Japan used to be the world's leading foreign aid donor in the 1990s, spreading most of its largesse around Asia. But since 2001, Japan has slipped to fifth in donor rankings as budget deficits and the absence of strong political support lead to cuts in development assistance.
Meanwhile, other northeast Asian donors are increasing their aid budgets in Asia and increasingly Africa. Donors seek to cultivate friendly relations with recipient governments, secure resources and promote development as a means to nurture political stability and prosperity, although often not achieving these goals. They also vie for influence.
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