Statement by the Government of Japan to the Twenty-seventh Session of the Governing Council
of the International Fund for Agricultural Development

Rome, February 18th, 2004

Mr. Chairperson,
President of IFAD,
Distinguished Governors, Ladies and Gentlemen,

It is my great honor to represent Japan at this twenty-seventh Session of the Governing Council of IFAD.

Mr. Chairperson,

The theme of the panel discussion this year is " Trade and rural development". Trade is a pertinent and important area in achieving the Millennium Development Goals. But what is really necessary to make MDGs a reality is a comprehensive approach.

Firstly, mobilization of every kind of development funds, such as ODA, domestic funds in developing countries, private funds including foreign direct investment and trade, is critically important. In this entire perspective, promoting trade is relevant for securing an adequate supply of development financing.

Secondly, MDGs cannot be achieved simply by supplying human and financial resources. In the process of achieving MDGs, ownership and self-help on the side of developing countries are vitally necessary along with partnerships by the international community.

Mr. Chairperson,

With regard to the trade aspect, Japan has been endeavoring to expand its market access for agricultural products of developing countries. Japan is the world's largest net importer of food products, and about 50% of its food imports, in terms of monetary value, come from developing countries. Moreover, Japan has voluntarily expanded coverage under duty-free and quota-free treatment for LDCs' products in April, 2003 and the number of LDCs' agricultural and fishery products subject to these treatments have increased from about 300 to 500 items.

Mr. Chairperson,

In August 2003, the Government of Japan has revised the ODA Charter, which explains Japan's basic aid policy. The new ODA Charter states poverty reduction as one of Japan's priority issues, and that Japan gives high priorities to providing assistance to education, healthcare and welfare, water and sanitation, and agriculture.
Japan has consistently regarded agriculture as one of the most critical sectors in its development cooperation. In 2000 and 2001, Japan's annual assistance to agriculture totaled US$ 1.14 billion, by far the largest, about 40%, of the bilateral ODA.

Mr.Chairperson,

Japan also considers that promoting South-South Cooperation should be an important part of the strategy to achieve the MDGs. One example of Japan's support to South-South Cooperation is the development and dissemination of New Rice for Africa, so-called NERICA.

Japan is convinced that the development and dissemination of NERICA will strengthen rice production in West Africa, thereby contributing to food security and poverty reduction as well as to saving foreign currency that is otherwise used for importing rice. Japan would welcome support from other actors to make NERICA firmly rooted in Africa.

Mr. Chairperson,

On the investment aspect, the TICAD Asia-Africa Trade and Investment Conference is planned as one of the follow-ups of TICAD III which was held in Tokyo last September. We have started preparation work for the conference which will be held in autumn this year.
To conclude, Mr. Chairperson, I would like to reaffirm that Japan intends to continue to actively support rural development and auspices to further strengthen the cooperative relations with IFAD which has extensive knowledge and expertise in this field.
Thank you very much.