| Part III. | ODA DISBURSEMENTS IN FISCAL YEAR 2002 | 
The development of individuals is the basis for the development 
  of a country, assistance for human resources development is one of the important 
  pillars of Japans assistance. Assistance for human resources development 
  not only fosters human resources that directly contribute to nation-building, 
  but also promotes mutual understanding through person to person 
  exchanges and plays a major role in promoting bilateral relations through building 
  human relationships between leaders from all sectors of society, including young 
  people who are responsible for the future of developing countries.
  
  Japans assistance for human resources development is centered on acceptance 
  of foreign students, assistance to improve the capacity of government administrators, 
  assistance for the development and improvement of occupational capacities, assistance 
  for the improvement of industrial competitiveness, etc. And Japan is actively 
  utilizing information technology (IT) so that lower cost and higher quality 
  assistance for human resources development can be implemented.
  
  In accordance with the Plan to Accept 100,000 Foreign Students, 
  *1 Japan has made efforts to enhance various measures for foreign 
  students, including a systematic development of the Japanese Government Scholarship, 
  financial aid to privately financed foreign students, etc., promotion of mutual 
  exchange system between students, enhancement of educational research institution 
  to foreign students. (In May 2003, the total number of foreign students accepted 
  reached approximately 109,500, therefore, the plans target was achieved.) 
  In the future Japan will promote measures for foreign students that aim to expand 
  foreign student exchange and increase its quality. The Ministry of Education, 
  Culture, Sports, Science and Technology allocated ¥54.12 billion to the 
  foreign student-related budget for fiscal year 2003 of which the ODA budget 
  accounts for ¥51.782 billion.
  
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       *1: 
        Plan to Accept 100,000 Foreign Students  | 
  
  In addition, the utilization of financial cooperation for human resources development 
  including acceptance of foreign students has been conducted. Specifically, the 
  Grant Aid for Scholarship Program9 from grant aid and 
  Japan has been providing Exchange Student Loans,10 from 
  ODA loans for human resources development in developing countries and for projects 
  to send foreign students to Japan.
  
  As a fundamental philosophy, Japan also has assistance for the self-help efforts 
  of developing countries and with regard to assistance in the vocational capacity 
  development sector in developing countries, Japan is also cooperating with the 
  establishment and management of related facilities, dispatch of experts, acceptance 
  of trainees, etc. In fiscal year 2002, Japan implemented technical cooperation 
  projects for vocational capacity development policy and vocational training 
  in Viet Nam, Uganda, Tunisia, Ecuador, etc. through JICA, and provided support 
  through the acceptance of trainees, dispatch of experts, etc.
  
  As assistance for the improvement of industrial competitiveness through human 
  resources development, Japan is implementing cooperation concerning the industrial 
  promotion of small and medium-sized enterprises and the development of mineral 
  resources and in recent years, cooperation has extended to development of industrial 
  foundation institutions and management technology for the improvement of productivity, 
  etc. and cooperation related to environmental and energy issues resulting from 
  industrialization. In fiscal year 2002 for example, Japan provided assistance 
  for the promotion of the automobile industry in four ASEAN countriesThailand, 
  Indonesia, Malaysia, and the Philippinesand carried out technology transfer 
  of small and medium enterprise diagnostic methods in order to strengthen the 
  management of small and medium enterprises, which bear the central role in the 
  economy of Thailand. In Indonesia, Japan is implementing technical cooperation 
  for the expansion of the Institute for International Studies and Training into 
  the regions and other export promotion to improve casting technology and to 
  foster supporting industries through such measures as visits to the factories 
  of supporting industries to provide advice, etc.
  
  In addition to this, Japan carried out the Centers of Excellence (COE) 
  Comprehensive Program11 (over two years from 2000 to 2002). 
  As a follow up to this program, Japan is planning to provide support for training 
  that is implemented by AOTS for COEs registered by the ASEAN countries beginning 
  in fiscal year 2003 and to hold workshops to share the good practices of each 
  country.
  
