climate change countermeasures and African development took in these meetings.

1. Measures to address issues of the environment and climate change

2. Economic growth of developing countries

3. Assistance for democratization and economic transition

4. Peacebuilding and the fight against terrorism

5. Establishing human security

The following sections describe the details of Japan’s ODA disbursements implemented around FY2007.

### Section 2. Measures for Each of the Priority Issues

Japan lists various challenges like poverty reduction, support for sustainable economic growth, approaches to global issues, and peacebuilding in its ODA Charter, and is committed to advancing these based on the “objectives” and “basic policies” described in the previous section. In particular, one of the most important themes for Japan in order to implement its assistance is poverty reduction and sustainable economic growth of developing countries through supporting their self-help efforts and the vitalization of economic activities in private sectors. This has also been indicated in its experience with development in East Asia. This section will describe Japan’s recent approaches toward the various issues mentioned above.

### 1. Sustainable Growth

For poverty reduction, it is indispensable that the economies of developing countries grow sustainably, that income be enhanced through increased employment, and that the quality of life be improved. Japan proactively supports efforts for the sustainable growth of developing countries.

## (1) Support for Socio-economic Infrastructure

Japan’s record for infrastructure development support in FY2007 is as follows:

Loan aid (ODA loans): Approx. ¥944.8 billion (to 21 countries)

Transportation sector: Approx. ¥381.9 billion

Energy sector: Approx. ¥129.8 billion

Grant aid: Approx. ¥27.6 billion (to 40 countries)

Energy sector: Approx. ¥5.6 billion

Communication sector: Approx. ¥3.1 billion

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For poverty reduction, it is indispensable not only to implement measures to reduce poverty or to provide assistance in the areas of social development that could directly influence the poor, but also to promote sustainable development through economic growth. Japan has been placing importance on the improvement of socio-economic infrastructure that provides the foundation for the improvement of developing countries. Development of infrastructure plays an essential role in economic development in developing countries: to construct infrastructure for transportation and communication like roads, ports, and airports; to expand exchanges between urban and rural areas; to ensure security against disasters; and to promote trade and investment from overseas. Also important to development is the improvement of infrastructure that contributes to the fulfillment of basic social services such as education, health care, safe water, housing, and better access to hospitals and schools. It is also important to improve small-scale infrastructure such as agricultural and fishery markets, fishery ports, and agricultural roads, in order to vitalize local economies.

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In term of Japan’s efforts related to infrastructure development, one example is an ODA loan to Viet Nam initiated in FY2001 for terminal construction of the International Airport in Ho Chi Minh City, which opened its service in FY2007. The airport can now handle 7 million passengers annually. Another example is an ODA loan to Uganda for power lines and substations connected to the Bujagali Interconnection Project, one of the largest privately-funded power supply projects in Africa. The loan aid, which started in FY2007 in coordination with the African Development Bank, alleviates power supply shortages in the region as well as risks shouldered by private investors, thereby contributing to sustainable growth of the region. As for grant aid, Japan decided to support the construction of a bridge between the national borders of El Salvador and Honduras (Japan-Central America Friendship Bridge) in FY2007. $ ^{1} $ The bridge, together with the La Union Port built with a loan from FY2005, is expected to stimulate regional commerce.

In order to establish infrastructure in developing countries in accordance with appropriate development policies