[ Keidanren ] [ Policy ]

In search of a Grand Design
for the Economy and Public Finance

October 2, 2000

Japan Federation of Economic Organizations


  1. Declining birth rate, population aging, and structural reform

    1. Japan's economy today and the impact of a falling birth rate and aging population
    2. The need for structural reform

  2. Basic direction of structural reform by sector

    1. Growth strategy
    2. Reform of the structure of public expenditure
      1) Public works reform
      2) Reform of local government finance
    3. Social security system reform
      1) Pension system reform
      2) Medical treatment for the aged and long-term care insurance system reform
    4. Tax reform

  3. Need for a Grand Design for economic and fiscal policy

    1. Experience gained from the six major reforms of 1997
    2. The Grand Design
      1) Conditions that must be met by the Grand Design
      2) Planning and establishing the Grand Design
      3) Possible options


  1. Figure 1: Impact paths of falling birth rate and population aging
  2. Figure 2: National burden rates and economic growth rates of the OECD countries
    (average of last 30 years)
  3. Figure 3: Impact of tax and social insurance premiums on the economy
    - Differences in "deadweight loss" depending on fund procurement method -
  4. Figure 4: Potential achievement of the goals of the Fiscal Structure Reform Law
  5. Figure 5: Structural reform options (estimates based on use of macro-econometric model)

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