IN PREPARING THE MANIFESTO
We are a group of professionals who gathered voluntarily in a personal capacity, sharing a
sense of crisis in the current state of Japan's Official Development Assistance (ODA).
Brought together by our deep concern, we met almost spontaneously and intensively
discussed how to renovate Japan's ODA in the immediate future. We are a multistakeholder group of professionals from diverse backgrounds, including politics, media,
business, NGOs, academia, government, and aid implementing agencies; we all have longpracticed or observed Japanese ODA in the field or as citizens. We have frankly discussed
what is wrong with the Japanese ODA, what should be improved, and what actions should
be taken with a common awareness of the issue.
The group met twelve times between July 2006 and October 2007, and on the basis of the
discussions, we formulated a set of specific policy proposals (this Manifesto). We now wish topresent this Manifesto to many citizens interested in ODA, as well as related parties in thelegislative and executive branches of the Government, and act to renovate Japan's ODA.
This Manifesto summarizes the majority of opinions (the most commonly expressed
opinions) of the participants on the issues raised by representatives of aid stakeholders in
the meetings. A total of more than 120 members (17 from the political circle, 11 from themedia, 5 from the business circle, 13 from NGOs, 14 academics, 28 from government
ministries, and 37 from implementing agencies) have taken part in the discussions. The
participants actively presented their views irrespective of their affiliated organizations, which
included the Ministry of Foreign Affairs; the Ministry of Economy, Trade and Industry; theMinistry of Finance; the Cabinet Secretariat; the Japan International Cooperation Agency(JICA); the Japan Bank for International Cooperation (JBIC); and international organizations.
The views of the participants have been consolidated by a manifesto compilation team (seepage 28-29 for the list of aid stakeholder representatives who raised issues and/or
contributed to manifesto compilation). Nevertheless, we would like to note that all theopinions expressed by the participants were purely personal and that they do not represent
the official views of their affiliated organizations.
The process of the discussions has been publicized periodically in Japanese on the group's
website (http://www.grips.ac.jp/forum/oda_salon/), as well as in the mailing list of"devforum" (distributed by the Washington DC Development Forum, with the membershipof about 900 professionals in Japan, developing countries, and international organizations).
The comments and suggestions raised during this process have been included whereappropriate. Moreover, discussion meetings were held with NGO members who have been
involved in the formulation of a citizens' manifesto.

In the following, we present 30 specific proposals for renovating Japan's ODA.

1

OVERVIEW OF THE "30 PROPOSALS"

2ODA Manifesto

By the Group for Renovating Japanese ODA

3

CURRENT JAPANESE ODA
Three-tier structure for policy formulation and implementation

4

ODA Manifesto

NEW JAPANESE ODA
Four-tier international cooperation with multi-stakeholder participation

By the Group for Renovating Japanese ODA

5FOREWORD

Japan’s ODA is currently standing on the "edge of a cliff."
In sharp contrast to the massive increase in ODA by major donor countries, such as the US
and European countries, following the September 11 terrorist attacks in 2001, Japanese
ODA has suffered from drastic cuts. Consequently, Japan, which was the world’s largest
ODA donor in the 1990s, ceded its top position to the US in 2001 and dropped to third,
losing second position to the UK in 2006. Moreover, Japan is likely to soon fall behind
Germany and France if no measures are taken to increase the ODA budget, making it
difficult to keep the international commitment that Japan made at the 2005 G8 Gleneagles
Summit held in the UK. Moreover, Japan’s international presence is rapidly fading, as China
and other emerging donors are enhancing their diplomatic efforts to secure energy andnatural resources all over the world, including in Africa.

Domestically, as Japan’s fiscal situation has worsened, the ODA budget has decreased byalmost 40% over the past decade, which stands out compared to the 20% decrease inpublic works expenditure. These days, many people associate international contributions
with the Self-Defense Forces rather than ODA. The mass media has lost interest in the issue
and ODA is rarely the focus of domestic political debate.

Under these circumstances, the unexpected decision was taken to fundamentally review the
ODA implementation system. This decision was prompted by the restructuring of publicfinancial institutions. The Overseas Economic Cooperation Council (OECC), comprising fiveministers including the Prime Minister, has been set up to enhance the strategic planningcapabilities of the Government. In addition, the merger of the ODA loan operations of theJapan Bank for International Cooperation (JBIC; formerly the Overseas Economic

6

ODA Manifesto

Cooperation Fund [OECF]) and the Japan International Cooperation Agency (JICA) is
scheduled for 2008. This year, Japan will also host the fourth Tokyo International
Conference on African Development (TICAD IV) and the G8 Summit held at Toya Lake,
where the development of Africa, poverty reduction in developing countries, and issues
concerning environmental and climate changes will be discussed. Thus, the year 2008
represents a golden opportunity to renovate Japan’s ODA and demonstrate its newcommitment to enhance aid effectiveness, both domestically and internationally.

The "Review Committee on Overseas Economic Cooperation" (an advisory body to thenChief Cabinet Secretary Abe) submitted its final report in 2006. However, the committee did
not discuss the basic strategies and direction of ODA or review thoroughly the
implementation system and management methods, partly because the discussion was
focused on how to deal with public financial institutions. As 2008 is a pivotal "year for
development" for Japan, it is increasingly necessary to stimulate discussions on ODA withthe participation of various segments of Japanese society.

We, as a voluntary multi-stakeholder group, wish to take this opportunity to present our
proposals, based on discussions held since July 2006, and take action to realize them as theframework for Japan’s ODA is being renewed. Japan was the first non-Western nation to
succeed in catching up with the developed countries. As a donor country, Japan worked
closely with other East Asian countries through the self-help efforts that enabled them tograduate from aid. We believe that Japan can make unique contributions to international
development, based on its own aid and development experiences in East Asia. The resultsof these contributions should be beneficial not only for today’s developing countries but
also for Japan itself.

By the Group for Renovating Japanese ODA

7Proposal 1

The Diet shall discuss the basic strategies and the ODA budget
and set up a special committee (in both chambers of the Diet) tothis end.

Proposal 2

The Overseas Economic Cooperation Council (set up in the Cabinet
Secretariat and charged with ODA strategy) shall establish an"International Cooperation Strategy Committee," with members fromthe public and private sectors, as its advisory body.

Proposal 3

The Overseas Economic Cooperation Council shall develop aframework of country/region-specific assistance strategies, strategies
for priority issues and multilateral assistance strategies, etc. based
thoroughly on "selection and concentration," and guide the Ministryof Foreign Affairs in drawing up the required policies.

