### 3. Priority Issues

Priority issues will be addressed in line with the following basic principles outlined in the ODA Charter: provision of support for the self-help efforts (“ownership”) of developing countries, adoption of the “human security” perspective, ensuring equity (including the perspective of gender and consideration of socially vulnerable people), utilization of Japan’s experience and expertise (including ensuring overall policy coherence), and action in concert with the international community (including South-South Cooperation).

## (1) Poverty Reduction

### i. Japan’s position on poverty reduction

(a) In developing regions, around 1.1 billion people live in poverty on less than US$1 a day. To deal with this situation, the Millennium Development Goals (MDGs) were adopted following the United Nations Millennium Summit in September 2000, establishing targets to be achieved by 2015 relating to poverty reduction, gender equality, health and education, HIV/AIDS and other infectious diseases, and environmental sustainability. MDGs are goals that the international community should work in concert to achieve in order to build a better world. Japan will contribute actively to achieving the MDGs, including through effective use of ODA.

(b) Poverty has not only an economic dimension, such as low income and expenditure, but also social and political dimensions exemplified by lack of access to basic social services such as education and public health services, gender inequality, and lack of opportunities to participate in the decision-making process. The MDGs consist to a large extent of targets relating to the social sector, such as education and public health. At the same time, as the experience of development in East Asia demonstrates, sustained economic growth is a necessary condition for reducing poverty. Therefore, poverty reduction should be pursued comprehensively through actions that address both the economic and social dimensions.

(c) The factors that constitute poverty in each country are a complex combination of elements of economic structure, politics, culture, society, history and geography specific to that country. Therefore, assistance needs to be implemented taking fully into consideration the particular circumstances of each country. From this viewpoint, Japan will contribute to the poverty reduction strategies formulated by developing countries, and provide assistance in line with such strategies.

### ii. Approach to poverty reduction and specific actions

(a) Cross-sectoral assistance that is tailored to the stages of development

The underlying causes of poverty are diverse, and the poor face a range of problems. Therefore, in order to effectively reduce poverty, there is a need for cross-sectoral assistance. Prior to the formulation of projects, efforts will accordingly be made to determine the poverty situation of each country and region and to analyze the needs of the poor. In order to collect a wide range of information on the poor, networking with governments, NGOs, universities, research institutions and private enterprises will be strengthened. Based on the results of analyses, assistance will then be provided, according to the situation in each country and region and the stage of development of the recipient country, by effectively combining various schemes such as bilateral loan aid, grant aid, technical cooperation and assistance through international agencies.

For example, HIV/AIDS will be tackled not simply as a medical problem; instead, a cross-sectoral approach utilizing a variety of schemes will be adopted. More specifically, priority will be placed on strengthening prevention and voluntary counseling and testing (VCT), while at the same time paying attention to reinforcing the regional health care system as a whole. Employment support will also be provided to people living with HIV/AIDS, along with medical treatment and care, and social support for sufferers, their families and HIV/AIDS orphans. Consideration will also be given to incorporating, as necessary, HIV/AIDS measures into development assistance programs in view of the risk of HIV/AIDS epidemics caused by the movement and concentration of populations which accompany economic development, trafficking in children and women, and the growing risk of transmission of HIV/AIDS through drug use.

## (b) Direct assistance to the poor

Direct assistance to the poor occupies a significant position in efforts to reduce poverty. From the “human security” perspective, this requires strengthening the capabilities of the poor and communities so as to enable the poor to participate in the formulation of aid policies, and the project planning and implementation process that affect their own lives. In particular, cooperation with NGOs and other entities capable of responding to diverse needs at the grassroots level will be pursued.