## (4) Enhancing Policy Consultation

For many years, Japan’s assistance has worked on the “request-oriented principle” whereby assistance was implemented based on requests from developing countries. However, in order to derive full benefits from development assistance, a common awareness and understanding must be acquired through close policy consultations with the developing country. For this reason, while Japan still places emphasis on requests from developing countries from the perspective of supporting their self-help efforts, it carries out policy consultations with governmental parties from the partner country, at a stage prior to the receipt of a request. The aim of these consultations is to allow the developing countries’ development policies and assistance needs to be clearly ascertained and to achieve coordination with Japan’s assistance policies.

One of the measures aimed at strengthening policy consultation is the work carried out by the country-based ODA task forces (ODA-TFs). Through lively policy consultations between ODA-TFs and the governments of developing countries, shared awareness with the developing country can be achieved in relation to priority issues and policy and system-related challenges, seen from a medium-term perspective. Furthermore, Japan seeks to make its assistance policies compatible with the development policies of developing countries and thereby achieve efficient and effective assistance.

## (5) Cooperation with Aid-Related Entities within and outside of Japan

Japan is implementing international cooperation in collaboration with various groups including private sector enterprises, universities, local governments, NGOs $ ^{8} $ , international organizations, and other donor countries.

## (a) Collaboration with Private Sector Enterprises

The role of private sector enterprises in attaining sustained growth in developing countries is indispensable. The activities of such enterprises are capable of bringing about developmental effects in those countries that are beyond reach with ODA alone, as they can promote employment, transfer vocational skills, and expand trade and investment. Thus, cooperation between ODA and private sector enterprises is

(Source: EPA=Jiji)

of great importance, and as such, the government has been actively engaged in a variety of efforts.

The Special Term for Economic Partnership (STEP) $ ^{9} $ system has been in place since 2002. Its goal is to disseminate the advanced skills and expertise of Japanese businesses. In FY2007, ODA loans under STEP were offered to Kenya, Mongolia, and Viet Nam. Regarding grant aid too, Japan is working hard to realize the “visibility of Japanese aid” by making use of its advanced skills. In January 2008, the Advisory Council on International Cooperation submitted to the Minister for Foreign Affairs its Interim Report, wherein it proposed the further necessity and effectiveness of collaboration between the public and private sectors. As a result of reports such as this, the “Public-Private Cooperation for Accelerated Growth” was announced in April 2008 as a new measure for strengthening cooperation between these two sectors.

See page 62 for sustainable growth through government and private sector partnership.

## (b) Collaboration with NGOs

With various forms of support, Japan’s NGOs provide assistance tailored to development needs in a wide range of fields including healthcare, education, and water supply, and as a result have earned high praise in Japan and in developing countries. NGOs are important organizations when considered from the following perspectives: (1) they conduct activities at the community level with local residents of developing countries and regions and they are capable of providing fine-turned assistance that meets the diverse needs of developing countries and regions; (2) they are able to implement emergency humanitarian assistance activities in the case of large-scale natural disasters promptly and flexibly; (3) they give Japan a visible