The international community is entering a period of increasing political and economic volatility. This is attributable to a variety of factors, including the global economic recession, the rising tide of nationalism in many places around the world, and the growing realization that globalization, a trend which had been almost universally welcomed, also has some significant drawbacks. In times like these, it is clear that Japan must adopt a realistic approach to international cooperation. Despite the challenges of today's unstable operating environment, the Sasakawa Peace Foundation (SPF) established a new program policy in 2008, and has deployed various programs aimed at generating international contributions at the initiative of the non-profit sector. Slightly more than one year has passed since we embarked on this new journey, and we have laid the groundwork and built a platform for future development and growth.

Our first step under the new policy was to establish the Sasakawa Middle East Islam Fund (SMEIF). The SMEIF was launched following the termination of the Sasakawa Central Europe Fund, the primary mission of which was to facilitate the transition of certain Central European countries to a market-oriented economy, based on the fact that the targeted countries have obtained membership in the European Union and the North Atlantic Treaty Organization. After the twenty or so years that SPF has been engaged in international exchange, the addition of the Middle East region to its core activities represents a significant turning point in the Foundation's history. Stakeholders have high expectations of the SMEIF. At the Fund's inaugural reception, Mr. Kunihiko Matsuo, Chairman of INPEX Corporation, quoted an old Arabic saying, "Words are clouds, but action is rain." Consistent with this proverb and despite continued calls for greater exchange, we must acknowledge that past efforts have had little or no effect. SMEIF will seed the clouds and finally bring abundant rains.

A second initiative, in addition to SPF's foray into the Middle East, was the decision to position the United States as another priority region. As conflicts over trade reached their peak during the 1990s, interest in exchange between Japan and the US steadily declined. Spurred by a new menu of international cooperation, however, SPF has commenced efforts to reopen this vital pipeline. Fostering interaction among the opinion leaders of each nation--encompassing the entire age demographic from the young through middle aged and elderly--SPF plans to pursue communication that extends well beyond merely creating a pro-Japan group to include the frank exchange of views and policy recommendations on such wide-ranging issues as the environment, energy and the prevention of nuclear proliferation.

Complementing each of the aforementioned measures, SPF is undertaking practical surveys, research and pilot projects as the basis for its efforts to disseminate information, develop recommendations and propose solutions. SPF works to address serious issues encountered both by individual regions and the world as a whole-- for instance, population growth in East Asia and elsewhere, pandemics like avian influenza, and maritime management with a special focus on Pacific island nations. Recognizing that these and other issues cannot be resolved easily or quickly, SPF remains committed to its multi-faceted Mission Statement, which sets out several key goals and commitments, values progressive approaches, and dedicates SPF to the process of creative exploration despite any complications or difficulties that may arise. As we work toward achieving our stated goals, we ask for your continued support and understanding.

Jiro Hanyu
Chairman
August 2009