Among developing countries today, there are those which have achieved rapid economic development, such as many of the East Asian countries, while others such as those in Africa are still struggling with poverty and the threat of famine. Japan has given aid responsive to the needs of recipient countries and tailored to meet various stages of their economic development by combining various types of aid. More specifically:

1) In the case of LLDCs in Southwest Asia and Africa, etc. Mostly nonrepayable grant aid and technical cooperation primarily in projects for humanitarian aid and basic human needs.

2) In the case of developing countries (GNP per capita equal to US$1,345 or less) other than LLDCs Å| China and Indonesia, etc.: Cooperation in social projects and human resources development projects through grant aid and technical cooperation. Cooperation in the construction of basic economic infrastructure through repayable ODA loans.

3) In the case of developing countries (GNP per capita between US$1,346 and $2,785) Å| Thailand and Turkey, etc.: No grant aid in principle. (These countries are considered to have graduated out of the status of being eligible for grant aid.) ODA loans for the construction of economic and social infrastructure, and technical cooperation for the development of human resources in ways geared to the stage of their economic development.

4) In the case of developing countries (GNP per capita equal to US$2,786 or more) Å| Malaysia, Mexico, Brazil, etc.: Yen loans limited to projects designed to adjust income disparities among regions that have arisen in the course of, or as a result of, economic development and to projects aimed at preserving the environment. (These countries, in principle, have graduated out of the status of being eligible for ODA loans.) Transfer of advanced technology through technical cooperation.

Aid alone cannot accomplish the objective of the economic development and growth of developing countries. It is important to implement aid with comprehensive measures including those designed to promote foreign trade and foreign direct investment in recipient countries. In line with such an idea, Japan has been seeking economic relations with developing countries, particularly those in the East Asia. As a result of this comprehensive approach, Japan's ODA has helped improve the economic infrastructure of these developing countries, which in turn attracted foreign investment, and increased production and export capacity brought about by foreign investment. These in combination have helped their economies take off.

Japan's ODA, the largest in the world, has been implemented taking into account the following balances:

1) A balance between conventional areas (development of economic infrastructure and provision of basic human needs) and new areas of assistance (global issues such as the environment, population, AIDS, etc.).

2) A balance between "hardware" type of assistance aimed at developing physical capital and the "software" type aimed at human resources development, institution-building, etc.

3) A balance between large aid projects (development of economic infrastructure) and small-scale projects (projects at the grass-roots level, etc.).