Japan's Official Development Assistance White Paper 2006

Main Text > Part II ODA DISBURSEMENTS IN FISCAL YEAR 2005 > Chapter 2 Details about Japan's ODA > Section 5. Formulation and Implementation of ODA Policy > 3. Matters Essential to Effective Implementation > (2) Ensuring Appropriate Procedures

(2) Ensuring Appropriate Procedures

Development without consideration for impacts on the environment or society may produce positive effects in the short-term, but in the medium- and long-term it will impede the socio-economic development of the country and is contrary to the concept of sustainable development which Japan has traditionally promoted. The ODA Charter clearly declares in Principle of ODA Implementation that environment conservation and development should be pursued in tandem and that giving proper consideration to the environment is essential for sustainable development in developing countries.

    For this purpose, implementing agencies must formulate and utilize environmental guidelines and confirm that the ODA project gives proper consideration not only to the impact on the environment, but also to social impacts such as involuntary displacements of residents and the violation of rights of indigenous peoples regarding land and resources when implementing ODA. The formulation and utilization of environmental guidelines like these serve to avoid negative effects from Japanese ODA on the environment and local communities to the extent possible. Moreover, through them it can be expected that the transparency, predictability, and accountability of considerations and confirmations for environmental issues can be ensured.

    Japan has implemented ex-ante confirmation of measures taken by developing countries in accordance with the various environmental guidelines and, in recent years, has been working to further enhance those guidelines. Concerning yen loans, the JBIC Guidelines for Confirmation of Environmental and Social Considerations was established in April 2002 and put into effect in October 2003 after conducting public consultations with a broad range of voices from experts, NGOs, and others. The new guidelines stipulate consideration of not only environmental factors, but also social ones such as the resettlement and the impact on indigenous groups and women are desired. Concerning technical cooperation, the JICA Guidelines for Environmental and Social Considerations were revised in March and enforced in April 2004 after obtaining a broad range of views from outside JICA, including those of external specialists and NGOs. With regard to grant aid, Guidelines of Project Assessment for Japan's Grant Aid (provisional edition) corresponding to the JICA Guidelines for Environmental and Social Considerations were prepared in August 2004 and applied on a trial basis. Opinions received since then were taken into account in finalizing the guidelines which have been officially applied since April 2006.

    Another requirement for effective and efficient ODA implementation is conducting appropriate and efficient procurement with regard to quality and price for equipment, consultancy services and the like and, to this end, efforts are underway to simplify and accelerate procedures (for further details regarding procurement, see "Prevention of Fraud and Corruption" of this section).

    Japan will continue to implement effective and efficient ODA that gives consideration to the environmental and social impacts.

    Concerning grant aid, the Meeting of the Committee for Proper Implementation of Grant Aid consisting of specialists in finance, development economics, law, and accounting and a person from an NGO has been held in order to incorporate external viewpoints in the selection process of grant aid projects. In this meeting, extensive discussions were held aimed at increasing the efficiency and transparency of grant aid projects, and the suggestions and recommendations resulting from these discussions have been reflected in operations.