Medium-term policy guidelines for Official Development Assistance, announced by the government Aug. 10, set the standards for implementing Japan's ODA between 1999 and 2003. The guidelines place emphasis on aid to Asian countries to help them implement structural reforms aimed at solving their economic problems.
The plans are based on the idea that Japan should fulfill its international responsibility as the second-largest economy and the top ODA provider in the world. That should serve Japan's national interest in a broad sense, the guidelines say. They also remind us that the government should be accountable to the public for ODA amid the severe economic and fiscal difficulties and should seek public support on the issue. From that viewpoint, the document called for "effective" ODA. Japan faces a diplomatic challenge in executing its international responsibility while protecting the national interest.
In 1998, Japan was the world's largest ODA provider for the eighth consecutive year, doling out $10.68 billion. But the share of ODA as a percentage of Japan's gross national product was 0.28 percent, 12th among the 21 member nations of the Development Assistance Committee of the Organization for Economic Cooperation and Development. In fiscal 1998, Japan was forced to cut ODA outlays by 10.4 percent, due to economic problems.