Official Development Assistance (ODA)

Japan's ODA White Paper 2002

Explanatory Notes

Statistics presented here are based on information obtainable from national governments, the Development Assistance Committee (DAC), and other sources as of March 2003.
Glossary of Common Terms
Official Development Assistance (ODA)
- (1) ODA comprises funding flows that meet the following three conditions.
  - (i) It is provided by the government or by its executive agencies.
  - (ii) It is administered with promotion of the economic development and welfare of developing countries as its main objective.
  - (iii) It is concessional in character to avoid severe burdens on developing countries and conveys a grant element of at least 25%.
- (2) ODA consists of grant aid, technical cooperation, subscriptions and contributions to UN agencies and international financial institutions (all defined as grants), and government loans.

Japan International Cooperation Agency (JICA)
JICA is an agency for the implementation of government-based technical cooperation. It conducts training programs in Japan, implements an expert-dispatch program, and provides equipment. It also administers the Japan Overseas Cooperation Volunteers programs, emigration programs (assistance programs for Japanese who have moved abroad), and emergency disaster-relief programs.

Japan Bank for International Cooperation (JBIC)
JBIC, the institution responsible for the extension of 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 in October 1999 as a result of a merger between the Export-Import Bank of Japan and the Overseas Economic Cooperation Fund.

Non-Governmental Organization (NGO)
In this publication, the term refers to an organization that is engaged in development-related activities in developing countries. Many such NGOs have their headquarters in Japan, Europe, or North America, but some are also based in developing countries.

Development Assistance Committee (DAC)
DAC is an agency of the Organization for Economic Cooperation and Development (OECD) that primarily mediates negotiations among aid donors on quantitative increases or qualitative enhancements in aid. Established in 1961, DAC now has members from 22 industrial democracies, including Japan, as well as the European Commission.

Grant Element (GE)
Grant element is an index of the financial terms of assistance, the GE of a loan on a commercial basis (with an assumed interest rate of 10%) being 0%. As terms (interest rate, grace period, and maturity) are alleviated, the GE figure rises, reaching 100% in the case of a grant.

Exchange of Notes (E/N)
Exchange of Notes are official documents stipulating the content and conditions of cooperation between the Japanese and recipient governments.

Net Disbursement
Net disbursement is gross disbursement minus the amortized amount (the volume of repayment from the recipient) during a certain period of time (generally a calendar year).