  As one policy to support the reform efforts of Asian countries to move to market 
  economies, Japan has established the Human Resources Development Centers 
  (Japan Centers)12 with the major objective of the development 
  of human resources participating in actual economic activities. As of March 
  2003, Japan Centers have been opened in Laos, Kazakhstan, Uzbekistan, the Kyrgyz 
  Republic, Viet Nam, and Mongolia.
  
  Japan is also carrying out human resources development in the IT sector and 
  is providing cooperation utilizing IT based on Japans Comprehensive 
  Cooperation Package to Address the International Digital Divide announced 
  in July 2000. Please refer to part III for details about the status of implementation of these measures.
  
  Furthermore, as support for human resources development and nation-building 
  through higher education and promotion of culture in developing countries, Japan 
  is providing cooperation through cultural grant aid. For example, Japan is providing 
  cooperation for the purchase of language laboratory (LL) equipment for the Faculty 
  of Foreign Languages at the Royal University of Phnom Penh. By providing LL 
  equipment to the largest language education institution in Cambodia, Japan is 
  dramatically improving the language education environmentin particular 
  Japanese language educationin Cambodia and is playing a large role in 
  the human resources development through the promotion of higher education in 
  that country. 
  
In developing countries soft assistance needs are 
  increasing. These needs include support for the formation of various institutions 
  and policies and support for the development of institutions in order to adapt 
  the structures of developing countries to an economic and social environment 
  that is changing daily as a result of economic globalization and in order to 
  promote socio-economic development.
  
  In order to meet these sophisticated soft assistance needs, Japan 
  is implementing a variety of forms of support including dispatch of policy advisors 
  and assistance for development of legal systems. In relation to these forms 
  of assistance, Japanese experts in a variety of fields including trade, investment, 
  economics, law, etc. have been building mutually trusting relationships by holding 
  repeated dialogues with the people responsible for formulating policies, such 
  as economic reforms, etc. in the governments of developing countries, advancing 
  policy support projects in which they make recommendations concerning the long-term 
  development strategies of developing countries while fully taking into account 
  the actual situation in those countries, holding workshops and seminars in combination 
  with the policy support projects, improving the administrative capacity of the 
  related people in recipient countries, and carrying out human resources development. 
  This kind of soft assistance has in recent years been attracting 
  attention as a kind of intellectual support unique to Japan. Japan is actively 
  making efforts in this area while building domestic institutions.
  
  Among the ASEAN countries, the current issues are complete recovery from the 
  Asian financial crisis of July 1997 and the strengthening of international competitiveness 
  in the ASEAN Free Trade Area (AFTA), established to liberalize the regional 
  economy. Japan is developing policy support projects tailored to the development 
  situation in each country. For example, by fiscal year 2002 Japanese experts 
  and the policy authorities in Laos had cooperated to formulate proposals in 
  a wide range of sectors including fiscal policy, finance policy, industrial 
  development, agricultural and rural development, poverty reduction, etc. and 
  Japan had implemented human resources development with the aims including increasing 
  the policy formulation capacity of the Laotian side, etc. In Myanmar Japanese 
  experts have made proposals in four sectorsfiscal and financial policy, 
  industry and trade, IT, and agricultural and rural developmentas support 
  for economic structural adjustment policies. In addition, Japan is carrying 
  out economic policy support in Indonesia. (Refer for details.) These policy support projects have been carried out in the past 
  in Thailand, Viet Nam, Chile, etc. and they contribute to the development of 
  the recipient country and play an important role in building relations in a 
  new dimension between Japan and the recipient country.
  
  In addition to these policy support projects, Japan is carrying out cooperation 
  such as acceptance of trainees, dispatch of experts, provision of equipment, 
  holding of workshops, etc. with the objective of developing the human resources 
  engaged in the planning and formulation of important policies, such as fiscal, 
  financial and industrial policies and policymaking in the developing countries. 
  In fiscal year 2002, Japan implemented a technical cooperation project through 
  JICA concerning support for development of legal systems in Viet Nam and Cambodia 
  and advanced intellectual support for developing countries in a variety of forms. 
  For example it dispatched policy support experts. 
  
