness and potential growth,” even with the recent decline in global oil prices.[xi] Both institutions have called on Caribbean countries to diversify their energy sectors, and Japanese cooperation will help them substantially in doing so.
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