Document(s) 7 de 13

The four entities under the four-entity system
Public corporations
Other ministries
Government-affiliated organizations

Chapter 2 described the four-entity system, along with the roles of each entity in the system. This chapter adds a few elements on each entity and then concentrates on the other government participants in Japan’s ODA system. 

The four entities under the four-entity system

MOF

Three MOF bureaus act on official aid: International Finance, Budget, and Financial (see Appendix A15 for an organizational chart of MOF). The International Finance Bureau has exclusive jurisdiction over issues with respect to multilateral financial institutions. It communicates and negotiates with its counterparts in advanced countries while considering Japan’s responsibilities in international financial affairs. The Budget Bureau is mainly concerned with ensuring that aid expenditures are made as efficiently and cost-effectively as possible. It sets ceilings for ODA funds and examines the budget requests of other ministries. The Financial Bureau administers FILP and issues government bonds. 

MOFA

The major ODA-related activities of MOFA were described in Chapter 2. MOFA officials head delegations to negotiate with recipient governments and to consult with other donors. MOFA’s Evaluation Division examines completed projects, as described in Chapter 2. One of MOFA’s important responsibilities is to explain Japan’s ODA to foreign and Japanese audiences. It collects data and compiles statistics on international cooperation and provides information through seminars and publications. 

MOFA hosts donor meetings to coordinate aid policies with other donors and international organizations (for example, the Consultative Group Meeting for Mongolia, Tokyo International Conference on African Development), as well as coordinating its efforts with those of other donors on individual projects. It holds annual aid-policy dialogues with Australia, Canada, the European Union, France, Germany, the Scandinavian countries, and the United States. 

Within MOFA, the responsibility for ODA rests with ECB, but various other bureaus also act on ODA, such as Foreign Policy, with its Multilateral Cooperation Department; Economic Affairs; Asian Affairs; Latin American and Caribbean Affairs; and Middle Eastern and African Affairs. The head of ECB is also the head of Japan’s ODA and its chief spokesperson. ECB is responsible for the full range of Japan’s ODA-related activities (see Appendix A14 for an organizational chart of MOFA). 

Apart from fulfilling its responsibility at the policy level, MOFA provides grant aid and technical cooperation to developing countries, in line with ODA policy directions. In 1997, 46.2% of Japan’s technical cooperation was allocated to JICA, under the ODA portion provided to MOFA. Under JICA’s technical cooperation, in the 1996 calendar year, 11807 persons from developing countries received training; 14419 persons were involved as experts and members of study teams; and 3408 persons were sent as volunteers (JICA 1997). JICA is a public corporation created under MOFA to provide technical cooperation (see the section “Public Corporations,” below). Under MOFA’s guidance, JICA plays a very important role, especially in its ability to address front-runner issues in ODA, such as poverty reduction, pollution control and environmental protection, assistance to economies in transition, grass-roots development, and, recently, the challenges of bringing sustainable peace to countries torn by civil conflict. (JICA’s programs will be described later on. Decisions for JICA’s activities rest with the ECB of MOFA, which includes divisions for every JICA scheme.) It oversees JICA’s activities to a level of micromanagement that would be surprising to anyone familiar only with the Canadian ODA system. In fact, working on joint cooperation with JICA involves the de facto inclusion of MOFA at the decision-making level. 

MOFA is also responsible for grant aid for the provision of facilities and equipment. JICA provides support for the implementation of some of the grant-aid schemes. According to JICA’s 1997 annual report (JICA 1997), these were general project grant aid, fishery grants, and aid for increased food production. (See the section on JICA in this chapter for further details.) 

MOFA uses another of its public corporations, the Japan Foundation, in the provision of technical cooperation and grant aid in the area of culture, social sciences, and humanities (see the section on the Japan Foundation in this chapter). In addition, many government-affiliated organizations assist MOFA in a variety of ways. These are nonprofit organizations with the legal status of public-interest corporations (see the section “Government-affiliated organizations,” in this chapter). For example, the Foundation for Advanced Studies on International Development (FASID) was set up with MOE, as a kind of development university to train government staff on economic development, prepare experts for overseas assignments, and conduct research to improve the delivery of Japanese ODA. JICS and Japan International Cooperation Center (JICE) were created under JICA to facilitate the provision of services and the procurement of equipment, and APIC was created for the provision of information and public-education programs about Japan’s ODA. 

MITI

The business community is interested in aid-generated business opportunities, as well as economic security, favourable international relations, and a strong global economy. MITI favours combining official aid with direct private investment, distribution of aid to countries in close economic relations with Japan, and qualitative and quantitative aid increases. MITI also administers insurance for Japanese corporations to mitigate the risks of overseas investment, export, and supply of technical services overseas. Like the other ministries and agencies, MITI has its own ODA budget to finance its ODA-related activities. 

Like MOFA, MITI also provides technical assistance to developing countries, especially in areas related to infrastructure and private-sector development. In 1997, MITI was allocated 55.8 billion JPY (461.4 million USD) from the general account budget (Appendix A12). MITI can use this budget to conduct surveys and exploratory missions for project identification and development, sponsor seminars and workshops, dispatch experts overseas, provide training in Japan for public- and private-sector employees from developing countries, etc. MITI works in close relation with the Japanese private sector through a large number of government-affiliated organizations that receive subsidies from MITI for their ODA-related activities. For example, MITI and the private sector work in close collaboration with developing countries to provide training for private-sector personnel through the Association for Overseas Technical Scholarship (AOTS) (see the section on AOTS in this chapter), with financing from MITI and the private sector; 4882 persons from developing countries benefited from this program in 

1996 (JICA 1997). Likewise, for the dispatch of experts under the Japan Overseas Development Corporation (JODC), 428 experts were sent to developing countries in 1996 (JICA 1997). MITI also subsidizes ECFA, another public-interest corporation, for the provision of engineering consulting services from its member consulting engineering firms for the conduct of studies and projects in developing countries — this is but a sample to indicate the range of opportunities provided to developing countries through the use of ODA to leverage Japanese private-sector participation and financing. 

EPA

Public corporations

public corporations (“Tokushu-Hojin” in Japanese, which literally means a corporation with a special status) are established by the national government by special law as instruments for activities required by the state.

A public corporation is established primarily when particular activities are better managed in the form of a profit-making enterprise, when efficiency in performance is more likely to be achieved than under direct operation by the national government agencies, or when more flexibility in financial or personnel management is required than is normally possible under the laws and regulations pertaining to government agencies.

• Government-affilitated corporations described later in this chapter; 

• Corporations described in Chapter 4; and 

• Citizen-led NGOs with legal status, described in Chapter 5. 

JICA

JICA functions like an executing agency for MOFA. As it is a public corporation, its staff are not considered government employees for purposes of salary or compensation. In contrast to CIDA, it establishes its overseas offices separately from the Japanese embassies, and JICA staff, like those of OECF, have no diplomatic status. As in OECF, JICA’s employees are the career development professionals of the Japanese government. JICA has no involvement in policy and programing, as this is considered the prerogative of MOFA. However, it covers the full range of activities at the project level after Japan receives a project request from a developing country. Recently, with the creation of the Project Formulation Study Department, JICA has been more active in project identification. MOFA bases its decisions on the analyses and recommendations of JICA. 

The proposals are reviewed in JICA’s Planning Department, which consults with other parts of JICA before preparing recommendations to MOFA for approval or for further study. The process follows an interesting time line. Every developing country must submit its official proposal for a scheme to the Japanese embassy by a set date in the summer. The project is reviewed; consultations are made; and recommendations are prepared by the end of the spring in time for their inclusion in the budget for the coming fiscal year (Japan’s fiscal year starts 1 April). Agreements for accepted proposals are elaborated and signed between spring and summer so that in the majority of cases the recipient-country government has a signed agreement for funding its proposals within about 1 year after presenting the official request. 

However, in contrast to CIDA’s process, in which the agreement is signed after the project is planned and the overall budget is set, in JICA’s process, an agreement is given at the very preliminary stage. The agreement essentially states Japan’s intention to implement the project, the duration of the assistance, the area of technology transfer, a general overview of objectives, and a general indication of inputs to be provided. The agreement contains no mention of a budget. The magnitude of Japan’s contribution to a project will be known only when the project is finished. The only fixed numbers concern the long-term assignment of experts. After the agreement is signed, a fairly senior person is recruited from the relevant ministry to fulfill the long-term assignment. He (women are scarce in this function) is under no contract to JICA; rather, for him, this is simply part of his work in the ministry. He acts as project team leader, and his first responsibility is to work with counterparts in the developing country to develop the actual work plan for the project and identify the required resources. This work plan is updated yearly and serves as the basis for the mobilization of resources. The project team leader does not have contractual control over the work of other Japanese experts assigned to the project; rather, the relation is similar to that of a supervisor and employees within the government, because the other experts will most probably be from his own ministry. This should be kept in mind when working in joint cooperation with Japan. In some situations, it may be difficult for these people to relate to nongovernmental or private-sector experts contracted to work in the implementation of CIDA projects. Their relationship with JICA would be different than with CIDA. Some Japanese officials on JICA projects might feel uncomfortable with the difference in status and prefer to work with CIDA officials at the embassy. 

To assist in the process of joint cooperation with other multilateral and bilateral donors, JICA created the Joint Cooperation Promotion Division (JCPD) within its Planning Department. JCPD is also in charge of relations with local governments and nonprofit organizations. Joint collaboration with other donors (bilateral and multilateral) is done through consultations (for example, World Bank-sponsored consultative group meetings), joint studies, expert meetings, joint projects (for example, with UNDP, the United States, and CIDA), the joint sponsorship of symposiums and seminars (for example, the Joint CIDA–JICA Seminar on Southern Africa), and placement of persons, such as in UNDP, the World Bank, or ADB. From September 1992, JICA has had an ongoing personnel-exchange program with CIDA, with the assignment of personnel for 3-year terms. 

JCPD is in charge of the planning and implementation of joint-cooperation activities with other bilateral and multilateral donors, from initial discussion to implementation and mobilization of resources. This may create difficulty, as it does not have a specific budget for the implementation of joint collaboration. For this reason, it has to gain the support and approval of the other departments in JICA to implement joint-cooperation activities. 

JICA manages the technical cooperation program of the Government of Japan and assists MOFA in the administration of grant aid. JICA also manages a loan program for private-sector activities in developing countries. 