Is ODA a means to implement a policy or the policy itself? There tend to be conflicts andconfusions concerning the two when the vision and strategies of ODA are discussed.
Moreover, the above discussion frequently sees the dichotomy between "national interest"and "humanitarianism" in a narrower sense and treats the two exclusively, which further
complicates efforts to foster a national consensus. In addition, the present ODA is criticizedas lacking a sharp focus and prioritization in terms of selecting partner countries andsectors.
We consider it necessary to clarify and affirm the dual roles of ODA—one for contributing
to a "national strategy" and the other for serving as an "assistance strategy." The former
responds to the question, "For what do we conduct ODA?" and the latter to "How do we
conduct ODA?" In other words, in the case of the former, ODA is viewed as part of Japan’s
foreign policy (UN peacekeeping operations, export promotion, economic partnerships,
cultural exchanges, etc.), while in the case of the latter, ODA is viewed as a strategy forproviding development assistance to satisfy the needs of developing countries.
If viewed as a national strategy, ODA should serve as infrastructure for promoting foreign

8

ODA Manifesto

diplomacy. In this context, ODA has dual purposes, namely to seek the "national interest"
in protecting the lives of Japanese citizens (resources, energy, food, security,
trade/investment, UN voting rights, etc.) and to seek the "global interest," which involves
realizing the spirit of the preamble to the Constitution of Japan (a world free of war,disaster, poverty, and disease). We should not choose one or the other of the above two
purposes; ODA policies should be determined based on a combination of national andglobal interests. We believe that prioritization in partner countries/regions andsectors/issues, and moreover the volume of assistance (including the proportion ofmultilateral and bilateral assistance), should be determined through the policy-making
process. For example, the ODA to Country A in a bilateral assistance program should bedetermined by taking account of the bilateral relationship between Japan and Country A(national interest) and the degree of poverty in Country A (global interest). As for
multilateral assistance, it is important to determine the aid allocation after reviewing thecauses to which Japan wishes to contribute through the international system, including
efforts to seek the "global interest," and how to work with international organizations inorder to realize the above.
If viewed as an "assistance strategy," ODA should definitely contribute to the developmentof developing countries, and we consider it necessary to combine support for "growthpromotion" and "poverty reduction." Furthermore, it is necessary to decide the approaches
and priority sectors/issues, including environmental conservation and peace building,according to the needs of partner countries.
With this in mind, how can we establish a system that clearly defines the vision and thedual roles of ODA as a "national strategy" and an "assistance strategy"? We suggest that theOverseas Economic Cooperation Council (OECC), charged with strategic planning,
initially develop the basic strategies and that the Diet, the highest body of state power that
represents the will of the Japanese people, discuss them. In order for the OECC to function
fully, an advisory council must be set up, consisting of members from the public andprivate sectors, with the responsibility for collecting the opinions of experts from various
segments of Japanese society and providing advice to the OECC. It is also necessary to set
up a special committee in the Diet so as to increase political involvement in ODA policymaking.

By the Group for Renovating Japanese ODA

9Proposal 4

The Ministry of Foreign Affairs shall clearly define the role of thecountry-based ODA Task Forces to accelerate the field-level
decision making and strengthen their functions with multistakeholder participation.

Proposal 5

The new JICA shall serve as the secretariat of the country-based
ODA Task Forces and lead their activities.

As far as ODA is concerned, it should contribute to the "national strategy" by satisfying thedevelopment needs of developing countries and not by seeking solely national interest at
the expense of the developmental purpose. In that sense, it is critically important to build asystem to properly identify the needs of developing countries and provide timely andeffective assistance. It is for this particular reason that the country-based ODA Task Forces
have been set up, primarily with members of the Embassy of Japan and the implementing
agencies. In reality, however, the ODA Task Forces do not always function fully. The fieldlevel implementation system and human resources are not sufficient because they sufferfrom shortages of qualified professionals who perform aid work as a career. For this reason,
the activities of the ODA Task Forces tend to be influenced by personal factors. In
addition, the roles of the Government and the implementing agencies are not clearly
defined, and the delegation of authority from Tokyo to the field offices has been limited,with the latter serving merely as a liaison of the former.
It is also important to examine how partner countries evaluate Japan’s ODA. In fact, theyoften report a lack of flexibility, slow response, and excessive amounts of required
paperwork. There is an urgent need for Japan to put the interests of the government andthe citizens of the developing country first in implementing assistance.
We consider it necessary to establish a system that facilitates collecting genuine views andsufficient information from partner countries, and making good use of them. It is also
necessary to strengthen the field-level functions so as to facilitate dialogues with various
stakeholders and enhance cooperation and collaboration with other partners. Achieving the

10

ODA Manifesto

above critically depends on improving the system for supporting the Japanese aid
professionals working in the field and delegating the decision-making authority to them on
daily operations. In order for the ODA Task Forces to function as a multi-stakeholder
group, it is necessary to place the right person in the right place, irrespective of his/her
affiliation (e.g., the embassy or implementing agencies), build an open network with theprivate sector, and establish a system capable of properly identifying the needs of thepartner countries and making timely decisions at the field level. Under such a system, theODA Task Forces should actively participate in the formulation of country assistanceprograms to be led by the new JICA and share a wide variety of information and expertiseamong them.

By the Group for Renovating Japanese ODA

11Proposal 6

The Overseas Economic Cooperation Council shall clearly define
the basic strategies for multilateral assistance, and theGovernment and the new JICA shall actively participate in theformulation process of international development strategies,
currently led by international organizations.

Proposal 7

Create a globally open "International Cooperation Strategy Think
Tank" to formulate policy proposals and conduct research anddissemination activities to contribute to both national andassistance strategies.

Proposal 8

The Government shall establish "aid for graduation" as a basic
message of Japan’s ODA and disseminate this message within
Japan and abroad. This refers to the support to self-help efforts
which Japan has been practicing in Asia.

Japan’s assistance in East Asia has played a catalytic role in promoting trade and investment
activities in the private sector and contributed to realizing the "East Asian miracle." By
using various schemes of assistance (loan aid, grant aid, technical cooperation) and taking
field-oriented, bottom-up approaches, Japan has supported the development of
infrastructure and human resources, promoted public-private collaboration in East Asian
countries, and helped their eventual graduation from aid. The above successful experience,
however, has not necessarily been organized and systematized into a form that can beeasily used by developing countries and the international community. Besides, Japan has
missed a number of opportunities to effectively disseminate the information on its own
experiences to the international community, due to its passive attitudes toward leading andinfluencing global development trends. Japan also lacks a clearly defined strategy for
utilizing multilateral assistance through its financial contributions to internationalorganizations. Resultantly, it has had very limited involvement in the formulation processof international development strategies of international organizations.
Japan should present the vision it has fostered through its aid and development

