(1) Strengthening Collaboration among Related Ministries and Agencies

The Cabinet Office and 12 ministries and agencies in the Japanese Government have ODA budgets, the largest of which are held by the Ministry of Foreign Affairs (MOFA), Ministry of Finance (MOF), Ministry of Economy, Trade, and Industry (METI), and Ministry of Education, Culture, Sports, Science, and Technology (MEXT). The ODA budgets of most ministries and agencies, with the exception of MOFA and MOF, are for technical cooperation. To maintain overall consistency and to implement ODA effectively and efficiently, it is important to strengthen collaboration and coordination among the ministries and agencies involved in ODA.

The final report of the Reform Advisory Board (announced in July 2002) referred to the need to review the array of ODA-related functions and roles that are at present dispersed among various ministries and agencies. The report of the Liberal Democratic Party (LDP)'s ODA Reform Working Team and the "Organizational Reform" report on MOFA reform (both released in December 2002) also called for a fundamental reinforcement of collaboration among related ministries and agencies to enable the government as a whole to implement ODA strategically.

The Basic Law for Central Government Reform, enacted in June 1998, stipulated that MOFA should fulfill a core coordinating role in the government's overall ODA policy. In response, MOFA has endeavored to strengthen collaboration among the related ministries and agencies by holding the Inter-Ministerial Meeting on ODA, the Experts Meeting of Technical Cooperation, and the Inter-Ministerial Meeting on ODA Evaluation. Also, previously there was no framework for gaining a cross-sectional understanding of the grant aid, loans, funds through international organizations, other official flows (OOF), and trade insurance that are provided by the various ministries, agencies, and related organizations, and for ascertaining the overall flow of funds to recipient countries. To fill this gap, in November 2002 the Experts Meeting on Financial Cooperation was launched among MOFA, MOF, METI, the Japan International Cooperation Agency (JICA), the Japan Bank for International Cooperation (JBIC), and Nippon Export and Investment Insurance (NEXI).

The government intends henceforth to hold these meetings among related ministries and agencies even more frequently and to reinforce collaboration among related ministries and agencies at various levels through these meetings established under the ministerial-level Council of Overseas Economic Cooperation-Related Ministers.

(2) JICA Becomes an Independent Administrative Institution

In accordance with the cabinet approval of the reorganization and rationalization plan for public corporations (December 2001), the government decided to turn the Japan International Cooperation Agency (JICA) into an independent administrative institution. The law newly establishing JICA as an independent administrative institution was enacted during the extraordinary session of the Diet in 2002. As a result, JICA will be dissolved and a new "JICA" will be established as an independent administrative institution on October 1, 2003.

With regard to Japan's ODA, MOFA coordinates the activities of related ministries and administrative offices in planning and formulating technical assistance, while JICA performs the role of implementing governmental technical cooperation. The government also sets policies and provides guidance for JICA's activities whenever necessary as the competent authority for general supervision.

After JICA becomes an independent administrative institution, efforts will be made to enhance role sharing between the government and JICA, giving JICA more discretion as well as promoting the effective implementation of assistance. To put it concretely, the government will first present goals for JICA to fulfill, such as promoting efficiency and improving the quality of its services. And JICA, then, will be entrusted to autonomously implement technical cooperation projects that the government will have adopted at the request of developing countries. Its operations will be evaluated regularly by external experts. JICA will, therefore, need to adopt a results-oriented approach as its principle and endeavor to set up an appropriate organization for efficient and effective operations. It will also need to disclose as much information as possible on its achievements so as to enhance transparency.

(3) Board on Comprehensive ODA Strategy

The Board on Comprehensive ODA Strategy was established in June 2002 based on the final report of the Second Consultative Committee on ODA Reform, issued in March. The board meets once a month with the aims of realizing public participation in ODA, enhancing the transparency of ODA, and strengthening MOFA's functions as the coordinating body for ODA. The board is charged with holding high-level discussions on Country Assistance Programs, the prioritization of certain sectors, and other important matters concerning ODA as they arise. With Foreign Minister Kawaguchi serving as the chair and professor Toshio Watanabe of Takushoku University as the acting chair, the board consists of 18 members, including development specialists, former members of international organizations, NGO representatives, business leaders, and journalists.

Specifically, the board discusses (1) the revision of the ODA Charter, (2) the formulation and revision of Country Assistance Programs, and (3) other important issues relating to ODA as they arise. While working closely with other ODA-related ministries and agencies, MOFA intends to thoroughly reflect the results of these meetings in the planning and drafting of ODA policy.

Board members agree that the ODA Charter needs to be revised, as more than 10 years have elapsed since its formulation and there have been dramatic changes in the domestic and international environment. Discussions are now being held on revising the Charter.

Concerning Country Assistance Programs, work is now in progress to revise the program for Viet Nam (formulated in June 2000), and a final draft is due to be submitted to the board in September 2003. Agreement has been reached to formulate a Country Assistance Program for Sri Lanka, moreover, and a final draft is due to be submitted to the board in June 2003. In the light of these drafts and discussions by the board, MOFA intends to proceed with revising and formulating Country Assistance Programs while working closely with other ODA-related ministries and agencies.

In order to make the discussions more transparent, the minutes of the board meetings and the materials distributed therein are posted on MOFA's ODA website (Japanese only). Also, MOFA is hosting ODA town meetings and other events in an effort to convey information to and absorb a broad range of views from the public.