Grant aid is financial assistance extended to the developing countries for the procurement of the products and services necessary for implementing economic and social development projects.
The major targets of Japan's Grant Aid are projects in the fields of basic human needs (BHN) and GII* (e.g. population growth control, HIV/AIDS), which are essentially unprofitable and which are not eligible for loans. These areas encompass primary health care, safe water supply, medical equipment, educational facilities, rural and agricultural development, and human resources development, including WID (Women In Development) projects.
Japan's grant aid is financed by the portion of the national budget that comes from Japanese taxpayers' money. Therefore, their understanding and support is essential.*GII: Global Issues Initiatives
Basic Philosophy of the ODA* Charter
1) Humanitarian considerations
2) Recognition of interdependence among nations of the
international community
3)Environmental conservation
4) Support for self-help efforts of recipient countries
*ODA: Official Development Assistance
At a cabinet meeting on June 30, 1992, the Japanese
government adopted the ODA Charter. The Charter reflects the
changes that have taken place in the world since the end of the
Cold War. It was drawn up in the light of the country's
experiences over the past 40 years implementing ODA programs. As
such, it is a comprehensive statement of Japan's ODA policy
covering its basic aid philosophy, principles, and priority areas
from a long-term perspective. At the outset, the Charter sets
forth the four points as the basic philosophy of Japan's ODA.
Along with the basic philosophy, the principles constituting the
core of the ODA Charter are described as follows.
Four Principles of the ODA Charter
1) Compatibility between preservation of the environment and
development
2) Avoidance of the use of ODA funds for military purposes and
for purposes liable to inflame international conflicts
3) Monitoring of military spending of developing countries, their
activities of developing and producing weapons of mass
destruction, and the export or import of weapons
4) Monitoring of activities for the promotion of democratization
in developing countries, and their efforts to introduce a
market-oriented economy and secure basic human rights and
freedoms of their citizens
(*)The Ministry of Foreign Affairs (MOFA) of Japan takes main
responsibility for decisions relating to the implementation of
the projects.
MOFA instructs the Japan International Cooperation Agency (JICA)
to carry out surveys and studies of the project at the study
stage and to expedite the execution of the project at the
implementation stage.
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