12

ODA Manifesto

experiences as a universal value to the international community and declare, both
domestically and internationally, that Japan will help realize the above vision in developing
countries. Moreover, for Japan to effectively assist developing countries by using its
comparative advantages, it is essential to systematize and theorize the accumulated
experiences and expertise, and to widely disseminate and mainstream them into global
development trends. There is an urgent need not only to improve the research capability of
the new JICA, but also to create an "International Cooperation Strategy Think Tank"
comprising professionals representing various stakeholders. It is necessary to build a
network that connects developing countries, Japan, and the centers of the international aid
community, while increasing Japan’s involvement in shaping global development trends
and the policies of international organizations. The "International Cooperation Strategy
Think Tank" should also assume a role in stimulating domestic discussions on ODA as anational strategy. As such, it should be an organization independent from the Government,
like the Overseas Development Institute (ODI) in the UK and the Center for Global
Development (CGD) in the US.
We believe that the "Japanese approach to assistance" does not conflict with the "needs ofdeveloping countries" and "global best practices." Rather, we should work to ensure thatJapan’s "home-grown knowledge" and the above needs and practices can be mutually
reinforcing.
Furthermore, we would like to establish "aid for graduation" as a basic message of Japan’s
ODA. This phrase is the contemporary definition of the support for self-help efforts aimed
at self-reliance that Japan has been practicing in Asia. The phrase "aid for graduation" isused to reconfirm the basic stance that the aid should be given in order to eventuallyterminate it. At the same time, the phrase implies an assistance strategy involving the
support to growth promotion, accompanied by supplementary measures to address issues
arising in the growth process (environmental issues, widening disparities, etc.). It is
expected that the new "International Cooperation Strategy Think Tank" will assume
responsibility for theorizing and systematizing a "Japanese approach to assistance" anddisseminating it globally through open and intellectual dialogues.

By the Group for Renovating Japanese ODA

13Proposal 9

The Government shall renovate the public relations activities for
ODA. Use the phrase "international cooperation" instead of theacronym "ODA" and feature Japanese professionals (frombusinesses, universities, NGOs, etc.) actively engaged in the field
activities with the people of developing countries instead offeaturing the Government or implementing agencies.

Proposal 10

The Government and the new JICA shall collaborate with civilsociety to disseminate information on international cooperation.

Proposal 11

Under the guidance of the Overseas Economic Cooperation
Council, the Government and the new JICA shall disseminate
messages tailored to all segments of Japanese society via
appropriate media.

We need to face the reality that without the understanding and participation of citizens(taxpayers), ODA cannot be sustained. The recent sharp decrease in the ODA budget isalso not completely unrelated to the citizens’ awareness. The results of domestic public
opinion surveys show that Japan’s ODA continues to suffer from negative images such as"opaqueness," "inefficiency," and "the recipient countries not being thankful," and many
Japanese wonder "why do we offer assistance under the current severe domestic economic
conditions?" This is partly because the public is not sufficiently familiar with the true stateof Japanese ODA and partly because the Government has not made enough effort to appeal
to them. The size of the budget allocated to the Government’s public relations activities for
ODA has been very small, and the Government has lacked a public relations strategy
including target groups and messages to be conveyed. On the other hand, the mass media
continues to send negative and fragmented reports to the public.
It is generally believed that "ODA does not win votes." However, this view contributes to a
vicious circle in which citizens’ limited interest leads to a lack of political initiative and an
absence of strategic vision for ODA.

14

ODA ManifestoWe should do away with the conventional "public relations activities for ODA." Theacronym "ODA" is merely an accounting or statistical term and is not suitable for appealing
to the public for the challenges of development and poverty faced by developing countries.
Moreover, we consider it necessary to conduct public relations activities that give greaterattention to Japanese citizens (businesses, universities, NGOs, etc.) and the people ofdeveloping countries than to the Ministry of Foreign Affairs and the implementing agencies
themselves. It is also necessary to access local media and increase the messages to be sentout from the fields of developing countries.
Recently, civil society actors (including businesses, NGOs, and celebrities) have madeenhanced efforts to send out positive messages on international cooperation. It is also
important for the Government and the new JICA to work collaboratively with civil society
in conveying these messages.
Furthermore, it is necessary to carefully craft public relations strategies for international
cooperation in order to convert from defensive to offensive activities. This means creating
messages that clearly explain "what ODA is for" and disseminating them throughappropriate media to suit the interests of various segments of Japanese society. In doing so,
we should select topics familiar to the targeted groups. For those who highly value the"national interest," it is important to explain how the daily life of the Japanese is affected by
the situations in developing countries and what changes development and environmental
cooperation might bring. For those who value the "global interest," it is important to
explain how Japan can contribute and has contributed to alleviating poverty in developing
countries. To appeal to Japanese citizens in general, we should explain, in an easy-tounderstand manner, how the citizens of developing countries and those of Japan areconnected through international cooperation. To this end, we need to devise ways toinclude "human factors" and "story-like plots," like those found in the documentary TV
show Project X.

By the Group for Renovating Japanese ODA

15

Proposal 12

The Ministry of Foreign Affairs, guided by the strategies set up by
the Overseas Economic Cooperation Council, shall develop
country/region-specific assistance policies and policies for priority
issues, and decide country-specific aid allocations.

Proposal 13

The new JICA, guided by the above policies and country-specificaid allocations, shall execute all the activities—from thedevelopment of the cooperation programs to theirimplementation—in a holistic manner.

Proposal 14

The Government and the new JICA shall restructure the ODA
activities from the scheme-based budget to an issue-specificbudget.

It is expected that by October 2008, a three-tier structure of the ODA policy
implementation system will be established, comprising the Overseas Economic
Cooperation Council (OECC), the Ministry of Foreign Affairs, and the new JICA. However,their respective roles have not been clearly defined to date. While the OECC assumes
strategic planning for ODA where basic policies and strategies are discussed, its current
membership is limited to five cabinet ministers, and the agenda setting and the details of
the discussion remain undisclosed, limiting its ability to transmit messages widely to the
public. Moreover, although the establishment of the new JICA is expected to diminish thecurrent problems caused by fragmented aid administration, problems continue to exist inthat the work of the Ministry of Foreign Affairs often overlaps with that of the new JICA.
Besides, the activities of the private sector (businesses, universities, NGOs, etc.) working
on the frontline of aid operations are not being made visible, which consequently preventsODA from developing into "international cooperation" inclusive of the private sector.
We propose that the new implementation system should not function as a "three-tier"system centering on ODA. The system must be restructured as a "four-tier" structure
inclusive of businesses, universities, NGOs, local governments, and citizens, based on theidea of international cooperation. While the ODA reform to date has been concerned

16

ODA Manifesto

mainly with the reform of the second and third tiers, it is critical to work with the first andfourth tiers in order to enhance the strategic planning capability and promote theparticipation of citizens.
The main role of the OECC should be to determine the strategic framework of ODA,
including the size of the overall budget, priority countries and regions, priority issues, andthe role of multilateral assistance, from the viewpoint of national strategy. The main rolesof the Ministry of Foreign Affairs should be to develop assistance policies for specificcountries and for priority issues and to coordinate and decide the country-specific aid
allocations (ceilings for the totals of loan aid, grant aid, and technical cooperation) as wellas bilateral and multilateral assistance policies. Moreover, the new JICA, as acomprehensive development aid agency, should contribute its knowledge to theformulation of assistance strategies and, guided by the above policies and the budget
ceiling, execute the ODA activities—ranging from the development to the implementationof the cooperation programs—in a holistic manner.

