In order to achieve shared international development goals, such as the Millennium Development Goals (MDGs), assistance today must become even more efficient and effective. Enhanced cooperation and collaboration with all development actors, including recipient countries, other donor countries, international organizations, and NGOs, are thus becoming indispensable. The international community is moving increasingly toward aid coordination, as described before, such as in the process of developing Poverty Reduction Strategy Papers (PRSPs) and the harmonization of aid procedures.

Japan therefore places emphasis on policy dialogue with recipient countries and also conducts such dialogue with other donor countries and international organizations to further enhance the effectiveness of assistance. At the same time, it makes efforts to implement assistance more effectively by collaborating with other countries and international organizations upon implementation. In addition, Japan actively supports South-South cooperation, whereby more developed countries provide support to other developing countries, which can also lead to the expansion of aid resources.

(1) South-South Cooperation

South-South cooperation is a form of cooperation provided by more developed countries, which use their experience and human resources to support other developing countries. This type of assistance usually takes the form of technical cooperation and can be provided effectively and efficiently since cooperation is possible between countries with similar social, cultural, and economic backgrounds and stages of development. Intraregional cooperation can also help to enhance exchange and reinforce solidarity between countries. A further advantage is the expansion in the number of actors and the scope of cooperation, as former recipient countries become donors themselves.

Japan recognized the benefits of South-South cooperation even prior to the formulation of the Buenos Aires Plan of Action (BAPA), and in 1975 it initiated a third-country training project in Thailand for personnel of neighboring countries. In addition to support for South-South cooperation in Asia, Japan is also actively promoting Asia-Africa cooperation, whereby Asia's development experience is applied to development efforts in Africa in ways befitting actual conditions. Almost 1,500 people from various African countries underwent training in Asian countries between 1998 and fiscal year 2001 as part of the Tokyo International Conference on African Development (TICAD) process. Furthermore, Japan has been fostering investment and technology transfers from Asia to Africa, such as through the establishment of the Asia-Africa Investment and Technology Promotion Center (Hippalos Center) in Malaysia in 1999.

With TICAD III coming up in September 2003 in Tokyo, Japan is preparing for the promotion of cooperation between Asia and Africa in many ways, such as by developing and disseminating New Rice for Africa (NERICA) - a hybrid between Asian and African varieties - and hosting the Asia-Africa Joint Forum to foster trade and investment between the two continents. (See Column 6 for details about NERICA.)

As discussed in the section on the Initiative for Development in East Asia (IDEA) (Section 2 [1] C), Malaysia and other middle-income countries of East Asia have achieved rapid development by creating a good foreign direct investment climate, such as through the development of human resources and infrastructure development. They are now starting to play a new role as donor and investor countries. As countries successful in their development strategies, they are expected to play a positive role by sharing their experiences with other developing countries.

(2) Cooperation with Other Donor Countries

South-South cooperation is a form of cooperation provided by more developed countries, which use their experience and human resources to support other developing countries. This type of assistance usually takes the form of technical cooperation and can be provided effectively and efficiently since cooperation is possible between countries with similar social, cultural, and economic backgrounds and stages of development. Intraregional cooperation can also help to enhance exchange and reinforce solidarity between countries. A further advantage is the expansion in the number of actors and the scope of cooperation, as former recipient countries become donors themselves.

Developed countries now engage in extensive aid collaboration, which can be broadly divided into multilateral and bilateral approaches. It can take the form of policy dialogue among government officials responsible for policy formulation, and active on-site coordination among donors during the phase of implementation is also common.

Multilateral cooperation is carried out, for example, in the Development Assistance Committee of the Organization for Economic Cooperation and Development (OECD-DAC), which provides a permanent forum for consultation and coordination among its 22 member countries and the European Commission (EC). DAC holds its High Level and Senior Level Meetings annually, and general meetings are held every month, where participants discuss important and topical issues relating to aid. The High Level Meeting in May 2002, for example, provided an opportunity for an exchange of views with the ministers of the five core countries of the New Partnership for Africa's Development (NEPAD). In addition, DAC also holds working group meetings of experts from member countries to discuss issues like poverty reduction, the environment, governance, conflict and development, and harmonization of aid procedures. Japan is currently the vice-chair of the DAC general meetings and is actively involved in all DAC deliberations.

There are also consultative groups for individual recipient countries. In 2002 such meetings were held for 13 countries, including Pakistan, Egypt, Cambodia, Indonesia, and Zambia. High-level representatives from Japan attended these meetings and participated actively in the deliberations.

There have also recently been sector-specific donor meetings organized by members of the Group of Eight (G8), the World Bank, and UN development organizations. Examples in 2002 include a meeting on healthcare and water co-hosted by Japan and the United States, a meeting of G8 development ministers hosted by Canada, a high-level meeting on Education for All (EFA) hosted by the UN Educational, Scientific, and Cultural Organization (UNESCO), a Fast Track Initiative (FTI) meeting on education hosted by the World Bank, a roundtable meeting on agriculture hosted by Canada, and a high-level meeting on aid harmonization cohosted by DAC and the World Bank.

