Japan PM set to announce huge aid package for Asian countries

Japanese Prime Minister Taro Aso will announce a multi-billion-dollar aid package for Asian countries in a speech today at the World Economic Forum (WEF) in Davos, reports said. The three-year package from April 2009, worth 1.5 trillion yen (16.5 billion dollars), would be aimed at boosting the Asian economy through development programmes, including infrastructure projects, Jiji Press and other local media reported, without citing sources. Japan’s official development aid, an important diplomatic tool for the pacifist country since the end of World War II, has historically focused on Southeast Asian countries. Aso will also highlight Japan’s own efforts to increase domestic demand with stimulus packages worth a total of 75 trillion yen, calling for other nations to adopt similar economic policies, they said. Separately, Trade Minister Toshihiro Nikai and Farm Minister Shigeru Ishiba will propose a plan to cut or lift tariffs on environmentally friendly products at an informal meeting of the Word Trade Organisation (WTO) to be held on the sidelines of the Davos meeting, the business daily Nikkei reported. The proposal is aimed at promoting trade in goods such as lithium-ion batteries and solar power generation systems, which could help address global warming and are areas that Japanese companies have strength in, it said. Aso left Friday on a lightning visit to the Davos gathering, where he is expected to seek a leadership role for the Asian power in fighting the global slowdown. Aso, embroiled in a stormy session of the politically divided parliament, will spend only a matter of hours in the Swiss mountain resort and return to Tokyo by late Sunday. Despite a fresh round of dire economic news from Japan, Aso has argued that the world’s second largest economy is in a strong position to use its resources to jump-start growth. The Japanese leader is expected to also highlight the Asian economy’s proposal to lend up to 100 billion dollars to the International Monetary Fund (IMF) to help emerging countries hit by the economic crisis, officials have said.