## Chapter 1

# Japan's ODA in Terms of Disbursements

"Sihanoukville Port Urgent Expansion Project" (Cambodia) in which a clause for HIV/AIDS prevention was included in a construction contract for a Yen loan project. Since there is a concern that the number of HIV carriers will increase due to converging of laborers when implementing the project, Japan is working on preventive measures. (Photo: JBIC)

## Key Points

● Japan's ODA disbursement in 2003 (calendar year) has decreased for the third consecutive year since 2000, but Japan was still the second largest donor in the world as in the previous year.

● Yen loans, etc. (on a net disbursement basis by deducting the amount repaid from the amount of loans) largely decreased reflecting that the amount of past Yen loans repaid has constantly accumulated.

Japan's ODA (Official Development Assistance) disbursement $ ^{1} $ in 2003 as a whole decreased by 4.3% from the previous year to approximately 8,879.66 million dollars (decrease by 11.4% from the previous year to approximately 1.0292 trillion yen on a yen basis). Specifically, bilateral ODA decreased by 5.4% from the previous year to approximately 6,334.23 million dollars, and ODA through international organizations decreased by 1.7% from the previous year to approximately 2,545.43 million dollars. Bilateral ODA accounts for approximately 70% of the Japan's entire ODA while ODA through international organizations accounts for approximately 30%, indicating that bilateral ODA comprises a central part. In general, bilateral ODA is expected to contribute to enhancing the amicable relationship between Japan and recipient countries through people-to-people ties formed by implementation of assistance projects formulated after consultation with developing countries. On the other hand, ODA through international organizations has advantages, such as being able to use the expertise and political neutrality of international organizations and being capable of providing support to countries and regions to which government-based assistance hardly reaches. Thus, Japan has taken a flexible approach in collaboration with international organizations.

Looking at bilateral ODA by scheme, in terms of grants, grant aid decreased by 1.2% from the previous year to approximately 1,695.72 million dollars (accounting for 26.8% of the entire bilateral ODA), and technical cooperation increased by 3.4% from the previous year to approximately 2,747.38 million dollars (43.4% of the same). Yen loans, etc. decreased by 18.5% from the previous year to approximately 1,891.13 million dollars (29.9% of the same). These schemes have different characteristics, and Japan has adopted these various schemes in a balanced manner in consideration of the actual conditions and assistance needs of recipient countries. Japan has historically provided support with the emphasis on human resources development and institution building through technical cooperation, which is also being reflected in disbursements in fiscal year 2003. In addition, a large decrease in Yen loans reflects that the figure is indicated on a net disbursement basis by deducting the amount repaid from the amount of loans and that the amount of past Yen loans repaid by developing countries, mainly those in Asia, has constantly accumulated.

Viewing bilateral ODA disbursements by region, assistance to Asia decreased by 21.0% from the previous year to approximately 3,226.09 million dollars, accounting for approximately 53.6% of the entire bilateral ODA. Assistance to Africa decreased by 9.2% from the previous year to approximately 529.98 million dollars (8.8% of bilateral ODA), that to the Middle East increased by 99.5% from the previous year to approximately 416.48 million dollars (6.9% of the same), that to Latin America decreased by 21.7% to approximately 463.87 million dollars (7.7% of the same), that to Oceania