rate and providing access to safe drinking water) and redressing the gap between towns and rural areas. Thus, in the East Asian countries, Japan's assistance was directed toward fields such as economic infrastructure as well as education and human resource development. These fields combined with foreign investment, have had a bearing on developing export industries, and progress in an organic partnership among assistance, trade and investment has led to these countries' economic growth.

In the past, GDP per capita in East Asia had been about the same level as in sub-Saharan Africa. However, in the second half of the 1990s, despite the Asian Currency and Economic Crisis, East Asia achieved a remarkable expansion in GDP per capita.

How to apply the experience of East Asian success to other regions is a major challenge for the future. Expanding the effective development methods that were put into practice in East Asia by transferring of appropriate knowledge and technologies through South-South cooperation is becoming an important issue not only for developing countries but also for Japan.

## Contribution through economic and social infrastructure support

One of the features of Japan's ODA is the contribution that has been made to develop economic and social infrastructure including roads, ports, electric power stations, electric power transmission facilities and water and sewerage systems. Infrastructure forms the foundation of people's lives, and it also plays a role in supporting economic growth, for example in the form of effects such as markets expanding through the development of roads and ports and as agricultural productivity improving through the development of irrigation facilities. Yen loans, which borrowers are required to repay at relaxed lending conditions, have mainly been used for such infrastructure development. Japan has consistently held the basic philosophy of supporting the self-help efforts of developing countries. Yen loans promote effective use of funds by developing countries themselves and proactive efforts to ensure their future repayment, and in that sense, they are also consistent with Japan's philosophy on assistance.

The question of how much Japan's ODA has contributed to economic development in East Asia cannot be answered precisely, as the quantitative effect of such ODA cannot always be clearly measured. $ ^{7} $ However, the above examples are indicating Japan's ODA has contributed greatly to development of social and economic infrastructure, which has been fundamental for economic development (research by various overseas diplomatic missions, May 2004).

## Contribution to human resource development

For Asian countries, as well as assistance for development of economic infrastructure, Japan has been providing a great deal of assistance for Asian countries for that of human resources, which is fundamental for economic and social development. Examples of Japan's contribution in Asian human resource development and technical cooperation for the region are as follows. This topic is covered in detail in Section 3.

## Promotion of South-South cooperation

## From recipient countries to development partners

Among Asian countries to which Japan has provided assistance, some have achieved remarkable economic development and already graduated from the position as recipient countries (Korea, Singapore etc.), and others have provided South-South cooperation $ ^{*1} $ in specific fields for other developing countries in cooperation with countries including Japan, based on the accomplishments of their own development (Thailand, Indonesia etc.), while continuing to receive assistance. Since the support for South-South cooperation enables countries

## $ ^{*} $ I: South-South Cooperation

Cooperation provided by advanced developing countries in certain fields or countries graduated from the position as an aid-target country, to other developing countries using their own development experiences and human resources. Japan has provided assistance through South-South cooperation since 1975.