3. Requirements for Implementation of Strategic and Effective Assistance
Japan has been (i) enhancing the PDCA cycle (project formation (Plan), implementation (Do), evaluation and monitoring (Check), and follow-up (Act)), (ii) strengthening the Program Approach, and (iii) reinforcing “visualization,” in order to increase the transparency of ODA projects and improve accountability.
In April 2013, Japan released the “Implementation of Strategic and Effective Assistance (Third Edition),” a report with the purpose of enhancing the transparency of ODA projects and making continuous improvements in implementing the projects. In this document, the following initiatives were announced in order to strengthen the PDCA cycle: introduction of systematic numerical targets for grant aid projects (which would enable reasonable targets to be set for each project); introduction of the PDCA cycle for Grant Aid for Poverty Reduction Strategy; introduction of a four-grade evaluation system for project evaluations. At the 11th meeting of the Administrative Reform Promotion Council in June 2014, experts commended the introduction of systematic numerical targets as an example of an improved measure that strengthened the PDCA cycle.
In addition, based on the points raised at the “Autumn Administrative Program Review” conducted in November 2013, Japan formulated guidelines regarding the effective use of grant aid in countries with relatively high income levels, following the discussions by external experts at the Development Project Accountability Committee.
(1) Strategic Aid Implementation
| Program Approach
The Program Approach refers to an approach in which goals for resolving specific development issues (program objectives) are established through consultation with recipient countries, and then concrete ODA projects needed to achieve these goals are drawn based on the objectives.
For example, to achieve the “objective” of reducing the mortality rate of pregnant women in a specific region, “concrete projects,” such as hospital construction using grant aid and midwives training through technical cooperation may be drawn out. At present, the Program Approach is undertaken in the pilot phase, and the experiences and results will be drawn upon to strengthen this approach.
| Country Assistance Policy
A Country Assistance Policy is Japan's country-specific aid policy formulated on the basis of a comprehensive assessment of the development plans and challenges of each ODA recipient country, taking its political, economic and social situations into consideration. The Policy concisely outlines the significance, basic policy, and priorities of the assistance to each recipient country, and thereby intends to show a clear vision of the development cooperation implemented through “selection and concentration.” In principle, the Policy is to be formulated for all countries eligible for ODA, and as of October 2014, Country Assistance Policies for 106 countries have been formulated.
(2) Effective Aid Implementation
| Website for visualization of ODA
ODA mieru-ka site (website for the visualization of ODA): http://www.jica.go.jp/oda
The “ODA mieru-ka site” (a website for the visualization of ODA) was launched on the JICA website in April 2011 to enhance transparency of ODA projects in order to further increase public understanding and support for ODA. Photographs, ex-ante/ex-post evaluations, and other information are being posted to enrich information, in order to offer the public a clearer picture of the ODA projects around the world in an easy-to-understand manner with a focus on loan aid, grant aid, and technical cooperation projects, and by providing an overview of each project as well as the process from project formation to completion. Likewise, lists summarizing the status of specific achievements and lessons learned from past projects, including projects which proved to be effective as well as those which proved to be inadequate, have already been publicized three times on the MOFA website to promote more effective implementation of ODA. Since FY2014, the information in these lists has been incorporated into each project's page on JICA's “ODA mieru-ka site” in an effort to further increase convenience.
| PDCA Cycle
With regard to strengthening the PDCA cycle, on-going efforts include: (i) formulating Country Assistance Policies for all recipient countries of Japan's ODA, (ii) convening the Development Project Accountability Committee, (iii) setting indicators for individual projects, and (iv) strengthening the evaluation implementation structure. In particular, the Development Project Accountability Committee, which has held meetings since 2011, plays a central role in the PDCA cycle. The Committee aims to implement ODA projects with increased effectiveness and enhance their transparency. To this end, prior to the implementation of research for formulating new projects of grant aid, loan aid, and technical cooperation, the Committee conducts opinion exchanges regarding the content of research between external experts in ODA-related areas and relevant departments of MOFA and JICA, as well as reflecting the past experiences and perspectives of external experts in new projects.
| Enhancement of Evaluation
For the implementation of ODA with increased effectiveness and efficiency, it is necessary to accurately grasp the implementation status of development cooperation and its effect, and to reflect this understanding into the effort to improve this field. To this end, MOFA, other related ministries, and JICA conduct ODA evaluations as part of the PDCA cycle. The lessons and recommendations obtained from the results of ODA evaluations are conveyed to the relevant departments of MOFA and JICA as well as the governments of recipient countries in order to utilize them in future planning and implementation processes. In addition, the wide publications of the results of ODA evaluations, for example on websites, also play a role in fulfilling the government's accountability regarding the ways in which ODA are used and the effects generated by the ODA projects.
