Official Development Assistance (ODA)
3. ODA Country Policy toward Major Recipients
Japan's ODA in Egypt
1. Basic Policies
(1) Egypt's Position in Japan's ODA
Japan is providing assistance to Egypt, taking into account the following factors.
| 1) | Egypt is one of the largest countries in the Middle East. It maintains a stable government and plays a leading role in maintaining peace and stability in the region. |
| 2) | Egypt is working to adopt a market-oriented economy and is pursuing democratization through the adoption of a democratic assembly. |
| 3) | Japan and Egypt share a close relationship. |
| 4) | Egypt has a high population growth rate and serious poverty, and therefore has great need of aid. |
Egypt is the eighth largest recipient of Japanese bilateral aid (based on cumulative net disbursements up to 1998) and the largest in the Middle East.
(2) Priority Areas for Japan's ODA
On the basis of studies and research concerning development conditions, tasks, and plans in Egypt as well as policy dialogues between Japan and Egypt, including the High-Level Mission on Economic and Technical Cooperation sent to Egypt in February 1992 and subsequent policy dialogues, Japan has given priority to assistance in the following areas.
| 1) | Expanding agricultural production Rebuilding agriculture is an urgent task for Egypt in order to improve its food self-sufficiency. Providing support to boost agricultural productivity and improve the processing and distribution systems of agricultural products. |
| 2) | Human resources development and education Providing assistance for the development of human resources, which is the basis of the economic and social infrastructure, by focusing on the cultivation of technicians, vocational training and improvement of administrative capabilities of local governments and communities. Implementing assistance for the enhancement of basic education and educational facilities, while concurrently improving the quality of education. |
| 3) | Economic infrastructure and promotion of industry Supporting general and effective infrastructure building with long-term industrial policy and the use of private capital, Implementing assistance in fields that expands trade and investment in the areas of manufacturing and export, and that promote tourism. |
| 4) | Health and medical services In addition to on-going assistance for the training of nurses and the treatment of infants, providing cooperation for substantial improvements of basic health and medical services that most directly benefit the low-income strata of the population and thereby the overall improvement of health and medical services, and improving population and family planning measures. Improving social welfare services through the diffusion of environmental health knowledge, the betterment of health and medical services and the implementation of plans to combat poverty. |
| 5) | Improvement of the living environment, environmental conservation and public hygiene Providing support for the dissemination of basic technologies that contribute to environmental conservation and improvement, such as those for monitoring the living environment and preventing environmental pollution, as well as cooperating closely on the issue of clean, renewable energy sources. Also providing support for improvement of public hygiene and the living environment, including water and sewage systems, chiefly in urban areas, where the effects are greatest. |
In addition, with poverty countermeasures in mind, Japan is cooperating particularly through contributing to improvement in services in the welfare field.
(3) Matters for Consideration
- At a social and economic level, regional disparities and gender discrimination remain. Keeping this in mind, providing assistance at the regional level and support for increasing the low income levels of women should be considered. In central Egypt, where acute poverty and regional unrest have resulted in terrorist attacks, there appears to be significant need for assistance to improve the standard of living to break out of this vicious circle.
- Japan has endeavored to establish a partnership with Egypt and other donor countries to implement a new development strategy, and it will continue to exert this initiative.
- Japan will continue to promote trilateral cooperation with Africa and the Middle East, with Egypt serving as a foothold for development assistance. In October 1998, Japan signed the framework letter "Promoting South-South Cooperation through Japan-Egypt Trilateral Training Cooperation." High praise has been voiced for third-country training programs implemented by Japan (in which trainees from Africa and the Middle East undergo training in Egypt), recognizing that such programs serve to foster closer relationships between Egypt and the countries of these regions. Japan will enlarge the third-country training programs while asking Egypt to gradually bear an increasing share of the costs.
- President Mubarnak visited Japan in April 1999 to discuss the establishment of the Japan-Egypt Partnership for Peace and Prosperity in the 21st Century. Japan is considering how to implement this program and will provide assistance to it.
- Japan is now resuming talks with Egypt to consider specific measures for ODA loans for the first time since 1991, taking into account developments in the economic structural reform programs and Egypt's efforts to achieve long-term economic and social development.
2. The Current Economic Situation in Egypt and Tasks to Be Addressed
(1) Major Economic Indicators
| 1997 per capita GNP and GNP growth rates (1990-1997 average) |
Real GDP growth rate | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| $1,200; 2.8% (World Bank figures) |
|
(2) Current Situation
Since 1991, when Egypt began its move to a market economy, economic reforms, structural adjustments and debt reduction measures have reduced the fiscal deficit as a ratio of GNP. Moreover, the inflation rate has stabilized, foreign currency reserves have increased and macroeconomic stabilization policies have been successful. However, the issues of a high unemployment rate and underdeveloped export industries remain.
