Official Development Assistance (ODA)

Statement by H.E. Ichiro Aisawa, Vice Minister of Japan

Messrs. Chairpersons,

In the Monterrey Consensus, the international community urges the use of a wide range of development resources to finance development. These include ODA, investment and domestic resources. And last week in Tokyo, participants in the High-level Forum on Health MDGs in Asia and the Pacific, which I attended myself, agreed that if the health-related MDGs were to be achieved, it was essential not only to extend the volume and effectiveness of ODA, but also to mobilize domestic resources in a sustainable manner. There was a consensus that strong political will is of decisive importance to achieve these ends. In short, there is widespread understanding that comprehensive measures must be taken by developing countries, exercising real ownership, to strengthen economic and social policies likely to bring about economic growth. The truth of this is clear to us from our own experience, and in my comments here I would like to focus on agricultural development, South-South cooperation, and the negative impact of capital flight and brain drain.

Messrs. Chairpersons,

Agricultural and rural development play a major role in the effort to achieve the MDGs and particularly MDG 1, halving poverty and hunger. Considering that 70 percent of the world's rural population are said to be poor, improving the production of popular crops through the "green revolution" contributes to the eradication of hunger in the countryside. If agricultural productivity rises, so too will the income levels of the poor because they will find it possible to sell their products at rural markets or even in urban areas as improvements are made to infrastructure such as rural roads. And the effect can be even greater if at the same time we assist local industry related to agriculture. From this viewpoint, Japan has been taking initiatives in private sector development, including agriculture -- for example, with the African Development Bank, where the target is US$1.2 billion in assistance over a five-year period. Also, Japan is implementing the "African Village Initiative (AVI)," which contributes to community development in accordance with local needs, for example, for schools and health care.

Japan places emphasis on South-South cooperation as another form of partnership that contributes to international development goals. Such cooperation contributes to human resource development and promotes trade between developing countries, which has been rising recently. For countries to achieve self-sustaining development, their domestic financial resources through trade and investment play a decisive role. In this connection, the Asia-Africa Development University Network can be useful in enhancing human resources and socio-economic development in both Asia and Africa.

South-South cooperation is also proceeding directly in MDGs-related areas. For example, Japan has launched "Japan-ASEAN Information and Human Network for Infectious Diseases Control'. Within this frame work Thailand is designated as the focal point in the area of HIV/AIDS and the Philippines in the area of Tuberculosis, according to their experience and know-how. And this effort makes combat against infectious diseases effective.

Messrs. Chairpersons,

If developing countries are to exercise real ownership, it is important that they tackle the issues of capital flight and brain drain. In sub-Saharan Africa, for example, capital flight actually exceeds foreign debt and thus constitutes an obstacle to development. In East Asia, which has had success in this area, infrastructure development financed with ODA was well coordinated with the implementation of industrial development policy by local government, and foreign direct investment and trade discouraged the flight of capital abroad. These approaches should be adopted when appropriate in other regions, such as Africa.

In closing, I am glad to inform you that, today, Prime Minister Koizumi announced Japan's intention to provide comprehensive assistance, under the new "Health and Development Initiative", aiming at US$5 billion over the next five years, with African people being major beneficiaries.

Thank you for your attention.