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ABSTRACT Japan recently became the world's largest bilateral aid donor. Tokyo views foreign aid as a ‘main pillar’ of its foreign policy for addressing post‐Cold War global challenges. Western understanding of Japanese foreign aid remains a poorly understood perspective both in the foreign aid and Japan studies literature. Therefore, this article improves conceptualization of Japan's aid activities by focusing on past trends, present changes and possible future developments. An approach is adopted in this study that focuses on both the Japanese domestic policymaking environment and the international context. Empirical evidence suggests that the Japanese employed an ‘entrepreneurial’ approach to aid that incorporates strong private sector involvement and a regional Asia‐Pacific concentration but that its approach is gradually changing toward a more multidimensional one. The ‘perceived’ success of Japanese aid involvement enables Tokyo to promote its international development approach as an alternative to the Western development
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