While the United States and Europe remain important destinations for Japan’s foreign direct investment, the Asian share noted the largest rise, increasing from around 10% of the total in 1986 to 25% in 1997. The rise is most spectacular in foreign direct investment into China, with its share jumping from 1 to almost 9% over this period. Indonesia was another important beneficiary.
In this respect we call upon all donors to secure a sufficient replenishment of IDA-16, for which negotiations will start soon. The second phase of voice and participation reform should be concluded within the agreed timeframe. This reform should be based on a widely accepted measure for countries’ relative economic weight, but should also take into account members’ contributions to IDA.