Technical cooperation

• Training of trainees from developing countries; 

• Dispatch of experts; 

• Provision of equipment and materials related to the experts’ work; 

• Project-type technical cooperation; 

• Development studies; 

• Dispatch of volunteers; and 

• Disaster relief. 

In fiscal year 1996, 

• 3182 trainees were from Asia (44.4%); 

• 1630, from Latin America (22.7%); 

• 943, from Africa (13.2%); 

• 732, from the Middle East (10.2%); 

• 240, from Oceania (3.3%); and 

• 444, from Europe and North America (6.2%). 

• 1721 were trained in planning and government policy (24%); 

• 1401, in public-works projects (19.5%); 

• 1202, in agriculture, forestry, and fisheries (16.8%); 

• 757, in health and medical services (10.6%); 

• 623, in manufacturing and mining (8.7%); 

• 615, in human resources (8.6%); 

• 463, in commerce and tourism (6.5%) 

• 211, in energy (2.9%); and 

• 178, in social welfare (2.5%) (MOFA 1997c). 

• Acceptance of trainees to train in Japan — In Japan, personnel from the relevant ministries, government agencies, universities, research institutes, hospitals, and private enterprises directly instruct participants. The trainees have the support of interpreters, training supervisors, travel agencies, hotel staff, and JICA International Centres. JICA conducts follow-up studies after the trainees return to their home countries, to examine the results and efficacy of training. JICA also provides aftercare by dispatching follow-up teams to the recipient country, providing literature and technical information, and supporting the establishment of alumni associations. (See Appendix B3 for the procedure for acceptance of trainees to train in Japan.) 

• Third Country Training Program — Under the Third Country Training Program, trainees receive individual or group training in another developing country. This type of training helps to transfer technology to the trainees in ways that are compatible with local conditions, as the host and recipient countries are in similar cultural, environmental, and social situations. The host country manages the training program, and JICA covers the cost of the trainees. Usually, the trainees take the course at an institution established by JICA or one that JICA assisted in the past. When required, JICA also provides the host institution with equipment and Japanese experts. 

• In-Country Training Program — Under the In-Country Training Program, personnel from developing countries who have been trained through Japan’s technical cooperation implement training programs for people in their home country. 

In the context of project-type technical cooperation, the number and the areas of specialization of the long-term experts needed for a project are identified in the agreement between the two governments on the project. One long-term expert (1 year or more) is usually assigned as the project team leader and sent to start the project. His first task is to work with counterparts in the recipient country to identify needs and develop the first of the annually revised project-implementation work plans, including the requirements for other experts. JICA, unlike CIDA, contracts out no part of the execution of a project. JICA manages the process. Also, unlike CIDA, the various ministries provide experts. The ministries thereby have a significant impact on project planning and implementation. Their capacity to free personnel to fulfill the requirements for a specific expertise may affect the choice of projects and the ways implementation is conducted. It may be difficult to free someone for 1 year or longer for a long-term assignment or even for more than 2 or 3 weeks for a short-term assignment. However, there are no lengthy delays associated with the contracting process, as sometimes occurs in CIDA, and the response to a need can be very prompt. 

Experts can also be categorized by the method of their selection, as follows: 

• General experts — These people are recommended by the ministries and can be from the ministries themselves or from related organizations, local governments, or private-sector firms. 

• JICA-recruited experts — These are recruited from either a roster of consultants at JICA or through an open competition. 

• JICA-directed experts — Through its Institute for International Cooperation (IFIC), JICA has developed its own in-house development specialists; they are not considered JICA employees, as they are on contract to IFIC. JICA also recruits associate and junior specialists on contract through IFIC to help identify and plan projects, development studies, evaluations, etc. They can also be assigned to JICA projects overseas. JICA staff can be seconded to IFIC, with expert status. (See Appendix B4 for the procedure for the dispatch of experts by JICA.) 

Although most equipment-supply contracts go to Japanese companies, the supply is not confined to Japanese products; Japanese suppliers can purchase equipment from non-Japanese sources. JICA can also purchase equipment of non-Japanese origin from suppliers in developing countries, including suppliers from industrialized countries established there. The Japanese also have a tendency to use a reliable supplier with a good international reputation already established in a developing country as a preferred source for local procurement. JICA pointed out that in a number of instances it has purchased equipment from Canadian suppliers in developing countries. (See Appendix B5 for the procedure for provision of equipment and materials related to the work of experts.) 
Project-type technical cooperation — Possibly because the budgetary process is set up according to schemes, a project-type technical cooperation scheme was set up to allow MOFA–JICA to combine three forms of technical cooperation: recipients are trained in Japan; experts are dispatched to the project centre in the developing country; and equipment and materials are provided. JICA also provides funds to facilitate the transfer of technology. JICA has five project-type technical cooperation departments: Social Development; Medical; Agricultural Development; Forestry and Fisheries Development; and Mining and Industrial Development. 

The recipient must provide the project base (for example, land, buildings, local experts) and pay for the local costs of the project (for example, operating expenses). Increasingly, grant-aid programs are used to construct the project base when the recipient is unable to provide the necessary facilities. (See Appendix B6 for the procedure for implementing project-type technical cooperation.) 
Development studies — JICA has three development-studies departments: Social Development; Agriculture, Forestry and Fisheries Development; and Mining and Industrial Development. Development studies are used to gather data needed to develop plans for roads, ports, electric-power systems, telecommunications systems, sewerage and water-supply systems, agricultural development, and other economic and social infrastructure. Study teams are dispatched to gather information, and the resulting reports are submitted to the governments of developing countries, which can then use them to guide social and economic development. Development study reports provide important guidelines to recipient-country governments to help draft policy. They can also be used as sources of basic data in writing requests for financial and technical assistance to implement development plans. In recent years, JICA has carried out a new type of development study, which offers policy recommendations and other institutional assistance for medium- and long-term economic-development planning, promotion of the transition to a market economy, and human-resource development. In conducting development surveys, Japan puts itself under no obligation to provide funding for the implementation of the project for which the survey is conducted. About 30% of JICA-funded surveys receive Japanese ODA funding for implementation. JICA also conducts follow-up and aftercare studies. 

Technical knowledge (that is, about planning methods, studies, analytical techniques) is transferred throughout the duration of a study. Workshops and seminars are often held concurrently with development studies to train personnel in the recipient country to conduct such studies (for example, to improve the administrative skills of government officials). 

The study teams comprise consultants under contract with, and selected by, JICA. Japanese ministries and JICA also provide experts as advisors to the teams. JICA only contracts with independent suppliers, manufacturers, or general contractors (that is, not individuals) registered with JICA and incorporated in Japan. The firm must have been financially sound for the previous 2 years, and the project manager must be a Japanese national. So must at least 50% of the study team. Currently, 574 firms are registered with JICA (JICA Procurement Department 1995). According to JICA, about 20 of these receive around 70% of the contracts. Fourteen of these 20 firms are members of ECFA. Government-affiliated organizations from the various ministries can also be used to conduct the studies. 

Non-Japanese people may constitute up to 50% of the study team. They are subcontracted by the Japanese firms bidding for a JICA contract. From November 1988 to March 1997, a total of 502 non-Japanese consultants from 59 countries were members of 278 JICA study teams. About 60% were locally engaged from developing countries. The donor countries that provided the largest number of foreign consultants to JICA study teams were the United States (66), the United Kingdom (64), France (21), and Australia (12). These arrangements employed 9 Canadian consultants during this period (Derouin 1997).⁴

JICA conducted 320 development studies in fiscal year 1996, with the following sectoral distribution: manufacturing and mining (26.9%), agriculture, forestry, and fisheries (19.4%), transportation (16.9%), public-works projects (13.4%), construction (9.1%), telecommunications (1.3%), and other sectors (13.1%) (MOFA 1997c). (See Appendix B7 for the procedure for implementing development studies.) 

The various types of development studies are as follows: 

• Master-plan survey — Master-plan surveys examine the development potential of projects for regions or specific sectors, the relation between individual projects, and their investment priority. JICA uses these surveys to create comprehensive plans for development (long-term national or regional plans or long-term plans for specific sectors) compatible with a country’s other development plans. These surveys also clarify the priority and implementation strategies for the plans. The recipient government uses development plans to create development strategies and search for funding. Japan uses them as a reference for future financial cooperation (to plan projects). 

• Feasibility study — Feasibility studies account for more than half of development surveys. These studies analyze the technical, economic, social, organizational, environmental, and financial feasibility of specific projects. They are used to determine the best implementation plan for the project. 

• Detailed design survey — A detailed design survey is the next step toward the implementation of a project, after the feasibility study. Detailed design studies are conducted for projects for which Japan has arranged financial cooperation and authorized implementation. These studies prepare a detailed design on which to base the project construction and bid-related documents (for example, design blueprints, material specifications) and calculations of cost. 

• Surveys to collect basic data to adopt development studies — Such surveys may collect data for topographical maps, evaluate natural resources, such as water or forestry and fishery, marine, and mineral resources, or demonstrate technological possibilities (for example, the experimental cultivation of crops to analyze cultivation methods before forming an agricultural development plan). 

• Follow-up and aftercare studies — These studies review and complement other completed studies. JICA implements follow-up studies to examine the progress of projects previously studied. It uses the results to improve future development studies. 

• Studies to support the transition to a market economy — JICA may send a study team to help a country to devise implementation plans to promote its transfer to a market economy, examine the feasibility of its privatization plans, and prepare related manuals and texts. 

• JOCV — JOCV, a secretariat of JICA, provides the opportunity for young people aged 20–39 years, with technical expertise, to work as volunteers in developing countries to help with social and economic development. JOCV conducts its activities in four main areas: village work, educational work, job-site work, and supervision. For village work, the volunteer lives in a village and demonstrates and disseminates technology (for example, agricultural technology). Educational work entails the provision of vocational training and training in science, math, Japanese, and other subjects. With job-site work, volunteers provide on-the-job training for local people in civil engineering, construction, and communications. Under supervision, volunteers supervise project planning and design, experiments, and research at the head office or the experimental workstation. The Japanese government pays for the volunteers’ travel, living expenses, essential equipment, materials, and medical supplies. The recipient country must provide their housing and tax exemptions on allowances or supplies paid for by JOCV. 

