Japan's Official Development Assistance White Paper 2005

Main Text > Part II ODA DISBURSEMENTS IN FISCAL YEAR 2004 > Chapter 2 Details and New Policies about Japan's ODA: Striving for Further ODA Reforms > Section 5. Formulation and Implementation of ODA Policy > 1. System for Formulation and Implementation of ODA Policy > (3) Collaboration between Government and Implementing Agencies

(3) Collaboration between Government and Implementing Agencies

Providing assistance efficiently and effectively requires not only closer collaboration among related ministries and agencies, but also stronger collaboration between the Government and the implementing agencies with coherence. This means that the roles and apportionment of responsibilities among the Government and the implementing agencies ( JICA , JBIC , etc.) must be clarified to ensure a stronger connection between policy and implementation. Promoting such relationships requires stronger collaboration, such as by means of personnel exchanges, not only between the Government and implementing agencies, but also among the implementing agencies themselves.

In October 2003, the Japan International Cooperation Agency (JICA) became an independent administrative institution. This has resulted in a sharper division of roles, with the Government planning and formulating policies and JICA, in accordance with these policies, handling the implementation of projects such as technical cooperation. Accordingly, it is expected that JICA will have increased discretion as an independent administrative institution and that operations will be carried out more efficiently and effectively.

Upon the conversion of JICA to an independent administrative institution, the JICA headquarters was reorganized in April 2004 for the purpose of strengthening the ODA implementation system. In adopting the "Field-oriented Approach," JICA strengthened its system of overseas offices to enable accurate and swift responses to various issues of developing countries. Moreover, in March 2005 JICA announced a reform proposal focused on "reform of overseas projects" and "reorganization of domestic offices" as the Second Phase of JICA Reform Plan, which called principally for an integration of overseas projects and training programs, as well as a reorganization of domestic offices. This series of reforms was aimed at restructuring the ODA implementation system so that it can precisely and promptly meet the needs of developing countries.

Chart 35. Examples of JICA-JBIC Collaboration (FY2004)

Chart 35. Examples of JICA-JBIC Collaboration (FY2004)

In order to conduct its operations effectively and efficiently, the Japan Bank for International Cooperation ( JBIC ) publishes an implementation plan every three years concerning priority areas and regions, known as the Medium-Term Strategy for Overseas Economic Cooperation Operations. In the FY2004 revision, a Medium-Term Strategy for Overseas Economic Cooperation Operations, effective from FY2005 to the end of FY2007, was submitted to the Minister of Foreign Affairs and was approved in March 2005. This revision clearly set the basic approach of focusing on development results and specified poverty reduction, foundation for sustainable growth, global issues and peace-building, and human resources development as the priority areas of assistance. Other issues to be considered, include the strengthening of local functions, the enhancement of evaluation, and the enhancement of public relations efforts aimed at deepening the understanding of the Japanese people.

JBIC has also been collaborating with international organizations and the aid agencies of other countries in a variety of activities, such as the following:

  • As leader of the DAC Network on Poverty Reduction ( POVNET ) Infrastructure Task Team, JBIC assembled the general principles relating to future assistance in infrastructure with various overseas development-related organizations, such as KfW (Germany), AFD (France), USAID (U.S.), and DFID (United Kingdom);

  • Concluded cooperation agreement with the UNESCO World Heritage Centre, and held regular meetings for the preservation of World Heritage Sites and for poverty reduction;

  • Organized seminars concerning the effectiveness of loan aid in concert with AFD and KfW;

  • Collaborated with institutions such as the World Bank and the Asian Development Bank ( ADB ) concerning the harmonization of assistance procedures in Viet Nam, Indonesia, and the Philippines among other countries.

    JICA and JBIC have been collaborating through exchanges of information and views, and their relationship has been further strengthened by measures including the following:

  • Held consultations for formulation and preparation of projects through country-based ODA task forces so as to implement ODA more efficiently and effectively;

  • Strengthened collaboration at each stage of specific projects including implementation and maintenance following completion;

  • Promoted personnel exchanges.

  • Furthermore, in March 2004, upon the decision by MOFA and other related ministries to improve the ways of collaboration, JICA and JBIC took on building a more concrete mechanism for coordination between the two agencies by such means as expanding "collaborated feasibility studies" and appointing "collaboration experts."