(Source: EPA=Jiji)

## Cooperation with Countries that have Graduated from ODA

Japan is a country poor in mineral and energy resources, and securing such resources is one of the important foreign policy agenda items. Japan must build long-term stable bilateral relationships with countries that have graduated from ODA, such as the oil-producing nations. The study of what sort of cooperation, aimed at building a multi-tiered partnership focused on the use of Other Official Flows or on the private sector, can be extended to these countries is a task for Japan.

### 6. Latin America and the Caribbean

Japan’s bilateral assistance to Latin America and the Caribbean in 2007 was approximately US$225.59 million, 3.9% of total bilateral ODA.

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Many of the countries in Latin America and the Caribbean constitute for Japan important partners with which it shares values such as democracy and market economy. The Latin American and Caribbean region is geographically remote from Japan. However, with immigrants from Japan and their descendants serving as a “bridge,” it is a region that has traditionally forged friendly relations with Japan. In addition, the region has a population of 550 million, nearly the same as ASEAN, and comprises a large market with a regional gross production of US2.95 trillion (2.8 times as large as that of ASEAN). It is now expanding its presence through moves toward regional integration such as SICA, $ ^{79} $ MERCOSUR, $ ^{80} $ CARICOM, $ ^{81} $ and CAN $ ^{82} $ and the conclusion of free trade agreements with other countries. Moreover, as a result of the sharp rise in metal and energy prices in recent years, the region is attracting attention as an important supplier of mineral resources and energy (e.g. iron, copper, silver, $ ^{83} $ crude oil, natural gas, and biofuels), and food. One characteristic of the region is that while there are many countries whose average income level is comparatively high and a free economy is being maintained, the poverty and gap between the rich and poor are striking. Due to the presence of abundant nature represented by the rainforests spanning the Amazon Basin, efforts targeting the global-scale challenges of environment and climate change have become important.

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Through ODA, Japan is providing support for challenges such as strengthening economic relations, region-wide support (including the promotion of regional integration), and South-South Cooperation.

As for strengthening of economic relations, in order to support sustainable economic development in the Latin American and Caribbean region, Japan has extended cooperation in various sectors, such as development of infrastructure, promotion of supporting industries, development of small and medium-scale enterprises, and provision of vocational training. In 2007, Japan adopted a technical assistance project for the purpose of enhancing vocational training in Ecuador, and is also supporting small and medium-scale enterprises and supporting industries in connection with the Japan-Mexico Economic Partnership Agreement (EPA) which entered into force in April 2005. In order to improve poverty and income disparity, the historical problems of the region, support is being given in social