• Youth Invitation Program (Friendship Program for the 21st Century) — In 1984, the Youth Invitation Program began, with the aim of inviting junior leaders from developing countries to visit Japan for 1 month. During this month, they receive training in their specialty and experience homestays in various parts of the country. Through broad-based contacts with the Japanese people, these young people deepen their understanding of Japan and forge friendships with the Japanese people. Participants of both genders, ranging in age from 18 to 35 years, are recommended by their governments and have a variety of professions, including those of public officials, educators, farmers, and urban workers. 

• Senior Volunteers — This NGO sends volunteers within the age range 40 to 69 years. They are recruited from among people who want to work in development cooperation projects in developing countries. JICA works with the Senior Volunteers to help deploy elder persons with expertise and experience in developing countries. JICA funds the volunteers’ travel expenses when they are assigned to certain countries. 

The JDR team comprises one or a combination of the following elements: 

• Rescue teams, which try to leave Japan within 24 hours after a request has been approved to search for and rescue victims and administer first aid; 

• Medical teams, comprising doctors, nurses, and medical coordinators registered with the secretariat of the JDR team (they try to leave within 48 hours after a request has been approved, to provide or assist with medical treatment for the disaster victims and help prevent the spread of disease); and 

• Teams comprising experts suited to the type of disaster and recommended by relevant ministries, government agencies, and other bodies to implement emergency measures after disasters and advise on reconstruction. 

Development cooperation: JICA loans to the private sector

Investment and financing — JICA offers low-interest, long-term loans to Japanese corporations to implement development programs in developing countries or to fund the development programs of local corporations in a developing country. These loans finance projects for which it would be difficult to obtain loans, credit guarantees, or investment and financing from JEXIM or OECF. The loans may be provided for a pioneering, trial project that is highly unlikely to succeed unless technology is improved or developed at the same time as the project (for example, a cultivation of crops with new technology). JICA also provides this type of development cooperation to improve the public facilities needed by a private company for a development project and to improve the welfare and living standards of surrounding communities (for example, schools, roads, or water supplies, electric-generating facility).

Technical support — JICA provides technical support to Japanese enterprises as part of its investment and financing system in order to ensure the effectiveness of projects. Several types of technical support may be provided: 

• Studies — For infrastructure projects, JICA may conduct preliminary studies (for example, to determine the feasibility of a project or examine possible locations) or full-scale studies (to formulate the basic design for a project), or both. For experimental projects, JICA conducts primary basic studies (for example, project feasibility studies and examinations of possible project locations), secondary basic studies (for example, to select a project location and formulate the basic development concept), or development planning studies (for example, to develop an implementation plan and design for a project), or any combination of these. 

JICA may also conduct studies to evaluate ongoing projects to solve any of their problems or to evaluate their impact on the development of the region. In addition, JICA conducts studies to identify and formulate projects suitable to receive environmental investment and financing. 

• Dispatch of Experts — If an enterprise is unable to solve a technical problem at the project site, it can request JICA to support it by dispatching experts to the developing country to give advice. 

• Acceptance of local staff for training in Japan — An enterprise may request JICA to support its efforts by bringing local staff (for example, engineers) from a developing country to train in Japan to improve their technical abilities. 

• Consultants to help the enterprises — JICA has two investment and financing consultants (one for agriculture and forestry and another for social development, mining, and industry) to assist the efforts of enterprises by examining the validity of project plans and avenues for potential financial support. 

Relations with other donors

JICA and USAID have also established joint cooperation within the context of the Common Agenda for Cooperation in a Global Perspective, which was agreed on by both governments in July 1993. Initiatives have been undertaken in such fields as democratization, population, HIV–AIDS, WID, and the environment. JICA has been working together with the British aid agency, the Department of International Development, mainly in Africa, on education and water-supply projects. Exchanges of information and opinions with the German Gesellschaft für Technische Zusammerarbeit (agency for technical cooperation) are taking place, and work is also being carried out with agencies based in Australia and France. Regular discussions on joint cooperation have been held with the World Bank since 1990 and with ADB since 1996. Since 1996, JICA has been holding discussions with recipient countries to promote joint projects with UNDP (JICA 1997). 

South–South cooperation

• New donor nations — JICA is actively supporting the transition from recipient to donor status of the more advanced developing countries in East Asia, the Association of Southeast Asian Nations (ASEAN), and Latin America. Experts are provided, and joint initiatives are undertaken in which JICA funding allows the new donor to expand the scope and range of its activities in support of other developing countries. This brings new sources of funds for the total ODA envelope, as well as new approaches to ODA, which will no doubt enrich the dialogue and the implementation of ODA into the 21st century. 

• Assistance to regional organizations — The Southern African Development Community and Mercado Comun del Sur (Southern Core Common Market), for example, are assisted to encourage regional cooperation on trade and investment and the development of common social and economic infrastructure. 

• Third-country training — As explained earlier, third-country training refers to the use of facilities supported by JICA in a developing country to provide training to participants from other developing countries, and third-country experts refers to developing-country personnel used in the role of experts. 

Grant aid

But grant aid is also used to refer a specific type of cooperation under Japan’s bilateral grants. The various schemes under this definition of grant aid (further described below) are the responsibility of MOFA, which uses JICA to administer some of them: general-project grant aid, fishery grants, and aid for increased food production (JICA 1997). These funds do not have to be repaid and are mostly given to less developed countries (LDCs). Grant aid is intended for projects with high priority in the recipient country’s development plan and with low economic profitability but high public value. These projects would not qualify for an ODA loan, but they contribute to the socioeconomic development of the country and improve the living standard and welfare of the population. Grant aid is provided to fund the construction of buildings or facilities or obtain equipment, materials, or services. Projects must be completed within the same fiscal year in which the Japanese Cabinet approves the grant. But successive grant aid may be approved if the construction spans more than 1 year. The recipient country is responsible for expenses incurred after the completion of the project, such as operating and maintenance expenses and consumable supplies and personnel costs. Thus, the recipient country must have an adequate system to manage the project. The Japanese government favours grant-aid projects related to current or expected Japanese technical cooperation. 

Contracts under grant aid can only be allocated to companies registered in Japan or to any Japanese or non-Japanese company registered in the recipient country if the practice of procuring locally is deemed appropriate and cost efficient. If the contracts go to Japanese companies registered in Japan, they are not tied to buying Japanese; they can subcontract if they wish. In 1997, the grant-aid budget totaled 263.5 billion JPY (2.1 billion USD), comprising economic-development assistance, food aid, and aid to increase food production.⁵

Economic-development assistance — This type of grant aid comprises general projects, fisheries, cultural grant aid, emergency relief, grant assistance for grass-roots projects (Small Scale Grant Aid Program), nonproject grant aid to support economic structural adjustment, and grant aid for debt relief:

• General projects — General projects receive the largest portion of the grant-aid budget; in fiscal 1997, grant aid for general projects accounted for 47.5% (1.251 trillion JPY [10 billion USD]) of the total grant-aid budget (MOFA 1997c). This category includes a wide variety of sectors. It is primarily intended for BHNs, education, population and AIDS, agriculture, primary health care, water supply, the environment, and WID. But it also covers economic infrastructure and development, social development (for example, human-resource development), export promotion; and, for LLDCs, other infrastructure, such as bridges, roads, and telecommunications. (See Appendix B10 for the procedure for implementing grant aid for general projects.) 

• Fisheries — Grant aid for fisheries is intended to foster the development of fishing industries in developing countries. This type of aid funds construction of fishery-training and research centres, fishery-training ships, fishing ports, other facilities, and materials and equipment to promote fisheries in developing countries. Grant aid for fisheries received 10 billion JPY (8.2 million USD) from the grant-aid budget in fiscal year 1997 (of the total grant-aid budget). (See Appendix B10 for the procedure for implementing grant aid for fisheries.) 

• Cultural grant aid — These funds are to maintain cultural assets and historical sites, promote cultural activities, assist theatres and other cultural facilities, provide sports equipment, and purchase materials and equipment for educational and research activities. Cultural grant aid is limited to 50 million JPY for each project. In fiscal year 1997, grant aid for cultural activities accounted for 2.5 billion JPY (20 million USD) of the total grant aid budget. (See Appendix B10 for the procedure for implementing cultural grant aid.) 

• Emergency grant aid — Emergency grant aid includes three types of aid:

 
• Disaster relief — Victims of natural disasters, refugees, and displaced people fleeing civil wars receive disaster relief. In some cases, funds are given directly to the governments of the affected countries; in others, they are channeled through the WFP, the UNHCR, other similar United Nations agencies, the Red Cross, or some other international aid-implementing agency. 

 
• Assistance for democratization — Governments or international organizations in charge of implementing elections receive assistance for democratization, which is intended for the provision of ballot boxes, polling booths, ballot forms, etc. 

 
• Support for reconstruction and rehabilitation — Japan provides support for reconstruction and development by channeling funds through international organizations or through contributions to trust funds set up by, or with, international organizations. In the past year, MOFA has started studying the possibility of providing grant aid bilaterally for reconstruction and rehabilitation. 

• Grant assistance for grass-roots projects (Small Scale Grant Aid Program) - Under this type of aid, up to 10 million JPY (82600 USD) is donated to small projects ineligible for general project grant aid. The funds are provided to organizations operating in a developing country, including local governments, research institutes, hospitals, and Japanese local or international NGOs. The aid must be used for 1-year projects and for the construction of facilities or provision of equipment. This type of aid does not cover administration, management, or salary costs. In fiscal year 1997, grant assistance for grass-roots projects accounted for 1.9% (5 billion JPY [41 million USD]) of the total grant-aid budget. (See Appendix B12 for the procedure for implementing grant assistance for grass-roots projects.) 

• Nonproject grant aid for support for economic structural adjustment — These funds are awarded to assist developing countries with worsening economic situations. The funds are provided to ameliorate international balance-of-payments deficits and foreign debt caused by factors such as increased population, slow production, and inefficient fiscal management. The funds are used to import the supplies needed to carry out structural-adjustment programs under the World Bank and IMF. To qualify for this type of grant aid, the recipient country must reserve collateral funds to be spent on social- or economic-development projects, or both. In fiscal year 1997, nonproject grant aid accounted for 8.1% (21.4 billion JPY [176 million USD) of the total grant-aid budget. (See Appendix B13 for the procedure for implementing nonproject grant aid to support economic structural adjustment.) 

