| Part I. | THE REVISION OF THE “ODA CHARTER” AND JAPAN’S NEW APPROACH |
Based on the results of ODA reform, this item is given a major heading in the revised ODA Charter in order to clearly show the system of formulation and implementation of ODA policy. By doing this, Japan intends to ensure the implementation of unified and coherent ODA by the government in its entirety and to implement effective ODA that gains broad support through collaboration with people involved in assistance at home and abroad and through increased public participation, etc.
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The results of ODA reform concerning the formulation and implementation
of ODA policy are comprehensively incorporated in the revised ODA Charter. Specifically,
the charter details the elements essential to the system of formulation and
implementation of ODA policy, increasing public participation, and the effective
implementation. By doing this, Japan intends to implement effective ODA that
gains broad support through collaboration by the government in its entirety
and increased public participation, etc. Below are concrete descriptions of
each element.
In Japan, a variety of government ministries and agencies are
involved in ODA and it is important to ensure that the ODA projects implemented
by each ministry or agency do not conflict with each other and that the benefits
of ODA are maximized. For this reason, it is important that the government in
its entirety shares the same policy and goals and maintain consistency. The
revised ODA Charter states that “the government in its entirety [is to
implement] ODA efficiently and effectively in a unified and coherent manner
pursuant to this Charter.” As specific policies, the charter states that
“medium-term ODA policies and country assistance programs will be formulated”
based on the revised ODA Charter, and that “ODA policies will be formulated
and implemented” in accordance with these policies in partnerships and
collaborations with the various aid providers in the international community.
The charter states that country assistance programs “reflecting the recipient
countries’ true assistance needs” and are formulated taking into account
Japan’s ODA policy after giving due consideration to the development plan
of the recipient country and the development issues based on its political,
economic and social conditions.
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Status of Formulation of Country Assistance Plans |
The decision to formulate country assistance plans was made in
response to an instruction from then Prime Minister Keizo Obuchi in his first
Cabinet meeting after coming into office in July 1998 and based on an agreement
reached in a bureau meeting of the Council of Overseas Economic Cooperation-Related
Ministers in November 1998. Country assistance programs are intended to be “a
part of improvements to transparency in the selection of ODA projects.”
Actual country assistance plans were formulated from 2000 and to date, they
have been formulated for 15 countries30.
In addition to the above, since fiscal year 2002, work has been in progress
to revise the plan for Viet Nam, and to newly formulate a plan for Sri Lanka
and concerning these plans, agreement in principle on a final draft has been
reached in a Meeting of the Board on Comprehensive ODA Strategy31.
And currently, work to formulate country assistance plans for Mongolia, Indonesia,
India and Pakistan is sequentially being commenced. The country assistance plans
are formulated based on the views of a wide range of people involved in the
assistance field with the active involvement of country-based ODA task forces.
Studies are conducted, mainly by the Assistance Plan Formulation Task Forces
for each country, formulated by experts, with exchanges of views held with non-governmental
organizations (NGOs), the business world, and assistance implementing agencies
and workshops held in the recipient country.
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Methods of Assistance and Balance between Sectors |
Japan’s assistance takes a variety of the forms - loan aid,
grant aid and technical cooperation. Japan has always implemented assistance
that combines all these forms in an organic way and that is fine-tuned to meet
the different development stages and assistance needs of each country. Japan
also has performed ODA taking into account the balance between “hardware”
cooperation centered on “tangibles,” for example, development of economic
infrastructure and construction of hospitals, and “software” cooperation,
for example, human resources development such as fostering of human resources
to support the development of developing countries and cooperation to develop
various kinds of institutions. A particularly frequently implemented type of
collaboration between these different methods of ODA, in order to more effectively
utilize facilities constructed with grant aid, is that Japan dispatches technical
cooperation experts to the facilities and invites people involved in the project
from the developing country to Japan as trainees. For example, the buildings
for “Human Resources Centers”, established in
the past in Laos, Viet Nam and Mongolia to promote a shift to a market economy
in the former socialist countries, were constructed with grant aid and using
them as bases, Japan has dispatched experts in the fields of the economics,
Japanese language, exchange projects, etc. and has carried out technology transfers.
Importance is placed on this point in the revised ODA Charter, which states
that in accordance with these medium-term ODA policies and country assistance
programs, each method of assistance will be “linked together effectively”
to “take full advantage of the characteristics of each method” and
that Japan will be mindful of the balance between hardware-type cooperation
and software-type cooperation.
