### 3. Central Asia and the Caucasus

## $ ^{*} $ 28: Silk Road diplomacy

The "Silk Road region" covers five Central Asian countries and three countries of the Caucasus. The "Eurasian diplomatic initiative," announced in 1997 by the then prime Minister Hashimoto, presented Japan's policy of actively seeking to develop closer ties with this region. The principal points of the initiative are as follows: (1) promotion of political dialogue to strengthen mutual confidence and understanding, (2) economic assistance for supporting regional prosperity and assistance for development of resources, and (3) support for promoting peace through nuclear non-proliferation, democratization, and stabilization.

### 5. Africa

## *29: Support for poverty alleviation programs and social development in Africa

At TICAD II, held in October 1998, Japan announced that it would provide grant aid amounting to ¥90 billion over a five-year period for education, health and medical services, and water supply development.

### I V. Methods of Aid

### 2. Coordination with Other Official Flows (OOF) and with the Private Sector

## $ ^{*} $ 30: Other Official Flows (OOF)

This refers to non-ODA government-funded economic cooperation provided to developing countries. Included in OOF are export financing and loans for direct foreign investment provided to the private sector by the Export-Import Bank of Japan and the Bank of Japan's purchase of bonds issued by the World Bank.

### 4. Coordination with Other Donor Countries and International Organizations

## $ ^{*} $ 31: Sector program

Under this approach, a recipient country takes the initiative in formulating a development plan for a specific sector (such as education, health and medical care). The plan is then discussed by the recipient country and the agencies of donor countries, and necessary adjustments are made.

## $ ^{*} $ 32: Japan-US Common Agenda

This refers to common issues identified by Japan and the United States from a global perspective for assisting the development of developing countries. The Common Agenda, launched in July 1993, provides for joint Japan-US action with regard to global-scale problems such as the environment, population, and health and medical services. Currently, various types of projects are being implemented in 18 different fields, which come under the following four major concerns: "promoting health and human development," "responding to challenges to the stability of human society," "protection of the global environment," and "the advance of science and technology." Activities in these fields are reviewed in annual plenary meetings held at the deputy-ministerial level.

### 5. Support for South-South Cooperation

## $ ^{*} $ 33: Support for South-South Cooperation

Japan has taken advantage of various opportunities to promote South-South cooperation. For instance, Japan held a meeting for "emerging donors" (developing countries who have made progress in economic development and are simultaneously aid recipients and aid donors) to discuss future directions. This South-South Cooperation Meeting was held in May 1998 in Okinawa. At the 2nd International Conference on African Development (TICAD II) hosted by Japan in October 1998, a decision was made to promote Asian-African cooperation as a concrete form of South-South cooperation. In fiscal 1997, Japan contributed $4 million to the United Nations Development Program (UNDP) to support South-South cooperation through UNDP.