Fact Sheet: Japan's Development Policies

1. Japan's ODA

Japan has been the largest ODA donor since the early 1990's up to 2000. In particular, from 1990 to 2000, while the ODA provided by all the member countries of the Development Assistance Committee (DAC) of the Organisation for Economic Co-operation and Development (OECD) fell slightly, Japan's ODA increased by almost 50%.

2. International Cooperation in Health and Education Sectors

(1) Implementation of the Okinawa Infectious Diseases Initiative

On the occasion of the G8 Kyushu-Okinawa Summit in 2000, in order to enhance cooperation in contributing to measures to tackle infectious diseases such as HIV/AIDS, tuberculosis and malaria, Japan announced the "Okinawa Infectious Diseases Initiative," with the target of allocating a total of US$ 3 billion over the course of five years (2000-2004). Responding to this initiative, as of December 2001, Japan has adopted and implemented assistance projects totaling approximately US$1 billion, in addition to dispatching joint project formulation mission with the United States, Canada and United Nations Children's Fund (UNICEF) (to the Federal Republic of Nigeria, Kingdom of Cambodia, Republic of Malawi, and People's Republic of Bangladesh), and assisting in human resources development (Japan accepted 2,437 experts and trainees from 84 different countries in FY2000).

(2) Contribution to the Global Fund to Fight AIDS, Tuberculosis and Malaria

In January 2002, the Global Fund to Fight AIDS, Tuberculosis and Malaria was established and registered as an independent private foundation under Swiss law. The headquarters of the Fund is located in Geneva, and the fiduciary functions of the Fund is entrusted with the World Bank. Administrative services are also provided by the World Health Organization (WHO). The Fund is a financial instrument, not an implementing entity, and makes available and leverage additional financial resources to combat HIV/AIDS, Tuberculosis and Malaria by providing grants for projects or programs formulated and implemented by government agency, non-governmental and private organizations in developing countries. Japan has announced contribution in a total amount of US$200 million to be disbursed to the Fund over a period of three years starting in 2002.

(3) Cooperation in the Education Sector

Recognizing that investment in education based on ownership efforts are effective tools for poverty reduction and economic growth in developing countries, Japan has been actively providing assistance to developing countries in the areas such as constructions of school buildings, the provision of education-related materials and equipment, school education and the establishment of systems for training teachers and education systems.

For the forthcoming G8 Kananaskis Summit, responding to earnest efforts in the international community towards achieving "Education for All" (EFA) after the World Education Forum in 2000, Japan announced its intention to provide ODA totaling more than 250 billion yen (approx. US$ 2 billion) over the next five years for education to low-income countries. In addition, and in particular in basic education, Japan launched "Basic Education for Growth Initiative" that elucidates priority areas and new efforts for basic education.

3. Cooperation in Trade and Investment Sectors

(1) Measures for Trade-related Technical Assistance / Capacity Building (TRTA/CB)

Since the birth of the WTO in January 1995, it has become clear that several developing countries have faced difficulties in implementing their obligations under the WTO Agreements, and also that the launch of the new round of negotiations in January 2002 has caused a number of developing countries not to catch up with the advanced technicalities required for participating in the negotiations. In such a situation, trade-related technical assistance/ capacity building (TRTA/CB), in particular for the institution and capacity building to enable the developing countries to adopt themselves to the so-called new issues (investment, competition, trade facilitation, and transparency in government procurement), is of increasing importance.

Japan is providing active assistance for TRTA/CB. As a part of concrete example, such assistance is provided as the contribution of CHF1.5 million (approx. US$ 0.9 million) to the Doha Development Agenda Global Trust Fund (DDAGTF¹), the implementation of the Japan International Cooperation Agency (JICA)'s projects (a plan to provide training programs for 2,500 persons over five years), and the contribution of US$500,000 for Least Developed Countries in the Integrated Framework². In addition, coordination has been also in the course towards the realization of WTO and JICA partnership (i.e. holding of seminars in Geneva on "new issues" such as investment and competition) and a JICA's training program for African countries (i.e. a training program to be jointly sponsored by Egypt and will target the middle-ranking officials responsible for trade and investment policy in Egypt and neighboring countries).

