pertinent international organizations. Drug abuse in developing countries is linked to the problem of poverty. As such, the fight against drugs must be pursued in combination with poverty alleviation measures. Based on this understanding, Japan has supported such activities as seminars on the prevention and control of drug abuse and drug-related crimes, the acceptance of overseas trainees, the promotion of substitute crops, and various related educational activities.

In light of the above, Japan will provide the following forms of support.

— Japan will continue to cooperate with international initiatives to mount an effective fight against drugs. Japan will also emphasize support for improved crime-prevention and crime-control capabilities of authorities, cultivation of substitute crops, educational activities, and projects directly linked to raising living standards in drug-producing regions.

### 5. Support for Overcoming the Asian

Currency and Economic Crisis and Promotion of Economic Structural Reform

In the course of the East Asian currency crisis that began in the summer of 1997, developing economies were seriously affected by the vast and rapid exit of private funds. The impact of this crisis extended to Japan and the remainder of the world's economy. The emergency financial needs of Asian countries were met by the flow of official funds, including the facilities of the New Miyazawa Initiative (launched in October 1998), and the Asian economies are now stabilizing. In addition to these emergency measures, structural reform must be supported for sustaining recovery over the medium term in order to realize a strong recovery in real economic activities. Moreover, in view of the mutually important ties between Japan and this region, such assistance will serve to bolster the Japanese economy as well. Furthermore, encouraging the flow of private funds to these countries and supporting their economic recovery will also contribute to achievement of sound and sustainable global economic development.

In light of the above, Japan will provide the following forms of support.

— Japan will continue its support for infrastructure development, technology transfer, development of small- and medium-sized enterprises, and the nurturing of supporting industries, while emphasizing coordination and the division of roles and responsibilities with other official flows.

— Japan will cooperate with international financial institutions to return Asian and other developing countries to a path of economic reconstruction. Similarly, to achieve a recovery in real economic activities in developing countries, Japan will focus on supporting vulnerable members of society through the development of social safety nets and will also provide support for institutional transformation, including the reform of legal systems, the financial sector, and various economic systems.

— As the rehabilitation of industries is an urgent issue, Japan will utilize the Special Yen Loan facilities to undertake infrastructure projects with outstanding economic-stimulation and employment-creating effects. Japan will support economic structural reform through these facilities, which are aimed at creating a more attractive economic environment for private investment and improving productivity. $ ^{19} $

— In addition to coping with the crisis, Japan will support preventive measures such as the reinforcement of domestic financial systems, the training of core personnel, and