### Box 4. Inauguration of New JICA: A New Era of International Cooperation

On October 1, 2008, Japan International Cooperation Agency (JICA), an executing agency for Japan's Official Development Assistance (ODA), was reborn. JICA has hitherto focused its operations on the implementation of technical cooperation and promotion of grant aid disbursement. Through amendment of the JICA law, JICA is now responsible for, in addition to these operations, the provision of ODA loans and other loan aid, which was previously handled by Japan Bank for International Cooperation (JBIC) as part of its overseas economic cooperation operations. Furthermore, JICA will be responsible for the implementation of grant aid which was formerly dispersed by the Ministry of Foreign Affairs (MOFA), although MOFA will continue to handle grant aid that requires

quick and flexible responses as well as diplomatic consideration. Thus, new JICA will be a comprehensive aid to implement the three assistance schemes of ODA loans, grant aid, and technical cooperation.

Combining these assistance schemes can allow swift and efficient implementation of ODA, by increasing effective assistance. For example, ODA loans and grant aid to finance the construction of infrastructure such as roads and ports can be followed up by technical cooperation to facilitate the development of human resources that are capable of operating and maintaining the resulting infrastructure. Although efforts to coordinate three assistance schemes have already taken place in the past, the new JICA's system enables more organized operation from the initial planning stage of each project. Previously, separate development studies were conducted respectively for different assistance schemes when formulating a project. "Preparatory Surveys"—newly adopted survey studies applied uniformly to the three schemes—can conduct development studies without being tied to a particular assistance scheme. "Preparatory Surveys" would accelerate project formulation more promptly.

New JICA also regards surveys and research on international cooperation as one of its key operations. Accordingly, it established JICA Research Institute, reorganizing the research functions of both the former JICA and JBIC. The institute will carry out policy-oriented researches, placing emphasis on gaining public understanding of and support for Japan's ODA. Another aim is to establish a knowledge base concerning international cooperation within Japan, capitalizing on the wealth of experience and know-how in the area acquired by the former both JICA and JBIC.

New JICA will continue to conduct its traditional operations. This includes the dispatch of Japan Overseas Cooperation Volunteers and Senior Overseas Volunteers to assist in developing countries' social and economic enhancement. As well, regarding prompt actions against major disasters in the world, New JICA will continuously dispatch Japan Disaster Relief Teams and provide emergency relief goods in the wake of major disasters.

The inauguration of the new JICA would enhance the quality of Japan's ODA and thereby allow more efficient, effective, and rapid implementation.

Disbursements of STEP (Special Terms for Economic Partnership)

Grant Aid	New JICA	MOFA
Grant Aid for General Projects	✓
Grant Assistance for Human Resources Development Scholarship	✓
Grant Aid for Disaster Prevention and Reconstruction	✓
Grant Aid for Community Empowerment	✓
Grant Aid for Poverty Reduction Strategy	✓
Grant Aid for Environmental Program	✓
Grant Aid for Fishery	✓
Cultural Grant Aid	✓
Food Aid (KR)	✓
Grant Aid for Unprivileged Farmers (2KR)	✓
Non-Project Grant Aid	☐
Grant Assistance for Grassroots Human Security Projects	☐
Grant Assistance for Japanese NGO Projects	☐
Grant Aid for Cooperation on Counter-Terrorism and Security Enhancement	☐
Grant Assistance for Cultural Grassroots Projects	☐
Emergency Grant Aid	☐