Chapter 1
Japan’s ODA in Terms of Disbursements

Japan’s ODA disbursements¹ in 2002 came to a total of approximately $9.283 billion, a 5.7% decrease from the previous year (on a yen basis, approximately ¥1.1622 trillion, a 2.9% decrease from the previous year). Bilateral ODA was approximately $6.692 billion, a 10.3% decrease from the previous year and ODA through international organizations was approximately $2.59 billion, an 8.4% increase from the previous year. Bilateral ODA accounted for approximately 70% of total ODA and ODA through international organizations accounted for approximately 30%, making bilateral ODA the major component of ODA. As bilateral ODA generally takes the form of implementation of assistance projects formulated through consultations with the developing countries, it is expected to contribute to promoting friendly relations between Japan and the recipient countries through people-to-people exchanges. On the other hand, ODA through international organizations also has that advantage and Japan is collaborating with international organizations and taking flexible measures under circumstances where it is effective to utilize the abilities and knowledge possessed by international organizations or where implementation through bilateral ODA is difficult.

Breaking down bilateral ODA by type of assistance, looking at grants, grant aid was approximately $1.72 billion (approximately 25.6% of total bilateral ODA), a 9.9% decrease from the previous year, and technical cooperation was approximately $2.66 billion (approximately 39.7% of total bilateral ODA), a 6.4% decrease from the previous year. Loan aid, etc. was approximately $2.32 billion (approximately 34.7% of total bilateral ODA), a 14.6% decrease from the previous year. Each of these various types of assistance has its own special characteristics and Japan employs them all in a balanced manner, taking into account conditions and assistance needs of the recipient country. Since Japan has traditionally been implementing assistance which places importance on human resource development and development of institutions through technical cooperation, despite the decline in ODA budget, the reduction in the technical cooperation budget has been smaller than the reduction in Japan’s ODA loans and grant aid.

Breaking down bilateral ODA by sector, economic infrastructure and services occupies the largest proportion (38.0%), followed by social infrastructure and services (24.2%). These two sectors make up more than half of all the bilateral ODA. Japan has traditionally utilized financial assistance to actively develop economic infrastructure but this does not mean that Japan places importance only on economic infrastructure. If disbursements are compared in terms of monetary value, the expenditure on this sector appears large but if they are looked at from the perspective of the number of projects and the human resources being invested, they look quite different. Taking into account the increased momentum in recent years within the international community of direct support for poverty issues, the Government of Japan is strengthening support for the social sector, including health and education, and is implementing ODA with a focus on support for both the economic and social sectors.

Looking at bilateral ODA disbursements by region, assistance for the Asian region was approximately $4.09 billion, a 3.2% decrease from the previous year and approximately 60.7% of total bilateral ODA, assistance for Africa was approximately $584 million, a 31.4% decrease from the previous year (8.7% of total bilateral ODA), assistance for the Middle East was approximately $208 million, a 27.3% decrease from the previous year (3.1% of total bilateral ODA), and assistance for Oceania was approximately $93 million, a 7.9% decrease from the previous year (1.4% of total bilateral ODA). As stated above, approximately 60% of Japan’s bilateral ODA is being directed to the Asian region. Looking at the long historical span, the tendency of economic cooperation allocations to give priority to Asia has been gradually weakening against a background of changes in assistance needs, etc. in recent years led by the development of the Asian region. Nevertheless, Japan continuously to provides the majority of its assistance to the Asian region, with which it has a deep relationship.

1. Calculated on a net disbursement basis. Contributions to the Eastern European countries, graduated countries and the European Bank for Reconstruction and Development (EBRD) are not included. As Development Assistance Committee (DAC) statistics are used, the data in Chapter 1 is for calendar year 2002. For data for fiscal year 2002, there are separate statistics, such as Exchange of Notes basis statistics.