  Trade related technical assistance is important for supporting the participation 
  of developing countries in the multilateral trading system centered on the World 
  Trade Organization (WTO) as global interdependence increases in the trade and 
  investment sector. At the Tenth Session of the United Nations Conference on 
  Trade and Development (UNCTAD X), Japan announced that it would carry out trade-related 
  human resources development of 2,500 people over five years beginning in fiscal 
  year 2000. But at the World Summit on Sustainable Development (WSSD) in Johannesburg 
  in August 2002, Japan increased this number and announced that it would train 
  4,500 people over the same period (five years from fiscal year 2000). In relation 
  to this, Japan co-chaired with the WTO a workshop for the African countries 
  and held a seminar in Egypt utilizing third country training.
  
  In addition, with the objectives of establishing WTO rules and promoting free 
  trade, Japan is carrying out human resources development to promote understanding 
  of WTO agreements among developing countries that belong to the Asia-Pacific 
  Economic Cooperation (APEC) forum. And based on the Strategic APEC Plan 
  formulated under the leadership of Japan, JICA conducted a development study 
  entitled WTO Capacity Building Program on the Implementation of WTO Agreements 
  in APEC Countries. The program has the objective of supporting development 
  of WTO agreement implementation capacity in Thailand, Indonesia, Malaysia, the 
  Philippines, etc. and it held seminars for each sector. And JICA is holding 
  seminars in the countries of Asia and Africa to promote understanding of the 
  investment rules which Japan considers to be especially important.
  
Strengthening the foundations of democracy in developing countries 
  leads to public participation in governance and development and to the protection 
  and promotion of human rights, and so it is an extremely important factor in 
  promoting a countrys medium and long-term term stability and development. 
  In particular, based on the principles in the ODA Charter, it is important for 
  Japan to actively support developing countries making active efforts to achieve 
  democratization and provide lateral support for movements toward democratization. 
  In addition to democratization, the promotion of market economies and strengthening 
  of governance are important elements for the effective utilization of Japans 
  assistance. So Japan is also providing active assistance in these sectors.
  
  Japan announced the Partnership for Democratic Development (PDD) at the G7 Lyon 
  Summit in 1996, which set forth the three principles of partnership, ownership 
  (self-help efforts of the developing country), and consultation and agreement 
  with the developing country and stated that Japans policy was to strengthen 
  efforts including development of legal and judicial systems, development of 
  election systems and other institution building, training programs for judicial 
  personnel, administrators, and police officers, assistance for elections, strengthening 
  of civil society, and support for the empowerment of women, etc.
  
  Because assistance needs vary depending on the status of progress in democratization 
  and the movement toward market economy in developing countries, Japan is building 
  domestic assistance institutions based on collaboration with related government 
  ministries and agencies and related domestic organizations and is providing 
  multifaceted support through a variety of assistance types including acceptance 
  of trainees, dispatching of experts, development studies, facilities development, 
  provision of equipment, and support for NGOs, in order to appropriately respond 
  to the assistance needs of developing countries. Acceptance of trainees and 
  dispatch of experts was the main component of technical cooperation disbursements 
  in fiscal year 2002, but it can be said that a characteristic feature was the 
  relative increase in facilities development and equipment provision cooperation 
  compared to before against a background of increasing assistance needs in the 
  assistance for police sector, assistance for elections sector, assistance for 
  the media sector and other such sectors.
  
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| Ceremony to hand over the draft Civil Law and Civil Procedure Code to the Government of Cambodia (Photo: Ministry of Justice) | 
 
  For Cambodia, Viet Nam, Laos, and New Independent States 
  (NIS) such as Uzbekistan, etc. the development of legal systems is a current 
  issue as they make efforts to introduce market economies and adopt policies 
  to open their economies to foreign competition. In fiscal year 2002, Japan provided 
  support to these countries for the drafting and enacting of civil and commercial 
  laws, etc. and for the development of legal systems to train legal professionals. 
  In the drafting of legislation, the dispatched experts, etc. made determined 
  efforts aimed at creating laws that took into account the customs of the recipient 
  country and they are beginning to produce concrete results. In Cambodia, as 
  a result of cooperation to date, the Civil Law and Civil Procedure Code in the 
  Khmer language was completed and handed over to the Government of Cambodia in 
  March 2003. Japans efforts to support the development of legal systems 
  are only about ten years old, so Japan has relatively little experience in this 
  area. So it is hoped that Japans support for Cambodia, etc. will help 
  provide the direction for Japans future efforts in the development of 
  legal systems sector.
  