On-site aid coordination in recipient countries is particularly advanced in Africa, and it is also becoming more common in Asian countries like Viet Nam. Japan actively participates in meetings with the governments of developing countries, other donor countries, international organizations and other aid-related bodies and helps develop common strategies among donors and recipients. For example, Japan played an active role in the formulation of a development plan for the agricultural sector in Tanzania by coordinating between donor countries and multilateral organizations.

In addition to these multilateral efforts, Japan also holds aid policy consultations to exchange views and coordinate policies on carrying out collaboration in strategically important regions, countries, and sectors. Recently, Japanese officials at the bureau-chief level have been meeting with their counterparts from the United States, the United Kingdom, France, Germany, Canada, Australia, the Scandinavian countries, Korea, and elsewhere to discuss aid policies and exchange views on key issues. Japan is also working to promote mutual understanding regarding aid policies and systems. Japan also has exchange programs for aid personnel with the United States, the United Kingdom, Canada, and Australia.

The country with which Japan cooperates most closely in the area of aid coordination is the United States. The two countries are allies and collaborate closely in the formulation of foreign policy, and both have aid policies that emphasize the provision of project-type assistance on a bilateral basis. For this reason, Japan and the United States hold aid policy consultations at the bureau-chief level and cooperate with specific projects in various countries and sectors. Examples of such cooperation include the construction of a highway linking Kabul and Kandahar for the reconstruction of Afghanistan and the shared intention to use ODA for the promotion of peace in Aceh, Indonesia, and Mindanao in the Philippines. An important focus of sector-based cooperation is healthcare. Japan and the United States have dispatched joint study missions to Bangladesh, Cambodia, Tanzania, Zambia, and Nigeria and have undertaken joint projects relating to HIV/AIDS and maternal and child health in approximately 20 countries. In June 2002 these efforts led to the signing of the USAID-Japan Partnership for Global Health. It was agreed in this partnership to strengthen cooperation, such as by implementing joint actions in field-driven initiatives, rather than those driven by headquarters.

At the World Summit on Sustainable Development (WSSD) in September, Japanese Foreign Minister Yoriko Kawaguchi and US Secretary of State Colin Powell announced the Clean Water for People Initiative to mark the start of bilateral cooperation in the areas of water and sanitation, which have come under increasing international attention. The initiative is described in Section 5 (4).

(3) Collaboration with International Organizations

In order to achieve international development goals, such as the MDGs, it is extremely important to hold policy dialogues and carry out joint projects with international organizations that have specialized knowledge of development problems. Japan engages in policy dialogues and multi-bi cooperation on projects with multilateral development banks (MDBs), such as the World Bank and the Asian Development Bank (ADB), and UN agencies; it cooperates with the UN Development Programme (UNDP) on all facets of development, the UN Children's Fund (UNICEF) on health and medical care and education, the World Health Organization (WHO) on health and medical care, the International Labor Organization (ILO) on labor and human resources development, UNESCO on education, the UN Population Fund (UNFPA) on population and reproductive health, the Office of the UN High Commissioner for Refugees (UNHCR) on assistance to refugees and internally displaced persons, and the Joint UN Program on HIV/AIDS (UNAIDS) on AIDS countermeasures. Japan has built particularly wide-ranging relationships with the World Bank, the UNDP, and UNICEF, and its dialogue and collaboration with these organizations are described below.

World Bank The World Bank is the biggest donor to developing countries, and it has provided leadership in aid coordination among donors in developing countries to improve aid effectiveness. Recently, the World Bank has also been deeply involved in debate at international development conferences. For example, key themes at major international conferences like the International Conference on Financing for Development (March 2003, Mexico) and WSSD (September 2002, South Africa) have also been discussed at the Annual Meetings of the World Bank and the International Monetary Fund (IMF) and meetings of the World Bank/IMF Joint Development Committee. The implementation of the MDGs, adopted at the UN General Assembly in 2000, was the theme for the World Bank/IMF Joint Development Committee meeting in September 2002, and the progress towards the goals for education, healthcare, and water were discussed. Regarding education as noted earlier, Japan is actively involved in the World Bank's FTI in the education sector and is currently considering what actual assistance is most appropriate for Japan.

In this context, as the second largest donor country, Japan attaches great importance to its relationship with the World Bank and has worked to strengthen this relationship in various ways. Japan is working with the Bank at major international conferences, such as consultative group meetings for developing countries and the International Conference on Reconstruction Assistance to Afghanistan. Japan will also host the Third World Water Forum in March 2003 and TICAD III in October, and it plans to organize both conferences in cooperation with the World Bank.

Japan holds regular high-level policy dialogue with the World Bank's headquarters. In November 2002, though, officials from Japan's main aid-related ministries and agencies met for policy dialogue in Tokyo with representatives of the World Bank's Office for East Asia and the Pacific for the first time. Topics discussed included approaches to poverty reduction and development assistance in China and Southeast Asia. During a visit to Japan in January 2003, World Bank President James Wolfensohn exchanged views with Prime Minister Junichiro Koizumi, Finance Minister Masajuro Shiokawa, and Senior Vice-Minister for Foreign Affairs Toshimitsu Motegi. Views were exchanged regarding the ODA budget, improvements in aid effectiveness, and assistance in the education sector.