• Grant aid for debt relief — Grant aid for debt relief started in 1978, owing to the severe debt burden of developing countries, and is applied to yen loans agreed on in fiscal 1987 or before. An amount equivalent to the total principal plus interest is provided as grant aid when repayment is made by any of the LLDCs. Whereas an amount equivalent to the difference between the real accrued interest and the interest that would have accrued if a lower interest rate had been agreed on is provided to the most seriously affected countries when debt is repaid. The total grant is deposited in the recipient’s bank account, and it is used to pay off debt in the fiscal year in which it is awarded. Commodities may be purchased to improve the country’s international balance of payments. These commodities may be purchased from OECD member countries or developing countries (but not from the recipient country itself). The Japanese government and the recipient must agree on the list of goods to be procured. In fiscal year 1997, grant aid for debt relief accounted for 17.6% (46.4 billion JPY [383.4 million USD]) of the total grant-aid budget. 

• Food aid — This aid is given to developing countries faced with food shortages. It is used to purchase staple foods (wheat and grain, although rice and secondary wheat products have been included), and it is implemented in accordance with the Food Aid Convention of 1995. To receive this type of aid, the recipient must reserve collateral funds to be spent on social- or economic-development projects, or both, in the recipient country. Food aid accounted for 5.8% (15.3 billion JPY [126 million USD]) of the total grant-aid budget in fiscal year 1997. (See Appendix B14 for the procedure for implementing food aid.) 

• Aid to increase food production — This type of aid helps a developing country increase its food production to achieve food self-sufficiency, by providing funds for such items as fertilizers or agricultural chemicals, machinery, or vehicles. The recipient must set aside local currency worth two-thirds of the grant aid’s value to contribute to the country’s own social- and economic-development projects. In fiscal year 1997, grant aid to increase food production accounted for 10.6% (28 billion JPY [231 million USD]) of the total grant-aid budget. 

IFIC

Recruitment of Japanese experts for JICA — IFIC recruits experts for JICA from government departments, local-government agencies, and private companies. IFIC also recruits experts with international cooperation as a career focus. IFIC invites overseas researchers and specialists to assist in IFIC research and training programs.

Training Japanese government staff and officials of developing countries — IFIC provides language training, information about local conditions, and individual technical training to prepare government employees sent by JICA as experts overseas. Project leaders and coordinators for project-type technical cooperation also receive project-administration and project-management training from IFIC. It trains local-government officials and others on how to administer international cooperation and provides education to NGO members on topics like pollution control, global environment, population, and poverty, in addition to language training. IFIC provides courses on topics such as infrastructure, agriculture, infectious diseases, engineering, and WID and dispatches experts to help overseas universities and research institutes become leaders in their fields. IFIC also conducts training of employees from various ministries to form a pool of resources for future assignments overseas.

Provision of information on international cooperation — IFIC supplies information to JICA experts and the public and has the JICA library of ODA-related material (especially concerning technology transfer and JICA documents). It publishes country profiles, a biannual Japanese research journal on international cooperation (Kokusai Kyoryoku Kenkyu), and an English annual journal (Technology and Development) containing articles from the Japanese version. IFIC also prepares technical manuals for equipment and materials. IFIC-Net is a network for information exchange within and between international cooperation organizations, NGOs, universities, and institutes.

Studies — IFIC analyzes country or regional situations, cooperation strategies, and previous achievements to ensure that JICA fully understands the situations of each recipient country in order to execute and improve its technical cooperation. To this end, IFIC conducts several types of studies, including

• Country-regional studies on development assistance — IFIC conducts macroeconomic, political, social, cultural, and sectoral analyses for major-aid recipient countries and regions. It studies the country’s current situation and aid methods by examining the aid implementation structure, amount of aid received, constraints on development, and development problems and objectives and develops case studies of previous assistance. JICA uses the information from these studies to design technical cooperation programs and formulate projects. MOFA also uses this information for policy dialogues with governments of developing countries. 

• Issue studies on development assistance — These studies are conducted to help resolve global or cross-sectoral aid issues (for example, WID, the environment, poverty, population, education, participatory development). For each issue, IFIC reviews the experiences of major donors and development institutions, previous assistance, and the effects development has had on it. IFIC determines the effective assistance for the issue and recommends ways for JICA to improve the effectiveness of its approach. JICA uses the information to design technical cooperation programs and formulate projects. MOFA uses it for policy dialogues with recipient governments. 

• Studies concerning methods of technology transfer and development — IFIC analyzes case studies of JICA’s technical cooperation projects to develop effective methods of technology transfer and appropriate technology for technical cooperation. The study results are compiled in reports or teaching materials for experts. IFIC also conducts basic studies to develop effective technical cooperation methods, and ways to promote public participation in cooperation. 

• Hosting conferences and seminars — IFIC invites recipients, donor countries, international institutions, and NGOs to international conferences on development issues and technology transfer. This enables the participants to discuss their development experiences, approaches to development assistance, and potential collaboration. IFIC also invites members from other aid agencies, scholars, and development-institution researchers to the seminars it holds for Japanese technical cooperation staff. 

OECF

As mentioned earlier, OECF is a public corporation established to provide loans to developing countries under the supervision of the four-entity system (MOF, MOFA, MITI, EPA). A Management Council of the vice ministers of the MOF, MOFA, MITI, EPA, MOE, MOHW, MAFF, MOT, MOPT, and MOC discusses OECF management and activities. Several committees also advise OECF. The Advisory Committee on Environmental Issues comprises scholars and OECF members and provides expert opinion on environmental matters. The Advisory Committee on WID and Social Development consists of external specialists. An Advisory Committee of Counsellors advises the OECF president and board members. This committee comprises specialists from NGOs, universities, and financial institutions and journalists. OECF has 16 overseas offices in close contact with recipient-country governments, executing agencies, NGOs, and other aid organizations (see Appendix A17 for a list of OECF overseas offices). The Japanese government decided in 1995 to merge OECF with JEXIM. However, their ODA and non-ODA accounts are to be separate. Cabinet decided to make the change and to have it implemented over 4 years. MOF and EPA will supervise the organization, but the implications of this merger for the aid program are not yet clear (DAC 1996). (See Appendix A17 for the OECF organizational chart.) 

The following elements constitute the OECF 1997 fiscal budget (initial base) of 940.0 billion JPY (7.76 billion USD): 

• 386.5 billion JPY (3.19 billion USD) in capital subscriptions; 

• 8.7 billion JPY (72 million USD) in grants from the government; 

• 493.4 billion JPY (4.07 billion USD) in treasury investments and loans; and 

• 51.4 billion JPY (4.07 billion USD) in OECF’s own resources. 

This represented 56% of the total ODA operating budget of 1676.6 billion JPY (13.9 billion USD).⁶

As of the end of fiscal 1996, capital derived from government budget appropriations amounted to 4645.2 billion JPY and the balance of borrowings from (owed to) the Trust Fund Bureau amounted to 4517.8 billion JPY (including 25 billion JPY in OECF bonds): 

• Commitments were 
• 1271.3 billion JPY (11.6 billion USD) for loans to governments, and 
• 6.6 billion JPY (60.6 million USD) for private-sector investment finance; 
• Disbursements were 
• 610 billion JPY (5.60 billion USD) for loans to governments, and 
• 6.2 billion JPY (56.9 million USD) for private-sector investment finance; 
• Repayments were 
• 331.0 billion JPY (3.04 billion USD) for loans to governments, and 
• 6.2 billion JPY (56.9 million USD) for private-sector investment finance; and 
• Outstanding were 
• 8843.3 billion JPY (81.2 billion USD) for loans to governments, and 
• 188.0 billion JPY (1.7 billion USD) for private-sector investment finance. 

Geographical and sectoral distributions of the commitments made in 1996 are as shown in Tables 1 and 2, respectively. 

Two types of loan are available for activities in developing countries: loans to governments or governmental agencies of developing countries and financial assistance to the private sector (private-sector investment finance). 
 

Table 1. Geographical distribution of commitments, 1996.
Loans to governments			Private-sector investment finance
Region	%		Region	%
Asia	76.9		Asia	6.0
Middle East	5.2		Middle East	0.0
Africa	6.3		Africa	0.0
Latin American and Caribbean	11.4		Latin America and Caribbean	59.0
Central and Eastern Europe and Others	0.2		Central and Eastern Europe and Others	35.0

Table 2. Sectoral distribution of commitments, 1996.
Sector	Loans to governments	Private-sector investment finance
Electric power and gas	313.2 billion JPY (2.9 billion USD)
Transportation	395.1 billion JPY (3.6 billion USD)	29 million JPY (260000 USD)
Telecommunications	42.3 billion JPY (388.7 million USD)
Irrigation and flood control	124.2 billion JPY (1.1 billion USD)
Agriculture, forestry, and fisheries	60.2 billion JPY (553 million USD)	4.2 billion JPY (38.5 million USD)
Mining and manufacturing	26.1 billion JPY (239.8 million USD)
Social services	279.8 billion JPY (2.6 billion USD)
Commodity loans	30.0 billion JPY (275.6 million USD)
Others	2.3 billion JPY (21.1 million USD)
Note: Social services include water supply, sewerage, and sanitation; education; public health and medicine; tourism; urban and rural community infrastructure; strengthening of administrative management; and environmental conservation.

Loans to governments of developing countries

Loan aid comprises long-term, low-interest loans from the Government of Japan to governments, governmental institutions, or other eligible organizations in developing countries. A grant element constitutes at least 25% of loan aid. In 1995, the average interest rate was 2.54%, and the average repayment period was 29 years and 4 months. Types of loan available to the governments of developing countries are as follows: 

• Project loans — Project Loans are the main form of ODA loan. They provide funds for equipment, materials, and services for social- and economic-infrastructure projects (that is, to construct roads, power plants, factories, water supplies, or sewerage facilities). 

• Engineering-services loans — These loans are to pay for the engineering services needed to design a project and prepare the bidding documents. 

• Financial intermediary loans (two-step loans) — The recipient country’s financial institutions implement these loans. Funds are provided to a financial institution in the recipient country, which then lends money to promote small and medium-scale industries in sectors such as manufacturing and agriculture (for example, by lending to farmers or agricultural cooperatives or by assisting regional and local governments to provide social and economic infrastructure). The funds are used to construct facilities to improve living standards and may, in the process, strengthen the operations of the financial institutions involved. 

