The interdependence of the global community is rapidly increasing, and no country today can seek its own stability and prosperity in isolation from others. Japan's efforts to assist other countries and to create a better international community also benefits the interests of the Japanese people.

(1) The type of international community that Japan hopes to see evolve is one in which international order is maintained in peace and stability, and where, as much as possible, freedom and democracy and market economy principles are shared. In recent years, global issues such as the deterioration of the global environment, the spread of infectious diseases, and the fight against drugs have called for attention. Because problems facing the entire global community are growing and becoming increasingly serious, our institutions must come to grips with them and seek solutions through united efforts and cooperation.

(2) In order to realize a global community that takes such a coordinated stance, it is important to demonstrate one's vision of how things should be, share a certain amount of the attendant costs, and earn respect and trust by exercising leadership. Japan accounts for 18% of the world's GNP, and it is one of the countries that the international community is calling upon to display this kind of leadership.

(3) ODA has played an important role in efforts to build such a desirable global community, especially because Japan has established for itself the basic principle that it will not become a military power. The importance of ODA as a tool of diplomacy is therefore especially great for Japan.

(4) Thus while ODA is important for these reasons, ODA budget cuts described above are testimony that Japan is in a difficult situation. For this reason, at the April 1997 meeting of the Economic Cooperation Council, for example, animated discussions took place addressing both Japan's basic thinking regarding ODA and approaches to ODA reform. The Ministry of Foreign Affairs has also responded to this challenge; in April 1997, the then Foreign Minister Yukihiko Ikeda appointed the head of the International Development Center, Mr. Saburo Kawai, to chair the Council on ODA Reforms for the 21st Century, which consists of intellectuals of business, academia, the press, and NGOs. The new council published an interim report in June and is now deepening discussions in order to make final proposals.

1. Establish country-specific aid programs with the cooperation of the relevant ministries, agencies, implementing organizations, and the private sector to plan and coordinate ODA policy in an integrated way;

2. Develop local strengths and better reflect developing countries' needs;

3. Revise implementation frameworks;

4. Implement aid that makes maximum use of Japan's strengths and experiences: support for self-help efforts, ODA loans, emphasis on Asia, and aid for social development, lessons from the history of Japanese development including the experience with environmental problems, etc.

5. Improve and expand South-south cooperation;

6. Emphasize the activities that determine the quality of aid projects, such as surveys, monitoring of progress, evaluation, and follow-up;

7. Improve disclosure of information, public relations activities, and development education efforts in order to encourage support, understanding, and participation in ODA by the Japanese public;

8. Open the way for various forms of participation in ODA by the Japanese people and strengthen cooperation and ties between the government and private sectors;

9. Improve training for the people who carry out ODA, both Japanese and people in aid recipient countries, in order to improve aid quality.

Then Foreign Minister Ikeda receiving the interim report from Reform Council chairman Kawai in June 1997.