Official Development Assistance (ODA)
6. Results Accomplished by Japan's ODA, and Its Fifth Medium-term Target

(1) 1995 ODA Spending was Almost at the Same Level with the Year Before.

The yen value of ODA extended by Japan in 1995 increased 0.6% over the year before to ¥1,385.4 billion. In dollar terms, this represented a significant increase of 9.3%, the increase being largely a result of the appreciation of the yen against the dollar. The dollar value of ODA spending of DAC member countries also kept pace with a year ago in 1995 at $59.21 billion (up 0.1% from the year before). With its ODA spending (excluding its assistance to Eastern Europe) increased to $14.49 billion in dollar terms, Japan has become the world's largest donor for the fifth year in a row.

(2) The Quality of Aid

Japan's grant share, which shows the ratio of grants (grant aid, technical cooperation, and financial contributions to international organizations, etc.) to the total ODA spending by Japan (on a commitment basis), stood at 46.6% in 1995, at the same level as the 1993/94 average of 46.6% (compared with the DAC average of 77.1%). Meanwhile, Japan's grant element, which is an indicator showing the degree of concessionality of aid measured on the basis of interest rates and periods of repayment, stood at 78.7% in 1995, also at the same level as the 1993/94 average of 78.9% (compared with the DAC average of 90.8%).

(3) Achievements by Region and Sector

A major part of Japan's ODA has been extended to Asian countries with which it traditionally has close ties, and in 1995 approximately 54% of its ODA was extended to the countries in the Asian region. By sector, 44.5% of its bilateral ODA in 1995 was used for constructing economic infrastructure, a sector to which Japan has traditionally given high priority. More importantly, Japan's ODA disbursements to the social development field (education and health care, etc.), is also increasing reflecting the growing attention of the international community in recent years. In 1955, Japan's ODA disbursements to the social sector increased by 3.5% points over a year ago, to 26.7%.

(4) The Fifth Medium-term Target

Medium-term goals of Japan's ODA program have been provided five times since 1978, and they played important roles in impressing the international community of Japan's efforts to expand its ODA as a vehicle of its international contribution and in winning broad-based support from the Japanese people. The Fifth Medium-term Target aims at increasing the total volume of Japan's ODA spending over the five-year period (1993-1997) to between $70 billion and $75 billion (on a net disbursement basis). In the first three years, Japan has disbursed a total of about $40 billion.

Graph : Chart 6 Trend in Japan's ODA (1991-1995)

Graph : Chart 7 Grand Share and Grant Element of ODA in DAC Member Countries

Graph : Chart 8 Trend in Major DAC Countries' ODA (On a Net Disbursement Basis)

Graph : Chart 9 Trend in Japan's Bdilateral ODA (by Region)