• Sector loans — Sector loans provide funds for equipment, materials, and services needed to implement development projects in specific sectors. 

• Structural-adjustment loans — These loans are awarded to help a country improve its economic policy and implement economic reforms. Usually they are used to import equipment and services and hire consultants to help implement reforms. OECF sets the conditions for the loan after examining a country’s structural-reform plan. The recipient country normally receives the loan in segments as each condition is met. These loans are often cofinanced with multilateral financial institutions. 

• Commodity loans — Commodity loans are provided to help improve the international balance of payments and stabilize the economy. They are used to import commodities on an emergency basis when the country does not have enough foreign reserves to import them. The imported commodities may include industrial machinery and raw materials, fertilizer, agricultural machinery and chemicals, and other machinery. The local currency importers pay to obtain the foreign currency to import commodities under the loan; the counterpart funds are used for economic and social development. The commodity loans are short term (usually 2 years). 

• Sector-program loans — This type of commodity loan supports development policy in a priority sector. The counterpart funds generated by the loans are used to make sector-specific improvements. 

• Sector-adjustment loans — Whereas a structural-adjustment loan is used to improve economic policy and implement the structural reform of an entire economy, sector-adjustment loans are used to improve the policies and reform the institutions of specific sectors in the recipient country. The Japanese government sets loan conditions after examining the recipient’s sector-adjustment program. These loans may be granted in segments as conditions are met. 

• Mixed loan — When other countries extend mixed loans to developing countries to promote their exports, Japan may match these loans to equalize competitive conditions for its own exporters. In addition, it may provide export credits with ODA loans for deserving aid projects not covered by the ODA loans alone. 

Financial assistance to the private sector (private-sector investment finance)

OECF provides loans and invests equity in development projects that are initiated by the private sector in developing countries but that may be too risky to implement without government assistance. Such assistance comprises loans to corporations registered in Japan, equity investments in Japanese corporations, and loans to, and equity investments in, developing-country corporations. 

Loans to corporations registered in Japan — To be eligible for these loans, a project must contribute to the economic development of a developing country, be in agriculture, forestry, infrastructure, environment, social services, or another sector that promotes economic cooperation, and be difficult to implement under the terms and conditions of financing offered by other financial institutions. Particularly desirable are projects involving technical or other forms of assistance from the Japanese private sector, other advanced countries’ private sectors or the participation of IFIs.

A maximum of 70% of the funds required to implement the development project may be loaned to the Japanese corporation, and the loan must be repaid within a maximum of 20 years, with a 5-year grace period. (See Appendix B1 for the procedure for implementing loans and equity investments.) The following are types of loans available to corporations registered in Japan: 

• Financing for agriculture, forestry, and fisheries — These loans are available to finance activities up to the primary processing stage, such as cultivation, livestock breeding, aquaculture, and afforestation. 

• Financing for prospecting — These loans provide funds to undertake mineral-prospecting surveys and feasibility studies for projects to develop mineral resources. 

• Loans for the experimental implementation of development projects — When full-scale implementation of a large development project involves unacceptably high risk, OECF may provide a loan for an experimental project designed to confirm the feasibility of full-scale implementation. 

• Loans for preparatory surveys for development projects — OECF may provide a loan for a feasibility study or market research, or both, to confirm the feasibility of a development project. Loans are available for surveys carried out at a company’s own risk. If ECFA guarantees the survey, then the loan is available regardless of whether the survey’s implementing agency is remunerated. 

• Bridge loans — OECF may offer a bridge loan to a corporation participating in a development project financed by an OECF loan to the government of a developing country to cover a shortage of funds owing to unforeseen circumstances. 

• Other — OECF may provide other kinds of loan to corporations, for example, if a project is unsuitable to obtain a loan from JEXIM and if OECF confirms that the project will contribute to the economic development of a developing country and its relations with Japan. 

Equity investments in Japanese corporations — OECF makes equity investments in corporations for development projects in all sectors if the project promotes economic cooperation, cannot be implemented solely by the private sector, and requires OECF participation to encourage the private sector to invest equity. For this type of assistance, the recipient must establish an investment corporation in Japan especially for this purpose, with the participation of at least two private corporations (OECF’s share of the investment corporation is a maximum of 50%). This investment corporation, with cooperation from local corporations or government agencies or both, must then establish an implementing entity. OECF may contribute a maximum of 25% of the total equity of the implementing entity. Other investment programs may also be eligible for this type of financing.

Loans to, and equity investments in, developing-country corporations — OECF may provide loans to, and make equity investments in, corporations registered in developing countries for a development project if it promotes economic cooperation and cannot be implemented solely by the private sector. (See Appendix B1 for the procedure for providing loans and equity investments.)

Other OECF activities

Seminars — OECF holds month-long loan seminars annually at the head office to explain loan procedures and project formulation, implementation, appraisal, and supervision to recipients or executing agencies. OECF holds these seminars in cooperation with JICA. OECF also holds seminars in recipient countries for government officials and project-management personnel, as needed (for example, to raise awareness of WID). OECF also holds seminars in developed countries (one was held in Canada in 1995). OECF holds its annual 2-week Local Professional Staff Training Seminars to train local professional staff at the OECF head office.

Advisory services — OECF hires consultants to advise and improve a recipients’ project planning and implementation systems and organizations.

Relations with JICA — OECF places its personnel on JICA’s advisory committee for consultant services; they supervise development studies, as their results may be used to request OECF financing. OECF participated on the advisory committee for seven projects in 1996 (OECF 1997a). OECF meets with JICA experts to discuss sectoral development, project identification, and project formation. In addition, JICA experts may participate in the implementation, management, maintenance, and supervision of projects financed through ODA loans. OECF dispatches personnel to the World Bank, ADB, IDB, and EBRD. Its junior staff also have internships at the IDB, EBRD, AfDB, and Caisse Française Development.

Relations with multilateral institutions —

• Policy — OECF coordinates its aid policies and priorities with those of other agencies (for example, IMF and the World Bank). In addition, it consults with developing-country governments and with other donors to coordinate aid. 

• Consultations — OECF attends annual consultations with the World Bank, IDB, ADB, AfDB, EBRD, and IMF to discuss collaboration and current development-policy issues. 

• Cofinancing — OECF cofinances projects with multilateral donors with similar aid policies. Cofinancing makes it possible to build larger funds and combine the experience and knowledge of several donors. The expertise of multilateral institutions may supplement OECF’s project formation and supervisory functions in areas where OECF’s experience is limited (for example, in particular regions [Africa] or sectors [the social sector]). In fiscal year 1996, cofinancing totaled 182.8 billion JPY (1.6 billion USD) (OECF 1997a). During that fiscal year, OECF cofinanced loans with IDB, IBRD, IDA, ADB, EBRD, and IFIs. 

• Personnel transfer — OECF temporarily transfers personnel to the World Bank, ADB, IDB, and EBRD. In addition, OECF sends staff to the IDB, EBRD, and AfDB for training. These personnel transfers strengthen Japan’s relationships with these organizations. 

Cooperation with NGOs — OECF cooperates with NGOs to use their knowledge, close relationships, and experience with particular regions to ascertain the opinions of local residents and the socioeconomic characteristics of project sites. OECF collaborates with NGOs to consult with local residents to identify, plan, implement, and evaluate projects and conduct environmental assessments. Examples of OECF–NGO cooperation are expert studies of the environment, afforestation-awareness programs for local people, and project-impact studies.

Cooperation with local governments — In cooperation with international agencies, bilateral aid agencies, and environmental NGOs, OECF also cooperates with local Japanese governments regarding issues such as industrial pollution.

Public relations — OECF publishes and distributes annual reports, newsletters, videos, displays, and other types of publication to promote understanding of OECF and ODA, nationally and internationally.

RIDA

RIDA is OECF’s research institute. It is part of OECF. RIDA comprises four study groups: Development Assistance, Macroeconomic, Sector, and Post Evaluation. (See Appendix A17 for the organizational structure of RIDA under OECF.) 

Development Assistance — The Development Assistance Studies Group examines the theory of development assistance and methods to assist development, drawing on Japan’s development experience, including that of OECF. The group also examines frameworks for development assistance to learn from the experience of other donors, as well as examining global trends in the international donor community. Examples of important themes for RIDA research are

• The role of government in the development of a market economy; 

• The role of local government and local finance in India; 

• Socioeconomic profiles of South African communities; 

• Prospects for agricultural development policy in China; 

• Integrated national physical development planning for developing countries; and 

• Local participation in the operation and maintenance of small projects. 

The Development Assistance Studies Group oversees and supervises planning for RIDA operations and disseminates research results. It organizes symposia and workshops to disseminate research results, which RIDA either sponsors or cosponsors. In addition, this study group publishes a quarterly Japanese journal of development assistance (Kaihatsu Enjo Kenkyu), a semiannual English version, the Journal of Development Assistance, and the Post-Evaluation Reports for OECF Loan Projects (published in Japanese and English), annual economic cooperation handbooks, and discussion papers. The group also maintains links with other research organizations. 

Macroeconomic — The Macroeconomic Study Group researches the macroeconomic issues of major loan-recipient countries and studies the needs of a country and its ability to apply funding to those needs, to propose tailored development strategies for OECF assistance. For example, the group analyzes regional development, public- and private-sector financing, cross-country issues, and the effects of economic reforms.

Sector — The Sector Studies Group examines key issues in major sectors (for example, electricity, transportation, agriculture, human-resource development) that have affected OECF-financed projects and makes recommendations for future project selection and formation. For example, the group studied and made recommendations concerning power shortages in Sri Lanka. It has also studied cross-sector issues (for example, the consequences of urbanization on poverty alleviation).

Post Evaluation — The work of the Post-Evaluation Division is described in Chapter 2.

JEXIM

It may seem strange to include JEXIM in a handbook on Japanese ODA. But it is part of the range of financing mechanism offered to the Japanese private sector to encourage and support its activities in the economic development of developing countries. Of all the donor countries, Japan is probably the furthest along in terms of support for private-sector-led infrastructure and economic development in developing countries — topics increasingly discussed in international forums. In future discussions on ways to attract FDIs to developing countries, it might be useful for other donors to look at the range of support that the Japanese government provides, including its mix of ODA and non-ODA financing. 

