(1) Only in the context of world peace and stability can Japan secure its survival and prosperity. Furthermore, for Japan, a peaceful country, the policy of providing economic support is the only positive means.

(2) Japan, with few natural resources, must place emphasis on trade for securing imports of natural resources, and the interdependent relationship between Japan and developing countries is extremely deep. Maintaining friendly relations with these countries is extremely important for Japan's economic development.

In 1980, "the Philosophy of Economic Cooperation: Why Official Development Assistance is Necessary," a paper compiled by the Economic Cooperation Research Association which was organized by a working-level official of MOFAA, raised two points as the basic philosophy of the Japanese economic cooperation-humanitarian and moral considerations, and awareness of interdependence. Furthermore, it stresses that Japan faces more needs than other developed countries for actively promoting assistance for developing countries because of the unique Japanese position particularly as (1) a peaceful nation; (2) a major economic power continuing to develop in the future; (3) having an extremely high level of economic dependence on foreign countries; and (4) having a position of drawing special expectations from developing countries as a modern non-western state.

Meanwhile, in the same period, the Policy Research Association $ ^{23} $ of then Prime Minister Ohira took up economic cooperation for developing countries from the perspective of comprehensive security. A report submitted in 1980 took the position that the stable development of North-South relations was particularly important for Japan, and stated that Japan had to play a major role in the development of developing

Site of construction of Educational and Cultural Center Egypt, 1987

(Photo: JICA)

countries as part of efforts for comprehensive security and establishment of order between North and South, making the following points regarding economic cooperation.

(1) For advanced industrial nations including Japan, contributing to the domestic development of Southern countries by promoting economic cooperation and assistance, and maintaining and strengthening friendly and mutually beneficial relations with these countries through this contribution is an extremely important issue. Since Japan is a peaceful country, expected to have more economic growth in the future, and has an extremely high level of foreign dependence for natural resources and energy, it must-more than other advanced countries-be active in providing economic and technical cooperation.

(2) Economic cooperation is a central policy for Japan in developing long-term friendships with countries that are politically and economically important, and it is the only positive means Japan can take in international relations.

(3) Developing countries expect highly to learn from the experiences of Japan, achieved modernization in a little less than 100 years with a background completely different from the West both culturally and racially. For this reason, playing a major role in establishing an order between North and South is Japan's historical mission.

## Movement for structural adjustment

In development theory in the 1980s, structural adjustment loans (SALs) of the World Bank became the mainstream. The oil shocks that occurred twice in the 1970s led to the start of SALs. The second oil shock, in particular, worsened the economic situations of many developing countries noticeably. After Mexico announced firstly that it was stopping the payment of debt in 1982, Nigeria and the Philippines in 1983, and Brazil in 1987, announced that they were stopping the payment of medium and long term debt to private banks. By doing so, developing countries-mainly in the countries of Central and South America-had fallen into a debt crisis.

For rescuing these developing countries, project-type assistance or assistance for securing liquidity over the short-term to respond to the temporary worsening of the finances of developing countries alone was insufficient. And international organizations came to recognize the necessity for support for