Japan has extended ODA to more than 150 countries and ranked as the top bilateral donor to 47 of these countries in 1996.*25 Through ODA, Japan has made a major contribution to the development of numerous countries. For reasons of geographic proximity and historical and present ties, Japan's ODA assistance has traditionally been focused on the Asian region and will remain focused on those countries with whom Japan maintains close relations. At the same time, given the global expansion of economic interdependence and the need to take concerted international action to cope with such global-scale challenges as humanitarian problems and the maintenance of international stability and prosperity, Japan will continue its extension of aid to regions outside Asia.
East Asia is a region of special focus for Japanese ODA, with Japan accounting for nearly 60% of the total bilateral aid to this region provided by DAC member countries during the five-year period beginning in 1992. Over the years, Japanese ODA has made a major contribution to economic growth in this region through human resources development and social and economic infrastructure building. Similarly, Japan has contributed to alleviating the problems of poverty and environmental pollution through its assistance for social development and environmental conservation.
Japan enjoys close economic and other forms of ties with East Asia and will continue to provide appropriate forms of assistance in line with the highly diverse levels of income, progress made toward market economy, the social situation, and the natural environmental conditions found among these countries. Southeast Asian countries have enjoyed high rates of economic growth in recent years, and it is highly important for Japan to provide assistance that will help these countries overcome their current difficulties, achieve economic recovery and maintain political and social stability. It is necessary for Japan to provide assistance designed to alleviate poverty and to support continued economic growth and the transition to market economies in low-income countries. China has a population of more than 1.2 billion and its development will have a major global impact. Therefore, it is important for Japan to support China's Open and Reform Policy while encouraging it to become a more constructive partner in the international community. Japan's assistance to China should also be focused on its efforts, such as the elimination of regional disparities and environmental problems. Recent developments in East Asia indicate a movement toward closer regional cooperation and a regional approach to development. Moreover, East Asia is witnessing the appearance of "emerging donors" who are starting their own programs for assistance to developing countries. It is necessary for Japan to provide appropriate forms of assistance to support and promote these positive developments.
In light of the above, Japan will provide assistance and support while emphasizing the following points.
(1) Japan will provide support for economic structural adjustment to overcome the economic crisis and to achieve economic recovery.
(2) Japan will provide active support to the socially vulnerable to improve their living standards and domestic conditions.
(3) Japan will provide support for human resources development and institutional building to promote the development of supporting industries and appropriate social and economic management.
(4) Japan will adjust its assistance to poverty alleviation programs, social and economic infrastructure development, environmental protection, and agricultural and rural development projects to conform to the needs and conditions of individual countries.
(5) Japan will provide support for regional development initiatives such as ASEAN regional cooperation, APEC, Mekong basin development and for "South-South cooperation."*26
Southwest Asia is home to the largest population of impoverished people in the world.*27 With the goals of the Development Partnership Strategy in mind, Japan will continue to focus on the region's poverty problems, provide assistance designed to encourage economic liberalization in the countries of the region, and promote regional cooperation based on economic cooperation. Following underground nuclear testing by India and Pakistan in May 1998, Japan had no alternative but to fundamentally review its assistance policies toward both countries. In continuing to seek positive reactions from India and Pakistan in the area of nuclear non-proliferation, it is necessary for Japan to continue dialogue with both nations.
In light of the above, Japan will provide assistance and support while emphasizing the following points.
(1) Japan will provide support for alleviating poverty and ensuring the livelihood of the poor (focusing on assistance for basic human needs, including health and medical services, primary education, and agricultural and rural development).
(2) Japan will provide support for human resources development and social and economic infrastructure development in order to revitalize private-sector activities and to create a more attractive environment for foreign investment.
(3) Japan will provide support for environmental conservation to cope with the increasing environmental burden created by population and economic growth.
