Official Development Assistance (ODA)
Review on Japan's ODA to China

1. Changes in the Situation Surrounding Japan's ODA to China

  • Severe economic and fiscal situation and criticism in Japan against ODA to China (compliance with the ODA Charter, China's aid to third countries, lack of publicity efforts within China, etc.)
  • Change in China's development agenda as a result of Chinese economic development (narrowing the gap between the coastal areas and the inland regions, poverty reduction, preparation for accession to WTO, global issues, etc.)

--Need for Review on Japan's ODA to China

2. Japan's Future ODA to China

(Towards making ODA to China effective and efficient based on Economic Cooperation Program for China)

Gist of Economic Cooperation Program for China

  • Shift from multi-year pledging of yen loan to a single-year pledging system (selecting aid projects for each year)
  • Ensuring that ODA can have understanding and support from Japanese nationals, and close examination for selection of each project based on national interest. (Priority areas: environmental protection and other global issues, transition to market economy, promoting mutual understanding, social development and welfare of inland regions, support for private-sector activities
  • China principally implementing economic infrastructure development in the coastal areas on its own
  • Aid total based on projects carefully selected as far as the annual level of ODA is concerned, without making the previous levels as a prerequisite. A long list of candidate projects, which enhances transparency, to be also introduced for future yen loans.
  • Making almost efforts to ensure deeper understanding on the Chinese side of the principles of Japan's ODA Charter through any possible opportunity
  • Carrying out timely evaluations and expeditiously reflecting the results in future assistance

(note 1) Following the finalization of the Economic Cooperation Program, a long list to serve as the basis for the position of yen loan after FY 2001 and to enhance transparency will be announced.

(note 2) The Economic Cooperation Program for China was drafted mainly based on the following recommendation published in December 2000:
- Recommendation by the "Advisory Group on Japan's Economic Cooperation to China in the 21st Century" (Chaired by Mr. Isamu Miyazaki, former Minister of State in charge of Economic Planning Agency)