Official Development Assistance (ODA)

We have to secure the hearty trust of the international community by squarely facing the issues confronting developing countries, such as poverty, famine, conflicts, refugees, environmental destruction and epidemic infectious diseases, and by widely conveying to the world Japan's will to strive to resolve these issues in an appropriate manner.

It is rather shortsighted to believe that public support towards ODA is waning because of the current economic slump. The motivation to extend a helping hand to the poor and the vulnerable is deeply rooted in the hearts of the people of Japan. Japanese people of diverse values have interacted with people from developing countries in various ways and have wanted to help solve their problems. However, there have been insufficient efforts to creatively introduce policies for a mechanism which would satisfy such desire to help. Efforts in this regard must be in position as a matter of urgency.

The Japanese public should, at the same time, raise their interests in ODA, constantly discuss the ways and means in which ODA is implemented, form a broad public consensus and participate more intensely in ODA activities. It is necessary to overcome bureaucracy-led ODA and to develop new ODA in which the vigor and wisdom of the Japanese people are exhibited.

The primary goal of this interim report is to advise the Minister for Foreign Affairs, but it also aims to invite the public to discuss ODA in a wide and profound manner. Following sections discuss the basic views of the Committee on how to improve Japan's ODA in order to further contribute to the development of developing countries and to improve the quality of life of the people in developing countries. We expect that this interim report will lead to serious discussions on ODA amongst the public.

It is obvious that a priority agenda item for developing countries is to increase the living and welfare standards of the people through economic growth. In addition, there are such issues as conflicts, refugees, environmental destruction and epidemic infectious diseases, which are frequent in developing countries, and the issues to be resolved have become varied and more complex than ever before.

These grave issues are perilous to the entire international community including developed countries. The international community would place heavier burden on the future generations should solution to these problems be delayed. The establishment of the Global AIDS and Health Fund at the G8 Genoa Summit and assistance to developing countries which were the results of the negotiations to tackle global warming is an example of such international efforts resulting from the above-mentioned awareness.

Interdependence with the international community and symbiosis with Asian and other developing countries are indispensable elements for Japan to maintain its existence and prosperity. Japan needs to actively contribute towards formation and solidification of the international order; without contributing internationally, Japan would lose the trust of the world. It is within the very national interest of Japan to achieve harmonious development for all of the international community, and, at the same time, gain the trust of the international community. It thus follows that ODA is not something to be extended when affordable and stopped in times of economic difficulty.

ODA is an issue which has direct bearing on the very being of Japan and the way in which the Japanese people behave in the international community. Therefore, extensive participation of the broad public, not only the government, and coordination amongst the participants are essential. Individuals, NGOs, private enterprises, universities, research institutions and local governments, amongst others, should capitalize on their comparative advantages and exercise their ownership in carrying out ODA. The contribution to the international community by the broad public is also indispensable in revitalizing the society and bringing hope to the young generation.

In order to promote public participation in ODA, the facts and achievements of ODA need to be publicized as much as possible, and the transparency of ODA must be further pursued including through conducting evaluation and monitoring.

The needs of recipient countries must be adequately comprehended when implementing ODA, and, based on such understandings, Japan has to focus its assistance on areas of strategic importance and where Japan's comparative advantages reside. It is essential to focus on priority areas; in other words, selection and focus are required. Country Assistance Programs are necessary in this context. The importance of setting up such programs was stressed in the report of the Consultative Committee on ODA Reform for the 21st Century (chaired by Mr. Saburo Kawai), issued in January 1998. Several Country Assistance Programs are already in place, but they are hardly sufficient in clearly highlighting the priority areas.

We, the committee members, on the one hand, call for the appropriate understanding of the development agenda and policy of each developing countries, and, on the other hand, an effective Country Assistance Program, duly considering the supply of Japan's resources for ODA, such as financial resources, human resources, technology and expertise.

Country Assistance Programs should be formed in accordance with Japan's ownership and strategy. Japan's ODA is extended on the basis of request from recipient countries. There have to be guidance and criteria in order to decide whether or not such requests reflect the real needs in recipient country and the requested ODA be extended, as well as to determine the modality, type and conditions in implementing ODA. Country Assistance Programs provide these guidance and criteria. Without fine Country Assistance Programs, policy dialogues and consultations will fail to be effective.

Japan's ODA has varied in its modalities: loan aid, grant aid, technical cooperation, contributions and subscriptions to international organizations and others. Accordingly, quite a few government ministries and agencies are involved. The Ministry of Foreign Affairs is to coordinate these, and there are efforts being made such as the holding of the inter-Ministerial consultative meeting. However, the coordination among relevant ministries and implementing agencies remains insufficient.

Many ministries and agencies are involved in technical cooperation and contributions and subscriptions to international organizations. In specific, the Cabinet Office and nine ministries, other than the Ministry of Foreign Affairs and the Japan International Cooperation Agency (JICA), undertake technical cooperation individually. While the consultative meeting amongst relevant ministries has been set up, the system to discuss and manage technical cooperation in an integrated manner is yet to be in place.

In order to improve such situations and implement Japan's ODA in a more efficient way, according to the needs of recipient countries, it is essential that the coordinating authority's "commanding" function be strengthened. It is desirable to set up a permanent "Board on Comprehensive ODA Strategy" under such authority. Japan's components for ODA, including NGOs, enterprises, universities, research institutions and local governments, needs to be restructured in an organized and consistent manner.

Broader participation in ODA has indeed become the name of the game. The activities of NGOs have recently come to attract much attention in Japan, as assistance is provided to address natural disaster, such as earthquakes, and to help refugees in the aftermath of conflicts. The roles of NGOs should be clearly taken into account and coordination with NGOs should be sought for, in order to implement ODA that reaches the grass-root level in developing countries. At the same time, NGOs should make further efforts to strengthen their capacities and organizations.

In order to promote effective cooperation responding to evermore complex and diverse needs of developing countries, technologies, expertise and human resources of enterprises with various experiences over the world should also be utilized.

As for the actual implementation process, those closer to field should be delegated as much power as possible, and their function should be strengthened. As the players in ODA increase, decisive steps for decentralization and strengthening the field offices should be taken to enable the various actors to utilize their comparative advantages.

Above all, there is need for more active human resource development for ODA. Japan faces a serious lack of human resources compared to other various ODA resources. The young with high motivation and strong enthusiasm to work for development in developing countries should be encouraged to participate in ODA, and a serious study should be made for preparing and broadening the base from which the required human resources are supplied. Furthermore, those currently being engaged in ODA should increase in number, and should be urgently provided with organized and extensive personnel and training systems to make them able to adequately and swiftly respond to the shifting development agenda.

The international community encounters issues which cannot sufficiently be addressed by bilateral ODA alone: deterioration in the global environment, population increase, food and energy crisis, epidemic infectious diseases such as HIV/AIDS, narcotics, terrorism, international organized crimes, financial crisis, etc. There is a need for further strengthened collaboration, in terms of strategy, policy and program, with specialized international organizations excelling in responsive capacity.

When collaborating with international organizations, attention should be paid to maintain the ownership, strategy and system of Japan's ODA. In order to achieve this, programs according to sectors and issues, besides the Country Assistance Program, should be developed, and comparative advantages of international organizations should be utilized based on such programs.

In order to strengthen collaboration with international organizations, Japan should be more actively involved in the project formulation process of international organizations, and concentrate on training promising talent and subsequently sending them to international organizations.