Grant Assistance for Grassroots Projects.

The emergence of the new development issues led to the revision of the ODA Charter in 2003 along with the promotion of ODA reforms in Japan.

## Section 4

## Meeting the Challenges of a New Era (Revised ODA Charter) (2003-present)

Coming of a New Era

On August 29, 2003, the Japanese Government revised the ODA Charter, basic document of ODA policy, for the first time in 11 years. In revising the ODA Charter, discussion was held in a more transparent way than ever before taking into consideration current international and domestic conditions surrounding ODA. The revised innovative ODA Charter comprehensively indicates the desirable form and future direction of ODA so that it can meet the challenges of the new era.

The revised ODA Charter stipulates that the objectives of ODA are "to contribute to the international peace and development, and thereby to help ensure Japan's own security and prosperity." It also positions the efforts through ODA as the most suitable policy for Japan, a nation aspiring for peace, to gain approval from the international community.

Moreover, in the revised ODA Charter, the "Basic Policies" section showing the desirable form of Japan's ODA, is newly formulated. In this section, the Charter takes over the philosophy that Japan's ODA would support the self-help efforts of developing countries based on "good governance," and newly describes the perspective of "human security" focused on individuals. Furthermore, the Charter clearly specifies as basic policies the assurance of fairness in assistance, including the perspective of gender equality, the utilization of Japan's experience and expertise, and partnership and collaboration with the international community.

Regarding issues to be addressed by ODA, the revised Charter places emphasis on "poverty reduction," "sustainable growth," "addressing global issues" and "peace-building," while considering current international development issues in which a multiplicity of problems, such as gap between the rich and the poor, ethnic and religious conflicts, armed conflicts, terrorism, suppression of human rights and democracy, environmental issues and infectious diseases, are intertwining with each other. Particularly, "peace-building" is newly advocated as a sector on which Japan has focused in recent years.

In the Charter, Asia remains as the priority region. This is because the region has a close relationship with Japan and can have a major impact on Japan's security and prosperity. Nonetheless, Japan will strategically prioritize assistance to Asian countries including fields and aid targets, fully taking into account the diversity of the countries' socioeconomic conditions and the changes in their respective needs for assistance. The "Formulation and Implementation of ODA Policy" makes clear how the government, etc. should formulate and implement the policy, on the basis of the discussions on ODA reforms and various proposals in the past. It lists unified and coherent formulation of ODA policy by the government in its entirety, strengthening of the policy consultation with recipient countries and of the functions of field missions, collaboration with wide-ranging aid-related entities, including NGOs, and increasing public participation.

In line with the philosophies and priorities as well as the formulation and implementation of ODA policy as indicated in the ODA Charter, Japan continues the efforts to implement ODA more efficiently and effectively while taking advantage of the features of Japan's ODA, in order to improve more the quality of assistance. Japan also makes a significant contribution to the formation of international trends on assistance by conveying its own view to the world on the basis of its past experience.

In the future, it is necessary for Japan to exert its leadership more in the international community as a leading donor, as well as seeking to achieve effective assistance with a high level of strategy, flexibility, efficiency and transparency, in line with the revised ODA Charter and the changes of the times.

Public hearing about revision of the ODA Charter