Economic Development Field
Cooperation in the field of economic development comprises three areas: economic policy and finance, private sector development, and resources and energy. Recent discussions on development in the international community underline the importance of enhancing assistance for these issues from the perspective of reducing poverty through economic growth. It is also required to continue to review the focal points in addressing those issues from the perspective of human security.
Target areas of cooperation in the economic development field have thus far been mostly in Africa, with a view of promoting economic growth. However, recently, specific measures to create economic dynamism have been called for to reduce poverty in Africa. To this end, private sector efforts using markets and trading in combination with development assistance from the public sector are essential.
The development of a fiscal and monetary infrastructure and the appropriate management of economic policies are vital to sustainable economic growth. If economic policies are not implemented and managed properly, hyperinflation or deflation will bring about fiscal and monetary collapse, causing a serious deterioration in people’s assets and living standards. This type of situation emerges from time to time in developing countries. Strengthening and stabilizing fiscal and monetary systems and achieving macroeconomic stability and growth through the formulation and implementation of appropriate economic policies are prerequisites for successfully overcoming development challenges.
Private sector development is an approach to cooperation that contributes to the economic advancement of developing countries through the vitality of the private sector. Supporting the private sector of developing countries has the potential to stimulate economic growth, accelerate poverty reduction, and improve living standards in developing countries. Unless economic activities in the private sector advance, a lack of employment will cause incomes to decline and, as a result, poverty will persist. Private sector development is also extremely important in terms of tax revenue. Unless tax revenues are secured, the government will not be able to sufficiently provide administrative services such as education, welfare, public health, and medical care due to budget constraints.
Energy supply is an indispensable infrastructure component for developing industries and economies and improving living standards. Every country makes substantial efforts to attain a stable supply of low-cost quality electricity. In addition, mineral resources and energy resources such as petroleum and coal are important sources of foreign currency acquisition and a resource for economic development in developing countries, and the sustainable development and management of those resources is gaining importance.