1. In presenting an outline of recent trends in aid discussions and of Japan's aid activities, this report focuses primarily on the period from April 1998 through March 1999. However, descriptions of important events outside this period are also included whenever possible. Statistical figures presented are based on information which could be acquired from the Development Assistance Committee (DAC) and other sources, in principle, by September 1999.


2. Explanations of abbreviations
   
   Official Development Assistance (ODA)

   (1)	ODA comprises funding flows which meet the following three conditions: (i) provided by official agencies or by their executive agencies; (ii) administered with promotion of the economic development and welfare of developing countries as its main objective; (iii) concessional in character to avoid severe burdens on developing countries and conveys a grant element of at least 25 percent.
   (2)	ODA consists of grant aid, technical cooperation, subscriptions and contributions to the U.N. agencies and international financial institutions (all defined as grants), and government loans.

   Japan International Cooperation Agency (JICA)

   An agency for the implementation of government-based technical assistance. Conducts training programs in Japan and an expert dispatch program and provides equipment and materiel. Also runs Japanese Overseas Cooperation Volunteer programs, immigration programs (assistance programs for immigrants and foreigners of Japanese descent), and emergency disaster-relief programs.

   Japan Bank for International Cooperation (JBIC)

   The institution responsible for the extension of government yen loans. Also provides financing and loans to companies engaged in projects in developing countries, and carries out a range of related surveys. JBIC was formed on October 1999 from a merger between The Japan Export-Import Bank (JEXIM) and the Overseas Economic Cooperation Fund (OECF).

   Non-Governmental Organizations (NGOs)

   In this paper, the term refers primarily to nonprofit private or non-governmental organizations that are engaged in development-related activities in developing countries. Many NGOs base their activities in Japan, Europe or North America, but some are also active in developing countries.

   Development Assistance Committee (DAC)

   An Organization for Economic Cooperation and Development (OECD) organization that primarily mediates negotiations among aid donors on quantitative increases or qualitative enhancements in aid. Established in 1961, the DAC now seats members from 21 industrial democracies including Japan, as well as the European Union.

   Grant Element (G.E.)

   An index of financial terms of assistance. The grant element of a loan on a commercial basis (10 percent interest rate) is 0 percent, and as the terms (interest rate, grace period, maturity) are more alleviated, the figure of the G.E. is higher, reaching 100 percent in the case of a grant.

   Exchange of Notes (E/N)

   Official documents stipulating the content and conditions of the cooperation between the Japanese government and the recipient governments.

   Net Disbursement

   The amount subtracting the amortized amount (the volume of repayment from recipients to donors) from the gross disbursement in a certain period of time (generally a calendar year).

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