assistance that directly reaches the people of the recipient country. As such, efforts will be made to expand and more effectively utilize grassroots grant aid for projects, while paying due attention to synergy with other forms of assistance.

-The implementation of cooperation will be centered on the Japan International Cooperation Agency while fully utilizing the knowledge, know-how, and personnel of various government ministries and agencies. Efforts will be made to achieve effective and efficient collaboration and coordination between the Japan International Cooperation Agency and various government ministries and agencies.

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

Private-sector trade and investment is playing an increasingly important role in the economic development of developing countries. In light of this fact, due attention will be paid to the following points.

-Due attention will be paid to the division of roles and responsibilities with non-ODA other official flows (OOF), $ ^{*30} $ trade insurance, and private funds based on their respective objectives, while taking into account the needs and conditions of individual countries.

-Efforts will be made to fully utilize the knowledge and know-how of the Japanese private sector in promoting collaboration with the private sector and due attention will be paid to increasing opportunities of Japanese businesses to participate in ODA projects.

-With regard to developing countries that have achieved accelerated economic growth and that are experiencing substantial inflows of private funds, projects suited to private-sector investment and OOF will be consigned to such forms of cooperation or activities. ODA will be focused on social development and poverty alleviation and will also emphasize the following points.

● Assistance will be provided to economic infrastructure projects that are unsuited to private-sector investment or OOF.

● To promote private-sector investments in projects with strong impacts on development, assistance will be provided to project portions implemented by government organizations in the implementation of tasks deemed necessary for the execution of private-sector initiative projects.

● Support will be provided for the strengthening of human resources development and policy formulation capacity building that contributes to market economy management.

● Support will be provided to strengthen industrial structure through the development of small- and medium-sized enterprises.

● Support will be provided for correcting distortions caused in the process of economic development, including environmental problems and regional disparities.

-With regard to developing countries whose private sectors are not fully functional, emphasis will be placed on ODA projects promoting the development of the private sector. Such initiatives would include infrastructure development for improving the investment environment and areas conducive to the development of the private sector, such as the development of institutions and systems, the upgrading of policy formulation capacities, the development of other private-sector capacities, and the development of basic human resources.

-The Japan Bank for International Cooperation, to be established in October 1999 through the merger of the Export-Import Bank of Japan and the Overseas Economic Cooperation Fund, will draw on the information and know-how accumulated in both organizations to provide more effective assistance by designing ODA projects to match the social and economic conditions in the recipient countries and the special properties of the ODA project. In this way, the Japan Bank for International Cooperation will endeavor to add to the flexibility and efficiency of Japan's contributions to the international economic community. However, the Japan Bank for International Cooperation will clearly separate its ODA and non-ODA accounts.

### 3. Support to and Collaboration with NGOs

Social development projects, including poverty alleviation and environmental conservation, constitute a steadily increasing share of Japan's overall assistance to developing countries. For this reason, there is a growing demand for finely tuned assistance that directly reaches local populations. Consequently, NGOs have been playing an increasingly important role in the process of economic cooperation and there is a growing need for collaboration with NGOs in the implementation of ODA projects.

In light of the above, due attention will be paid to the following points.

-Efforts will be made to develop a dialogue and exchange views and ideas with NGOs active in developing countries, through such venues as the "NGO-Ministry of Foreign Affairs Regular Consultation Meeting" and the "NGO-JICA Consultation Meeting."

-Efforts will be made to increase and enrich ODA support for