Japan's Official Development Assistance White Paper 2012

(2) Iraq

Iraq is left behind in terms of economic growth because of the destruction and deterioration of its economic and social infrastructure due to three wars since 1980 and the economic sanctions following those wars. The country also lacks basic infrastructure, suffering frequent power outages and water service disruptions because of the time it took to restore order after the wars. The international community has been providing assistance for nation building of Iraq so that the country could restore and maintain its peace and stability. It is extremely important that Iraq be rebuilt as a peaceful, democratic nation, not only for the people of Iraq and the Middle East in general, but for the peace and stability of Japan and the international community as well. Iraq is currently moving from a stage at which it requires emergency response to its immediate reconstruction needs to a stage at which it must engage strategically in recovery and development for sustainability from a medium-term perspective.

<Japan's Efforts>

At the International Donors' Conference on Reconstruction of Iraq held in Madrid in October 2003, Japan announced its financial assistance package totaling up to $5 billion. The package consists of $1.5 billion in grant aid for immediate assistance for recovery of living standards of Iraqi people and up to $3.5 billion in ODA loans to support medium-term reconstruction. Since then, Japan has offered support for the reconstruction plan of the Iraqi government in four major fields: (i) strengthening foundations of economic growth (improving oil/gas production and export capability, improving agricultural productivity); (ii) improving basic infrastructure and investment conditions that underlie private sector stimulation (restoring power, improving basic transport and communication); (iii) providing basic needs to improve the quality of life (building waterworks facilities, improving the quality of medical care and education); and (iv) improving governance (building an administrative foundation, developing human resources).

In addition, when Iraqi Prime Minister Nouri al-Maliki visited Japan for a Japan-Iraq Summit in November 2011, Japan announced that it would take the necessary steps to provide approximately ¥67 billion (approximately $827 million) in ODA loans for four new projects in the areas of oil refineries, telecommunications, and health. This assistance not only completes the final round of Japan's support of up to $5 billion announced at the Conference held in 2003, but also involves new aid as well. Japan provides careful support to ensure that projects that are currently underway will proceed steadily. Japan intends to partner more closely with Iraq and other aid agencies to ensure that Japan's assistance is incorporated effectively into Iraq's medium-term reconstruction and development strategy.