By the Group for Renovating Japanese ODA

17

Proposal 15

The Government and the new JICA shall consolidate thefragmented aid schemes and simplify cumbersome procedures.

Proposal 16

The Government shall make international agreements on ODA
projects more comprehensive by aggregating individual projects.

Proposal 17

The Government shall increase flexibility of the cooperation
period, eliminate problems caused by the single-year budgetingsystem, and the new JICA shall drastically revise its procurement
procedures in order to achieve results-oriented, speedy assistance.

Japanese ODA activities have been organized by various schemes (categorized into loanaid, grant aid, and technical cooperation) under a vertically divided, fragmented
administrative system (with the involvement of 13 ministries and agencies). The complex
system and the cumbersome procedures exert a considerable burden upon developing
countries and the Japanese professionals concerned. For example, grant aid cooperation
has been divided into several sub-schemes, including general project grant aid, non-project
grant aid, fisheries grant aid, grassroots grant aid, human security grant aid, and Japanese
NGO support grant aid. The rigidity in budget and operational procedures hinders theflexible and effective implementation of assistance. Moreover, many of the procurement
procedures are modeled after public works projects in Japan and required to adhere to thesingle-year budgeting system. These make ODA projects in developing countries highly
risky and less appealing to consultants and private businesses because the work conditions
in developing countries are more difficult than in Japan. Moreover, because of lengthy
internal review processes, excessive time is required before project implementation, withthe result that it takes as long as seven years between the planning and implementation of
an ODA loan project.
If the new JICA is to manage the three aid schemes—namely, loan aid, grant aid, andtechnical cooperation—in a holistic manner, it must eliminate the boundaries among theseschemes. The three schemes should be flexibly combined to respond to the problems of18

ODA Manifesto

developing countries, and the schemes should not be defended as rightfully existing "justbecause they exist." Both the budget system and procurement procedures must be mademore flexible, and fragmented sub-schemes must be consolidated and simplified.
Moreover, there is a need to increase the efficiency of the signing of an Exchange of Note(an international agreement on ODA projects), by making these agreements themselvesmore comprehensive, shifting away from the current approach of signing project-specificagreements.
Furthermore, it is necessary to drastically reform budget systems and various proceduresthat currently hinder the smooth and speedy implementation of ODA. In particular, theproblems caused by the single-year budgeting system should be addressed in theimmediate future.

By the Group for Renovating Japanese ODA

19

Proposal 18

Increase the ODA budget to a level commensurate with that ofnational income and keep international commitments.

Proposal 19

Increase the general account ODA budget for grants and examine
measures to secure new financial resources (e.g., allocating 1
percent of the international aviation tax or the consumption tax
for ODA).

Proposal 20

Earmark sums of the ODA budget specifically for environmental
conservation and for African development.

Over the past decade, the Japanese ODA budget has continuously declined. If this trend
continues, Japan will soon fall to fifth place among the advanced countries in terms of
ODA volume (net disbursements). Moreover, the ODA budget for fiscal 2007 was 38%
lower than that for fiscal 1997. During the same period, 59 of the 142 recipient countries
experienced the reduction of grant aid by more than 50%. The level of contributions tointernational organizations also decreased significantly, with Japan falling from first to sixth
place among the contributors to the United Nations Development Programme (UNDP),
first to fifth for the United Nations Population Fund (UNFPA), and second to fourth for theUnited Nations High Commissioner for Refugees (UNHCR).
If the above trend persists, there is a possibility that Japan may not achieve the US$10
billion increase in ODA and the doubling of aid to Africa committed by the Japanese
Government at the 2005 G8 Summit. Japan must keep its international commitments at all
costs as a responsible member of the international community.
We believe Japan should not decrease the ODA budget any further, considering Japan’s
position as the world’s second largest economic power, a country with scarce natural
resources, a trading nation, a country enjoying material abundance that depends on
developing countries, and a country vulnerable to the impacts of global warming and otherenvironmental issues. There is no doubt that the key in the first place is to strive

20

ODA Manifesto

continuously to improve the quality and further enhance the strategic orientation of ODA,
learning from the hard lessons of past failures and inefficient implementation of projects,
and paying due attention to accountability to citizens and aid effectiveness. However, at thesame time, it is essential to secure the absolute amount of ODA in order to firmly maintainJapan’s presence in the international community. Realizing an ODA level commensuratewith the level of Japan’s national income is vitally important, not only for developing
countries but also for Japan. To this end, it is necessary to stop further cuts in the generalaccount ODA budget and immediately examine the possibility of introducing new funding
mechanisms.
Moreover, while some of the East Asian countries are graduating from ODA loans, thedemand for highly concessional funds is likely to increase in order to support
environmental conservation and African development. Therefore, it is necessary toestablish a system for increasing funding for the Japanese ODA budget, especially in grants,from a medium- to long-term perspective. In 2008, Japan will host the G8 Summit and the
Fourth Tokyo International Conference for African Development (TICAD IV), where theinternational community will discuss its response to climate change, environmental issues,and African development. We believe that Japan’s determination to increase the ODA
budget in 2008 and its active engagement in these events will give a strong message to theinternational community.

By the Group for Renovating Japanese ODA

21Proposal 21

Establish a "Human Resources Development Center" forinternational cooperation. Register human resources, establish a
network with national agencies and international organizations,and work collaboratively with educational organizations andothers.

Proposal 22

Expand the employment opportunities in workplaces such as
international organizations, the Ministry of Foreign Affairs, the
new JICA, universities, businesses, and NGOs, to establish career
paths for international cooperation. At the same time, increase themobility of human resources across organizations.

