Japan has set up a study panel to seek ways to encourage private sector investment in Third World nations, officials said today.
"The panel's study will help complement Japan's drive to recyle its huge trade surplus into developing nations," a Finance Ministry official told reporters.
Ministry officials said the panel is scheduled to come up with recommendations to the government in about a year.
They said Japan needs to find measures to help redirect the flow of Japanese capital because most private-sector funds have so far flowed to industrial nations.
Of Japan's $67.54 billion in direct investment abroad in the last fiscal year, 48.2% went to the United States and 20.8% went to nations in the European Community.