Since the collapse of the Soviet Union, the countries of this region have pursued democratization and the establishment of market economies. However, the region remains beset by political and economic instability caused by vulnerable economic structures, growing unemployment and social instability, ethnic conflicts, and territorial disputes. Japan has actively endeavored to assist this region and was successful in calling for the inclusion of these nations into DAC's list of aid-receiving countries. In view of the geopolitical significance of this region and the importance of access to its energy resources, it is vital for Japan to continue to promote its "Silk Road diplomacy" *28 and provide support for the achievement of stability in the region.
In light of the above, Japan will provide assistance and support while emphasizing the following points.
(1) Japan will provide support for social and economic infrastructure development to help build the foundation for self-reliant economic development.
(2) Japan will provide assistance for human resources development and institution building to support the process of democratization and transition to market economies.
(3) Japan will provide support for the alleviation of social problems and difficulties encountered in the process of reform and for the transition from the negative legacy of the Soviet period (e.g. support for environmental pollution countermeasures and for radiation victims of Semipalatinsk).
As Japan's principal source of petroleum imports, the Middle East is an extremely important factor in Japan's economic stability. Furthermore, developments in the Middle East peace process and the situation regarding Iraq could have a major impact on world peace and stability. Japan continues to actively provide support for the social stabilization of this region and for the improvement of the environment for peace. Adequate access to water resources constitutes a critical factor in maintaining the region's stability. While the countries of the Middle East, consisting of both oil-producing countries and less-developed countries, represent a diverse range of economic conditions, the training of domestic engineers and other human resources stands as a critical challenge in the strategies for economic diversification and development of non-petroleum sectors.
In light of the above, Japan will provide assistance and support while emphasizing the following points.
(1) Japan will provide support for the Middle East peace process (through assistance to the Palestinians as well as to neighboring Arab countries and support for initiatives related to multilateral negotiations).
(2) In relatively low-income countries, Japan will provide support for social and economic infrastructure development, including agricultural and water-resources development.
(3) In the relatively high-income Gulf states, Japan will provide technical cooperation for the training and education of domestic engineers for the achievement of economic diversification and the development of non-petroleum sectors and provide appropriate support for the development of a favorable environment for attracting foreign investment.
(4) Japan will provide support for environmental conservation measures in relatively high-income countries and other countries as well.
Various favorable developments have been witnessed in Africa during recent years. These include moves toward democratization, greater stability in southern Africa, and a growing number of countries enjoying steady economic growth. However, numerous African countries continue to face serious problems that hamper their development. These include exclusion from the process of economic globalization, local conflicts, and the spread of AIDS. The majority of African countries are LLDCs, and many are heavily indebted poor countries. It is widely acknowledged that support for efforts toward the resolution of the problems of Africa calls for a concerted international effort.
Japan is committed to reinforcing this awareness and to working toward the establishment of international partnerships to support the self-help efforts of African nations. For this purpose, Japan, in collaboration with the United Nations and other organizations, hosted the Second Tokyo International Conference on African Development (TICAD II) in Tokyo in October 1998.
Based on the policies enunciated in the Development Partnership Strategy, TICAD II produced the "Tokyo Agenda for Action," featuring a commitment to developing the self-reliance of African countries, strengthening cooperation and coordination with the industrial countries and international organizations, and promoting Asian-African cooperation. Henceforth, it is the responsibility of both African countries and the international community to act on the "Tokyo Agenda for Action" and realize its goals. It is important for Japan to coordinate its assistance efforts with international initiatives, such as the Special Program of Assistance for Africa (SPA) which the World Bank and other donors are promoting.
In light of the above, Japan will provide assistance and support while emphasizing the following points.
(1) Japan will provide support for poverty alleviation, social development *29, and the countering of desertification.
(2) Japan will provide support for human resources development and capacity building in policy formulation and implementation.
(3) Japan will provide support for the development of the private-sector, industry, and agriculture for the achievement of economic self-reliance in Africa (e.g. transfer of the results and experiences of Asian development to Africa through South-South cooperation, basic infrastructure development for improved productivity in agriculture and other industries, and intra-regional cooperation).
