Official Development Assistance (ODA)
3. ODA Country Policy toward Major Recipients
Japan's ODA in Tanzania
1. Basic Policies
(1) Tanzania's Position in Japan's ODA
Japan is providing assistance to Tanzania, taking into account the following factors.
| 1) | Tanzania plays an active role as a leader among the countries of eastern and southern Africa. |
| 2) | Tanzania has been steadily pursuing structural adjustments, including economic reforms and reforms of public corporations, and market-oriented economic policies since 1986. |
| 3) | Tanzania has been moving ahead with democratization through the adoption of a multiparty system in May 1992, and the holding of presidential and parliamentary elections in October 1995. |
| 4) | Tanzania maintains good relations with Japan. |
| 5) | Tanzania's development policy is demonstrating the country's ownership of its economic and social development by advancing certain specific development targets; its policies are in accord with the orientation of the DAC's development partnership strategy, and Tanzania is in a situation permitting aid there to be focused with priority on implementing the development partnership strategy. |
| 6) | Per capita GNP is $210 (1997 figure), among the very lowest. Therefore, Tanzania is in great need of assistance. |
Tanzania is the 19th largest recipient of Japanese bilateral aid (based on cumulative net disbursements up to 1998) and the second largest in Africa.
(2) Priority Areas for Japan's ODA
On the basis of studies and research concerning development conditions and tasks in Tanzania and its development plans as well as policy dialogues between Japan and Tanzania, including the High-Level Mission on Economic and Technical Cooperation sent to Tanzania from February to March 1997 and subsequent policy dialogues, Japan has given priority to assistance in the following areas.
| 1) | Promotion of agriculture and small-scale industries Implementing assistance for the promotion of agriculture and small industries, which occupy an enormous place in the Tanzanian economy. Cooperation includes fertilizer supply, irrigation facility upgrades, dissemination of agricultural technology to increase food production, and the development and dissemination of appropriate technology for the promotion of micro-enterprises. |
| 2) | Basic education The school attendance rate for basic education is on the decline. Providing support to bring the school attendance rate up again by improving the quality of education through upgrading the educational environment and assigning math and science teachers to schools. |
| 3) | Population control, HIV/AIDS prevention and children's health, and the improvement of basic health and medical care Implementing various forms of assistance in the basic health and medical field in response to Tanzania's population and AIDS problems, which are having a serious impact on society overall, as well as children's health problems, where major improvements are achieved through the supply of basic health and medical services. |
| 4) | Improvement of the living environment in urban areas through the development of basic infrastructure Inadequacies exist in the basic infrastructure throughout the nation. Living standards are deteriorating, particularly in urban areas, due to basic infrastructure inadequacies accompanying rapid population growth. Upgrading the infrastructure is an important task, not only in terms of improving living standards but also in terms of upgrading the industrial base. Implementing assistance for upgrading transportation, communications, electric power, water and sewage systems. |
| 5) | Forest conservation Provide cooperation for forest and other environmental resource conservation measures in order to achieve sustainable development in Tanzania, where forests are rapidly being depleted. |
(3) Matters for Consideration
- In August of 1998, a Japanese aid worker was killed in Tanzania: there is a need to pay the utmost attention to the safety of Japanese aid workers dispatched to the country.
- The extension of new ODA loans to Tanzania must be given careful consideration, given the present Paris club's debt reduction measures (Naples Scheme) in force.
- Tanzania must step up its self-help efforts, including efforts to improve its capacity to bear local costs and absorb aid by strengthening aid implementation systems.
- Implementation of assistance promoted under the Tokyo Initiative at TICAD II in October 1998.
2. The Current Economic Situation in Tanzania and Tasks to Be Addressed
(1) Major Economic Indicators
| 1997 per capita GNP and GNP growth rates (1990-1997 average) |
Real GDP growth rate | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| $210; 0.9% (World Bank figures) |
|
(2) Current Situation
Tanzania initiated a structural adjustment program in 1986, and positive results have been seen in macroeconomic indicators in recent years, including a higher GDP growth rate, a decline in the budget deficit as a percentage of GDP and a reduction in the inflation rate. However, Tanzania continues to face challenges from the high debts loads that are putting pressure on the country's finances, unemployment and an increase in poverty due to the implementation of the aforementioned structural measures and the need to vitalize the private sector.
