### I. Basic Approaches

1. In 1996, the Development Assistance Committee (DAC) of the Organization for Economic Cooperation and Development issued its "Development Partnership Strategy" in "Shaping the 21st Century: The Contribution of Development Cooperation." The guidelines for future development cooperation were based on the analysis of 50 years of development cooperation by industrial countries and on the role of assistance in the international community. This document identifies the improvement of living standards as the main objective of development cooperation and formulates specific goals for social development, such as halving the proportion of impoverished populations by the year 2015. $ ^{*2} $ Japan played a leading role in the preparation of the Development Partnership Strategy and continues its efforts to set such an approach in motion in the international community. As a result, the Development Partnership Strategy is now becoming a common guideline for development cooperation with developing countries. Japan will continue to manage its ODA in a manner consistent with its ODA Charter and with an eye to the goals of the Development Partnership Strategy.

2. The key to realizing the goals of the Development Partnership Strategy lies in the self-help efforts and the initiatives of developing countries as they work toward economic take-off. Japan will emphasize "good governance" through the improvement of the policy management capabilities of developing countries and will work to support their initiatives in this area. Japan will also encourage developing countries to ensure proper implementation and transparency in aid projects. On the premise of such self-help efforts and initiatives, Japan will endeavor to develop partnerships through cooperation and coordination with other donor countries and international organizations.

3. The provision of aid must be based on the proper evaluation of the development agendas and the needs and wishes of individual countries. Various forms of aid must be effectively combined to ensure a proper match to the developmental stage of the recipient country. Likewise, it is necessary to undertake policy dialogues with developing countries and utilize prior studies to design effective and efficient aid projects that conform to national conditions and needs. Special attention must be paid to ensure that vested interests do not emerge in aid-receiving sectors and recipient countries. Whenever necessary, Japan will review its aid schemes, such as Yen loans, in light of changing conditions.

4. A comprehensive approach is needed to enhance the impact of aid. Specifically, the available resources of pertinent entities such as developing countries, donor countries, international organizations, the private sector, and nongovernmental organizations (NGOs) must be appropriately utilized. Similarly, cooperation and an appropriate division of roles and responsibilities among these entities must be established. In view of the growing importance of trade and investment and other private-sector activities observed in Asia, Latin America, and elsewhere, efforts must be made to improve the environment for private-sector activities and the inflow of private funds. In this respect, special attention should be paid to equitable and efficient resource allocation, the amelioration of disparities, and the provision of assistance to sectors not benefiting from private flows.

5. Economic growth is a necessary measure for the improvement of welfare, and "human-centered development" is indispensable to the realization of sustainable development. Consequently, Japan will provide assistance for balanced economic growth and social development. Based on this human-centered approach, special attention will be given to the needs of the least developed countries (LLDC). $ ^{*3} $ Due attention will also be focused on "human security" and the protection of individuals and communities from various dangers and threats, including environmental destruction, starvation, drug abuse, organized crime, infectious diseases, human rights infringements, regional conflicts, and anti-personnel mines.

6. The provision of ODA must be based on the understanding and support of taxpayers and the general public. For this purpose, Japan will actively endeavor to increase national involvement in and visibility of Japanese aid and promote better awareness of Japan's assistance programs in recipient countries. Japan will also continue to contribute through multilateral agencies, which provide certain advantages not available through bilateral aid. Furthermore, efforts will also be made to further utilize Japan's experiences, technology, and know-how, taking into consideration increased opportunities for Japanese businesses to participate in ODA projects and encouraging broad-based public participation in development cooperation through universities, think tanks, local governments, and NGOs. Through such efforts, Japan will maintain its vitality within the global community, continuing to enjoy harmonious development in the future and winning the confidence and appreciation of the international community.