Japan should use its Official Development Assistance more strategically and in tandem with diplomatic tactics to serve its national interests, a private think tank said in a report submitted Thursday to Prime Minister Ryutaro Hashimoto.

The recommendations on Japan's ODA policy were made by The Japan Forum on International Relations, Inc., composed of business and academic leaders in Japan. "ODA, along with participation in the United Nation's peacekeeping operations, is one of Japan's key diplomatic measures. Although there are pros and cons about ODA, the implementation of ODA should constructively continue," Atsushi Kusano, a professor at Keio University and head of the recommendation task-force, said in a press conference in Tokyo.

Kusano pointed out that Japan lacks diplomatic insight in providing economic aid to developing nations and he urged the government to lay individual aid plans for each country and strengthen bilateral relations between Japan and countries that receive aid.

The group also said the government should pay more attention to ODA funds so they are not diverted into the pockets of government officials in developing nations, fostering political corruption.