Japanese embassies.

i. Research and analysis of development needs ODA-TFs will scale up their functions in research and analysis of development needs and the recipient countries' own development efforts bearing in mind the political, economic and social situation in these countries. Japan will fully analyze local socio-economic conditions and other aspects through local interested parties. In such efforts, external human resources will be relied upon where necessary, and information will be exchanged with the local aid community, including other major bilateral donors and international agencies, NGOs and academia.

Tokyo will support such actions in the field by making more flexible use of policy-support studies and dispatching policy advisers.

ii. Formulation and consideration of assistance policy

## (a) Participation in the formulation of Country Assistance Programs

Country Assistance Programs specify the direction, priority sectors and priority issues of Japan's ODA for a period of about the next five years based on an accurate understanding of the development needs of the recipient countries as described in (2) (i) above, bearing in mind the perspective of Japan's foreign policy. ODA-TFs will actively participate in the formulation and revision of Country Assistance Programs making maximum use of their knowledge and experience obtained at the field level, and will seek to align assistance programs with the development plans and development goals of recipient countries, as well as with the international development goals. Consideration will also be given to how best to collaborate with the local aid community, including other major donor countries and international agencies, NGOs and academia.

## (b) Participation in the formulation of assistance policies for priority issues and specific sectors

ODA-TFs will actively make proposals in the formulation of assistance policies for more concrete priority issues and specific sectors in line with the priorities specified in the Country Assistance Programs described in (2) ii. (a) and those clarified through policy consultations mentioned in (2) ii. (c) below so as to formulate and implement projects that reflect the true development needs of recipient countries. Tokyo will respect the proposals of ODA-TFs.

(c) Undertaking of policy consultation

ODA-TFs along with participants from Tokyo as necessary will undertake policy consultations with recipient countries in order to share perspectives regarding medium term priorities and policy/institutional issues, as well as to iron out differences, so that the position on the medium-term measures specified in Country Assistance Programs and assistance policies for priority issues and specific sectors are reflected in the actual formulation, request and implementation of projects.

In the case of countries for which no Country Assistance Programs have been formulated, ODA-TFs will play a leading role in identifying the direction, priority issues and sectors of Japanese assistance through policy dialogues in accordance with the ODA Charter and Medium-Term Policy.

iii. Formulation and selection of candidate projects for ODA

(a) Leading role of ODA-TFs

ODA-TFs will play a leading role in examining in detail the formulation and selection of ODA projects. In concrete terms, ODA-TFs will make proposals to Tokyo regarding the order of priority of candidate projects when forwarding the requests of recipient countries. Tokyo will respect the proposals of ODA-TFs in the selection of projects.

(b) Proposals regarding combination of different ODA schemes and their revision

In order to maximize the effect of Japanese ODA as a whole, it is important to combine ODA schemes effectively. ODA-TFs will therefore make efforts to form concrete model projects for combining different ODA schemes in recipient countries where all three schemes—grant aid, yen loans and technical cooperation—are implemented to a considerable extent, while clarifying the appropriate division of roles between the three. In addition, ODA-TFs will make concrete proposals on the need and possibility of revising ODA schemes in the recipient country concerned bearing in mind international trends, such as aid coordination among international agencies and other donors. Tokyo will consider the combination and revision of ODA schemes taking into account the proposals proposed by ODA-TFs.

### iv. Strengthening of collaboration with the local donor community

Common development goals and development strategies, such as the Millennium Development Goals (MDGs), are increasingly being adopted by the international donor community. Taking into account this trend,