One of the major weaknesses of Japan’s international cooperation is the scarcity ofprofessional human resources, despite the fact that there are limited job opportunities for
those who have gained certain experiences in international cooperation. Not only is thenumber of Japanese people working in international organizations limited, but there is aserious shortage of human resources with professional expertise in international
cooperation. Those who have working experience in the fields are not properly evaluatedand utilized, and such human resources have not been sufficiently accumulated. Even if ahuman resources system is developed, qualified personnel will move elsewhere if there are
no job opportunities where they can effectively utilize their expertise. In other words,
career paths for international cooperation are yet to be established, and the budget andinstitutional arrangements for developing professional human resources, from a long-term
perspective, are insufficient. As a result, Japan continues to lose international
competitiveness and suffer from a low profile in ODA activities.
To enhance the quantity and quality of human resources for international cooperation, it isnecessary to link the two systems of employment and human resource development so thatinterested individuals can develop their career according to their capabilities. In particular,
accumulating various experiences, such as field operations, policy-related work, andsurveys and research, will not only help develop career paths but will also eventually

22

ODA Manifesto

contribute to creating a virtuous circle connecting policies and implementation.
Furthermore, it is important to invite those professionals who have accumulated policy andoperational experiences in international organizations to work for Japan’s development
assistance, and at the same time, to increase the number of Japanese professionals active ininternational organizations in order to contribute to the formulation of their assistancestrategies. There is a need to establish a pool of qualified human resources withinternational competitiveness, who can connect the activities within Japan and abroad, as
well as the field activities, policies and research. More specifically, there is an urgent needto establish a "Human Resources Development Center," which—with linkages withinternational organizations and aid agencies abroad—will collaborate with domestic NGOs,
local governments, universities, businesses, ministries and agencies, the new JICA, thepolice, and the Self-Defense Forces. Furthermore, it is necessary to expand employment
opportunities in the area of international cooperation and increase the mobility of humanresources across organizations, by significantly promoting recruitment and personnel
exchanges (including interns) among NGOs, research institutes, private businesses, theMinistry of Foreign Affairs, diplomatic establishments abroad, and the new JICA.

By the Group for Renovating Japanese ODA

23

Proposal 23

The Overseas Economic Cooperation Council shall include
representatives of private businesses and NGOs in its advisory
body, the "International Cooperation Strategy Committee."

Proposal 24

Establish a "Multi-stakeholder Forum for ODA Implementation" toenhance the collaboration of the Government, the implementing
agencies, businesses, NGOs, universities, etc. to promoteinternational cooperation.

Proposal 25

The Ministry of Foreign Affairs and the new JICA shall establish an
information-sharing network among the country-based ODA Task
Forces, business, NGOs, researchers, etc.

Proposal 26

The Government and the new JICA shall promote public-private
partnerships (PPPs) and design special facilities to effectively
mobilize funds and know-how from the private sector.

Although the importance of collaboration between ODA and the private sector has beenfrequently emphasized, there remains a tendency to treat the private sector as a"component" of ODA. As a result, a true partnership between them is yet to be established.
The private sector (businesses, NGOs, etc.) has been actively engaged in ODA activities.
However, we must note that their activities tend to suffer from a bad image. One example
is the notion that "the ODA activities pursued by big companies are for profit and are thus
not clean." It is extremely rare that ODA is implemented with multi-stakeholder
participation by making good use of the knowledge and experience of the private sector.
Moreover, the consultant industry is considerably affected by both loss and aging of its
human resources, seriously suffering from the burden caused by the inconsistent ODA
implementation system. This is compounded by the fact that currently, the role of private
businesses in ODA is viewed only in light of contractual relationships, based on the24

ODA Manifestooffering of and bidding for individual ODA projects. They are not viewed as partners forpromoting international cooperation, for example, in the areas of improving the investment
climate or supporting institution building. Conversely, there is a lack of awareness on thepart of the businesses that while offering their expertise to ODA activities, they are also
beneficiaries from the ODA in the medium to long term. As such, businesses have notmade major efforts to approach the Government and the implementing agencies.
The private sector (businesses, NGOs, etc.) has an important role in supportinginternational cooperation. We should firmly bear in mind that such private, non-ODA
cooperation forms the basis of bilateral relationships, on which ODA is based. It isnecessary to expand and diversify the channels of international cooperation, including
private investments and NGOs as well as international exchanges at the level of local
governments. In this sense, the role of ODA must be viewed as creating the enabling
environment for private sector cooperation.
Moreover, it is necessary to establish a system to take advantage of the knowledge of theprivate sector. Such a system should be based on renewed recognition of the role of theprivate sector as a key player in ODA activities. More specifically, it is necessary to include
the fourth tier (the private sector) within the ODA implementation system and createchannels of interaction between the fourth tier and the other tiers. These channels include
the participation of the private sector representatives in the "International Cooperation
Strategy Committee" to advise the Overseas Economic Cooperation Council (at the strategy
level) and also in the "Multi-stakeholder Forum for ODA Implementation" (at theimplementation level).
Furthermore, there is a need to devise measures to provide comprehensive support topromote public-private partnerships (PPPs), especially to assist such countries where
private businesses are active (Asian countries, middle-income countries, etc.) and to tackle
environmental issues (including the Clean Development Mechanism [CDM]). It is also
necessary to establish a system for reducing risks associated with investments in Africa, as
it is very likely that private investment will not arise spontaneously due to the significant
risk factors involved.

By the Group for Renovating Japanese ODA

25

Proposal 27

The Government shall reform the budget and funding systems andexpand the ODA volume for Africa in 2008 and beyond,especially in grants.

Proposal 28

Establish a committee to specialize in supporting Africa within the"Multi-stakeholder Forum for ODA Implementation."

Proposal 29

The Government and the new JICA shall select model countries toembody the "aid for graduation" message and allocate additional
aid to them. Human and financial resources should beconcentrated on the model countries.

Proposal 30

The Government and the new JICA shall design special facilities
for Africa to mitigate risks and promote private sector investment.

There is a consensus in the international community on the importance of supporting thedevelopment of Africa, and many donor countries and organizations have been increasing
their assistance to the continent. In contrast, in Japan there is no clear consensus on thebasic idea about the "reason why we should support Africa," partly because Japan isgeographically far from Africa and its historical, political and economic relations with that
continent are limited. Discussions on Africa among the Japanese citizens are also nearlynonexistent. Although the share of Africa in total Japanese ODA has remained stable atabout 10%, the actual amount (net disbursements) of ODA to Africa has halved in the past
decade. The Japanese Government made a commitment to double its ODA to Africa overthe coming three years at the 2005 G8 Summit, but has not yet presented its vision forassistance in 2008 and beyond, in terms of the budget size and share of Africa in the total
ODA. Furthermore, despite the fact that active aid partnerships are taking place in Africa,
the functions of Japanese field offices in Africa are constrained due to insufficient numbersof professional staff and budget size, as well as limited decision-making authority,
compared to those of other donors. Many of the problems of Japanese ODA are crystallized
in the support to Africa.

