Balance of Payments Support Aid in Japan:

Summaries The paper presents an overview of the historical evolution of BOP support aid in Japan, including changes in its policies and modalities. Organizational set?up and evaluation methodologies of official donor agencies such as the Ministry of Foreign Affairs, OECF and EXIM are explained. The methodologies are analyzed in the following two ways: items covered in the evaluations and analytical methods. Lessons and suggestions from their evaluations are as follows: objectives of structural adjustment programmes should be clearly defined; direct indicators for impact should be selected in correspondence with policy measures categorized; and the impact of other factors than structural adjustment, especially project aid, should be separated

ARE JAPANESE INVESTORS TAKING THEIR MONEY HOME?

Only recently has Japan become the world's largest investor. Yet stories of investors taking their money home already have developed. Are Japanese investors taking their money home? Would it matter? To answer these questions, one must examine the economic, regulatory, and political motivations guiding Japanese investments. So far, shifts in the flows of funds have not been sensational, but by no means should one dismiss the shifts as irrelevant. A tightening of liquidity at home and a pricking of the bubble's in Japan's equity and land markets have altered the calculus of returns on overseas investments. Tims, the annual increments to Japan's overseas holdings, which already had shrunk in 1990, should stay low in the coming years. Tlie impact on global financial markets will depend crucially on whether new flows from Japan fall faster than new demands for funds outside of Japan. Copyright 1992 Western Economic Association International.