other fields that have a great influence on basic living conditions. Supporting the "Global Polio Eradication Initiative" of the WHO to eradicate polio worldwide by 2005, Japan actively gave polio vaccine and other assistance to India, Pakistan, and Bangladesh in fiscal year 2003 in an effort to eradicate polio in South Asia, following the successful eradication of polio in the West Pacific.

Japan has been providing South Asia with assistance for human resources development and economic and social infrastructure building in order to stimulate private sector activities and create a domestic environment that can attract more foreign investment. Japan has given such assistance mostly to Nepal, Bangladesh, and Sri Lanka because India and Pakistan already have a relatively high level of technology. To support projects related to basic social and economic infrastructure building in South Asia, Japan has been giving grant assistance mainly to least developed countries in the region. Japan also provided India with Yen loans to support projects mostly in the fields of energy and transportation infrastructure. Such projects include the "Purulia Pumped Storage Project (II)," which is designed to solve a serious power shortage, the "Delhi Mass Rapid Transport System Project (V)," which is designed to alleviate traffic congestion and air pollution that have been getting worse in the capital, Delhi, and the "Integrated Natural Resource Management and Poverty Reduction Project in Haryana," which is designed to improve the environment through forestation carried out with the participation of citizens and also to increase the incomes of the poor in the area.

With regard to the peace process in Sri Lanka, Japan, the U.S., Norway, and EU (European Union) co-chaired the "Tokyo Conference on Reconstruction and Development of Sri Lanka" in June 2003 with the participation of 51 countries and 22 international organizations. In the Conference, attendees announced their intention of providing assistance of more than 4.5 billion dollars in total over the next four years. Japan also announced its plan to give assistance up to 1 billion dollars over the next three years in consideration of the future progress of the peace process. For further information on the peace process of Sri Lanka, see page 52 of the ODA White Paper 2003.

### 3. Central Asia and the Caucasus

Japan's ODA given to Central Asia and the Caucasus on a bilateral basis totaled approximately 345.53 million dollars in 2003, accounting for 5.7% of the total bilateral ODA.

Japan has been actively assisting Central Asia and the Caucasus to make the transition to market economy in the new international circumstances created after the collapse of the former Soviet Union. Japan has been actively supporting the region's efforts for economic and social development especially since the terrorist attacks on the U.S. in September 2001 because the region plays a more important role and has greater influence on the world in the international circumstances altered by the attacks. The ODA Charter specifies that Japan should assist the region to make the transition to democracy and market economy. Japan's assistance to the region consists mostly of technical cooperation to develop human resources and financial aid to mitigate the difficulties caused by the economic reform.

The counties in Central Asia and the Caucasus are in the process of transforming from the state-planned economy system to the market economy system. It is therefore important for Japan to extend cooperation to the region for the development of human resources and proper systems. From the eight countries in the region, Japan accepted approximately 3,100 trainees by the end of fiscal year 2003. Japan's assistance for the development of human resources and systems of the region includes the dispatch of experts on economic management, legal system development, telecommunications, finance, environment, transportation infrastructure, and health and medical care. It also includes the performance of surveys for the development of energy, natural resources, and the social sector.

In an effort to contribute to the development of human resources in Uzbekistan, Kazakhstan, and Kyrgyzstan, Japan established a "Japan Center for Human Development" in these respective countries, to which experts are dispatched from Japan to give lectures on economics and corporate management, and other business-related subjects as well as the Japanese language.

In some countries in the region, living standards greatly differ from one area to another. In order to narrow the gaps especially in such fields as health and medical care, Japan has been providing the region with assistance. For example, Japan carried out a national health program in Kyrgyzstan in order to promote the health of people in Kyrgyzstan, contributing to a certain extent to the improvement of the health standard that had been rapidly deteriorating. The health standard of infants is still lower than that of other countries in Central Asia. It is therefore urgently needed to improve the capabilities of children's hospitals. In order to give better medical care to children, Japan has been carrying out the "Project for Improvement of Child Health Care in Rural Areas," in which Japan provides free medical equipment as grant aid. In Georgia, Japan has been implementing the "Project for