(3) Tasks to Be Addressed
- Freeing the national economy from its dependence on foreign aid
- Reducing its accumulated debts
- Improving the investment environment to stimulate the private sector and upgrading the basic infrastructure
- Boosting productivity in agriculture, one of Tanzania's chief industries, and raising the food self-sufficiency rate
- Developing human resources to provide a solid base for economic and social development
- Enhancing social services, including basic health and medical services
- Paying attention to environmental concerns in order to achieve sustainable development
3. Development Programs
The Rolling Plan (1997-1999)
Goals:
- Achieving a 6% average GDP annual growth rate
- Reducing the inflation rate to less than 5%
- Maintaining the budget surplus at 1% of GDP
- Reducing the deficit to 10.4% of GDP
- Stabilizing and strengthening finance
- Promoting privatization of state-owned enterprises
4. Aid Statistics
(1) Japanese Assistance
(Net disbursements, $ million)
| Calendar Year | ODA Loans | Grant Aid | Technical Cooperation | Total | Rank of Total Contribution |
|---|---|---|---|---|---|
| 1998 | -19 | 81 | 22 | 84 | 18th |
| Cumulative through 1998 | 106 | 816 | 310 | 1,233 | 19th |
(2) Assistance from DAC Countries
(Net disbursements 1997, $ million)
| Total Bilateral Aid | 1st | 2nd | 3rd |
|---|---|---|---|
| 502 | Netherlands: 102 | United Kingdom: 82 | Japan: 60 |
(3) ODA from International Organizations
(Net disbursements 1997, $ million)
| Total Aid | 1st | 2nd | 3rd |
|---|---|---|---|
| 392 | IDA: 169 | *CEC: 64 | IMF: 54 |
*CEC: Commission of the European Communities
Japan's ODA in Zimbabwe
1. Basic Policies
(1) Zimbabwe's Position in Japan's ODA
Japan provides assistance to Zimbabwe, taking into account the following factors.
| 1) | Since gaining independence in 1980, Zimbabwe has maintained a parliamentary democracy. |
| 2) | Zimbabwe's agriculture, manufacturing, and mining industry are developing in a balanced fashion, its infrastructure is well developed, and in other ways as well the requirements for its economic development are met relatively well. |
| 3) | Zimbabwe is influential in southern Africa. |
| 4) | Zimbabwe is carrying out a structural adjustment plan with the aim of making a transition from the socialist controlled economy it had at the beginning of the 1990s, to a market-oriented economy, and progress is visible in a number of areas, including liberalization of trade and easing of domestic restrictions in many areas. |
| 5) | Zimbabwe's development policy is demonstrating its ownership vis-a-vis the country's economic and social development by advancing certain specific development targets; its policies are in accord with the orientation of the DAC's development partnership strategy, and Zimbabwe is in a situation in which priority can be placed on implementation of its development partnership strategy. |
| 6) | Zimbabwe's per capita GNP is very low, $720 (1997 figures), and its need for aid is great. |
Zimbabwe ranks 40th (9th in Africa) on the list of recipients of Japanese bilateral aid (based on cumulative net disbursements up to 1998); Japan was Zimbabwe's largest bilateral aid donor in 1997.