Currently, MOFA conducts the ODA evaluations, which are mainly evaluations at the policy-level (e.g., country assistance evaluations and priority issue evaluations). Taking into consideration of the five evaluation criteria of the DAC Criteria for Evaluating Development Assistance (Relevance, Effectiveness, Efficiency, Impact (long-term effect), and Sustainability), MOFA conducts evaluations from development viewpoints based on three evaluation criteria, namely, relevance of policies, effectiveness of results, and appropriateness of processes. The evaluation is conducted by third parties to ensure the objectivity and transparency of the MOFA's evaluations.
ODA evaluations since 2011 have included diplomatic viewpoints in addition to development viewpoints.
Meanwhile, JICA implements evaluations of technical cooperation, ODA loan, and grant aid projects individually as well as evaluations on different themes. Consistent monitoring and evaluations from the pre-implementation stage, through the implementation stage, and to the post-implementation stage are conducted, and at the same time, an evaluation mechanism consistent to these three forms of assistance has been established. These evaluations are conducted in accordance with the DAC Criteria for Evaluating Development Assistance, and ex-post evaluations conducted by third-party evaluators (external evaluation) for projects involving monetary amounts which exceed a certain amount.
Response to the recommendations and lessons obtained from the results of these ODA evaluations are discussed and reflected in the policy formulation and the implementation of ODA.
MOFA also conducts policy evaluations on development cooperation policies in general, ex-ante evaluations on projects involving monetary amounts which exceed a certain amount, and ex-post evaluations on pending projects that have not proceeded for five years, and incomplete projects* that have not concluded within ten years. These evaluations are carried out pursuant to the Government Policy Evaluations Act (GPEA).
| Preventing Fraudulent Practices
Given that Japan's ODA is funded by taxpayers' money, fraudulent practices associated with ODA projects not only interfere with the proper and effective implementation of assistance, but also undermine public trust in ODA projects, which must never be allowed. Accordingly, the Government of Japan and JICA make efforts, taking past incidents of fraudulent practices into consideration, to prevent fraudulent practices by ensuring the transparency of procurement and other procedures.
At the procurement stage of ODA projects, developing countries conduct tendering procedures in accordance with JICA's guidelines for procurement, followed by the verification of the results by JICA, which takes responses to increase transparency of the procedure by disclosing not only the name of the contractee but also the contract amount. In case frauds are discovered relating to procurement or other stages of ODA project implementation, measures are to be taken to exclude companies engaged in fraud from bidding or receiving contracts for projects for a certain period.
With regard to external audits, JICA implements such audits conducted by accounting auditors. In addition, external audits, in principle, have been made obligatory and are being implemented for Grant Assistance for Grass-Roots Human Security Projects worth ¥3 million or more.
Regarding internal audits, JICA employs a system in which audits of loan aid projects agreed upon between governments can be conducted as needed. For technical cooperation, JICA conducts internal audits via sampling. JICA also carries out technical audits of grant aid.
Japan, as a country which has ratified the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, takes strict and fair actions, including the application of the Unfair Competition Prevention Act, against fraudulent business with foreign government-related parties in order to ensure trust in ODA projects.
In response to the improprieties of ODA loan projects that took place in Viet Nam in 2008, MOFA and JICA reviewed their guidelines for measures against companies engaged in fraudulent practices, which stipulate that such companies may not participate in tenders for a certain period of time. In addition, a support system was established for the overseas arms of Japanese companies through the Embassies of Japan and overseas JICA offices, thereby urging related industries to comply with laws. Specifically, MOFA and JICA conducted, hosting seminars concerning international contract terms and conditions for Japanese companies in cooperation with industry associations, enhancing the involvement of JICA during the selection of consultants by partner countries, and holding discussions with other donor countries to prevent fraud and corruption.