(3) Tasks to Be Addressed
- Promoting further moves toward a market economy and building a capital market
- Promoting the privatization of state-owned enterprises and creating jobs
- Elimination of regional discrimination and gender discrimination, and the improvement of standards of living
- Boosting agricultural productivity to achieve stable food self-sufficiency
- Promoting human resources development, beginning with primary education
- Upgrading the economic infrastructure as the base for economic development
3. Development Programs
The Fourth Five-Year Plan for Social and Economic Development (1997/1998-2001/2002)
Goals:
- Achieving a 6.8% annual growth rate of GDP
- Increasing private investment to 65-75% of Egypt's total investment target
- Keeping the annual growth rate of private consumer spending more than twice the population growth
- Expanding employment opportunities and workers' incomes
- Expanding production in the private sector by 10% a year
- Putting all children eligible for receiving compulsory education in school
- Improving the rate of women's participation in the economy and in society
- Lowering the mortality rates of infants, pregnant women and nursing mothers
- Decreasing the population growth rate within 5 years, from 1.94% to 1.66%
- Linking economic development to the international environment
4. Aid Statistics
(1) Japanese Assistance
(Net disbursements, $ million)
| Calendar Year | ODA Loans | Grant Aid | Technical Cooperation | Total | Rank of Total Contribution |
|---|---|---|---|---|---|
| 1998 | 20 | 42 | 24 | 86 | 16th |
| Cumulative through 1998 | 2,017 | 939 | 334 | 3,290 | 8th |
(2) Assistance from DAC Countries
(Net disbursements 1997, $ million)
| Total Bilateral Aid | 1st | 2nd | 3rd |
|---|---|---|---|
| 1,496 | United States: 542 | Germany: 397 | France: 284 |
(3) ODA from International Organizations
(Net disbursements 1997, $ million)
| Total Aid | 1st | 2nd | 3rd |
|---|---|---|---|
| 402 | *CEC: 197 | IDA: 141 | AfDF: 23 |
*CEC: Commission of the European Communities
Japan's ODA in Jordan
1. Basic Policies
(1) Jordan's Position in Japan's ODA
Japan is providing assistance to Jordan, taking into account the following factors.
| 1) | Jordan is one of the nations directly involved in the Middle East peace process and is actively engaged in that process. Jordan's political and economic stability is crucial to peace in the Middle East, especially as the country is in a transition period following the death of King Hussein. There is increased need for the international community to support Jordan in light of this fact. |
| 2) | Jordan is actively working to promote democratization and economic reforms. |
| 3) | Jordan has a good relationship with Japan. |
| 4) | Jordan is the 14th largest recipient of Japanese bilateral aid (based on cumulative net disbursements up to 1998) and the second largest in the Middle East. In addition, Japan is the largest aid donor to Jordan (as of 1997). |
(2) Priority Areas for Japan's ODA
On the basis of studies and research concerning development conditions and tasks in Jordan and its development plans, as well as policy dialogues between Japan and Jordan, including the High-Level Mission on Economic and Technical Cooperation sent to Jordan in March 1996 and subsequent policy dialogues, Japan has given priority to assistance in the following areas.
| 1) | Improvement in the area of basic human needs
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| 2) | Promotion of industry
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| 3) | Environmental conservation Water pollution, air pollution, increasing waste disposal and other environmental problems are growing ever more serious due to rapid urbanization and population growth. Providing support for Jordan's responses to these problems. |
(3) Matters for Consideration
- Support for Jordan is inextricably tied to the Middle East peace process. In providing economic cooperation it is important to conduct broad-ranging policy dialogue from different political and economic perspectives.
- There is a need to consider Jordan's debt situation.
- Grassroots activities are important channels in the field of women in development (WID) and must be supported.
2. The Current Economic Situation in Jordan and Tasks to Be Addressed
(1) Major Economic Indicators
| 1997 per capita GNP and GNP growth rates (1990-1997 average) |
Real GDP growth rate | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| $1,520; 2.8% (World Bank figures) |
|
(2) Current Situation
Since 1989, results have been achieved reducing the fiscal deficit and controlling inflation, although restrictions on exports to neighboring countries and a drop in construction demand after the Gulf War have taken their toll on the Jordanian economy. Additionally, Jordan has no core manufacturing industry and relies on imports for the bulk of its daily necessities, creating a high rate of unemployment and structural trade deficits.
(3) Tasks to Be Addressed
- Expanding and diversifying Jordan's foreign capital earnings base through private sector initiatives and the promotion of the export industry
- Striking a balance between development of tourism resources and environmental conservation
- Securing and conserving water resources (making use of existing water resources more efficiently and developing new ones)
- Controlling population growth
- Improving education, health and medical services, and other social services
- Implementing measures to combat unemployment and eradicate poverty
3. Development Programs
The Three-Year Economic and Social Development Plan (1999-2001) is presently being prepared. For reference, we have provided the most recent Five-Year Plan ((1993-1997) for your reference.
Goals:
- Restoring macroeconomic balance in line with structural adjustment reforms
- Promoting social development, improving basic living standards, alleviating poverty, and resolving regional disparities
- Creating the legal, regulatory and institutional environment for expanding private investment
- Promoting the privatization of state-owned enterprises and going public with their stocks
4. Aid Statistics
(1) Japanese Assistance
(Net disbursements, $ million)
| Calendar Year | ODA Loans | Grant Aid | Technical Cooperation | Total | Rank of Total Contribution |
|---|---|---|---|---|---|
| 1998 | 15 | 19 | 10 | 44 | 32nd |
| Cumulative through 1998 | 1,278 | 124 | 124 | 1,526 | 14th |
(2) Assistance from DAC Countries
(Net disbursements 1997, $ million)
| Total Bilateral Aid | 1st | 2nd | 3rd |
|---|---|---|---|
| 288 | Japan: 140 | United States: 65 | Germany: 35 |
(3) ODA from International Organizations
(Net disbursements 1997, $ million)
| Total Aid | 1st | 2nd | 3rd |
|---|---|---|---|
| 174 | *CEC: 87 | UNRWA: 77 | WFP: 5 |
*CEC: Commission of the European Communities