Economic Cooperation

 

Japan's ODA

 

What is ODA?

A variety of organizations and groups, including governments as well as international organizations, non-governmental organizations (NGOs), and private companies, carry out economic cooperation to support socioeconomic development in recipient countries. The funds and technology that governments provide to recipient countries are called Official Development Assistance (ODA).

 

 

Japan’s ODA Outlook

Japan was once an aid recipient country from international community during the difficult years. It has been more than 40 years since Japan started its economic cooperation to developing countries by joining Colombo Plan in 1954. Now, Japan has become the largest donor country in the world and is providing its ODA to more than 150 developing countries and regions.

Japan’s ODA is classified into three (3) types: (i) bilateral grants, (ii) bilateral loans and (iii) financial subscriptions and contributions to international organization (multilateral aid). Bilateral grants are basic economic cooperation programs of Japan’s ODA applied in the 10 Caribbean countries the Embassy covers. The followings are outlines of those bilateral grants*.

*The type of the programs of bilateral grants differs from each country based on GNI/per capita.

Please see the each country’s page for the details of applicable programs.

 

 

1. Grant Aid

Grant aid involves the provision of funds for the construction of buildings such as school and hospitals; for the procurement of materials and equipment for education, training, and medical care; and for reconstruction after disasters occurs.

Categories which are applied are: (1) General Grant Aid, (2) Grant Aid for Fisheries, (3) Grant Assistance for Grass-roots Human Security Projects, (4) Grant Aid for Cultural Activities (including grant aid for cultural heritage), (5) Emergency Grant Aid, (6) Grant Aid for Cultural Grass-roots Projects.

 

(1) General Grant Aid

General Grant Aid is aimed at contributing to the social and economic development of developing countries. General Grant Aid plays a central role in Japan's grant program and is comprised of: Grant Aid for General Projects, which is provided for the support of projects in areas such as basic human needs (agriculture, medical and health care, public welfare and the environment), human resource development (education, research, training), and basic economic infrastructure, including regional roads; Grant Aid for Debt Relief, Non-Project Grant Aid for Structural Adjustment Support, and Grant Assistance for Grassroots Projects.
Examples of Grant Aid for General Projects include the provision of funds necessary for the construction of facilities such as schools and hospitals, and for the purchase of medical equipment.

 

(2) Grant Aid for Fisheries

The purpose of this grant aid is intended to contribute to promotion of fisheries development in developing countries. Within the framework of this grant aid, the Japanese government provides funds for projects related to the development and utilization of fisheries resources. As Japan possesses the world’s most modern fishery technology and ample experience in this field, it is meaningful to help the developing countries adequately develop and utilize available fisheries resources.

 

(3) Grant Assistance for Grass-roots Human Security Projects

The Japanese Government offers a financial assistance scheme for development projects designed to meet the diverse needs of developing countries. Known as Grant Assistance for Grassroots Human Security Projects (GGP), this scheme supports projects proposed by such bodies as NGOs, Schools, Hospitals and local government authorities. The GGP has acquired an excellent reputation for providing flexible and timely support to development projects at the grass-roots level. For more details, please click here.

 

(4) Cultural Grant Aid

Cultural Grant Assistance is a scheme whereby funds are granted to cover the cost of procurement, transportation and installation of equipment and construction or restoration of facilities used for various cultural and higher educational activities and the preservation of cultural heritage. From the start of this scheme in FY 1975 to FY 2007, Japan's Cultural Grant Assistance has supported a total of 1,340 projects in 128 countries and regions, disbursing 58,800 million yen. The equipment and facilities provided to developing countries through Cultural Grant Assistance are used in a wide range of activities, including Japanese-language study and the study of Japan at various colleges and universities; promotion of sports, such as traditional Japanese martial arts like judo; promotion of cultural activities and the fine arts, including events at theaters, museums and art galleries; and the preservation of cultural heritage.

Some examples of specific projects:

·         The Project for the Improvement the Project for the Construction of the Kharakhorum Museum (approx. 406 million yen)

·         The Project for the Improvement of Japanese Language Learning Equipment of Tobilisi State University (approx. 19 million yen)

·         The Project for the Improvement of TV Programs of the Radio and Television State System of the Republic of Panama (approx. 42 million yen)

·         The Project for the Improvement of Equipment for Hominid Fossil Related Facilities of the National Museum of Ethiopia (approx. 40 million yen)

·         The Project for the Improvement of Judo Equipment of Zambia (approx.36 million yen)

Eligible Countries: As a general principal, developing countries with a per-capital gross national income (GNI) of US$6275 on less (for FY2008) are eligible to receive Cultural Grant Assistance.

Recipients: As aid is provided in the form of grants for the governments of recipient countries, recipients are national government agencies of recipient countries.

Application Method: The organization acting as the liaison for the recipient country (for example, the Ministry of Foreign Affairs) must compile target projects for that country and make a blanket application to the Embassy of Japan.

