Official development assistance (ODA) is the assistance rendered by the government or government-affiliated agencies. It is given for the purpose of promoting economic development and welfare of developing countries, and moderated in the terms of aid. Japanese ODA consists of bilateral aid and aid provided through multilateral institutions. Bilateral assistance includes technical cooperation, grant aid, and ODA loans.

(1) Kazakhstan has a geopolitically important position in the new international situation after the breakdown of the Soviet Union. According to Japan's ODA Charter, it is desirable to provide support for the countries in transition toward democratic and market-based systems. Japan actively helps Kazakhstan to overcome its economic difficulties arising from lack of human resources, obsolete economic infrastructure, seriously damaged trade structure.

In November 1996, the World Bank organized a Consultative Group meeting for Kazakhstan in Tokyo for the first time. During the meeting the participating donor countries including Japan announced their intention of aid in the total amount of US$ 1.35 billion.

(2) OECD's Development Assistance Committee (DAC) registered Kazakhstan as a developing country in January 1993, but Japan had already began technical cooperation of accepting trainees in Japan and sending experts to Kazakhstan in 1991. Japan has provided medecine, medical equipment, vaccine and others, equivalent to US$ 14.4 million since 1993, as a part of emergency humanitarian assistance to the New Independent States totaling US$ 200 million.

Japan's ODA to Kazakhstan has centered on ODA loans and technical cooperation.

As for ODA loans, Japan supported restruction of transportation infrastructure. At present four yen-loan projects are agreed between Japan and Kazakhstan, and financed by the Japan Bank for International Cooperation (JBIC, formerly the Overseas Economic Cooperation Fund, Japan or OECF.)

As for technical cooperation, Japan accepts about 40 trainees every year, mainly in the fields of market economy, environment, various administrative work. Development studies are conducted in developing mineral resources, land and air transportation, water management including irrigation, etc.

With the decreased amount of GNP per capita, Kazakhstan became a target country of grant-aid in 1996. In May 1997, the exchange of notes were signed concerning the non-project grant aid. In March 1998, "Project for Improvement of Almaty Regional Health Care" was given the first grant for general projects.

In October 1996, Japan engaged in policy consultation on economic cooperation as to grant aids and technical cooperation. Taking into account its results, Japan puts an emphasis on assistance for (1) creating systems of social works during transition into market-oriented economy, (2) reconstruction of transportation infrastructure, (3) environmental problems, (4) social safety net programs.