(2) Cooperation through giving support to UNCTAD

Concerning cooperation in investment areas, Japan supports UNCTAD activities in promoting the conclusion of bilateral investment agreements among developing countries. In June 2000 in Sapporo, Japan provided US$300,000 of financial assistance for a strengthening of South-South investment cooperation through the sharing of experiences in bilateral investment treaty negotiations that was sponsored by UNCTAD³.

Furthermore, in the "Mid-term Review of UNCTAD X" held in May 2002 in Thailand, Japan announced that it was considering providing financial assistance for UNCTAD training and seminars for trade and investment-related officials in developing countries in the Asia-Pacific region.

(3) Measures for "Duty-free and Quota-free" Market Access for LDC Products

At the Third United Nations Conference on the Least Developed Countries (May 2001) it was agreed that efforts should be made towards the objective of duty-free and quota-free market access (no tariffs and no quotas in the markets of developed countries) for all LDC products. The same goal was confirmed in the Communiqué of the G8 Genoa Summit in July 2001 and also confirmed in the Ministerial Declaration of the 4th WTO Ministerial Meeting in November 2001.

From April 2001 Japan granted market access measures through new duty-free and quota-free measures on 350 products, including clothing and textiles to all LDC countries desiring preferential treatment. As a result, duty-free and quota-free access for 99% of all mining and manufactured products has been provided. Japan is determined to continue to make efforts towards the objective of duty-free and quota-free market access for all products originating from LDCs, and from this point of view, Prime Minister Junichiro Koizumi has announced on 20 June, 2002, to examine immediately to expand coverage under duty-free and quota-free treatment for LDCs' products by the revisions of tariff-related laws for the next fiscal year which begins on 1 April, 2003.

(4) Holding of the Africa-Asia Joint Forum

With the objective of promoting trade and investment between Asia and Africa, and as a forum for concrete business negotiations among private sector participants, the Africa-Asia Business Forum (AABF) has been held on two occasions, in 1999 and in 2001, organised by the UNDP and funded by Japan through the UNDP "Human Resources Development Fund". The AABF has provided Asian and African business executives with the opportunity for one-to-one business meetings and has resulted in the conclusion of many contracts and MOUs directly related to the promotion of trade and investment between both regions. However, with the TICAD III scheduled to be held in the latter half of 2003, Japan proposes holding the Africa-Asia Joint Forum to supplement the AABF in order to provide a broader forum for discussion in the promotion of trade and investment between the two regions. The Africa-Asia Joint Forum will also provide opportunities for the exchange of views among governmental officials and private-sector persons from Asia, Africa and Japan, in addition to the existing one-to-one business meeting.

4. Cooperation Towards Sustainable Development

(1) Cooperation in Environmental Fields

At the United Nations General Assembly Special Session on the Environment and Sustainable Development (UNGASS) in New York in June 1997, Japan announced its "Initiatives for Sustainable Development Toward the 21st Century (ISD)", which comprehensively demonstrated Japan's international environmental cooperation policy, mainly focusing on ODA. Under basic philosophies divided into three points - (1) Global Human Security, (2) Ownership; and (3) Sustainable development, this Initiatives demonstrated an action plan in six environmental areas: (1) Air pollution (acid rain), water pollution and waste disposal; (2) global warming (The Kyoto Initiative); (3) natural conservation; (4) water issues; (5) Development of public and government awareness; and (6) promotion of global environmental strategies towards sustainable development. Based on these Initiatives, Japan has implemented a variety of measures in environmental fields, and in FY2000 environmental ODA accounted for JPY452.5 billion. This represents one-third (31.8%) of Japan's total ODA.

(2) Implementation of the Kyoto Initiative

In December 1997, as the host of the third session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP3) in Kyoto, Japan announced "The Kyoto Initiative," consisting of strengthened support for developing countries to combat global warming, mainly through ODA. The Kyoto Initiative consists of three main pillars of cooperation for developing countries to address global warming: (1) Cooperation in capacity development; (2) ODA loans on the most concessional conditions (0.75% interest rate, 40 year repayment period); and (3) exploitation and transfer of Japanese technology and know-how. Based on this Initiative, over 4,600 people have received climate change-related training for three years from FY1998 to FY2000.

(3) Measures Concerning Water

The Millennium Summit of the United Nations in September 2000 defined Millennium Development Goals, and given that these goals include such targets as halving, by the year 2015, the proportion of people without sustainable access to safe drinking water, it can be seen that global concern in issues surrounding water is rising.