 

(4) Emergency Grant Aid

This aid is to provide an emergency assistance for relief activities in developing countries in where calamities have occurred. Based on request from the afflicted country, multilateral organizations or the Japanese Embassy, Ministry of Foreign Affairs decides the necessity, the amount and contents. After decision is made, the Cabinet approval is to be obtained, and the Japanese Embassy exchanges a Note Verbal with the recipient government or multilateral organizations. Because of its nature, the required procedures for this grant aid are extremely simplified.

 

(5) Grant Aid for Cultural Grass-roots Projects

Grant assistance for Cultural Grassroots Project (GCGP) provides nonrefundable financial assistance to support the implementation of cultural and higher education projects conducted by non-profit organizations (including non-governmental organizations (NGOs), local authorities, research and higher education institutions, etc.) that are active at the grass-roots level in developing countries.

GCGP directly supports the promotion of culture and higher education at the grass-roots level in each country, while also acting as cooperation which encourages understanding of and cultural exchanges with Japan.

 

Eligible Countries:  As a general principle, developing countries with a per capita gross national income (GNI) of US$6,275 or less (for FY2008) are eligible to receive GCGP (79 eligible countries as of December 2008).

 

Eligible Recipients: Any type of non-profit organization is eligible to be a GCGP recipient. The requirement is that it be a non-profit organization implementing projects for the promotion of culture or higher education (including sports) at the grass-roots level in eligible countries (individuals and profit-making companies are not eligible).

The following are examples of potential recipients: NGOs that are active in the local region (regardless of their nationalities), local authorities, and non-profit organizaitons such as universities. In particular cases, governmental institutions may also be eligible for assistance.

 

Project Areas:

(a) As long as a development project for the promotion of culture and higher education in an eligible country is geared to grass-roots assistance, it is eligible for financing under the GCGP. The following types of projects are being implemented.

Some examples (not an exhaustive list) of eligible projects are:

·         Japanese language education equipment (LL equipment, etc.) for the Japanese language departments at universities

·         Sound and lighting equipment for theaters

·         Sports equipment for sports facilities and organizations (including martial arts)

Audio-visual equipment for art galleries and museums

(b) Priority areas and detailed conditions shall be determined by the Japanese embassy or consulate in each eligible country according to the specific needs for cultural or higher education areas.

 

Available Funds: GCGP funds are provided to the recipient organization after an examination and evaluation of each application by the Japanese Government on an annual basis.

The grant amount per project is generally under 10 million yen. Prospective applicants should note that the following budget items cannot be financed: consumables, operating and maintenance costs of facilities and equipment, and the administrative costs of the recipient organization.

 

How to Apply: If your organization satisfies the conditions described above and you want to receive GACGP funds in order to implement a project for the promotion of culture or higher education in an eligible country, you should submit an application form to the Japanese embassy or consulate in said eligible country. The application form must be accompanied by a detailed breakdown of the budget for the project, a map showing the project site, a feasibility study for the project, estimates for the goods and services that will be purchased by the grant (from three different suppliers), document introducing the applying organization (such as brochures) a copy of its regulations, and the annual budget of your organization.

 

2. Technical Cooperation

Technical cooperation projects are one of Japan’s ODA main types of overseas activities. They are results-oriented, with Japan and a developing country pooling their knowledge, experience, and skills to resolve specific issues within a certain timeframe. The projects may involve the dispatching of experts from Japan to provide technical support, invitation of personnel from developing countries for training, or the provision of necessary equipment.

After receiving a request from a developing country, Japan International Cooperation Agency (JICA) adopts various cooperation approaches (cooperation tools). In order to achieve the objective of promoting development, JICA determines how to combine these cooperation tools, how long they will be implemented, and how to time them for the most effective and efficient results.

Technical cooperation project are implemented according to the plan made through consultations with the recipient country. In order to address each problem so that a broad range of needs of developing countries can be met effectively and efficiently, cooperation plans are tailor-made and implemented jointly with the recipient country.

 

3. Acceptance of Technical Training Participants

The Acceptance of Technical Training Participants Program involves the transfer of knowledge and technology required by respective countries through the training of key administrators, technicians and researchers in developing countries and regions. This is the most fundamental human development program implemented by JICA.

The program has grown steadily not only in scale but also in terms of content since its launch in 1954. JICA has been working on training related to global issues, such as the environment and HIV/AIDS, and new issues like support for democratization and transitions to market economies, in addition to basic development fields such as administration, public works, agriculture, forestry and fisheries, education, health and medical care, mining, and industry.

 

4. Japan Overseas Cooperation Volunteers


Japan Overseas Cooperation Volunteers (JOCV) Program assists and promotes in response to requests from developing countries the overseas activities of young people who wish to cooperate in the economic and social development of developing countries. JOCVs generally spend two years in developing countries, living and working with the local people while taking part in cooperative activities. Cooperation is provided I seven fields: agriculture, forestry and fisheries, processing, maintenance, civil engineering, health and hygiene, education and culture, and sport. Around 140 occupations are involved in all.

 

5. Senior Volunteers


The Senior Volunteer Program was preceded by the Senior Cooperation Expert Dispatch Program, which commenced in 1990 as a scheme aimed specifically at middle-aged people who have a strong interest in technical cooperation activities in developing countries making use of their skills and experience. Volunteers with extensive skills and plentiful professional experience between the ages of 40 and 69 are recruited. The recruits are then dispatched to developing countries in accordance with requests received from the governments of those countries.

