is estimated that there are approximately 2.5 billion people in developing countries who do not have access to modern energy services. $ ^{[57]} $ The lack of modern energy services leads to greater poverty due to the underdevelopment of industry and fewer employment opportunities and to low availability of medical services and education opportunities. Thus, it is a constraint on the qualitative improvement of economic and social life.

It is forecasted that global demand for energy can increase in the future, mainly in developing countries and particularly those in Asia. Without appropriate measures to ensure a stable supply of energy which incorporate appropriate environmental considerations, problems such as a tight supply-demand situation, energy price hikes, and increases in carbon dioxide emissions could become more prominent, which could in turn affect the sustainable development of developing countries, as well as the economy and environment of Japan and the rest of the world.

##

Japan, with a view to ensuring the sustainable development of developing countries and to securing energy for its own needs, has been cooperating for stable energy supply in developing countries in a way tailored to their specific circumstances. Specifically, it promotes anti-poverty measures through the provision of modern energy services and ensures a stable supply of electric power in order to develop industry in developing countries. At the same time Japan is also actively advancing environmentally-friendly cooperation in the energy sector. This includes the development of energy-related infrastructure such as power generation facilities that take advantage of reduced energy loss, more efficient energy use, and renewables.

See page 2 on measures against global warming.

Japan depends on other countries for most resources such as minerals, and therefore long-term, stable supply of resources is critical for Japan’s prosperity in future. It is private companies that directly handle these overseas resources, and ODA is expected to play a role to facilitate resources development and production activities by these companies.

When assisting countries which possess natural resources, Japan is putting its efforts into promoting resource development for the acquisition of foreign currencies and self-development, and is creating strong relations with these countries in the resource field. In FY2007, through grant aid to Cambodia starting from FY2006, Japan continued to support the construction of a small-scale hydraulic power plant and power supply/distribution facilities in Mondul Kiri Province. $ ^{58} $ Electric power supply in Cambodia is underdeveloped due to the past civil war. This assistance is expected to lead to economic growth of the entire province through stable supply of electricity. Japan, aiming at poverty reduction and regional economic promotion through electrification in rural areas, has also been extending technical cooperation for contract management on electrification projects, transfer of operating knowledge of solar power systems, and administrative management capacity building of regional electrification divisions of energy bureaus. For example, in Malawi with less than one percent household electrification ratio in rural areas that have about 80% of the national population, Japan has been continuously making efforts to transfer technologies for rural area electrification and to assist financial management capacity building by the extension of power supply lines and the use of solar power systems.

## (6) Disaster Reduction and Post-Disaster Reconstruction

##

Japan’s record in FY2007 is as follows:

Aid methods

Loan aid (ODA loans): Approx. ¥67.3 billion (to six countries)

Grant aid: Approx. ¥22.6 billion

Technical cooperation

338 trainees accepted $ ^{59} $

34 experts dispatched $ ^{60} $

Japan's record for international emergency assistance in FY2007 is as follows:

Total value: Approx. ¥381 million

One team dispatched

22 emergency relief goods provided

##

Disasters such as earthquakes, volcanic eruptions, tsunamis, strong winds, heavy rainfalls, floods, landslides, and droughts occur around the world every year. Large-scale disasters not only claim the lives and property of many, but also sometimes cause serious and long-term effects to the