  The African countries are making efforts at economic and social development 
  based on democratization policies. Japan is holding annual democratization seminars 
  for these countries with the objectives of introducing Japans democratization 
  concepts and experiences and enabling the African countries to use them for 
  their own democratization processes. In fiscal year 2002, Japan held seminars 
  for national assembly members from the ruling parties in Guinea, Togo, and the 
  Congo. These seminars were partly designed to lead up to the Third Tokyo International 
  Conference on African Development (TICAD III) in October 2003.
  
  Even though Indonesia, Mongolia and the Latin American countries are moving 
  to democratic institutions, there is unease about fundamental governance. The 
  people do not trust the government due to the lack of administrative capacity, 
  domestic security issues and corruption. For these countries, Japan is placing 
  priority on human resources development including support for systems building 
  and improvements to administrative capacity, etc. and in combination with this, 
  is providing organic support including development of facilities and provision 
  of equipment. In Indonesia the national police were separated from and made 
  independent of the national army in 1999 and democratization of the organization 
  is being promoted with the aim of consolidating it as a civil police force. 
  In this context, Japan dispatched experts as Adviser to chief of National 
  Police in 2001 and followed this up by commencing a technical cooperation 
  project, the Project on Enhancement of Civillian Police Activities, 
  in August 2002. This project set up the Bekasi Police Station in the suburbs 
  of Jakarta as a model police station, strengthened the civil police functions 
  of the station through technology transfers in the organizational operations, 
  communications and control and on-the-ground identification sectors, and extended 
  the results of the project to police stations throughout Indonesia. In this 
  way, the project provided lateral support for police reform. To date, Japan 
  has dispatched experts in each sector and has carried out technical training, 
  etc. of employees of Bekasi Police Station.
  
  In Afghanistan the conflict has just come to an end. In order to establish democratic 
  governance functions, Japan has strengthened administrative aspects that utilize 
  technical cooperation and financial cooperation, provided assistance for elections, 
  supported satellite broadcasting to provide television broadcasts about election 
  process to ordinary households throughout Afghanistan, and is taking other measures.
  
  In order to encourage the consolidation of democracy in developing countries 
  and to promote public participation in politics and development, support for 
  the strengthening of civil society and the empowerment of women, which provides 
  the foundation of democratization, is indispensable. Japan has carried out a 
  variety of cooperation including technical cooperation, grant aid, and assistance 
  through the activities of NGOs. Concerning the status of implementation of assistance 
  for the empowerment of women please refer to Women in Development (WID) (Refer 
  for details).
  
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| Technical assistance for the Indonesian police: Japanese experts transferring identification technology (Photo: JICA) | 
9. Established in fiscal 
  year 1999, this program provides financial cooperation, such as travel expenses 
  and tuition fees, etc., to organized and well-planned projects by the governments 
  of developing countries to dispatch foreign students to Japan. In fiscal year 
  2002 financial cooperation was provided to ten countries under the program, 
  including Viet Nam, Laos, Myanmar, etc.
  10. This program uses Japans ODA loans 
  to support human resources development and foreign student programs in Japan. 
  To date approximately ¥59.2 billion has been provided to three countries: 
  Indonesia, Thailand, and Malaysia, and these funds have enabled a total of approximately 
  3,800 foreign students to come to Japan.
  11. The objectives of this project are to 
  strengthen the functions of organizations selected as central human resources 
  development organizations in the ASEAN countries and known as COEs, and to promote 
  collaboration among human resources development institutions.
  12. The three main functions of the Japan 
  Centers are (1) development of human resources participating in actual economic 
  activities in order to shift to market economy structures; (2) Japanese language 
  studies; (3) promotion of mutual understanding through the introduction of Japanese 
  culture, etc.