# JAPAN'S MEDIUM-TERM POLICY ON ODA: EXPLANATORY NOTES

## I NTRODUCTION

## 1 : Official Development Assistance Charter (ODA Charter)

The ODA Charter, approved by Cabinet on June 30, 1992, constitutes the most important basic document concerning Japan’s ODA policies. It was formulated to clarify Japan’s ODA philosophy and principles and is based on past achievements, experiences, and lessons. The Charter consists of six sections covering the following areas: basic philosophy, principles, priorities, measures for effective ODA implementation, measures for promoting understanding and support at home and abroad, and the ODA implementation system. The following four key elements are identified under “basic philosophy”: (1) humanitarian considerations, (2) recognition of global interdependence, (3) the importance of self-help efforts, and (4) environmental conservation. Under “principles,” Japan commits itself to the following four points while “taking into comprehensive account each recipient country’s requests, socioeconomic conditions, and Japan’s bilateral relations with the recipient country”: (1) environmental conservation and development should be pursued in tandem, (2) use of ODA for military purposes or for aggravation of international conflicts should be avoided, (3) full attention should be paid to trends in recipient countries’ military expenditures, their development and production of weapons of mass destruction and missiles, and the export and import of arms, and (4) full attention should be paid to efforts for promoting democratization and the introduction of a market-oriented economy and to the situation regarding the securing of basic human rights and freedoms.

### I. BASIC APPROACHES

## 2 :OECD/DAC "Development Partnership Strategy"

In May 1996, the Development Assistance Committee (DAC) of the Organization for Economic Cooperation and Development (OECD) adopted a document entitled "Development Partnership Strategy (Shaping the 21st Century: The Contribution of Development Cooperation)," which identified certain goals and objectives for development assistance in the 21st century. The document aims to improve the living standards of all humankind and sets forth concrete goals and schedules for the achievement of these goals. The specific goals are as follows: (1) by 2015, a reduction by one-half of the proportion of people living in extreme poverty, (2) universal primary education in all countries by 2015, (3) elimination of gender disparity in primary and secondary education by 2005, (4) reduction by two-thirds in infant mortality rates by 2015, (5) reduction by three-fourths in maternal mortality rates by 2015, (6) access to reproductive health services by 2015, (7) formulation of national strategies for sustainable development by 2005, and (8) reversal of the deterioration in environmental resources by 2015. The document states that cooperation between the advanced and developing countries is indispensable to the achievement of these goals, and emphasizes the importance of global partnership.

## 3 : Least among Less-Developed Countries (LLDC)

LLDC refers to the least developed group of developing countries and is defined by the United Nations Development Program Committee on the following basis: per capita GDP (below $899 as of 1999), human resources development (average life expectancy, etc.), and vulnerability of economic structure (share of manufacturing in GDP, etc.). Currently, 48 countries are recognized as LLDCs (33 countries in Africa, eight in Asia, five in the Pacific, and two elsewhere).

### I I. PRIORITY ISSUES AND SECTORS

### 1. Support for Poverty Alleviation Programs and Social Development

## 4 : “20/20 Initiative” for Social Development

Under this initiative, developing countries are to commit 20% of their national budget, and developed countries 20% of their ODA, to such areas in social development as to be given priority to human development (basic education, basic health services, drinking water, family planning, etc.). Proposed by the United Nations Development Program (UNDP), it was decided at the World Summit for Social Development (hosted by the United Nations in March 1995) that the goals of the 20/20 Initiative would be implemented by countries in agreement with the initiative's objective. Japan has met the goal of this initiative, as the annual share of social development commitments in its bilateral development assistance has exceeded the 20% mark in every year from 1993 to 1998.

## 5 : Initiative for a Caring World

Proposed by then Prime Minister Hashimoto at the Lyon Summit in June 1996, the “Initiative for a Caring World” is aimed at finding solutions to the problems of various countries by sharing the knowledge and experiences of developed, as well as developing, countries concerning social security policies, covering such areas as public sanitation, health insurance, and pension systems.

Current projects targeting the developing countries include: promoting measures for global parasitic disease control; sharing of knowledge and experiences through international conferences for high-level administrators of social security; and, personnel training, dispatch of experts and acceptance of trainees for promoting the development of social security systems in developing countries.