26

ODA ManifestoAs a responsible member of the international community, Japan should be actively engaged
in supporting the development of Africa as long as the purpose of ODA is to contribute todevelopment and poverty reduction in developing countries ("global interest"). At the sametime, the Japanese citizens will indirectly benefit in various ways ("national interest") if
Japan is successful in establishing and strengthening a long-term trusting relationship with
African countries by providing assistance to meet their development needs. We consider it
necessary to promote the understanding of Japanese citizens regarding support for Africa
so that they will fully recognize that the "global interest" and the "national interest" areinseparable in this age of globalization.
With this in mind, there is an urgent need to set up a committee to specialize in Africa
within the "Multi-stakeholder Forum for ODA Implementation" to discuss the strategies
and approaches Japan can take to support Africa, building on public-private collaboration.
Moreover, it is desirable to increase the general account ODA budget allocated for Africa,
especially in grants, partly to avoid unnecessarily increasing Africa’s debt burden. Certain
African countries are keenly interested in the development experience of East Asian
countries that have successfully graduated from aid and have started to make self-help
efforts for accelerating growth. We consider it necessary to concentrate human andfinancial resources on these selected African countries and intensify assistance to them so
as to realize in these countries the "aid for graduation" that Japan has successfully practiced
in East Asia. To do so, Japan should make good use of its strengths, namely, attention to
the production sector (such as industry and agriculture), public-private collaboration, andfield-based activities, and sharpen its prioritization in aid to Africa.
At the same time, since the implementation of projects in Africa involves significant risks,
and the private sector does not invest there spontaneously, special facilities must be
designed to mitigate risks and indirectly support private sector development by using ODA(for example, support for corporate social responsibility [CSR], loan and investment
functions by ODA, and partial guarantee function in PPPs).

By the Group for Renovating Japanese ODA

27

[Issue Raisers](Listed by the circles to which they belong in the English alphabetical order with the job
title at the time)<Political>
Abe, Masatoshi

Member of the House of Councillors(Deputy Secretary-General, Liberal Democratic Party)

Inuzuka, Tadashi

Member of the House of Councillors (Democratic Party)

Toyama, Kiyohiko

Vice-Minister (Parliamentary) for Foreign Affairs;
Member of the House of Councillors (New Komeito)<Mass media>
Araki, Mitsuya

President and Chief Editor,
The International Development Journal Co., Ltd.

Imazato, Yoshikazu

Editorial Writer, The Tokyo Shimbun

Wakisaka, Noriyuki

Editorial Writer, The Asahi Shimbun<Business>
Hayashi, Kanji

Manager, International Cooperation Group,
International Economic Affairs Bureau II,
Nippon Keidanren (Japan Business Federation)

Mishina, Ichiro

Member of the Engineering and Consulting Firms Association(Managing Director, Nippon Koei Co., Ltd.)

Miyaji, Masaki

Corporate Advisor, Mitsubishi Corporation

Yoshimura, Takashi

Principal Administrator, International Economic Affairs Bureau II,
Nippon Keidanren (Japan Business Federation)<NGOs>
Nakajima, Masaaki

Policy Officer, Hottokenai Sekai no Mazushisa(Don't let it be - World Poverty)

Takahashi, Kiyotaka

Research and Policy Manager,
Japan International Volunteer Center (JVC)28

ODA Manifesto

<Academics>
Kojima, Masahiko

Professor, National Graduate Institute for Policy Studies;
Visiting Senior Advisor,
Japan International Cooperation Agency (JICA)(Coordinator of the Group for Renovating Japanese ODA)

Kusano, Atsushi

Professor, Faculty of Policy Management, Keio University

Ohno, Izumi

Professor, National Graduate Institute for Policy Studies(Coordinator of the Group for Renovating Japanese ODA )Ohno, Kenichi

Professor, National Graduate Institute for Policy Studies<Other parties concerned>
Okamoto, Takehiro
Tanaka, Tatsuo

Planner, Customer Marketing Division, Hakuhodo Inc.
Executive Director,
Association for the Promotion of International Cooperation (APIC)[Manifesto Compilation Team]
Araki, Mitsuya

President and Chief Editor,
The International Development Journal Co., Ltd.

Asanuma, Shinji

Visiting Professor, School of International and Public Policy,
Hitotsubashi University

Fukui, Ryu

Manager, Tokyo Development Learning Center,
The World Bank

Osaki, Asako

Development Policy Specialist (Hottokenai Sekai no Mazushisa[Don't let it be - World Poverty], UNDP)

Kojima, Masahiko

Professor, National Graduate Institute for Policy Studies;
Visiting Senior Advisor,
Japan International Cooperation Agency (JICA)(Coordinator of the Group for Renovating Japanese ODA)

Ohno, Izumi

Professor, National Graduate Institute for Policy Studies;(Coordinator of the Group for Renovating Japanese ODA)The Discussion Group meetings have been managed by the Secretariat Team (Asuka Suzuki and Masumi
Owa, with Izumi Ohno and Masahiko Kojima) at the National Graduate Institute for Policy Studies.

By the Group for Renovating Japanese ODA

29

30

ODA Manifesto

3. Lead theglobaldevelopment
trends

2. Satisfy theneeds ofdeveloping
countries andstrengthen
the field-level
functions ofODA
implementation

1. Clarify thevision andstrategies

Tasks･Japan has taken passive attitudes･Japan has not effectively
disseminated its aid anddevelopment vision to theinternational community, as a"Japanese approach to assistance"
has not been clearly defined.

･Involvement in the international
development strategies ofinternational organizations islimited, due to a lack of clearly
defined strategy for utilizing
multilateral assistance.

･The field-level implementation
system and human resources are notsufficient. The activities of thecountry-based ODA Task Forces tend
to be influenced by personal factors.

･The current system does notenable the provision of assistancethat satisfies the needs ofdeveloping countries.

･The current ODA strategies
attempt to please everyone, but
leave no one sufficiently satisfied.

･The vision and strategies of ODA
are not clearly defined. It is
impossible to send out effective
messages to citizens and theinternational community.

Problems･It is necessary to build a network that connects developing countries,
Japan, and the centers of the international aid community. An"International Cooperation Strategy Think Tank," independent from theGovernment, should be created in addition to improving the researchcapability of the new JICA.

･Japan should present the vision it has fostered through its aid anddevelopment experiences in East Asia as a universal value to theinternational community. It should systematize and theorize theaccumulated experiences and expertise, and strengthen the ability todisseminate and mainstream them into global development trends.

･There is a need to formulate strategies to increase Japan’s involvement inshaping global development trends and the policies of internationalorganizations. The use of multilateral and bilateral assistance must be clarified.

･The right person should be placed in the right place, irrespective of
his/her affiliation (e.g., the embassy or implementing agencies). The
ODA Task Forces should build an open network with the private sector.

･There is a need to delegate the decision-making authority to Japanese
aid professionals working in the field and to review how the countrybased ODA Task Forces should function.