(2) Priority Areas for Japan's ODA
On the basis of studies and research concerning development conditions and tasks in Zimbabwe and the country's development plans, as well as policy dialogues between Japan and Zimbabwe, including the High-Level Mission on Economic and Technical Cooperation sent to Zimbabwe in January 1998, Japan has given priority to assistance in the following areas.
| 1) | Improving conditions for the promotion of industry to create income In order to improve the basic conditions to support economic growth, Japan's ODA policy in Zimbabwe seeks to strengthen vocational training for the human resources development required by the labor market, and to build communications, transport, and other economic infrastructure. It also seeks to help small- and medium-sized enterprises to thrive so as to help Zimbabwe achieve broad-based economic growth. |
| 2) | Improving health and medical services Japan's ODA policy in Zimbabwe commits itself to educational and information campaigns and measures to prevent the spread of AIDS, given the country's extremely high AIDS rate. It also seeks to raise health and medical treatment standards in Zimbabwe by helping to improve primary health care and the country's capability to deal with other infectious diseases like malaria. |
| 3) | Promoting agriculture in communal and resettlement areas Promotion of agriculture, which employs two-thirds of the population, is important for the country's economic growth; assistance for irrigation and increased food production is to be used to promote agriculture in areas where small tenant farmers are numerous. |
| 4) | Environmental conservation, including water Water resources and forest conservation are among Zimbabwe's environmental issues; Japan will assist Zimbabwe to improve its water supplies in rural and urban areas and to implement the environmental action program currently being formulated by the government of Zimbabwe. |
(3) Matters for Consideration
- It is necessary to promote aid coordination among major donors in addition to encouraging Zimbabwe's ownership, in order to make aid more effective and efficient and further advance Zimbabwe's structural adjustments, macroeconomic stabilization, and sustained economic growth.
- The cooperation promoted under the Tokyo Initiative of the TICAD II talks (held in Tokyo in October 1998) should be implemented.
2. The Current Economic Situation in Zimbabwe and Tasks to Be Addressed
(1) Major Economic Indicators
| 1997 per capita GNP and GNP growth rates (1990-1997 average) |
Real GDP growth rate | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| $720; -0.7% (World Bank figures) |
|
(2) Current Situation
Due to the implementation of a structural adjustment plan aiming at making a transition from the socialist economy Zimbabwe had at the beginning of the 1990s to a market-oriented economy, steady progress is visible in a number of areas, including liberalization of trade and the easing of domestic regulations. Zimbabwe is nevertheless confronted by many challenges, including the reconciliation of popular discontent resulting from the rising inflation rate and budget deficit reductions (set out as World Bank and IMF conditionalities in exchange for assistance toward correcting Zimbabwe's balance of payments).
(3) Tasks to Be Addressed
- Reducing the budget deficit through reduction of maize and oil subsidies, and curbing inflation
- Promoting economic liberalization through measures such as deregulation, as well as through privatization and commercialization of state enterprises
- Promoting human resource development to facilitate sustained economic growth and building a base for industry
- Preventing the spread of AIDS
- Improving water supply services
- Dealing with agricultural land issues such as ensuring fairness of the sale price when land is sold to black Zimbabweans from white Zimbabweans
3. Development Programs
The Second Economic Structural Adjustment Plan(1996-2000)
Targets:
- Average real annual GDP growth of 6%
- Reduction of budget deficit to 5% of GDP
- Increase in investment and savings rate to 23% of GDP
- Average annual increase in exports of 9%
Policy objectives:
- Economic growth through trade and investment
- Job creation
- Budget deficit reduction
- Promotion of devolution to local governments
- Expansion of deregulation with commercialization and privatization of state enterprises
- Sustainable development
4. Aid Statistics
(1) Japanese Assistance
(Net disbursements, $ million)
| Calendar Year | ODA Loans | Grant Aid | Technical Cooperation | Total | Rank of Total Contribution |
|---|---|---|---|---|---|
| 1998 | 0 | 16 | 11 | 27 | 51th |
| Cumulative through 1998 | 61 | 310 | 85 | 457 | 40th |
(2) Assistance from DAC Countries
(Net disbursements 1997, $ million)
| Total Bilateral Aid | 1st | 2nd | 3rd |
|---|---|---|---|
| 223 | Japan: 39 | Germany: 38 | Netherlands: 24 |
(3) ODA from International Organizations
(Net disbursements 1997, $ million)
| Total Aid | 1st | 2nd | 3rd |
|---|---|---|---|
| 108 | IDA: 83 | *CEC: 17 | AfDF: 4 |
*CEC: Commission of the European Communities