Urgent Statement toward the "Revision Plan of Grant Aid for Increased Food Production" released by Ministry of Foreign Affairs of Japan

The Ministry of Foreign Affairs of Japan (MFA) presented a conclusion of the review of "Grant Aid for Increased Food Production"(so-called "2KR") on December 25th, 2002.
This review was originally advised by the [Committee for Changing MFA] due to the serious problems caused by this aid to the societies of the recipient countries. In July, the Committee proposed MFA a "drastic reform" of 2KR, which is a part of Grant Aid of Official Development Assistance of Japan, on the assumption that abolition of the aid. And behind, when the MFA improved bearing abolition in mind, it changed expression.

2KR-Net, which has been exchanging the opinions with MFA, proposed MFA to set a reviewing committee consisted of specialists, citizens and NGOs in order to reconsider 2KR thoroughly for better grant aid in the future; and to release all the related information for better discussion. We also requested an extension of the reviewing period (instead of the end of December 2002 which was set by MFA) for meaningful discussion and thus better conclusion.

MFA, however, drew up its own conclusion by heavily relying on their own research conducted in only six out of the 40 recipient countries of 2KR without holding open discussion on this matter. On the other hand, MFA refused the immediate releasing of the important documents that we requested legally, but postpone the probable releasing date until December 2003.

In the process of revision the following points should be carefully considered:

1. 2KR has been preventing the initiatives of local farmers from sustainable and self-reliant development due to the input of huge quantity of the aid material;
2. How could 2KR aid scheme that originally aimed to assist the food shortage of the "LDCs" be transformed into more adequate assistance that considers the diversity of local environment and needs?

However, the contents of the revision plan presented by MFA do not show any change of the scheme of 2KR.Ê Thus, it cannot be considered as "drastic reform". 2KR-Net addresses an objection for this conclusion, and ask MFA for making the process of the revision and decision-making more transparent and meaningful.

1. Structural problems of 2KR

2KR aid, although it was aimed to increase food production of the countries that face famine, has only been giving the agricultural materials and equipments in huge quantity without considering the diversity of the food production depending on the nation, region, social status and so on. Japanese government justified the often-inadequate outcome of this aid using the pretext of "request-basis principle", and blame at the recipient governments. Especially, 2KR scheme has the following problems:

1. This aid is based on giving away agricultural materials (fertilizers, pesticides and agricultural machineries) and no profound research on needs, follow-up nor technical aid is to be provided. For 25 years, it has created heavy dependency in the recipient governments and promoted dependency of fertilizers and pesticides in the societies. As the result, it has caused serious environmental damage, and has disturbed the efforts in self-subsistence and sustainability for food production. On the other hand, this aid has guaranteed that the Japanese trading companies receive high profit. They are found to be organizing collusive tendering.
2. 2KR is not an aid for a specific project but a programe aid depending on the request from the recipient government.Ê This is why it is implemented without sufficient preliminary survey and its evaluation, and the budget for such is not included. It is not often known where and how the donated materials were used. In some cases, these materials end up not being used and piling up in warehouses. MFA, however, says that the misuse or lack of use of the donated materials should be blamed at the recipient governments. MFA even do not care if they have arrived in the port or not.
3. Although the materials are given to the recipient governments for free, the end-users such as farmers need to buy them. The profits made by selling these materials to the farmers must be save in so-called "counterpart fund", which are meant to be used for the social development projects. Most farmers, however, in those countries that face famine or food shortage, have such economic capacity to buy those materials. Thus, in order to receive 2KR materials they need to get some loans.
   This promotes vulnerability of the local farmers especially upon the bad years.
   Also, the "counter part fund" often tend not be saved in the account, and it is said that this aid caused corruption of the government officials.

In the review, MFA did not consider all these structural problems at all. That is why it is necessary to reconsider the structure of this aid drastically.
The "strengthening the monitoring" which MFA says only come afterwards.

2. Policy shift towards agricultural assistance and appropriation of budget

The revision plan by MFA does not mention about the future agricultural assistance. It is important to stop 2KR scheme and drastically to transform the agricultural assistance.
The future aid should consider actual condition for food production in each site.
MFA should carry out research based on the fields and technical assistance in order to realize sound assistance for supporting the sustainability and independence of the local people.
Thereafter the question towards budget comes. The decision of reducing the 2KR budget made by MFA is aimed to turn aside the current discussion on the reform of 2KR, ODA and MFA, and only harmful.

3. Termination of pesticide donation

This decision made by MFA should be considered as the intention of continuing 2KR aid scheme by omitting pesticide donations since the criticism on this is the greatest not only inside of Japan but also in the international community. Pesticide aid was already pointed out as a dangerous aid when MFA tried to begin 2KR aid to Cambodia in 1993. Although throughout 90's, the international community has treated the matter related pesticides very sensitively, the Japanese government continued pesticide donation for ten years without considering already pointed out consequences and criticism. This caused huge amount of the obsolete pesticides stockpiles in many African countries. The termination of pesticide donation is only decided now, and too late. We cannot accept the reasons presented by MFA ("lack of proper use and a point of environmental consideration is why we do not give the aid") that clearly show no responsibility of its own. MFA should clarify the reason of change of this policy that only made now not before.

In addition, the Japanese government must clarify their commitment in the disposal of the obsolete (expired or unused) chemicals and of the research/ promotion/diffusion of the sustainable farming that could reduce the reliance in pesticides, which are requested by the international community.

(Concluded)

Statement of MFA for the Revision of 2KR
(presented on 25th December 2002)

The Revision of 2KR

In order to review 2KR, MFA dispatched a mission to the recipient countries and mapped out a drastic revision plan as mentioned below;

1. Regarding the aid of pesticides, basically the donation is stopped by reason of anxiety of proper use consideration for environmental condition. However, the Japanese government should cooperate for a responsible implementation authorized by the International Agencies.
2. Regarding the aid of fertilizers and farming machineries except pesticides, it is considered carefully in accordance with local needs, operation system, monitoring and evaluation capacity. It should be checked by strict preliminary survey.
3. As a result, the total budget of 2KR for 2003 (MFA draft), it estimates a decrease of 60% of 2002. 4. As the future strategy for 2KR aid, it should be reformed appropriately through further discussion with the International Agencies and strengthen of monitoring of the implementation in the recipient countries.

(Concluded)