･There is a need to establish a system capable of properly identifying theneeds of partner countries and making timely decisions at the field level.

･There is a need to establish a system that clearly defines the vision anddual roles of ODA as a "national strategy" and an "assistance strategy."
Political involvement in ODA policy-making is necessary. Specifically, theOverseas Economic Cooperation Council (OECC) should develop thebasic strategies, and the Diet, representing the will of the Japanesepeople, should discuss them.

[ 8 ] The Government and the new JICA shall establish "aid for
graduation" as a basic message of Japan's ODA and disseminate
this message within Japan and abroad. This refers to the support toself-help efforts which Japan has been practicing in Asia.

[ 7 ] Create a globally open "International Cooperation Strategy Think
Tank" to formulate policy proposals and conduct research anddissemination activities to contribute to both national and assistancestrategies.

[ 6 ] The OECC shall clearly define the basic strategies for taking part in
multilateral assistance, and the Government and the new JICA shallactively participate in the formulation process of international
development strategies, currently led by international organizations.

[ 5 ] The new JICA shall serve as the secretariat of the country-based
ODA Task Forces and lead their activities.

[ 4 ] The Ministry of Foreign Affairs shall clearly define the role of thecountry-based ODA Task Forces to accelerate the field-level
decision making and strengthen their functions with multistakeholder participation.

[ 3 ] The OECC shall develop a framework of country/region-specificassistance strategies, strategies for priority issues, multilateralassistance strategies, etc. based thoroughly on "selection andconcentration," and guide the Ministry of Foreign Affairs in drawing
up the required policies.

[ 2 ] The OECC (set up in the Cabinet Secretariat and charged with ODA
strategy) shall establish an "International Cooperation Strategy
Committee," with members from the public and private sectors, as
its advisory body.

･ODA,if viewed as an"assistance strategy",should contribute to the developmentof developing countries. Support for"growth promotion"and "poverty reduction"
should be combined,according to the needs of partner countries.

30 proposals[ 1 ] The Diet shall discuss the basic strategies and the ODA budget and
set up a special committee (in both chambers of the Diet) to thisend.

Basic direction– 30 Proposals for Enhanced International Cooperation –･ODA, if viewed as a "national strategy", should serve dual purposes, i.e.,"national interest" and "global interest." ODA policies should bedetermined based on a combination of the two.

MANIFESTO AT A GLANCE:By the Group for Renovating Japanese ODA

31

5. Restructureandstrengthen
the system for
ODA policy
implementation

4. Promote theunderstandingandparticipationof citizens･The work of the Ministry of Foreign
Affairs often overlaps with that of
JICA, causing inefficiency.

･The details of discussions held by
the OECC remain undisclosed.

･Although a "three-tier structure"
has been established, the roles of
the OECC, the Ministry of Foreign
Affairs, and JICA are not clearly
defined, and there is insufficientdelegation of authority.

･The size of the budget allocated to
the Government’s public relations
activities for ODA is small, and theGovernment lacks a public relations
strategy.

･ODA suffers from negative public
images such as "opaqueness,""inefficiency," and "the recipient
countries not being thankful."･The Government’s appeal tocitizens (taxpayers) on ODA is
insufficient.

toward leading and influencing
global development trends.

･There is a need to clearly separate the role of the Government from thatof the implementing agency (new JICA) to eliminate overlaps. Decisions
should be made promptly, at the field level.

･There is a need to clearly define respective roles: The OECC should
determine the size of the overall ODA budget, priority countries, priority
issues, and multilateral assistance strategies from the viewpoint of
national strategy. The Ministry of Foreign Affairs should formulate
assistance policies for specific countries and for priority issues, andcoordinate and decide country-specific aid allocations (ceilings for the
totals of loan aid, grant aid, and technical cooperation) as well as
bilateral and multilateral assistance policies. The new JICA should
develop country- and issue-specific assistance programs and assume
responsibility for developing and implementing the cooperation
programs in a holistic manner.

･The new implementation system should be restructured as a "four-tier"structure—instead of a "three-tier" structure—inclusive of the private
sector (businesses, NGOs, etc.) as key actors of ODA.

･There is a need to devise a system involving citizens, NGOs, business,
politicians, media, etc.

･It is necessary to include in public relations messages more "humanfactors" and "story-like plots."･It is necessary to carefully craft public relations strategies forinternational cooperation, to convert from defensive to offensive
activities. This means creating messages that clearly explain "what ODA
is for" and disseminating them through appropriate media to suit theinterests of various segments of Japanese society.

･There are not enough channels of dialogue between the citizens and theJapanese aid circle. As the development issues and domestic issues are
not adequately connected, it is necessary to link domestic policies with
diplomacy.

･It is necessary to do away with the "public relations activities for ODA"
that mainly feature the Government and the implementing agencies.

･Japan should establish "aid for graduation" as its basic message ofODA, which is the contemporary definition of the support to self-help
efforts aimed at self-reliance. The phrase is used to reconfirm the basic
stance that aid should be given in order to eventually terminate it, andalso implies an assistance strategy involving growth promotion,accompanied by supplementary measures to address issues arising in
the growth process (environmental issues, widening disparities, etc.).

[14] The Government and the new JICA shall restructure the ODA
activities from the scheme-based budget to an issue-based budget.

[13] The new JICA, guided by the above policies and country-specificaid allocations, shall execute all the activities—from thedevelopment of the cooperation program to their implementationof assistance—in a holistic manner.

[12] The Ministry of Foreign Affairs, guided by the strategies set up by
the OECC, shall develop country/region-specific assistance policies
and policies for priority issues, and decide country-specific aid
allocations.

[11] Under the guidance of the OECC, the Government and the new
JICA shall disseminate messages tailored to all segments ofJapanese society via appropriate media.

[10] The Government and the new JICA shall collaborate with civilsociety to disseminate information on international cooperation.

[ 9 ] The Government shall renovate the public relations activities for
ODA. Use the phrase "international cooperation" instead of theacronym "ODA" and mainly feature Japanese professionals (frombusinesses, universities, NGOs, etc.) actively engaged in the field
activities with the people of the developing country instead offeaturing the Government or the implementing agencies.

32

ODA Manifesto･Japan’s ODA budget hascontinuously declined, and there is
the possibility that Japan will fall tofifth place in terms of ODA volume.

7. Increase the
ODA budget
and reform its
fundingmechanisms

8. Developinternational
cooperationrelated career
paths and
improve thehumanresourcesdevelopment
system･The current ODA system andprocedures are complex, requiringconsiderable time before
implementation.

6. Reform andimprove theadministrative
systems andprocedures･The career paths for international･The number of Japanese people
working in internationalorganizations is limited.

･There is a serious shortage ofhuman resources with professional
expertise in international
cooperation. There are limited job
opportunities for those who havegained certain experiences ininternational cooperation.

