In sharp contrast to Japan, the UNDP provides grant assistance aimed at developing human capacities rather than loans for building physical infrastructure. Projects are small, with limited amounts of funding. Capacity building is the primary goal of environmental assistance, as opposed to a mere by-product. The UNDP’s approach to solving environmental problems is based on the belief that weak environmental management in developing countries is not simply caused by a lack of capital or technologies but by weak managerial capabilities. Human development that involves stronger participatory practices and technological innovation is, therefore, seen as essential.