Currently the Cabinet Office and 12 ministries and agencies have an ODA budgets. In order to maintain overall consistency among the ODA projects being implemented by the each office, ministry and agency and to maintain and implement them effectively and efficiently, it is essential to strengthen collaboration and coordination among government ministries and agencies. Awareness of this was indicated in the final report of the Advisory Board for the Reform of MOFA32 published in July 2002, in the report of the Liberal Democratic Party (LDP)’s ODA Reform Working Team, and elsewhere. The revised ODA Charter states that “under the auspices of the Council of Overseas Economic Cooperation-Related Ministers, MOFA will play the central coordinating role in strengthening broad collaboration between the ODA-related government ministries and agencies, including by means of personnel exchanges and by utilizing the expertise of those related ministries and agencies” in order to ensure that the government as a whole formulates and implements policies in a unified and coherent manner. The charter goes on to state that “the government ministries and agencies will actively use consultation fora such as the Inter-Ministerial Meeting on ODA” to realize this collaboration.
Specifically, under the auspices of the ministerial-level Council of Overseas
Economic Cooperation-Related Ministers, a variety of meetings such as meetings
of the Inter-Ministerial Meeting on ODA, the Bureau Meeting for the Inter-Ministerial
Meeting on ODA, the financial cooperation experts’ meetings, technical
cooperation experts’ meetings, and the ODA evaluation experts’ meetings
will be held and when implementing ODA, the technology and expertise of ODA-related
government ministries and agencies will be utilized and collaboration between
ODA-related government ministries and agencies at various levels will be strengthened,
for example, assistance will be implemented more effectively and efficiently.
Based on the “Basic Law on the Administrative Reform of the Central Government”
enacted in June 1998, MOFA has a core coordinating role in the government’s
overall ODA policy.
In order to implement efficient and effective assistance, it is
important not only for the ODA-related government ministries and agencies to
collaborate, but also to ensure coherence and to provide assistance under organic
collaboration by strengthening collaboration between the government and the
assistance implementing agencies. The importance of this is recognized in the
revised ODA Charter which states that “While making clear the roles of
the government and the implementing agencies (the Japan International Cooperation
Agency and the Japan Bank for International Cooperation) and the apportionment
of responsibilities among them ... [Japan will] ensure an organic linkage between
the government and the implementing agencies.” And in order to promote
this, “collaboration will be strengthened, including by means of personnel
exchanges.” The charter also states that collaboration between the government
and implementing agencies alone is not sufficient and that it is important that
“implementing agencies will strengthen their mutual collaboration.”
Specifically, this means that in principle, while the government will carry
out planning and formulation, the implementing agencies will implement ODA projects
based on those plans, etc., and the implementing agencies will ensure that implementation
of projects is consistent with the revised ODA Charter and country assistance
programs, etc. In particular, role-sharing was enhanced between the government,
which plans and formulates ODA policies and Japan International Cooperation
Agency (JICA), which implements projects for technical cooperation, etc. based
on those policies, which became an independent administrative institution in
October 2003. As a result of this, the discretion of the independent administrative
institutions is increased and it is expected that the work for ODA projects
will be carried out in a more efficient and effective manner.
Concerning collaboration between the implementing agencies JICA and Japan Bank
for International Cooperation (JBIC), they have always exchanged information
and views but in addition to that information, sharing among implementing agencies
will be further promoted under the framework of Country-based ODA Task Forces33
and it is expected that there will be coordination of the project implementation
plans drawn up by both agencies under the country assistance programs and promotion
of personnel exchanges.
For many years, Japan’s assistance has been characterized as “request-based”—assistance was implemented based on requests from recipient countries. However, in order to make development assistance more efficient, it is important that contents of assistance are not decided only by either the donor country or the recipient country unilaterally, but both share their understanding of assistance and their views on how to proceed with assistance through close policy consultations before implementing development. The revised ODA Charter states that with a view to supporting the self-help efforts of developing countries, Japan will continue to regard requests from the developing country as necessary, but also “[engage] actively in policy consultation before requests are made by developing countries” and “fully grasp the development policies and assistance needs of developing countries” when formulating and implementing ODA policies. At the same time, in order to make the most use of Japan’s aid as a part of the recipient countries’ development strategies, “the development policies of developing countries and Japan’s assistance policy will be reconciled.”
One measure toward the strengthening of policy consultation is the strengthening
of local roles and institutions in the ODA implementation process through the
launching of Country-based ODA Task Forces in FY2003, mainly comprised by embassies
and the overseas offices of JICA and JBIC. These Country-based ODA Task Forces
hold vigorous policy consultations with the government of the recipient country.
