Statement at the 54th Annual Meeting of the IDB and the 28th Annual Meeting of the IIC

(1) Private Sector Development

   First of all, I would like to start with private sector development.

   The LAC region is expected to moderately recover from 2013 after an economic slowdown under the impact of the European debt crisis and other problems in 2012. As downside risks still linger globally, it is important to sustain economic growth. I hope that the IDB will play a great role to this end. Particularly, it is important for middle-income countries to realize sustainable economic growth led by the private sector. 

   From this viewpoint, Japan welcomes that the IDB group has started discussions on its structural reform to serve as a catalyst for more effectively mobilizing private-sector resources for development. I would like the IDB to advance discussions on the reform measures including the creation of a mechanism to secure an organic linkage between public and private sector operations.

   It is important to promote regional integration through the facilitation and acceleration of cross-border distribution in order to realize sustainable economic growth led by the private sector. It is appropriate for the IDB to have adopted regional integration as one of its top priorities and to have supported the area based on the agreement of the ninth General Capital Increase in 2010.

   In promoting the regional integration, the IDB should support not only the development of infrastructure including ports, harbors and roads adopted as priorities, but also soft aspects for trade facilitation. The LAC region has room to lower high customs clearance costs stemming mainly from time-consuming procedures. To this end, the capacity development of customs and the development of more sophisticated customs clearance systems are effective. Japan welcomes the fact that the IDB has enhanced cooperative relations with the World Customs Organization (WCO) and provided support for trade facilitation. It is our honor to announce hereby that, in support of the trade facilitation efforts by the IDB and the WCO, Japan will contribute $3 million from the Japan Special Fund to the IDB.

(2) Disaster Risk Management

   Secondly, I would like to discuss disaster risk management.

   Two years have passed since the Great East Japan Earthquake. I would like to once again express our gratitude for the kind supports and sincere words of encouragement given by the IDB and the LAC countries. Japan is now vigorously carrying out post-earthquake restoration and recovery work, overcoming the tragedy.

   When a great natural disaster comes, development efforts and achievements may be lost immediately. A Japanese proverb says, "A disaster strikes when people lose their memory of the previous one." All countries must make daily disaster risk management efforts including structure improvements, evacuation training and disaster risk management education. The IDB's launch of the Disaster Prevention Initiative in 2006 under President Moreno's leadership was a great act of foresight. I hope that the IDB will further enhance disaster risk management efforts in the LAC region that includes many vulnerable island countries that is prone to natural disasters like Japan.

   As an effective tool to support efforts against natural disasters in developing countries, Japan is now contemplating to create a post-disaster recovery stand-by yen loan program for prompt assistance in response to demand emerging in the post-disaster recovery stage. Japan is ready to extend our supports to the Latin America region using this vehicle in the future.

(3) Climate Change and Environmental Measures

   Thirdly, I would like to discuss climate change and environmental measures.

   Climate change has been one of the factors behind the recent increase in natural disasters. Climate change threatens the lives of people and economies in the LAC region through its various effects including natural disasters and the loss of national land due to a rise in the sea level. A concerted and steady effort by the international community is called for to cope with adverse effects of climate change. Japan welcomes that the IDB has adopted climate change measures as a priority and actively provided supports for this area based on the ninth General Capital Increase agreement.

   In the pursuit of the balanced promotion of economic growth and climate change measures, Japan and the IDB last year signed the Co-financing for Renewable Energy and Energy Efficiency (CORE) framework for their co-financing in the field of energy efficiency and renewable energy. It is our honor to report hereby that Japan will provide a yen loan worth about 56 billion yen in cooperation with the IDB for Costa Rica's Guanacaste geothermal energy development project as the first CORE deal.

   Japan is planning a mechanism to provide yen loans to relatively well-developed countries as well for areas where Japan can make maximum use of its knowhow and technologies for contributing to developing countries' economic and social development including environmental conservation and disaster risk management. I hope that these kinds of efforts will contribute to promoting economic development in the LAC region.

(4) Gender, and Maternal and Child Health 

   Lastly, I would like to discuss gender and maternal and child health. 

   The LAC region, while growing affluent as a whole, still has a great income disparity and is required to take actions to correct it. Particularly, improvement of gender equity would not only correct the disparity but could also promote development through economic efficiency enhancement and should be given priority. Under the situation, it is appropriate for the IDB to have adopted gender as one of priorities in its institutional strategy and to have been tackling "the mainstreaming of gender" to incorporate gender elements into all aspects of development projects.

   In addressing gender challenges, I would like to emphasize the importance of maternal and child health. The improvement of maternal and child health is one of the Millennium Development goals for which efforts have lagged behind particularly. Since the maternal mortality rate has remained high in some LAC countries, continuous maternal and child health support is required. Japan has improved the maternal mortality rate by comprehensively promoting the quantitative and qualitative improvement of medical experts, the upgrading of medical knowhow, the improvement of pregnant women's nutrition and health conditions, the expansion of hospital delivery, and the development and spread of maternal and child health handbooks. Japan will continue to cooperate in supporting maternal and child health based on its experiences. 

   I am pleased to report hereby that Japan contributes $600,000 to the project to support the design of policies and strategic planning in early childhood in Uruguay utilizing the IDB's Japan Special Fund.

   In the health sector, Japan has been contributing the eradication of polio, and the enhancement of support for pregnant and parturient women by extending yen loans. Japan has also been cooperating with the World Bank on the joint study program on Universal Health Coverage. In Japan, Universal Health Coverage was introduced about 50 years ago as one of key components of the comprehensive policy package in order to achieve high economic growth and establishing a safe and healthy society. Under the recognition that Universal Health Coverage is important for promoting people's health and contributing to economic and social development, the program aims to share lessons learnt from Japan's experience for the achievement of Universal Health Coverage, both positive and negative, and to provide policy recommendations for developing countries. Believing that the global health is an important agenda which Japan can contribute, Japan will continuously and positively address this agenda.