Notwithstanding these efforts, in 2014, a Japanese company entered into a plea agreement with U.S. judicial authorities for fraudulent practices associated with an ODA loan project in Indonesia and was found guilty in the United States. Furthermore, members of a Japanese company were indicted on fraud charges with respect to ODA loan and other projects in Indonesia, Uzbekistan, and Viet Nam. Although MOFA and JICA had taken the aforementioned measures to prevent fraudulent practices, in light of the occurrence of incidents which have undermined the credibility of ODA, further steps are being taken to prevent a recurrence. These steps include improving the function of the Consultation Desk on Fraud and Corruption, barring companies engaged in fraud from bidding on Japan's ODA projects, and encouraging companies to establish compliance systems. Efforts on the Japanese side as well as the efforts and cooperation of partner countries are essential to prevent such situations from occurring. From this perspective, Japan is also consulting with governments of partner countries.
In FY2013, the Government of Japan barred a company from bidding on ODA projects for certain periods.
(3) Ensuring Appropriate Procedures
When implementing development cooperation, it must be ensured that appropriate consideration has been taken by the counterpart governments and relevant organizations implementing the project in relation to the impact on the environment and local communities, such as the resettlement of residents and the violation of the rights of indigenous people and women. In accordance with the Guidelines for Environmental and Social Considerations* established in 2010, JICA has been providing support to ensure appropriate environmental and social considerations undertaken by partner counties to avoid or minimize the potential undesirable impacts of development cooperation projects on the environment and local communities. These efforts lead to ensuring transparency, predictability, and accountability related to environmental and social considerations.
In addition, meetings of the Development Project Accountability Committee, which offers an opportunity to exchange views with knowledgeable and experienced external experts prior to the implementation of project research, are held and open to the general public to further improve the effectiveness and increase transparency of ODA projects.
(4) Securing the Safety of Personnel Engaged in Development Assistance
Security situations in developing countries in which ODA personnel are involved are complex and change constantly. In addition, since the terrorist attacks in the United States on September 11, 2001, tensions in the Middle East and South Asia regions have increased, and terrorist activities have been occurring frequently worldwide. In peacebuilding activities, the ways in which the safety of development cooperation personnel can be ensured has become a considerably critical issue.
The Government of Japan assesses the domestic security situation in each country mainly through the Embassies of Japan, provides travel information, and shares information among people engaging in development cooperation. JICA takes measures such as providing particular training and seminars before they leave Japan, ensuring means of communication in emergency situations in the destination, deploying security advisors*, and installing security equipment in the living quarters of development cooperation personnel. In addition, JICA implements other appropriate and timely security measures, for example, by preparing security manuals tailored to the specific security conditions of the various countries and regions through exchanging information with Japanese Embassies and local offices of international organizations. Furthermore, JICA strives to enhance safety management, and for this purpose it holds joint training for emergency and risk management in cooperation with the United Nations High Commissioner for Refugees (UNHCR) Regional Centre for Emergency Preparedness (eCentre) as well as conducting other initiatives. In terms of grant aid, JICA provides information for consultants and construction contractors, while also improving the system for communication during emergencies. As for loan aid, efforts are being made to ensure the safety of people related to Japanese corporations that take on projects by providing information to these companies.
- *Pending projects/incomplete projects
- “Projects that have not begun after five years” are projects for which the loan agreement has not been signed or loan disbursement has not begun after five years have elapsed following the decision to implement the project. “Projects that have not been completed after ten years” are projects for which loan disbursements have not been completed after ten years have elapsed following the decision to implement the project.
- *Guidelines for Environmental and Social Considerations
- “Environmental and social considerations” refers to an attitude towards considering the adverse impacts that a project could have on environmental and social aspects, such as impacts on air, water, and soil, impacts on nature including ecosystem, flora, and fauna, as well as the involuntary resettlement of people. The Guidelines for Environmental and Social Considerations are guidelines for JICA to conduct necessary studies and avoid or minimize adverse impacts in ODA projects involving JICA when the aforementioned adverse impacts are anticipated in these projects. The Guideline is also for JICA to support and ensure that ODA recipient countries can undertake appropriate environmental and social considerations in order to prevent the occurrence of unacceptable adverse impacts on these countries.
http://www.jica.go.jp/english/our_work/social_environmental/guideline/ - *Security advisor
- In order to strengthen safety measures in the field, JICA employs people on a commission basis who are well versed in the security and safety measures of the country concerned to serve as security management advisors, through which JICA collects and transmits daily security information. This system enables JICA to take around-the-clock responses to a wide range of tasks from housing security to traffic accidents.