These consultations harmonize Japan’s assistance policies and the development
polices of the developing countries and aim to make it possible to realize more
efficient and effective assistance. Policy consultations were held in 24 countries
between April and November 2003. For example, in the policy consultation concerning
yen loans in Viet Nam in order to strengthen environmental measures in the electricity
sector—as institutional and policy support which Japan places importance
on—beside expansion of electricity supply facilities and support for formulation
of environmental policy and development of environmental management systems
was newly incorporated as project goals. Also in Viet Nam, when loan aid was
provided to repair national and provincial roads and bridges, it was decided
upon to provide assistance to improve maintenance systems and capacity in the
road sector in cooperation with the World Bank and the Asian Development Bank
at the same time.
And the revised ODA Charter states that Japan will “support efforts by
developing countries to improve their policies and systems, including the ability
to formulate and implement assistance projects” and that Japan will actively
engage in project formation before requests are made by developing countries
and support efforts by developing countries to improve their policies and systems,
including the ability to formulate and implement assistance projects. Specifically,
Japan is identifying and forming good projects for developing countries whose
capacity for forming assistance projects is low, by implementing project formation
studies, etc., and is carrying out the work of giving direction to cooperation
to the government of the country in question. And Japan is dispatching project
formulation advisors from JICA with good knowledge of the priority sectors of
the developing country , and in cooperation with the related institutions in
the recipient country, it is actively identifying and forming good projects.
On the other hand, concerning efforts by the recipient country to form projects,
etc., the ODA Charter also states that Japan will “take into consideration
whether such efforts by the developing countries are sufficient in the formulation
and implementation of ODA.”
Based on the belief that in order to improve the strategic value,
the transparency, and the efficiency of ODA and that to enhance accountability
it is necessary to strengthen the local role in the building of country assistance
strategies, in the revised ODA Charter, the policy of “strengthening of
the functions of field missions” is adopted for the first time. The revised
ODA Charter states that “the functions of field missions (primarily overseas
diplomatic missions and offices of implementing agencies) will be strengthened,
so that they will be able to play a leading role in the policy-making process
and in implementation.” And, in addition to these efforts, Japan will make
comprehensive and accurate assessments, primarily at the local level, of what
the priority development issues are for the recipient country and what contribution
Japan should make to those issues. The revised ODA Charter states that important
methods for doing this will include appointing “outside personnel”
possessing knowledge and experience of the country in question to overseas diplomatic
missions and offices of implementing agencies, etc., sufficiently assessing
the socio-economic conditions, etc. in the country through collaboration with
the interested parties with a good knowledge of the local area, and building
these mechanisms.
Japan is moving to actively contribute to aid coordination through these enhancements
to the functions of field missions. In recent years, the Poverty Reduction Strategy
Papers (PRSPs) formulated and implemented under the principle of ownership of
the government of the recipient country in cooperation with concerned institutions,
including assistance-related institutions, have been completed in Viet Nam,
Cambodia, Mongolia, Sri Lanka, and Nepal and the formulation of PRSPs is under
way in other Asian countries too. As these PRSPs have been formulated, the movement
toward aid coordination has also gained momentum in Asia. Concerning this movement
toward aid coordination, Japan has made an active contribution, for example,
by leading policy consultations with the government in the process of expanding
PRSP in terms of economic growth strategy in Viet Nam, and is participating
in discussions more vigorously than before with the aim of making assistance
more efficient.
| Column 9 | JICA Becomes an Independent Administrative Institution | ||
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JICA began its new life as an independent administrative institution on October 1, 2003. Currently, JICA is placing importance on results-orientation, improving efficiency and enhancing transparency and accountability, with a view to carry out better international cooperation.
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Country-based ODA Task Forces |
As was already touched upon in the explanation of the strengthening
of policy consultation, it was decided on to launch country-based ODA task forces
from fiscal year 2003, primarily in those countries with importance on ODA,
in order to efficiently utilize Japan’s limited human resources in the
recipient country. The members of country-based ODA task forces are mainly comprised
of officers involved in economic cooperation at embassies; and staff of overseas
JICA and JBIC offices, with assistance of JICA experts dispatched to the recipient
country, and the staff of overseas offices of government organizations such
as the Japan External Trade Organization (JETRO), the Japan Foundation, etc.
if necessary. Currently country-based ODA task forces are established in 54
countries34 and they are mainly carrying out the following kinds
of activities.