(4) Japan will provide support for democratization, conflict prevention and post-conflict reconstruction in order to provide the foundation for African stability.
(5) Japan will provide support for the reduction of debt burdens (taking into consideration the commitment of the debtor country toward structural reform when making decisions on assistance).
Since the beginning of the 1990s, Latin American countries have achieved significant progress as emerging market economies through the process of democratization and economic reform. Food- and energy-resource rich countries can look forward to the further development of countries in this region in the 21st century as strategic suppliers of food and energy resources.
The large number of Japanese migrants and their descendants have played an important role in promoting development in Latin America. In view of the fact that these migrants traditionally have acted as bridges between Japan and Latin America, it is important for Japan to support their efforts.
In view of the development of Pan-Pacific cooperation in recent years, the provision of assistance to the Pacific Basin region is growing in importance. Furthermore, due attention should be paid to the fact that effective support for promoting regional integration is needed in the Southern Cone common market (MERCOSUR), as well as in the Caribbean and Central American countries.
It must be borne in mind that economic development and democratization can be seriously hampered where basic social and economic infrastructures remain underdeveloped and extremes of wealth and poverty persist.
The Central American countries that sustained heavy hurricane damage during 1998 require support for the urgent task of restoration and reconstruction.
In light of the above, Japan will provide assistance and support while emphasizing the following points.
(1) Japan will provide active support for democratization and economic reform.
(2) Japan will provide support for environmental conservation to protect the natural environment and to cope with the increased environmental burden resulting from economic growth.
(3) Japan will provide support for the alleviation of poverty by assisting basic education programs, health and medical services, agriculture and rural development, and the development of a basic infrastructure for the reduction of regional disparities.
(4) In relatively low-income countries, Japan will provide support for the development of the social and economic infrastructure in order to revitalize the private sector and promote overseas investment.
(5) Japan will promote regional cooperation, including human resources development and technology transfer which targets two or more countries.
Japan enjoys close ties with the Pacific island countries and depends on these countries for supplies of marine and forestry products. Because of their extremely small national scales and their marked dependence on primary products, these countries are particularly vulnerable to natural disasters, fluctuations in the international prices of primary products and other external factors. Development is further hampered by other factors, such as the dispersion of landmass over large areas, the limited scale of domestic markets and the distance from international markets. The provision of adequate health care services also poses a difficult challenge. On the other hand, the vast area of exclusive economic waters held by these island nations establishes them as promising sources of marine products and underwater mineral resources.
The countries of the region share an awareness of the need to achieve economic self-reliance through economic reform and private-sector development and are involved in reforming their fiscal and administrative systems.
In light of the above, Japan will provide assistance and support while emphasizing the following points.
(1) Japan will provide support for social and economic infrastructure development (including health care services) to provide a foundation for social and economic activities and to overcome such island-nation problems as dispersion and geographic isolation.
(2) Japan will provide support for economic structural reform.
(3) Japan will provide support for human resources development for developing the private sector.
(4) Japan will provide support for environmental conservation.
(5) Japan will promote regional cooperation, including the use of remote education for human resources development and technology transfer which targets two or more countries in the region.
Many of the former Soviet-bloc countries of Central and Eastern Europe are currently in the process of transforming to market economies, and it is necessary to support the efforts of these countries. The achievement and maintenance of peace through post-conflict restoration and reconstruction, such as in the former-Yugoslav region, constitutes an international challenge to which Japan will provide its share of assistance.
In light of the above, Japan will provide assistance and support while emphasizing the following points.
(1) Japan will provide support for the transition to a market economy, for environmental conservation, and for infrastructure restoration and development.
(2) Japan will provide humanitarian aid to refugees, economic and social infrastructure development for the promotion of restoration and reconstruction, assistance in the area of basic human needs, and support for the implementation of elections in the former-Yugoslav region and neighboring countries.