Japan's Official Development Assistance White Paper 2010

2. Effective Aid Implementation

Going forward, Japan will need to implement more strategic aid using its limited budget and ensure that the desired results are produced. Specifically, Japan will improve its aid strategy by providing a clear direction on aid targets, strengthening the program approach, and other ways. Furthermore, Japan intends to improve aid effectiveness by, for example, shifting to a results-based approach and improving existing aid schemes.

(1) Strengthening the program approach

The program approach is a process through which development programs are formulated, identifying issues based on policy consultations with developing countries and developing specific individual aid projects to solve the issues. The program will integrate a variety of aid schemes, such as ODA loans, grant aid, and technical cooperation, and the different aid schemes as a whole will tackle one development issue. It is expected that the program approach will increase the synergy effects between projects compared to the conventional approach, where the implementation of individual aid projects was studied based on each project request made by developing countries.

Initially, pilot programs will be selected and launched in a few recipient countries. The program approach will be further promoted by strengthening field capacities for more effective policy consultations and aid coordination with recipient countries and strengthening monitoring and analyses of development needs.

Chart II-2 Strengthening the Program Approach