### I I. Priority Issues and Sectors

In light of the basic approaches enunciated above, henceforth Japan will place greater emphasis on poverty alleviation programs and various aspects of social development, human resources development, policy-related assistance and other "soft" types of aid. This will be done while considering the balance with assistance aimed at economic and social infrastructure development. Japan will also continue to work actively on tackling global issues.

### 1. Support for Poverty Alleviation Programs and Social Development

The importance of combating poverty is fully reflected in the goals of DAC's "Development Partnership Strategy." This has also been confirmed in the so-called "20/20 Initiative" of the United Nation's World Summit for Social Development of 1995, which calls on industrial countries to earmark at least 20% of their economic assistance, and developing countries at least 20% of their national budgets, to basic social needs. $ ^{*4} $ The "Initiative for a Caring World" proposed by Japan $ ^{*5} $ advocates the sharing of knowledge and experience to improve the welfare of people in developing countries.

The following factors are of special importance in the fight against poverty: equitable distribution of the benefits of economic development, implementation of economic cooperation projects directly aimed at assisting the poor, and the sharing of Japan's own experiences of economic growth and poverty eradication with developing countries.

Assistance for basic education and health and medical services plays a critical role in poverty alleviation programs and social development projects. The perspective of "women in development" (WID) and gender issues is of similar importance for developing countries. $ ^{*6} $ As access to safe water constitutes a vital element in supporting human health, the scarcity of water resources could conceivably result in increased tensions in the future. For this reason, assistance for water resource development and the management and use of existing water resources has become increasingly important. To reduce regional disparities, assistance to rural and impoverished areas must be assigned greater importance. In many developing countries, large populations reside in rural areas. Thus, the elimination of poverty in such areas is of importance. The Asian currency and economic crisis has served to reiterate the importance of agriculture and of rural areas.

In light of the above, Japan will provide the following forms of support.

-Japan will endeavor to achieve the goals of the "20/20 Initiative," while keeping in mind the objectives outlined in the Development Partnership Strategy.

-Japan will assist developing countries in their efforts to improve policy formulation and implementation capabilities and to comprehensively address poverty alleviation. Japan will emphasize software-oriented cooperation such as the development of institutions that will promote the distribution of the benefits of economic development to impoverished populations.

-Japan will employ comprehensive and cross-sectoral approaches involving WID and gender considerations, job training and employment creation, and micro-financing. Japan will also emphasize community-oriented and participatory approaches to economic assistance.

-To reduce regional disparities, assistance will be provided for promoting the key rural industries of agriculture, forestry, and fisheries. Similarly, local industries will be nurtured to create new employment opportunities. Emphasis will be placed on improving the living environment and on training community organizations.

## (1) Basic Education

Not only is access to education is a basic human right, it is a key factor in developing an effective response to the problems of poverty, population, and the environment in developing countries.

In the least-developed countries, as well as in many developing countries, access to elementary education is hampered by a lack of funds, educational facilities, teaching materials, and teachers. Consequently, nearly 860 million people throughout the world remain illiterate. The objectives of the Development Partnership Strategy include the promotion of elementary education and the elimination of gender disparities in elementary and secondary education. Japan's assistance in the field of basic education has included the construction of school buildings $ ^{*7} $ and the provision of equipment and materials. For the elimination of gender disparities in Asia and Africa, Japan has been supporting the activities of the United Nations Children's Fund (UNICEF) for the education of girls. $ ^{*8} $

In light of the above, Japan will provide the following forms of support.

-In addition to hardware-oriented assistance for the construction of schools and provision of equipment and materials, Japan will upgrade its advisory assistance in both the areas of course development and educational administration, including assistance for the enhancement of system and capacity building in school administration, curriculum and teaching materials.