JEXIM is an independent governmental financial institution, constituted as a public corporation under MOF. It promotes economic exchange with other countries by providing financial services to domestic and foreign corporations to supplement and encourage financing by Japanese commercial banks and financial institutions. JEXIM has 18 overseas offices (as of September 1997). 

Depending on the needs of a project, JEXIM will tailor combinations of its lending schemes (which is often necessary for projects for natural-resource development). JEXIM provides financing for exports, for imports, and for overseas investment and projects, untied loans, bridge loans, guarantees, purchase of public bonds, equity investments, and limited-resource financing: 

• Financing for exports — JEXIM supplies the following types of export loan: 
  
• Supplier credits — JEXIM extends this type of loan to Japanese exporting corporations that wait to receive their payment from the foreign importer for the export of plants, ships, aircraft, vehicles, equipment, and machinery. JEXIM’s policy is to finance the export of Japanese-manufactured goods; however, in some cases, it may finance foreign-manufactured goods if they constitute an essential part of the Japanese-manufactured product. 
  
• Technical-service loans — These are provided to Japanese corporations for the export of technical services (for example, engineering and consulting services for feasibility studies, design, and supervision; civil engineering and construction, such as of railways, water systems). These loans are for longer than 1 year. The terms of the technical-service loans and supplier credits are developed in accordance with OECD guidelines. 
  
• Buyer credits — These are given to foreigners importing plant, equipment, and technical services from Japan (to enable them to buy goods and services needed to implement projects agreed on by the borrower and JEXIM).
  
• Bank-to-bank loans — These are extended to foreign financial institutions for the same purpose as buyer credits. 

In fiscal year 1996, export loans accounted for 23% (340 billion JPY [3.1 billion USD]) of the total value of commitments (including loans, equity participation, and guarantees) (JEXIM 1997). 

To mitigate the risks associated with exporting, MITI administers general export insurance, which mainly covers losses incurred before goods are exported. Export-proceeds insurance and technical-services-supply insurance are available when exporters defer their payments or Japanese banks provide foreign importers with buyer credits in conjunction with JEXIM. Export-proceeds insurance covers losses resulting from political or business risks. Export-proceeds, technical-services-supply, or intermediary-trade insurance is mandatory to qualify for supplier credits from JEXIM. 

• Financing for imports — The following are import loans offered by JEXIM: 
  
• Long-term import loans — These are extended to Japanese corporations to develop and import natural resources that are essential to the Japanese economy (for example, energy, minerals, other raw materials). These loans enable Japanese importers to make advance payments to a foreign exporter. Such loans are also extended to foreign corporations to develop natural resources for export to Japan, and they are untied (that is, the necessary goods and services do not have to be procured from Japan). 
  
• Import loans for manufactured goods and technologies — These are long-term loans (greater than 1 year) extended to corporations in Japan (Japanese or foreign owned) for importation of manufactured goods and technologies or to foreign corporations for the production and sale of manufactured goods exported to Japan. In fiscal year 1996, import loans accounted for 4% (65.6 billion JPY [602 million USD]) of the total value of commitments (JEXIM 1997). 
  
• Financing for overseas investment and projects — Overseas investment loans are offered to Japanese corporations for overseas projects and overseas investment activities (for example, to enable them to purchase equity in foreign corporations or to loan money to foreign governments or corporations with which they have business relationships). MITI offers overseas investment insurance for losses resulting from overseas investment. These loans may also be provided to foreign governments or banks to fund investments in, and loans to, joint ventures with Japanese corporations. The loans may also be extended to overseas joint-venture corporations (that involve Japanese capital). When it is difficult for JEXIM to provide an overseas investment loan, OECF may extend a loan for investment in agricultural, forestry, fishing, and mining-exploration sectors or for preinvestment studies and experimental projects. In fiscal year 1996, overseas investment loans accounted for 47% (696.7 billion JPY [6.4 billion USD]) of the total commitments (JEXIM 1997). 
  
• Untied loans — Untied loans are extended to foreign governments, governmental institutions, financial institutions (including multilateral development banks), and corporations specified by the Minister of Finance. These loans are for high-priority projects and economic-restructuring programs in developing countries. The goods and services for these loans do not have to be procured from Japan. Untied loans accounted for 22% (326.3 billion JPY [2.9 billion USD]) of the total value of loan commitments in fiscal year 1996 (JEXIM 1997). 
  
• Bridge loans — Bridge loans are short-term loans extended with the approval of the Minister of Finance. JEXIM provides these loans to foreign governments, government agencies, or banks to help countries with poor international balance-of-payments situations until IMF and other multilateral agencies provide funds to support the economy. 
  
• Guarantees — Guarantees are provided to Japanese corporations to enable them to borrow from other financial institutions and to foreign corporations for direct overseas investment. JEXIM also provides guarantees to Japanese private financial institutions for their cofinancing of JEXIM’s direct loans to foreign entities (that is, the Japanese financial institution and JEXIM cofinance a foreign entity) and for their own direct import credits, overseas investment loans, and untied direct loans to foreign entities. To qualify for a guarantee from JEXIM, the corporation or institution must use it for the same purpose as required to qualify for a loan. In fiscal year 1996, guarantees constituted 4% (57 billion JPY [523 million USD]) of the total value of commitments (JEXIM 1997). 
  
• Purchases of public bonds — Like untied loans, purchases of public bonds raise capital for high-priority projects and economic-restructuring programs in developing countries. JEXIM purchases bonds issued by foreign governments, financial institutions (including multilateral development banks), and corporations specified by the Minister of Finance. 
  
• Equity investments — With the approval of the Minister of Finance, JEXIM may make equity investments in foreign entities or Japanese corporations that have as their sole purpose that of making overseas investments in corporations conducting business overseas. JEXIM made no equity investments in fiscal year 1996 (JEXIM 1997). 
  
• Limited-resource financing — JEXIM may extend limited-recourse financing, if warranted, for some projects. 

Other activities

Other activities of JEXIM include 

• Research and consulting — JEXIM exchanges information with and cofinances projects with multilateral financial institutions (for example, IMF and the World Bank). It also exchanges information and cooperates with other export-credit agencies. JEXIM sends advisors and receives observers to help the governments of developing countries or countries moving to a market economy establish export-credit agencies. For example, as part of Japan’s technical cooperation, JEXIM dispatches employees to developing-country banks, as JICA experts. JEXIM also sends people abroad to lecture and receives people from developing and advanced countries who wish to study.

JEXIM’s Research Institute of Overseas Investment researches the overseas investment activities of Japanese firms and the political and economic conditions of foreign countries. JEXIM uses this information to formulate policies and to make loan decisions. Some of this information is published monthly. The institute’s Overseas Investment Consulting Office provides information and advises Japanese firms on overseas investments, as well as advising foreign corporations that seek JEXIM financing. 

• Seminars and conferences — JEXIM sponsors training programs and seminars to help people from foreign governments, central banks, and financial institutions understand JEXIM and Japan. The bank organizes study programs and sponsors international conferences to enable governmental, financial, business, and academic leaders around the world to exchange ideas and explore possibilities for cooperation. 

Budget

JEXIM’s capital, which is completely subscribed by the Japanese government, totaled 985.5 billion JPY (8.14 billion USD) as of 31 March 1997 (JEXIM 1997). The sources of JEXIM’s funds are capital from the Japanese government, borrowings from the government’s Trust Fund Bureau, and bonds issued on international capital markets. As of 31 March 1997, JEXIM had made 1428.6 billion JPY (11.8 billion USD) in loan and equity-participation commitments and had disbursed 1198.9 billion JPY (9.9 billion USD); it had made guarantees worth 55.1 billion JPY (455 million USD) (JEXIM 1997). 

JETRO

JETRO is a public corporation, founded in 1958. Its main function is to assist countries, including developing countries, to increase their exports to Japan. JETRO brings officials responsible for trade policy and private-sector executives from developing countries to Japan and provides training on rules and regulations governing imports into Japan, packaging and shipping, customs clearance, quality controls, market development, financing, etc. It supplies information about Japanese consumer tastes, requirements, and distribution systems. In short, it is an invaluable tool for developing countries to use in developing their export industry through access to Japanese markets. 

IDE

IDE is a public corporation within the Japanese ODA system and was, until 1 July 1998, a research branch of MITI. IDE then became part of JETRO, a public corporation under MITI. IDE is funded by MITI and MOF. They subsidized 90% of its fiscal year 1995 budget of about 53.8 million USD (Medhora 1995).⁷ IDE is one of the largest development institutes in the world (Bhalla 1995).⁸ As of 1 July 1996 (IDE 1995), it employed 253 people, of whom 170 were engaged in research (including 32 stationed overseas). Its activities include 

• Training — The IDE Advanced School trains Japanese and foreign development specialists (29 in 1996; JICA 1997). 

• Workshops and symposia — IDE organizes about 20–25 workshops and 2 or 3 symposia each year (Medhora 1995).⁹

• Research — IDE staff conducts IDE research projects in collaboration with outside experts. The institute studies economic and related affairs in Asia and other developing areas. In fiscal year 1994, IDE implemented about 70 research projects, including joint international research programs. IDE also researches ways to strengthen the coordination of ODA with Japan’s trade and investment activities. 

The Japan Foundation

The Japan Foundation is a public corporation founded in October 1972 to assist MOFA in promoting international friendship and enhancing understanding between nations: 

It receives a part of its project budget from the ODA budget managed by MOFA. The Foundation’s projects are aimed at both developed and developing countries. Projects involving personnel exchanges with developing countries, dissemination of Japanese language education, and presentations on Japanese culture are financed primarily from the ODA budget.

(JICA 1997, pp. 5–6)

The Japanese government awarded the Japan Foundation an endowment that reached 106.2 billion JPY by fiscal year 1997 (Japan Foundation 1998). It finances its activities through capital gains derived from management of the endowment fund, annual government subsidies (including ODA), and contributions from the private sector. The Japan Foundation’s headquarters is located in Kyoto. Outside of Japan, it has 2 Japan cultural institutes, 5 Japan cultural centres, and 11 offices in 17 countries. The branch offices mainly collect local information, conduct surveys, implement programs initiated at headquarters, and cooperate with local groups to introduce Japanese culture. Among other activities, the Japan Foundation dispatches people overseas for economic-assistance projects. The Japan Foundation Dispatch Fellowship Program provides grants for scholars and researchers in the humanities and the social sciences. The Japan Foundation also provides funds to Japanese specialists in the humanities, social sciences, or arts to host or deliver speeches at overseas international conferences or symposia. Under the Cultural Cooperation Program, the Japan Foundation dispatches Japanese specialists in all cultural fields in response to requests from developing countries to train personnel and investigate local conditions.