In the field, the staff of Japanese embassies, the Japan International Cooperation Agency (JICA), and the Japan Bank for International Cooperation (JBIC) actively participate in the formulation of PRSPs, which were launched as a World Bank-IMF initiative to reduce poverty. In March 2002 the Poverty Reduction Strategy Trust Fund (PRSTF) was established within the World Bank with contributions from Japan and other countries. The Fund is used to assist countries eligible for International Development Association (IDA) credits in the development of PRSPs and in building the capacity of governments and NGOs for their implementation.

Japan and the World Bank place great importance on the information technology (IT) sector. In order to promote the use of IT in development, work is currently in progress to link the Global Development Learning Network (GDLN), a long-distance education network of the World Bank, with Japan's remote technical assistance network (JICA-NET).

UNDP The UNDP is the leading UN agency covering all development issues and has the largest worldwide network within the UN system. It publishes the annual Human Development Report and has a major influence on the formation of international trends in aid. The UNDP also functions as the international community's driving force toward the achievement of the MDGs.

In recent years Japan has strengthened its partnership with the UNDP at both the policy and project levels. Since 2001 there have been annual policy consultations, and policy dialogue has been expanded through visits to Japan by the UNDP administrator and at other opportunities. Examples of project-level partnership include Japan's close cooperation with the UNDP in reconstruction assistance to Afghanistan.

Japan has implemented a number of joint projects (known as "multi-bi cooperation") with the UNDP, including a waste-disposal improvement project in Pakistan, resettlement assistance for Cambodian refugees, and assistance for girls' education in Guatemala.

Since TICAD I in 1993, Japan has strengthened its cooperation with the UNDP in Africa's development. Japan has actively used funds contributed to the UNDP for various follow-up projects under the Tokyo Agenda for Action, adopted at TICAD II.

Like Japan, the UNDP is increasing its assistance for post-conflict reconstruction and development and for peace building, and collaboration in these areas is also deepening. For example, in 1988 Japan created the Japan-Palestine Development Fund within the UNDP, which has been used to support infrastructure development, such as the construction of schools and hospitals in the West Bank and Gaza Strip and to enhance the administrative capacity of the Palestinian Authority. In Afghanistan, it is implementing the Recovery and Employment Afghanistan Program (REAP), the aim of which is to create employment for returning refugees and internally displaced persons. In Kosovo, the UNDP supports democratization and assists the rebuilding of homes and construction of schools and hospitals. Assistance in Timor-Leste has focused mainly on the development of infrastructure in such areas as roads, ports, power generation, and irrigation.

To encourage South-South cooperation, to which Japan attaches great importance, the UNDP works with other aid organizations and UN agencies in promoting technology transfers and network building. Japan supports these activities through its contributions to funds established within the UNDP.

UNICEF UNICEF is the leading UN agency in health, medical care, and education for children and women, and operates all over the world. Japan places a high value on cooperation with UNICEF because of its specialized knowledge and on-site expertise. In addition to conducting high-level policy consultation, in recent years Japan has enhanced its cooperation with UNICEF in such areas as health and medical care, education, and water.

In the area of health and medical care, Japan and UNICEF have jointly provided vaccines and cold chain equipment since 1989 to increase vaccination rates and eradicate polio in developing countries. Following such efforts, the eradication of polio was declared in October 2000 in the Western Pacific.

In education, Japan has contributed $11 million to UNICEF's Back to School campaign to support basic education in Afghanistan, an equivalent of 65% of the total contribution from the international community. This involved private-sector as well as government organizations, as 11 Japanese staff members from Japanese NGOs were assigned to the UNICEF office in Afghanistan to participate in the implementation of the campaign.

In October 2001 Japan and UNICEF sent a joint study mission to Bangladesh to launch collaboration in the areas of primary education and safe drinking water, including countermeasures against arsenic contamination. To follow up, in July 2002 Japan provided grant aid of up to ¥252 million for the Intensive District Approach to Education for All (IDEAL) Project¹⁶ that is being implemented under UNICEF's leadership. The funds will be used to provide training equipment for elementary school teachers, textbooks for schoolchildren, and equipment for social mobilization and communication.

Some of Japan's emergency aid to Afghanistan and to southern African countries plagued by food crises is provided in cooperation with UNICEF. In 2001 Japan provided assistance worth approximately $35 million to Afghanistan through UNICEF.

As described, Japan cooperates with UNICEF in many different ways. In fiscal year 2001 the Japanese government's contributions to UNICEF were worth more than $100 million, including voluntary contributions.

16. Project Cycle Management (PCM) Method: A method for controlling and managing the project cycle of screening, which includes needs assessment and formation of projects, implementation, monitoring, evaluation, and feedback.