The maintenance of sustainable economic development constitutes an essential requirement in promoting social development and poverty alleviation programs in developing countries and for working towards the achievement of the goals specified in the Development Partnership Strategy. Over the years, Japan has used its ODA loans to actively support the development of the social and economic infrastructures that underpin the process of economic growth. In this way, Japan has made a major contribution to building the foundation for economic development, particularly in the Asian region.*10 It must be borne in mind that, while the development of social and economic infrastructure requires adequate volumes of medium- and long-term funds, only a limited group of developing countries are able to generate these funds domestically or to attract adequate private funds from overseas.

In light of the above, Japan will provide the following forms of support.

-- Japan will continue to provide assistance for the development of social and economic infrastructure in developing countries. These projects will target such sectors as transportation, communication, electric power generation, and river and irrigation facilities, and efforts will be designed to correspond to the conditions and needs of individual countries.

-- In view of the importance of non-ODA funds, Japan will emphasize coordination and division of roles and responsibilities with private-sector funds and other official flows (OOF).

-- Japan will utilize ODA funds to develop an environment conducive to private investment.

-- Japan will cooperate in the policy aspects of infrastructure development, including the formulation, design and specification of development plans. Similarly, Japan will cooperate in the maintenance and management of facilities through both financial and technical assistance in order to maintain the benefits of assistance projects.

-- In the process of project implementation, Japan will pay due attention to ensuring that project benefits reach impoverished regions and populations. Japan will also take into consideration the impact of projects on local communities and populations and on the environment.