Official Development Assistance (ODA)

Although the Japanese economy continues to slump, and public interest is focused on domestic issues, the Japanese people's eagerness to help poverty-stricken countries and people has not diminished, as has been seen in its support of reconstruction assistance for Afghanistan.

ODA based on public participation emphasizes the Japanese people's thoughts. It is necessary to strive to set up a mechanism under which the intellect and vitality which are latent in people of various backgrounds and fields can be brought out and reflected in the ODA policy. In order to do so, it is first necessary to incorporate development education (see note 1), second, to find and foster human resources that will contribute to international cooperation and, third, to create a dynamic mechanism to utilize these human resources.

The medium-term ODA policy (see note 5) formulated according to the report of the First Consultative Committee on ODA Reform was too general, so that no specific measures were shown regarding priority areas or problems. As for the present country assistance programs (see note 6), we cannot state that they have sufficiently focused on priority areas for Japan to tackle.

To indicate the Japanese ODA strategy more clearly, it is necessary to regularly inspect the medium-term ODA policy and also to boldly prioritize country assistance programs. In doing so, it is required to give sufficient consideration to those areas in which Japan can take advantage of its techniques and know-how, and to strive to implement ODA by utilizing Japan's features and advantages.

In recent discussions on ODA, there appears to be an idea "from A to B" (e.g. from quantity to quality, from loan to grant, from hardware to software and from infrastructure to the social sectors). It is also important, however, to adopt an idea of "making overall use of A and B" depending on the actual situation of developing countries, making utmost use of the features of Japan's ODA.

What is prioritized and effective ODA that is based on a strategy? It is ODA that maintains consistency throughout the entire process, from planning to implementation of specific projects or other aspects of "downstream" activities, under the "upper stream" basic policies such as country assistance programs and "sector/issue-specific aid principles". To ensure such ODA, we have proposed that the "Board on Comprehensive ODA Strategy" be set up. And in order to implement such consistent ODA, it is necessary to expand the efforts we have made so far and to improve the implementation system.

On the other hand, ODA is required to respond flexibly to incidents such as the terrorist attacks in the U.S. and the situation in and around Afghanistan. In addition, problems in developing countries are not limited to social/economic development but include issues such as conflict prevention and peace building that ODA has insufficiently dealt with so far. It is essential to improve the ODA system so that ODA can flexibly cope with these issues.

To ensure that Japan's ODA responds to the real needs of developing countries and has a great impact, it is essential to find and implement many successful programs and projects, whose important components are not only financial and technical cooperation but also the formation of development strategies and institution/policy building. This means an increase in the proportion of the input of aid implementing staff in Japan's total ODA activities.

Furthermore, programs and projects that do not match the needs of the developing countries or inflexible systems should be drastically reviewed.

Japan has been making ODA contributions for the past 50 years. Japan has strongly depended on overseas nations for resources, energy, markets and others. Therefore, coexistence with the world, and in particular, with Asia, has been an essential requirement for Japan's survival and prosperity. Furthermore, efforts to contribute to the settlement of global issues such as conflicts, refugees, infectious diseases and environmental destruction, have been important conditions for Japan to acquire trust in the international community. ODA has been consistently an important policy measure for Japan to realize these two goals.

The Japanese Government's efforts regarding Afghanistan issues have aroused the Japanese people's interest in ODA, and has made the people realize again that ODA can play an important role as a means of Japanese diplomacy. As such, attainment of the various objectives of ODA and effective utilization of ODA as a diplomatic tool are expected to remain significant for Japan's national interest.

Japan's ODA is currently at a turning point. The era for public participation has entered a new phase. ODA must be based on an ardent wish to see people suffering from poverty in developing countries become able to live suitably as human beings, and to offer a helping hand. The problems are how to translate the wishes of the Japanese people into action and how to create a mechanism whereby people of various backgrounds can participate in ODA activities.

Furthermore, the period of budget increases ended in the late 1990s, and ODA has entered a great transition period in terms of volume. After this Committee announced the Interim Report, the ODA budget was greatly curtailed, much to our regret. However, to live up to the expectation of the international community, and also for the benefit of our own country, it is necessary, even in times of economic and fiscal difficulties, to secure ODA which is commensurate with Japan's economic power and its international responsibility. At the same time, it is necessary to execute ODA, which comes from taxes paid by the people, more efficiently and transparently than ever. The people's vigilance towards ODA has increased. Transparency and efficiency are becoming more and more important.

