Section 5. Contributions to Solving the North-South Problem
In view of the fact that many disputes in the world today stem from poverty, efforts to eliminate hunger and poverty from contemporary society contribute to the realization of peace, and this is a field of international cooperation in which Japan, whose national policy is to be a strictly peace-loving country, should make the greatest efforts. Developing countries with their fragile political and economic foundations are in a position that is extremely susceptible to changes in the external world. Although the international monetary problem, which has caused world turmoil over the past few years, is expected to recede for the time being as a result of the multilateral currency realignment at the end of 1971, it is believed that the aftermath and effects of the commotion have been felt with particular severity by the developing countries with their fragile economic foundations. Thus, at a time when the efforts of the developing countries toward their objective of achieving economic self-reliance are being faced with difficulties, the world's expectations toward and interest in Japan's role have been rising, and Japan should substantially increase and improve its economic cooperation and undertake a greater degree of international cooperation with the aim of realizing a better world. Such international cooperation will also help secure Japan's long-term national interests because its growth and prosperity is possible only by sharing with other countries the fruits of international cooperation through harmonious and orderly international exchange.
Japan has endeavored over the years to increase its economic cooperation, and its total volume of economic aid in fiscal 1970 ranked second only to the United States, closely approaching the international target of one per cent of the GNP. Based on this achievement, Japan hereafter must, of course, try to increase its aid quantitatively and also increase the amount of official development assistance, the only type said truly deserving to be called aid, and improve the terms and conditions of official development assistance by increasing grants and easing the terms of loans. Japan also needs to increase more than ever its economic cooperation with the countries of the Near and Middle East, Africa and Central and South America as its economic cooperation expands still further.
It is also necessary for Japan to correct its trade imbalances with the developing countries. Under the agreement reached at the second UNCTAD, Japan has granted preferential tariffs to the developing countries from August 1, 1971. It is Japan's policy to continue to improve tariffs qualitatively and also take various positive measures that will contribute to the expansion of the trade of the developing countries.