Section 5

# Formulation and Implementation of ODA Policy

The ODA Charter categorizes a series of reform measures for providing more efficient and effective ODA into three parts: “system for formulation and implementation of ODA policy,” “increasing public participation,” and “requirements for implementation of strategic and effective assistance.”

### 1. System for Formulation and Implementation of ODA Policy

## (1) Formulation of Consistent Aid Policy

At the Headquarters of International Cooperation Policy Planning established under the political leadership of the Minister for Foreign Affairs (MOFA), the International Cooperation Bureau and the relevant regional bureaus of MOfA deliberate on international cooperation policy, regional challenges, and the approach to priority issues, in an effort to plan and propose effective ODA, while constantly confirming its role within the overall foreign policy. "The ODA Review Final Report," which was released by MOfA in June 2010, also stipulates that the Headquarters would be utilized proactively.

MOFA's International Cooperation Bureau, established in August 2006 when the Ministry of Foreign Affairs reorganized the Economic Cooperation Bureau, comprehensively plans and drafts ODA policies, while also playing a central role in coordination throughout the entire government. In July 2009, the International Cooperation Bureau underwent organizational reform to strengthen the ODA policy planning and proposal function of MOFA. The Aid Policy Planning Division, that oversaw the planning and proposal of ODA policy, and the Grant Aid and Technical Cooperation Division and the Loan Aid Division that oversaw aid schemes, were consolidated, thereby strengthening the Country Assistance Planning Divisions. This organizational reform has made it possible to provide loan aid, grant aid, and technical cooperation in a unified manner through three Country Assistance Planning Divisions under the newly established Development Assistance Policy Coordination Division. In addition, efforts are being made to further increase the collaboration among divisions related to bilateral aid and multilateral aid, strengthen the strategic nature of international cooperation, and implement more effective aid. Moreover, by sharing information and views among related agencies, the knowledge and experience of those agencies are being reflected in ODA policies.

## (2) Partnership between the Government and Implementing Organizations

MOFA works with aid-implementing organizations to enable the prompt utilization in disbursement of aid of the Priority Policy Issues for International Cooperation that MOFAA formulates each fiscal year.

In October 2008, JICA, which had implemented technical cooperation and promoted grant aid, and the overseas economic cooperation division of the former Japan Bank for International Cooperation (JBIC), which

## (3) Strengthening Policy Consultation

Japan holds detailed policy discussions and works to share awareness and understanding with developing countries, in order to implement development assistance that is more effective. Although Japan implements ODA with emphasis placed on requests from developing countries, from the perspective of supporting their self-help efforts, it also had been in charge of providing ODA loans and other loan aid, were merged into a new JICA. A portion of the work related to implementation of grant aid that had been handled by MOFA was transferred to JICA, making it a comprehensive aid organization that provides technical cooperation, loan aid, and grant aid, in an integrated manner.

deliberates on policies with governmental parties from the partner country, at a stage prior to the receipt of a request. The aim of these discussions is to understand the developing country's development policies and needs for assistance, and to coordinate them with Japan's assistance policies.