The Japanese people are searching for a new way of life, one example of which is the active participation of Japanese youth in the Japan Overseas Cooperation Volunteers (JOCVs). Many young people hope to find value in their lives during the two years in which they are dispatched as JOCVs. More than a few seniors also find new meaning to life by volunteering in developing countries. Japanese NGOs have expanded in this kind of new situation. Local governments, enterprises and universities have also become eager to take part in ODA activities. Public participation is not just a catchphrase. It is the people's voice emerging out of the new-age environment. Public participation in ODA activities will surely provide the stagnant Japanese society with fresh energy and give rise to new pride in the hearts of the Japanese people.

The greatest concern of this Committee has been how to incorporate the Japanese people's participation in ODA. We have envisioned specific frameworks for absorbing valuable knowledge and opinions of the people from various backgrounds and areas. Second, for effective utilization of limited financial resources, we emphasized the importance of formulating Country Assistant Programs that identify priority sectors of ODA into which financial and human resources can be channelled. We also proposed measures to find, foster and utilize those people eager to participate in not only ODA but also in international cooperation. All of these proposals are based on our ardent wish to see as many Japanese people as possible take part in ODA.

Note 1. Development Education

This term refers to education designed to deepen understanding of the importance of international cooperation and development assistance, and to cultivate an attitude toward participating in international cooperation in some form or other, by informing Japanese students about poverty, starvation and other issues in developing countries, and by promoting them to understand various problems such as development and the environment.

Note 2. Final Report of the First Consultative Committee on ODA Reform

This was the report submitted by the Consultative Committee on ODA Reform for the 21st Century (chaired by Mr. Saburo Kawai, Chairman of the International Development Centre of Japan) to the Minister for Foreign Affairs in January 1998. The Committee had been set up as an advisory group to the Minister in April 1997. The report made specific proposals such as formulation of Country Assistance Programs, establishment of setups necessary for the formulation, reinforcement of extensive collaboration among the Government, international organizations and private circles, and human resources development.

Note 3. The Recruitment Centre for International Organizations of the Ministry of Foreign Affairs

To promote an increase in number and quality of Japanese staff in the U.N., its specialized organizations and other international organizations, this Centre will operate a roster registration system (designed to register in advance CVs of people who want to be employed by international organizations, and provide empty-post information to those qualified for such posts), co-operate with international organizations in their recruitment activities of Japanese, dispatch young officials to international organizations, support Japanese staff working in international organizations and conduct PR activities.

Note 4. ODA Annual Report

The official name of this Report is the "Annual Report on the State of Implementation of Japan's Official Development Assistance". Based on the ODA Charter, this Report has been published every year since 1993, as a report on the ODA activities of the entire Japanese Government.

Note 5. Medium-term ODA Policy

The Medium-term ODA Policy was formulated and announced in August 1999, in line with an agreement by the sub committee of the Cabinet Ministers' Meeting related to overseas economic affairs. Unlike the previous five series of ODA intermediate objectives which ended in 1997, this policy does not uphold any qualitative targets; rather, it indicates the direction of Japan' ODA for the upcoming five years, and points out the problems for individual sectors and regions.

Note 6. Country Assistance Programs

Country Assistance Programs are Japanese aid plans for the upcoming five years. They are a part of efforts for efficiency and transparency improvement of Japan's ODA, based on recognition of political, economic and social situations of the aid recipient countries, while considering their development programs and problems. As of February 2002, Country Assistance Programs for 12 countries have been announced, including Bangladesh, Ghana, Tanzania and China.

Note 7. Sector Program Development Survey

This is a survey to conduct adjustment with the governments of recipient countries and other donors with regard to specific sectors, to formulate comprehensive development plans for the sectors and to coordinate implementation between Japanese technical cooperation and financial cooperation in the sectors.

Note 8. Sector-Wide Approaches

These are assistant methods recently developed by the U.K. and Scandinavian countries, based on the recognition that initial development effects cannot be attained because of uncoordinated assistance by individual donors. Donors formulate an overall policy and strategy for each sector, based on which they individually implement their own assistance.