Other ministries

The cooperation of private business is important in providing public goods such as assistance; but creating a domestic consensus on the extent of their involvement is no easy task. Since more emphasis is being put on privatization and private-sector-led economic development worldwide, the pressure to link corporate activity more closely with ODA will probably also increase.

Through ODA, the Japanese government is able to offer incentives for the private sector to direct activities into areas relevant to Japan’s aid policies, as well as providing the private sector with the tools it needs to add development elements to its investments in developing countries. The sectoral ministries play an important role through their dispatch of experts, training of government officials and private-sector personnel, and provision of expertise on development planning. 

As mentioned earlier, sectoral ministries influence every aspect of Japan’s ODA activities, as well as having their own ODA budgets to finance their own activities. Ministry reports tend to provide overall statistics on a ministry’s activities, without distinguishing the portion of them it finances itself from the portion financed under JICA. This should be kept in mind when viewing the statistics about the number of trainees, experts, etc., provided in this section. 

As outlined earlier in this chapter, there are many organizations registered as public-interest corporations that are used by the various ministries to assist in the implementation of Japan’s ODA. They are either government-affiliated organizations or foundations and associations established by corporations or groups of corporations. Their activities are financed through subsidies from the sponsoring ministries. According to the 1993 DAC study of NGOs and governments, 

Special government subsidies to prefered organisations were, until 1989, the only form of official support to NGOs. In 1986, 1987 and 1988, for example, governmental subsidies to NGOs were reported as US$ 91.73 million, US$ 113.03 million and US$ 64.25 million respectively. Because of the nature of the subsidies, the organisations and their work, a high proportion of these funds was, in reality, bilateral spending related primarily to the needs and interests of the ministries providing the funds. No breakdown of these funds, by ministry or by organisation, is available for these or subsequent years.

The remainder of this section describes the ODA-related activities of the various ministries and mentions some of the government-affiliated organizations they work with. The following section will expand on the description of some of these organizations to indicate the types of activities they engage in. However, according to the Kokusai Kaihatsu journal (Kokusai Kaihatsu 1997, p. 48, cited in Shizawa 1998), “public-interest corporations total some 250,000 organizations,” and therefore no attempt has been made to provide a comprehensive list. A list compiled by FASID (1994) in the Directory of Japanese Institutions in Development Assistance provides the names of a number of government-affiliated organizations involved in ODA and clearly indicates their authorizing ministry or ministries (see Appendix A18). 

The activities described in MAFF’s Outline of Agriculture, Forestry and Fisheries Cooperation (AICAF 1996) are good examples of the type of ODA-related activities that the ministries undertake. All the statistics on MAFF’s activities come from this report, which is summarized in some detail in what follows. A summary of activities of some other ministries completes this section. 

MAFF

MAFF focuses on aid for increased food production, contributions to the stabilization of food demand, and the protection of the environment. It provides food aid, rural-community assistance for self-reliant economic growth, and cooperation in the comprehensive development of agriculture, food distribution and processing, market development, and environmental protection (including tropical-forest preservation and the prevention of desertification). MAFF classifies Japan’s cooperation in agriculture as bilateral and multilateral. Bilateral cooperation comprises technical cooperation and financial assistance. MAFF’s summary of its activities covers the whole sector, without disaggregating the data into MAFF, JICA, and OECF-funded activities. 

Bilateral cooperation

• Training — MAFF accepts trainees from developing countries in the fields of agriculture, forestry, and fisheries (for example, farmers). This sector had 1715 trainees in 1995, including the following: 

 
• Training by MAFF, 586; 

 
• Group training by JICA, 220; 

 
• Individual training by MOE and others, 407; 

 
• Third-country training, 402; and 

 
• Bilateral training, 100. 

 
Host organizations in developing countries conduct third-country training. Individuals trained in the Japanese ODA system conduct bilateral training in the recipient country. 
• Dispatch of experts — MAFF dispatches experts in the fields of agriculture, forestry, and fisheries, either as individual experts or as part of project-type technical cooperation. Japan sent 1508 experts in the sector in fiscal year 1995, including the following: 

 
• Individual experts, long term, 323; 

 
• Individual experts, short term, 232; 

 
• Project-type technical cooperation, long term, 455; 

 
• Project-type technical cooperation, short term 447; 

 
• Development cooperation projects (of JICA), long term, 24; 

 
• Development cooperation projects (of JICA), short term 26; 

 
• Guidance to emigrant farmers, long term, 1. 

 
As explained previously, technical cooperation experts are usually personnel from the ministries. 
• Miniproject and research cooperation — MAFF provides a type of technical cooperation that falls between dispatch of experts and project-type technical cooperation; it is called miniproject and research cooperation. Under miniproject cooperation, MAFF dispatches a team of experts, combined with provision of small-scale equipment, and accepts trainees in Japan, if necessary. Research cooperation involves joint research, involving Japanese and developing-country researchers, to improve research skills and institutions in developing countries. Japan implemented 17 miniprojects in the agriculture, forestry, and fisheries sector in fiscal year 1995. 

 
• Dispatch of survey teams — This occurs in all JICA’s cooperation projects, such as development surveys, project-type technical cooperation, acceptance of trainees, dispatch of experts, and others. Dispatch of survey teams includes the preliminary survey to collect information and examine the feasibility of cooperation before the activity begins; the regular survey, during the cooperation period; and the evaluation survey, after the project terminates. MAFF dispatched 1614 experts for agriculture-, forestry-, or fisheries-related survey teams in fiscal year 1995. 

 
• Project-type technical cooperation — This is a JICA scheme that combines experts, training, and equipment; MAFF conducted 74 project-type technical cooperation projects in the agriculture, forestry, and fisheries sector in fiscal year 1995. These accounted for about 35% of all such Japanese ODA projects that year. 

 
• Development surveys — The objectives of these surveys are to promote the development plans of developing countries and to develop master plans, feasibility studies, and surveys to examine the reserves of various resources (resource-inventory surveys), etc. In promoting these development surveys, the objective is often to improve buildings, facilities, and farmland. These development surveys are also likely to generate other types of cooperation, such as yen-loan assistance or grant aid, and so on. MAFF conducted 60 development surveys in the field of agriculture, forestry, and fisheries in fiscal year 1995, about 20% of all development surveys in that year in the Japanese ODA system. 

 
• Dispatch volunteers from JOCV — JOCV sends young Japanese people as volunteers to developing countries. MAFF provided 597 agriculture-, forestry-, or fisheries-related employees as volunteers in fiscal year 1995, about 18% of all the volunteers dispatched from Japan in that year. 

• Grant aid — Grant aid is contributed to projects, for example, to agricultural research centres and fishing ports and to develop irrigation facilities. In 1995, grant aid in this sector amounted to 31 billion JPY (329.5 million USD). 

• Food aid — Food aid worth 2.7 billion JPY (28.7 million USD) was sent to North Korea and Sudan in 1995 for disaster relief. 

• Yen loan — In fiscal year 1995, 8.3% of the all the yen loans in the Japanese ODA system went to this sector, contributing to the development of industry and economic stabilization of developing countries. The predominance in yen loans in MAFF’s sector shifted from project loans to nonproject loans (for example, commodity loans) to improve balance of payments and provide economic support. Two-step loans have also increased (under a two-step loan, a loan is provided to a financial institution in a developing country, which on-lends according to the loan objectives). In fiscal year 1995, 136.9 billion JPY (1.4 billion USD) was provided as loans for 19 projects. 

• Development cooperation projects — JICA provides these loans to Japanese private companies (see description under JICA). In 1995, 2.1 billion JPY (22.3 million USD) went to projects in this sector. 

Multilateral cooperation

MAFF’s independent cooperation activities

Main implementing organizations for cooperation in agriculture, forestry, and fisheries

MOC

• Construction of training centres — The training centres are for infrastructure-related projects (for example, training centres for road and bridge construction, use of construction machinery, and disaster prevention). 

• Acceptance of trainees — Trainees are accepted by MOC’s own institutions in affiliated semigovernmental organizations and local governments and in private consulting-construction firms. 

• Dispatch of experts — MOC dispatches experts to developing countries. As of March 1997, MOC deployed 122 long-term experts (13 of whom were dispatched to international organizations). 

• Development of guidelines — MOC develops guidelines for construction-related economic and technical cooperation suitable for developing countries’ conditions. 

• Seminars — MOC organizes seminars to transfer knowledge to developing countries. 

• Studies of developing countries and policy seminars — MOC examines the economic infrastructures (for example, roads) and development plans of several developing countries each year. The information is stored in a database to be used for project identification and formulation. In addition, MOC holds seminars with local people responsible for infrastructure development and helps them to develop relevant policies. 

• Project finding and formulation — MOC conducts preliminary investigations of construction plans for infrastructure-development projects before JICA conducts feasibility studies of the projects. MOC also provides advice on ongoing projects. 

• JICA surveys — MOC dispatches experts to join JICA study teams to assist in project formulation, conduct preliminary studies, prepare master plans, conduct feasibility studies, and devise the basic designs of projects. 

• Assistance in international infrastructure implementation — MOC provides training for, and assistance with, construction for international large-scale infrastructure projects that benefit several countries. 

• Development of overseas construction technology — MOC develops construction technology suitable for the environmental, social, and economic conditions specific to a recipient country. 

• Project evaluation — MOC evaluates projects to help formulate future ones. 

• Forums — MOC organizes international forums for exchange of infrastructure- and construction-related information, such as the Ministers’ Forum on Infrastructure in Asia–Pacific Region and the International Forum on Infrastructure. 

• International organizations — MOC participates in international organizations, such as the United Nations, World Trade Organization, APEC, and OECD. 

• Information exchange with high-level government officials from developing countries — MOC invites high-level government officials responsible for social infrastructure in developing countries to Japan to discuss modern technology in the construction, operation, and management of infrastructure and development issues such as pollution. 

• Dispatch of MOC officers to Japanese embassies in other countries — As of fiscal year 1997, MOC had sent 27 officers to 25 countries (MOC 1997). 