･There is a possibility that Japan
may not achieve the US$10 billion
increase in ODA and the doublingof aid to Africa committed by theJapanese Government at the 2005
G8 Summit.

Problems

Tasks･There is a need to establish a pool of qualified human resources with･Accumulating various experiences, such as field operations, policy-related
work, and surveys and research, will not only help develop career paths
but will also eventually contribute to creating a virtuous circle connecting
policies and implementation. It is also important to invite those
professionals who have accumulated policy and operational experiences ininternational organizations to work for Japan’s development assistanceand to increase the number of Japanese active in internationalorganizations to contribute to the formulation of their assistance strategies.

･There is a need to establish a system so that interested individuals candevelop their career according to their capabilities.

･It is necessary to establish a system for increasing funding for theJapanese ODA budget, especially in grants (grant aid and technicalcooperation), from a medium- to long-term perspective, as the demandfor highly concessional funds to support environmental conservation and
African development etc. is likely to increase in the future.

･Japan should strive continuously to improve the quality and enhance thestrategic orientation of ODA, learning from the hard lessons of past
failures and inefficient implementation of projects. At the same time, it isessential to secure the absolute amount of ODA in order to firmly
maintain Japan’s presence in the international community.

･Japan must keep its international commitments as a responsible memberof the international community.

･Japan should not decrease the ODA budget, considering Japan’s position
as the world’s second largest economic power, a country with scarcenatural resources, a trading nation, a country enjoying material abundance
that depends on developing countries, and a country vulnerable to theimpacts of global warming and other environmental issues.

･There is a need to remove or correct bottlenecks in the budget system
and various procedures. (Examples include the vertically divided,fragmented administration system; rigidity in budget and operational
procedures, the procurement system, and the single-year budgetingsystem—which give insufficient consideration to the work conditions indeveloping countries—and lengthy internal review processes between
project planning and implementation.)

Basic direction[22] Expand the employment opportunities in workplaces such as
international organizations, the Ministry of Foreign Affairs, the new
JICA, universities, businesses, and NGOs, to establish career paths
for international cooperation. At the same time, increase themobility of human resources across organizations.

[21] Establish a "Human Resources Development Center" forinternational cooperation. Register human resources, establish a
network with national agencies and international organizations, andwork collaboratively with educational organizations and others.

[20] Earmark sums of the ODA budget specifically for environmental
conservation and for African development.

[19] Increase the general account ODA budget for grants and examine
measures to secure new financial resources (e.g., allocating 1
percent of the international aviation tax or the consumption tax forODA).

[18] Increase the ODA budget to a level commensurate with that ofnational income and keep international commitments.

[17] The Government shall increase the flexibility of the cooperation
period, eliminate the problems caused by the single-year budgetingsystem, and the new JICA shall drastically revise its procurement
procedures in order to achieve results-oriented, speedy assistance.

[16] The Government shall make international commitments on ODA
projects more comprehensive by aggregating individual projects.

[15] The Government and the new JICA shall consolidate thefragmented aid schemes and simplify cumbersome procedures.

30 proposals

By the Group for Renovating Japanese ODA

33

10. Clarify thevision andsharpen thefocus ofJapan’s aid
to Africa

9. Enhancecollaboration
with theprivate sector
and form
public-private
alliances･The Japanese Government has notpresented its vision for assistanceto Africa in 2008 and beyond (after
its existing commitment of
doubling ODA to Africa by 2007).
Although the share of Africa in total
Japanese ODA has remained
stable at about 10%, the actual
amount has halved in the past
decade.

･The basic idea behind the strategy
for supporting Africa has not beenclearly defined.

･There is an urgent need to reinforce the network that connects the fields
in African countries, Japan, and the centers of the international aid
community in order to provide effective assistance in Africa where active
aid partnerships are taking place.

･There is a need to establish special facilities to reduce risks associatedwith investments in Africa and indirectly support private sector
development by using ODA (Examples: CSR support, loan andinvestment functions by ODA, partial guarantee function in PPPs)･As a responsible member of the international community, Japan should
contribute to the development of Africa ("global interest"), which is ashared concern within the above community. It is necessary to intensify
public relations activities to increase citizen awareness, based on therecognition that the "global interest" and "national interest" areinseparable in this age of globalization. Japan should establish a longterm trusting relationship with African countries by providing assistanceto meet their development needs.

[30] The Government and the new JICA shall design special facilities for
Africa to mitigate risks and promote private sector investment.

[29] The Government and the new JICA shall select model countries toembody the "aid for graduation" message and allocate additional
aid to them. Human and financial resources should be concentrated
on the model countries.

[28] Establish a committee to specialize in supporting Africa within the"Multi-stakeholder Forum for ODA Implementation."[27] The Government shall reform the budget and funding systems andexpand the ODA volume for Africa in 2008 and beyond, especiallyin grants.

[26] The Government and the new JICA shall promote public-private
partnerships (PPPs) and design special facilities to effectively
mobilize funds and know-how from the private sector.

[25] The Ministry of Foreign Affairs and the new JICA shall establish an
information-sharing network among the country-based ODA Task
Forces, businesses, NGOs, researchers, etc.

･The new implementation system should be restructured from theviewpoint of a "four-tier structure" inclusive of the private sector as a key
actor in ODA (same as 1, 2, and 5 above).

･There is a need to devise measures to provide comprehensive support
to promote public-private partnerships (PPPs), especially to assist
countries where private businesses are active (Asian countries, middleincome countries, etc.) and to tackle environmental issues (includingCDM ). It is also necessary to establish a system for reducing risks
associated with investments in Africa, as it is very likely that private
investment will not arise spontaneously, due to the significant risk factors
involved (same as 10 below).

[24] Establish a "Multi-stakeholder Forum for ODA Implementation" toenhance the collaboration of the Government, the implementing
agencies, businesses, NGOs, universities, etc. to promoteinternational cooperation.

･Private, non-ODA cooperation forms the basis of bilateral relationships, on
which ODA is based. It is more consistent and less influenced by politicalfactors such as changes of government. Accordingly, it is necessary to
expand and diversify the channels of international cooperation.

･Collaboration between ODA andthe private sector remains
insufficient (although the two differ
in terms of transparency andaccountability to citizens).

･The private sector (businesses,
NGOs) also lacks awareness that it
is a key actor in ODA
implementation.

[23] The OECC shall include representatives of private businesses andNGOs in its advisory body, the "International Cooperation Strategy
Committee."international competitiveness who can connect the activities in Japanand abroad, as well as the field activities, policies and research. To thisend, the personnel exchanges and employment opportunities should be
increased in the area of international cooperation (for example, by
establishing a "Human Resources Development Center").

cooperation are yet to beestablished.