Official Development Assistance (ODA)
Box 1 NGO Subsidy Framework: Changes over the Last Decade

1. Micro-credit capital assistance

Micro-credit is provided to the poor (particularly women), who are excluded from financing by private banks because they have no means of securing their loans. These limited amounts of unsecured credit allow the poor to secure and improve their means of production and increase their income. In recent years, the international community has come to recognize the need for and importance of micro-credit as one means of reducing poverty. In FY1998 in South Africa, the Japanese government provided capital assistance to the Women's Development Bank, an NGO which provides unsecured capital to women in rural villages for their work in agriculture and poultry-raising. Grassroots grants have also been provided in the Philippines and Morocco to cover micro-credit loans.

2. Anti-personnel mine related activities*

Japan has committed itself to active assistance in anti-personnel mine-related activities such as mine clearance, rehabilitation and reintegration of mine victims and mine avoidance education. Besides assistance for landmine victims in Cambodia, Laos and Bosnia-Herzegovina, grassroots grants were provided to the Halo Trust, an NGO active in mine clearance activities around Cambodia, to cover the purchase of grass-cutting tractors which will boost de-mining efficiency.

* Japan's efforts as a whole against anti-personnel mines are covered in Section 2.2, "Efforts to Deal with Anti-personnel Mines".

3. Grassroots grants for recycling

If properly overhauled, most of the fire engines and ambulances owned by Japan's local governments can attain much the same performance levels as new vehicles. Where a developing country wants such vehicles and a relevant Japanese body has agreed to supply them, a grassroots grant is provided to offset transportation fees. For example, in FY1998, the Society for Promotion of Japanese Diplomacy sent used fire engines and ambulances donated by Japanese local governments to outfit the fire brigade established in Fernando de la Mora, a Paraguayan city on the outskirts of the capital, which has been developing rapidly as the capital's population expands. Similar grassroots support for recycling has also been provided in Peru, Thailand and other countries.