• Support for NGOs — MOC provides subsidies to NGOs to dispatch and train public-works personnel. 

• Support for contributions of Japanese contractors to developing countries — MOC provides assistance to facilitate the voluntary contributions of Japanese contractors to developing countries (for example, to build a reservoir). MOC provides assistance in collaboration with industry organizations. 

The Ministry of Labour

• Dispatch of experts — MOL dispatches labour-administration experts to developing countries (for example, experts on vocational training, industrial safety and health). It sends its own experts and those of related bodies to developing countries for project-type technical cooperation. 

• Training — MOL conducts training programs to teach skills to young people in developing countries and to train workers in developing countries to be future leaders and accepts people concerned with labour from the Russian Federation for exchanges and studies to resolve employment problems in that country. 

• Seminars — MOL holds annual seminars for administrators from developing countries on labour administration (for example, regarding industrial relations, employment, vocational training, industrial safety and health, women’s issues, and labour statistics) and provides them with individual training programs. 

• Multilateral assistance — MOL is responsible for contributions to international labour organizations. 

• Contributions to international organizations — MOL contributes financially to the Asian and Pacific Skill Development Programme (APSDEP) and holds seminars and workshops in Japan to help APSDEP develop vocational and technical training in Asia and the Pacific. 

• Assignment of employees — MOL sends its employees to serve as labour attachés in foreign countries or as staff members of international organizations (for example, the International Labour Organization [ILO], OECD). 

• Studies — MOL conducts studies and publishes information on the labour conditions and policies of foreign countries, and the Japanese government uses this information to formulate policies. MOL also studies the way people in foreign countries perceive Japan’s labour conditions and holds seminars and distributes information to foreigners to describe these conditions. 

• Technical cooperation with the private sector — MOL conducts some technical cooperation activities in cooperation with private companies, the Japan Institute of Labour, Central Vocational Ability Development Association, and the Japan ILO Association. MOL subsidizes part of the expenses for seminars on industrial relations, workers’ education, and personnel and labour management held by Japanese employers’ and workers’ organizations for leaders of similar organizations in developing countries. MOL partially subsidizes management training at Japanese industrial companies operating in Asian and Eastern European countries. MOL also subsidizes part of the costs to train members of organizations for labour-accident prevention from developing countries. 

 

Through the Japan International Training Cooperation Organization, MOL advises and provides assistance to enterprises that accept foreign trainees in order to ensure that their training is proper and effective and that the implementation of the Technical Intern Training Program is effective. 

MOHW

• Training — MOHW accepts participants from developing countries into study programs in Japan, either through the Japan International Corporation of Welfare Services (JICWELS) or in cooperation with MOFA and JICA. In fiscal year 1994, MOHW received 770 trainees (MOHW 1998). 

• Dispatch of experts — MOHW dispatches experts, either through JICWELS or in cooperation with MOFA and JICA. In fiscal year 1994, MOHW dispatched 289 experts (MOHW 1998). 

• Multilateral assistance — MOHW is responsible for contributions to international organizations working in this sector. 

• Support for the international disaster relief activities of NGOs — MOHW provides information and personnel training to NGOs and provides information and liaison committees to enhance the ability of NGOs to respond to natural disasters in developing countries. MOHW cooperates with WHO to provide NGO training programs 

MOE

• Training — MOE, with the cooperation of national universities and other institutions, accepts foreign trainees in fields such as medicine, engineering, agriculture, and education. MOE accepted 569 foreign trainees in fiscal year 1993 (MOE 1996). 

• Dispatch of experts — MOE dispatches experts to developing countries in the fields of medicine, engineering, agriculture, and education, with the cooperation of national universities and other institutions. MOE dispatched 685 experts in fiscal year 1993 (MOE 1996). MOE also contributes to experts’ training in public and private universities by subsidizing programs of FASID, such as joint development assistance lectures for postgraduate students and training of development assistance personnel in the conduct of overseas surveys. 

• Cooperation through international agencies — MOE cooperates in various UNESCO programs, such as educational programs for AIDS prevention, the Programme for Assisting NGOs in Developing Literacy Resource Centres for Girls and Women, and intergovernmental joint surveys. MOE contributes financially to UNESCO’s literacy education programs and implements various programs of the Asian Cultural Centre for UNESCO. MOE participates in conferences and sponsors international symposia in Japan for education-related OECD programs. MOE also participates in teacher-training and math-curriculum projects with APEC. Japan is also a member of the International Center for the Study of the Preservation and Restoration of Cultural Property and cooperates in this organization’s international research projects and its other activities. 

• Exchanges — MOE sends teachers and researchers overseas and brings foreign teachers and researchers to Japan. MOE accepts foreign students from developing countries and supports and subsidizes international exchange programs for upper secondary-school students. It brings foreign scholars to Japan to lecture on education, science, and culture and to meet with Japanese scholars. Japanese leaders in social education are also sent overseas to discuss social education with foreign experts (for example, to discuss adult education). 

• Women and youth — MOE subsidizes the women’s international exchange activities of local governments and women’s organizations and the youth international exchange programs of other organizations (for example, the National Council of Youth Organizations in Japan, the Japan Foundation). 

• Japanese universities — These also play a role in Japan’s ODA. Although the majority of Japanese universities are public, the number of private universities is growing. MOE holds decision-making authority over public-sector universities’ allocation of resources to ODA. Universities organize ODA study groups that make recommendations to the government. They also provide experts to JICA projects and instruct trainees from developing countries in Japan. Universities train Japanese experts. Research on the training and reeducation of Japanese experts to make them more effective is done at Saitama University, the University of Tokyo, Yokohama National University, Nagoya University, Kobe University, and Hiroshima University. MOE established the Inter-University Committee for Development Assistance to promote universities’ independent international cooperation efforts. 

MOPT

Government-affiliated organizations

FASID

• Information services — FASID provides information about development assistance to government agencies, aid-implementing organizations, and universities. It also provides them with a database of specialists. FASID has started to create a network of the databases of development assistance agencies, research institutions, and international organizations around the world. 

• Training — FASID provides training on the theory, policy, and practice of development assistance to Japanese development assistance professionals. Most of this training is financed from the ODA budget of MOFA. FASID collaborates with Japanese universities to organize development assistance courses. MOE subsidizes some of FASID’s training programs for development-assistance personnel in Japanese universities, such as joint development assistance lectures for postgraduate students and overseas survey training. FASID also provides short-term graduate-school-level development assistance training seminars and courses for government and private-sector aid personnel. 

• Research and education — FASID promotes development assistance research and education in Japanese universities and research institutes to strengthen human resources for development work. It also researches international development to enable the Japanese government to enhance its economic-cooperation policies. FASID’s research focuses on Asian LDCs, particularly Asian transition economies. 

 

FASID provides financial support to enable Japanese development assistance researchers to study overseas and provides fellowships to enable graduate students to conduct research in development studies. FASID also dispatches teachers to foreign universities and research institutions. It dispatches former JOCV members, students who want to be development assistance researchers (mainly in the areas of development management and planning), and others to overseas universities and institutions. 
 

• International symposia on development aid — FASID hosts international symposia in Japan for development-aid researchers and administrators from developed and developing countries and international aid organizations. 

• The Keidanren Nature Conservation Fund — FASID contributes to the Keidanren Nature Conservation Fund (KNCF), which supports nature-conservation projects in developing countries and conducts relevant training. 

IDRI

• Research and dissemination — FASID–IDRI researches current international development issues and their future outcomes. The results are disseminated to the public and government through forums and seminars or published documents (for example, the annual Agenda for International Development). 

• FASID Academy — FASID–IDRI organizes the FASID Academy, which aims to strengthen the development leadership of practitioners and scholars. The faculty comprises Japanese, FASID-IDRI, and foreign researchers. 

• Education — FASID–IDRI develops curricula and teaching materials for Japanese graduate development schools. Topics include gender, culture and development, and development management. 

JICS

JICE

AOTS

AOTS provides training in areas such as business management and industrial technology. Quality-control training is provided, and the trainees can visit Japanese companies to witness the implementation of quality-control circles (in which every employee is encouraged to make suggestions for improving the company’s output). The companies also offer specialized technical training in different locations in Japan after study tours for the trainees. Japanese host companies usually accept trainees from among employees in their overseas joint ventures and plants (this is the main source of trainees). However, trainees may also come from the host companies’ customers, sales agents, and others. 

AOTS offers correspondence courses in total quality control and workplace improvement for companies that cannot afford to send trainees to Japan and sends the required books and materials to the country’s local AOTS alumni society. The alumni society recruits participants, distributes materials, and corrects course work. The alumni society uses the correspondence course fees to fund its own activities. In addition, teachers are dispatched from Japan to facilitate the program. 

AOTS has alumni societies in 60 cities and 40 countries (Saito 1998). They are in continuous contact with AOTS, which supports their activities. The alumni societies recruit candidates for AOTS scholarships and recommend trainees for AOTS programs. More than 25% of trainees are invited on the recommendation of AOTS alumni societies (Sato 1998). 

The alumni societies often implement their own programs for human-resource development in their home countries. For example, alumni societies have established training centres in their countries and financed and conducted training activities at their own facilities (with guidance from AOTS). Alumni societies also engage in domestic lecture tours, in which AOTS alumni with training in Japan travel to different cities in their own country to share what they have learned. The alumni societies may also facilitate the exchange of experiences among trainees to help them adapt their new knowledge to their local situations. 
 

4. Derouin, R. Japan International Cooperation Agency (JICA): contracting of non-Japanese consultants. Canadian International Development Agency, Ottawa, ON, Canada, 1997. Internal document. Return

 
5. The statistics provided on these various types of grant aid are taken from MOFA (1997c). The 1997 DAC exchange rate of 121 JPY = 1 USD has been used. Return

 
6. Except where otherwise stated, all figures quoted in this section are taken from OECF (1997a). Return 

 
7. Medhora, R. TR-4/95 Yangon, Myanmar Nov. 15–22, 1995. International Development Research Centre, Ottawa, ON, Canada, 1995. Internal document. Return

 
8. Bhalla, A. Travel report, September 25-November 11, 1995. International Development Research Centre, Ottawa, ON, Canada, 1995. Internal document. Return

 
9. Medhora, R. TR-4/95 Yangon, Myanmar Nov. 15–22, 1995. International Development Research Centre, Ottawa, ON, Canada, 1995. Internal document. Return

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