 

6. Preparatory Survey

 

Preparatory Survey to assistance project will be conducted to ensure flexibility and speed at the project preparation stage and to achieve mutually reinforcing effects among the three aid schemes (see below). Such survey will enable JICA to conduct both project identification and formulation in a seamless manner, thereby significantly shortening the preparation period leading to actual implementation.

 

A. Scope of Survey

l         Develop and determine specific targets for assistance with individual development goals and prepare appropriate assistance scenarios.

l         Identify and formulate individual projects; prepare the basic project plan and propose assistance that JICA can provide; assess relevance, effectiveness and efficiency of the proposed projects.

 

B. Studies Included in the Preparatory Survey

l         Project formulation study (formerly implemented by JICA)

l         Preliminary examinations for grant aid (including preliminary studies and basic design study [1] , formerly implemented by JICA)

l         Part of development studies [2] (formerly implemented by JICA)

l         Special Assistance for Project Formation (SAPROF) studies (formerly implemented by JBIC)

l         Formulation studies for JICA’s assistance scenario targeting specific development goals by combining all aid schemes as necessary (new study)

 

7.Grant Assistance for Grass-roots Human Security Projects

 

The Japanese Government offers a financial assistance scheme for development projects designed to meet the diverse needs of developing countries. Known as Grant Assistance for Grassroots Human Security Projects (GGP), this scheme supports projects proposed by such bodies as nongovernmental organizations (NGOs) and local government authorities. The GGP has acquired an excellent reputation for providing flexible and timely support to development projects at the grass-roots level.
(Eligible countries : (1) St. Christopher and Nevis, (2) Dominica, (3) St. Lucia, (4) St. Vincent and the Grenadines, (5) Grenada, (6)Trinidad and Tobago, (7)Suriname, and (8)Guyana  

 

OBJECTIVES

The GGP provides nonrefundable financial assistance to NGOs, hospitals, primary schools, and other nonprofit associations to help implement their development projects.
The availability of GGP funding in each eligible country provides Japanese ODA with a new means of cooperation that has a direct impact on the well-being of grass-roots communities.

 

ELIGIBLE RECIPIENTS

Any type of nonprofit organization is eligible to be a GGP recipient. The only requirement is that it be a nonprofit organization implementing development projects at the grass-roots level in eligible countries. The following are examples of potential recipients: international or local NGOs (of any nationality, except those eligible for the Grant Assistance for Japanese NGOs), local authorities, hospitals, primary schools, and other nonprofit associations.

 

PROJECT AREAS

1) As long as the development project is geared to grass-roots assistance, it is eligible for financing under the GGP. However, the following areas account for the majority of the projects approved:

§ Primary health care
§ Primary education
§ Poverty relief
§ Public welfare
§ Environment

2) Priority areas and detailed conditions shall be determined by the Japanese Embassy or Consulate in each eligible country, according to the development needs of that country.

 

AVAILABLE FUNDS

GGP (Grant Assistance for Grass-roots Human Security Projects) funds are provided to the recipient organization after an examination and evaluation of each application by the Japanese Government on an annual project-by-project basis.
The grant amount per project is generally under 10 million yen. (The maximum grant amount is 100 million yen). Prospective applicants should note that the following budget items cannot be financed: consumables (except in case of emergency relief or for humanitarian needs), running and maintenance costs of facilities and equipment, and administrative costs of the recipient organization.
(Exchange rate as of April, 2005 : US$1=107yen, EC$1=40yen, TT$1=17yen (approximately) )

 

HOW TO APPLY

If your organization satisfies the conditions described above and you want to receive GGP funds to implement a development project, you should submit an application form to the Japanese Embassy or Consulate in your country. (In certain countries, you may submit your application to the Japanese Consulate-General). The application form must be accompanied by a detailed budget for the project, a map showing the project site, a feasibility study for the project, estimates for the goods and services that will be purchased by the grant (from three different suppliers), a brochure and a copy of the regulations, and the annual budget of your organization.

Please take or send the application form and other required documents to a local Japanese Embassy or Consulate. As we may need to ask you for additional information, it is essential that your organization provide a point of contact.

 

APPROVAL PROCEDURES

The Japanese Government cannot support every project that is submitted. Funds are provided to appropriate projects after detailed examination and evaluation by the Japanese Government.

After a Japanese Embassy or Consulate receives the application form and accompanying documents from the applying organization, the Embassy or Consulate will take the following steps:

1) Examination of the project
2) Site visit
3) Grant Contract
4) Disbursement of funds
5) Implementation of project
6) Changes from the original plan
7) Reports
8) Auditing

 

FOR FURTHER INFORMATION:

 

Please contact a Japanese Embassy (Tel: 1-868-628-5991 or Email: embassyofjapan@tstt.net tt)
·You can download a brochure of GGP for further details here
. (1.39MB)
·You can download an application form here
if you would like to apply for GGP.

 

Link to JICA HP Latin America: www.jica.go.jp/english/countries/america