| (1) | Study and Analysis of Trends Surrounding the Development
of the Recipient Country The country-based ODA task forces, in cooperation with people involved in development issues in the recipient country, analyze the development plan and the macroeconomic conditions, etc. of the recipient country, collect and analyze information concerning priority sectors, study assistance approaches, and evaluate, etc. past economic cooperation. Many country-based ODA task forces hold plenary meetings between one to four times per month and also hold separate subcommittee meetings. In addition, they hold exchanges of views with Japanese people involved in development issues in the recipient country including those who are working in Japanese companies, NGOs, and international organizations, with a view to achieving more effective assistance. |
| (2) | Implementation of Policy Consultation with the Government
of the Recipient Country Based on the daily information collection and analysis, the country-based ODA task forces hold policy consultations with the government of the recipient country. |
| (3) | Participation in the Country Assistance Plan Formulation
and Review Process In fiscal year 2003 the formulation of the Country Assistance Plan for Sri Lanka was completed and those for Mongolia, Indonesia, India and Pakistan is underway. The Country Assistance Plan for Viet Nam was revised, as necessary, to take account of the current conditions in that country. The contribution of the country-based ODA task forces to these processes is to draw up the outline plan and the draft of the country assistance programs, etc., and provide input from the local perspective through this process. The Country-based ODA Task Force in Bangladesh is also constructing assistance programs for each priority sector. |
| (4) | Collaboration with the Local Donor Community Currently, aid coordination between donors is increasing, particularly in low-income countries. In response to this development, Japan is making use of members of Country-based ODA Task Forces to actively participate in various donor meetings, etc. and to make policy proposals and in Japan’s priority sectors, lead donor meetings as necessary. And the discussions at these donor meetings are to be reflected in Japan’s assistance strategies. |
Collaboration utilizing the characteristics of each stakeholder
provider are becoming increasingly important because assistance activities by
civil society, including NGOs, enable not only fine-tuned and effective assistance
tailored to the needs of local communities and residents in developing countries,
but also to speedy and flexible responses in providing emergency humanitarian
assistance. The revised ODA Charter states that “Collaboration with Japanese
NGOs, universities, local governments, economic organizations, labor organizations,
and other related stakeholders will be strengthened to facilitate their participation
in ODA and to utilize their technologies and expertise” taking into account
the role played by each stakeholder in development. The charter goes on to state
that “Japan will also seek to collaborate with similar entities overseas,
particularly in developing countries.” In addition, the charter states
that in the implementation of this kind of collaborative ODA, appropriate use
will be made of the technologies and expertise of Japanese private companies.
Japan, from its past experience, possesses outstanding technology in a variety
of sectors such as the environmental sector, and is continuing to develop new
technology. Utilizing this technology while taking into account the local assistance
needs contributes to effective development and at the same time leads to the
more direct participation of the Japanese people in assistance activities, and
this deepens the Japanese public’s understanding of assistance.
The government has been taking measures to strengthen dialogue
and collaboration with, and support for NGOs. For example, the government has
held regular meetings with NGOs and in addition, commenced in fiscal year 2002,
NGO-Embassy Meetings called ODA Embassy (regular meetings between Japan’s
overseas diplomatic missions and NGOs) among the NGO’s, the staff of Japanese
embassies, and the local offices of JICA and JBIC in developing countries where
a relatively large number of Japanese NGOs are active. So far, these meetings
have been held in 12 countries, including Cambodia, Bangladesh, and Kenya. As
for financial support for NGO activities, the government established Grant Assistance
for Japanese NGO Projects in fiscal year 2002 (the budget for fiscal year 2003
was ¥2.2 billion) by integrating Japanese NGO’s portion of the existing
grant assistance for grassroots projects by Japanese and international NGO activities
and the system of grants for supporting NGO emergency activities. The new scheme
covers a part of NGOs’ head office expenses, which was not eligible for
assistance before. At the same time, new system requires NGOs to discharge more
accountability than before, obliging them to accept external auditing of all
projects approved. In May 2003, this assistance was used to provide ¥700
million to the Japan Platform, and it is also currently supporting various other
development assistance projects being implemented by NGOs in developing countries.
(Details about support through NGOs for peace-building.)
30. Seven Asian countries
(Bangladesh, Thailand, Viet Nam, the Philippines, China, Malaysia, Cambodia),
four African countries (Ghana, Tanzania, Zambia, Kenya), two Latin American
countries (Peru, Nicaragua) and two Middle Eastern countries (Egypt, Tunisia).
31. It is planned to decide Japan’s
country assistance programs for both countries in the first meeting of the Council
of Overseas Economic Cooperation-Related Ministers in 2004.
32. Established in February 2002 as a consultative
body on reform of MOFA for Minister for Foreign Affairs Yoriko Kawaguchi. In
July 2002, it presented its final report to the minister.
33. Strengthening of the Functions of Field
Missions (Refer for details)
34. The 54 countries include 18 in the Asia-Pacific
region, 14 in Latin America, two in Europe, eight in the Middle East, and 12
in Africa.