With this background, towards the World Summit on Sustainable Development (Johannesburg Summit) to be held in August 2002, and the 3rd World Water Forum to be hosted by Japan in March 2003, Japan is undertaking a consideration, among others, to establish an international partnership for the purpose of improving governance over environmental issues, particularly water quality, comprehensive water management planning in developing countries. (In June 2002 an "Initiative for Good Governance in Environment between Japan and Indonesia" was announced.)

(4) Measures Concerning Forests

(a) In May 2002, Japan and Indonesia jointly announced the Asian Forest Partnership (AFP) plan. With the aim of jointly promoting sustainable forest management in the Asian region, this plan provides a framework to promote cooperation among countries in the region and to the greatest extent possible other donors engaging in projects to address issues, such as illegal logging and prevention of forest fires, as well as reforestation of degraded lands. Currently Asian countries and donors are being called on to participate in this plan. Examples of specific activities include the following:

(b) At the 33rd Session of the International Tropical Timber Organization (ITTO) in May 2002, Japan announced the contribution of US$127,000 towards ITTO activities to support sustainable forest management (human resources development, convening workshops for the formulation of research programs) in five countries in the Congo River basin (Democratic Republic of Congo, Republic of Congo, Republic of Cameroon, Central African Republic, Gabonese Republic). In addition, Japan announced the contribution of US$25,000 to a Project to Enforce Forestry Laws in Africa (collection of data on forests in the Democratic Republic of Congo, Republic of Congo, and Central African Republic and others), and the contribution of US$297,980 for an ITTO project related to forest certification. Furthermore, Japan announced a contribution of US$25,000 to support a side event to be held by the ITTO at the Johannesburg Summit (introduction of ITTO activities in sustainable tropical forest management and others).

(5) Measures Concerning Energy

At the G8 Energy Ministerial Meeting in May 2002, Japan proposed the "Energy Literacy Initiative" for the purpose of promoting education concerning energy around the world, and gained the support of the other G8 countries. In addition to the G8, Japan has called on various countries including members of the OECD and the APEC as well as international organizations to cooperate. Examples of specific activities are as follows:

(a) Implementation of energy-related programmes and activities for children (energy boy scout, energy summer school, etc.)

(b) Implementation of energy-related courses for adults (Open universities, energy-related symposiums, etc)

(c) Dispatch of relevant energy experts responding to a request from a community who wishes to improve its energy literacy.

(d) Development of a network of international organizations and institutions for improvement of energy literacy.

5. International Cooperation in IT Areas

At the G8 Kyushu-Okinawa Summit in 2000, Japan announced the preparation of a comprehensive cooperation package for bridging the international digital divide consisting of non-ODA (Other Official Flows (OOF)) and ODA public funding with a view to extending a total of US$15 billion over the course of five years. Specifically, cooperation was undertaken in order to: (1) raise awareness of IT opportunities and contribute intellectually to policy and institution-building; (2) develop and train human resources (training, human resources development); (3) build IT infrastructure and provide assistance for network establishment; and (4) to promote the use of IT in development assistance.

6. Promotion of an East Asian Development Approach - Initiative for Development in East Asia (IDEA)

Based on the review of the role played by its development assistance in the past economic development in the East Asian region, Japan proposed the Initiative for Development in East Asia (IDEA), which, examining the development strategy and cooperation in the region for the future, demonstrates the effectiveness of an East Asian Development Approach which addresses poverty reduction through economic growth. This approach can be applied to other regions in the world, such as Africa.

Currently, with the participation of ten ASEAN countries, Japan, the peoples' Republic of China and the Republic of Korea, preparations are underway for a ministerial meeting on the Initiative for Development in East Asia (IDEA) to be held in Japan in August.

(Notes)

1. Fund for trade related technical assistance and capacity building established in WTO.

2. Fund for the creation of a comprehensive framework for measures for developing countries (Participants: World Bank, United Nations Development Programme (UNDP), WTO, International Trade Centre (ITC), UNCTAD, and International Monetary Fund (IMF)).

3. A project whereby government-related persons from 15 developing countries were invited to Sapporo, Japan, for negotiations among these nations on the promotion of the conclusion of bilateral investment agreements. The project resulted in 23 bilateral investment agreements being concluded among 12 developing countries.

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