OVERVIEW

This White Paper consists of three parts: Part I "JAPAN'S OFFICIAL DEVELOPMENT ASSISTANCE IN ITS TRANSITION PERIOD," Part II "ODA RECORD FOR FY2006," and Part III "STATISTICAL APPENDIX."


PART I. JAPAN'S OFFICIAL DEVELOPMENT ASSISTANCE IN ITS TRANSITION PERIOD

2008 is a highly important year for Japan, as it will host both the G8 Summit and the Fourth Tokyo International Conference on African Development (TICAD IV). In order for Japan to exercise leadership on these occasions, international cooperation through development assistance is significant. Part I, entitled "Japan's Official Development Assistance in its Transition Period" reveals characteristics of Japan's official development assistance (ODA) and the significance of international cooperation. Part I takes as context the advancement of globalization and a new development assistance trend in the international community, and examines, in particular, contributions by Japanese people who are playing an active role in the field in developing countries, and the significance of corporate activity in promoting development. Moreover, Part I expounds issues of climate change and assistance for Africa that are now priorities for the international community. The year 2008 is also a milestone for ODA reform as the new Japan International Cooperation Agency (JICA) will be inaugurated in October. In terms of recent reforms, Part I describes actual practices and the results.

Chapter 1 The Contemporary Role of International Cooperation

Section 1. The Fundamental Significance of International Cooperation
As the ODA charter stipulates, the aim of Japan's official development assistance is to contribute to peace and development in the international community and, through this, to serve Japan by ensuring its security and prosperity. This section looks at the significance of Japan's international cooperation from the perspective of international development challenges and diplomatic policies.

Section 2. Changes in the International Economic Environment and International Cooperation
Improving the trade and investment environment in developing countries will promote economic growth in these countries, and at the same time lead to an expansion of opportunities for Japanese economic activities. This section describes this while referring to the "Development Initiative for Trade," and the promotion of Economic Partnership Agreements (EPAs) as examples. It also takes up specific cases of Japanese corporate activities and official assistance in Africa.

Section 3. The Climate Change Issue
Climate change is an urgent challenge for the international community to tackle in coordination. The entire international community needs to work together to reduce greenhouse gas emissions while simultaneously expanding capacity to respond to a worsening global environment. This section expounds Japanese assistance to developing countries for climate change measures, and details some specific cases.

Chapter 2 Trends in International Aid and Japan's Efforts

Section 1. Trends in International Aid
Since 2001, the volume of official development assistance from developed countries has turned upward. This section describes recent international trends surrounding development assistance such as the emergence of a results-oriented approach as embodied in the Millennium Development Goals (MDGs), the rise of new donors, and efforts by the international community to enhance aid effectiveness.

Section 2. Characteristics of Japan's Development Assistance
Japan's development assistance has a history of more then 50 years. In three subsections, the strengths of Japanese assistance, built up in the past, are described; "Empowering the People of Developing Countries (Supporting Self-help Efforts)," "Transferring Japan's Knowledge and Technology," and "Support for the Process of Democratization and Transition to Market Economies by Developing Countries."

Section 3. Human Security
Threats to human lives, livelihoods and dignity have increased through the advancement of globalization. It is important to protect people who face various threats in developing countries, and to help them to acquire capacity to deal with these threats themselves. This section expounds "human security" and related activities that Japan has been leading in international fora.

Chapter 3 Advancing Official Development Assistance Reforms

In October 2008, the new Japan International Cooperation Agency (JICA) will be inaugurated and will implement the three aid instruments — technical assistance, loan aid and grant aid — in an integrated manner. This chapter focuses on the achievements of the previous year, how Japan reflects its policy in terms of the actual delivery of assistance, and how Japan coordinates bilateral assistance and assistance through international organizations.

Feature
Towards a Vibrant Africa
In May 2008, Japan will hold TICAD IV. Many of the issues that confront the international community are concentrated within Africa; at the same time, promising signs toward growth have been observed within Africa in recent years. This feature illustrates Japan's efforts toward TICAD IV, and focuses on: 1) boosting economic growth; 2) ensuring human security; and 3) addressing environmental/climate change issues.


Part II. ODA RECORD FOR FY2006

Part II outlines the ODA record for FY2006, in accordance with the ODA Charter, together with recent disbursements as fully as possible.

Chapter 1 Japan's Official Development Assistance in Terms of Disbursements

Japan's net bilateral ODA disbursements in 2006 totaled approximately US$11,187.07 million (approximately ¥1,302.2 billion), a 14.9% reduction compared with overall ODA disbursements for the previous year.

Chapter 2 Details about Japan's Official Development Assistance

Section 1. Assistance Relating to the Basic Policies of the ODA Charter
This section gives an outline of the ODA Charter, revised in August 2003.

Section 2. Measures for Each of the Priority Issues
This section describes measures for each of the priority issues in line with the ODA Charter.
"1. Sustainable Growth" expounds assistance for sustainable growth in developing countries, on which Japan places emphasis, such as assistance for economic and social infrastructure.
"2. Support for Social Development" describes assistance for basic social development in developing countries, such as education, health and welfare.
"3. Addressing Global Issues" expounds efforts to address cross-border global issues such as environmental issues and infectious diseases.
"4. Peacebuilding" looks at developments in the area of peacebuilding such as the establishment of the Peacebuilding Commission (PBC) and Japan's efforts towards peacebuilding, as well as regional efforts such as in Iraq, Afghanistan, Sudan and Africa (sub-Sahara), and efforts in the area of anti-personnel landmines, and small arms and light weapons (SALW).

Section 3. Assistance for Each Region
This section describes disbursements of Japan's assistance to each region. In particular, the sub-section on Africa explains assistance through the TICAD process and South-South Cooperation, and the sub-section on East Asia explains the Association of Southeast Asian Nations (ASEAN), efforts in the Mekong region, and the relationship with China.

Section 4. International Trends Relating to Assistance
This newly-created section looks at international discussions on development assistance such as by OECD-DAC, the World Bank, the G8 and the United Nations. To meet the growing demand for development assistance, it is important to make full use of the strengths of each donor and institution, and to share experiences and goals through international discussions. In recent years, recipient countries have also joined in international fora, and more practical and effective assistance has been provided.

Section 5. Operational Status of the Principle of Assistance Implementation
When implementing development assistance, consideration should not be given solely to the demand for assistance on the part of developing countries, but also be given to the overall state of bilateral relations, including such elements as the trends in military expenditures of the country concerned, its efforts to promote democracy and a market-based economy, and the extent to which basic human rights and freedoms are guaranteed. This section describes practices with specific cases.

Section 6. Formulation and Implementation of Aid Policy
The ODA Charter specifies three sets of reform measures so that development assistance may be provided more efficiently and effectively.

"1. System for Formulation and Implementation of ODA Policy" explains the following, with recent reforms being taken into account: formulation of coherent aid policy; collaboration among related government ministries and agencies; collaboration between government and implementing agencies; enhancing policy consultations; strengthening functions at the field level; and cooperation with aid-related entities within and outside of Japan.
"2. Increasing Public Participation" expounds various efforts to expand participation in international cooperation by Japanese citizens from all walks of life. It also touches on the Japan overseas cooperation volunteers (JOCV), the Senior Volunteers, and public participatory cooperation activities "Global Festa Japan 2007."
"3. Matters Essential to Effective Implementation" describes efforts such as enhancement of evaluation, ensuring due process, prevention of fraud and corruption, and ensuring the safety of personnel engaged in development assistance.


Part III. STATISTICAL APPENDIX

Part III provides the statistical data on Japan's ODA budget and disbursements, and reference materials for assistance by major donor countries.

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