2006 marked the start of Japan's revamped system for the planning and implementation of international cooperation (Official Development Assistance [ODA] and cooperation through international organizations). This change was made so that Japan could utilize its ODA more strategically and effectively. Taking up the recommendations included in the final report of the Study Group on Overseas Economic Cooperation, consulted by the Chief Cabinet Secretary, the government established in April the Overseas Economic Cooperation Council, made up of the Prime Minister and a small number of Cabinet members to deliberate flexibly and substantially important matters on Japan's overseas economic cooperation. Then, under the basic strategy deliberated by this Council, the Ministry of Foreign Affairs, which continues to play the core role in concrete policy formulation, policy planning and coordination of ODA, created the International Cooperation Planning Headquarters, which deals with international cooperation and answers directly to the Foreign Minister, and also created in August the International Cooperation Bureau by merging the Economic Cooperation Bureau with the divisions of the Global Issues Department that deal with multilateral development and cooperation through international organizations. Through this change, the Ministry of Foreign Affairs has created a system by which it can achieve organized coordination between its bilateral assistance and its assistance through international organizations and engage in the policy formulation, policy planning, and coordination of international cooperation that is more closely in tune with diplomatic policy. As for implementing agencies, the system of having a different implementation system for each type of assistance-specifically, yen loans handled by the Japan Bank for International Cooperation, technical cooperation handled by the Japan International Cooperation Agency (JICA), and grant aid handled by the Ministry of Foreign Affairs-has been revised, and under the new system, it will be fundamentally JICA that has responsibility for these aid instruments in an integrated way. In November, the Revised Japan International Cooperation Agency (JICA) Law was passed, and preparatory work is underway for the reorganization scheduled in October of 2008.

   Under this new system, it is necessary to promote international cooperation more actively so that Japan is highly appreciated and respected by international society and Japan's presence and influence in international society expand. Important philosophical underpinnings in such efforts are the principles outlined in the ODA Charter, namely freedom, democracy, fundamental human rights, and the realization of a market economy, as well as the perspective of “human security,” which seeks the development of individuals, societies, and nations by placing emphasis on each individual and realizing the abundant potential that exists in every person through the protection of, and the empowerment of, individuals.

   In keeping with these philosophical underpinnings, the Government of Japan undertakes international cooperation mainly with two objectives. The first of these is contributing to international peace and stability and discharging Japan's responsibilities as a member of international society, by (i) working for development of developing countries by reducing poverty through economic growth, and (ii) working to resolve global issues such as environmental issues, infectious diseases, and the fight against terrorism. The fact that international cooperation has become a major topic at various international meetings, including the G8 Summit, shows that the importance of this objective will grow even more into the future. The second objective is the securing of Japan's national interests within a globalizing world by responding accurately to a new international environment characterized by the rise of such countries as China and India, and also by planning and implementing international cooperation that is more closely in concordance with diplomatic policy. Japan regards this as the new role of ODA as well. As the economy develops in Asia in particular, the market expands and mutual interdependency among countries deepens still further. As this occurs, through its ODA, Japan enhances infrastructure for production and distribution, builds institutions for protecting intellectual property rights, and facilitates economic partnerships, thereby further developing private economic activity, including Japan's. In addition, it is important for Japan's economic growth to secure a stable supply of energy and mineral resources and to promote cooperation in the fields of energy conservation and alternative energies.

   In a speech delivered in November, Foreign Minister Aso proposed that the newly-emerging democracies around the outer rim of Eurasia be connected to form an “Arc of Freedom and Prosperity.” Japan intends to undertake international cooperation including ODA in a strategic and effective manner in order to realize that goal.