Ho Chi Minh International Airport, constructed with Japanese cooperation

and to maintain and operate them in a sustainable manner, it is essential to develop human resources to handle these issues. Japan has been providing a wide range of technical cooperation, including the formulation of national land or city planning, the training of engineers to manage and operate constructed facilities, the provision of equipment necessary for management and operation, and development study.

In southern Viet Nam, a technical cooperation for Cai Mep-Thi Vai International Terminal, improvements of which are financed by an ODA loan, is being implemented so that private sector businesses can efficiently manage these port facilities. This is an example of coordination between aid modalities.

## (2) Policy Formulation and Institution Building

##

For the objective of sustainable growth in developing countries, not only the establishment of economic and social infrastructure, but also the offering of assistance from the perspectives of policy making, institution building, and human resource development are required. The ODA Charter regards human resource development and the establishment of laws and institutions, which are the foundation of development in developing countries, as a prioritized policy. Under this Charter, the Medium-Term Policy on ODA lists, as practical and concrete manners, eradicating corruption, implementing legal and institutional reforms, improving the efficiency and transparency of public administration, and strengthening the administrative capacity of local government.

##

As part of its assistance for policy formulation and institution building, Japan has extended financial assistance not to specific projects but to developing countries' national accounts. For example, Japan has provided Indonesia with a Development Policy Loan (DPL) since FY2004. This DPL is co-financed with the World Bank and the Asian Development Bank (ADB). The loan is to support the Indonesian government's efforts to carry out reform in the areas of stabilization of the macro-economy, improvement of the investment climate, improvement of public finance management and governance such as anti-corruption, as well as poverty reduction. Indonesia also received an ODA loan from Japan to strengthen its policy formulation capacity to deal with natural disasters $ ^{2} $ in FY2007, and US300 million of Climate Change Program Loan based on Japan's "Cool Earth Partnership" initiative in FY2008.

See Part I Chapter 2 (page 8) on the "Cool Earth Partnership."

Besides this, in FY2008, Japan decided to give Viet Nam the sixth round of loans to facilitate its poverty reduction efforts, supporting its institution building in the fields of investment condition improvements, sewage toll collection, national enterprise reforms, and government expenditure reform through subsidy cuts.

Japan also assists with establishing democracy and has heretofore provided cooperation for institution building, such as legal, administrative, civil service, and police systems. As well, Japan supports to establish programs for electoral assistance, in the fields of strengthening civil society and the empowerment of women. As for administrative assistance, cooperation is designed to combat corruption and to improve statistical competence and local administration capacity. Administrative assistance has been provided not only to Asian countries such as Thailand, Cambodia, Bangladesh, and Pakistan, but also to Latin American and the Caribbean countries such as Paraguay and Honduras, as well as African countries including Tanzania and Zambia. For instance, Japanese experts have been dispatched to Ghana’s Office of the Head of the Civil Service since FY2007, engaging in lectures and other educational activities to strengthen civil service system of the country.

In the area of improving the capability of police agencies that constitute a cornerstone in maintaining domestic order, Japan has been providing assistance based on the achievements and experiences of the Japanese police system. This assistance combines the transfer of knowledge and technique and provision of equipment for facility development, while priority is being placed on human resources development such as building institutions and improving administrative capacity.