Policy Proposals Economic Policy, Social Security Improving the Foundation for Revitalization of the Japanese Economy
Since its inauguration, the second Abe cabinet has carried out "bold monetary policy" and "flexible fiscal policy" one after another and has made a significant decision to join the Trans-Pacific Partnership (TPP) negotiations, leading to a positive turn in business and consumer sentiment. Since there are currently bright expectations for the economic outlook, now is a chance to turn the "expectations" into a "realization" that influences the real economy through execution of the growth strategy.
Regarding the closely-watched "growth strategy that promotes private investment," it is essential to pave the way for achieving an international business environment where Japanese companies can compete on an equal footing, which the business has been calling for. The government is required to resolve five policy issues relating to improving the foundation for the business environment (1. containing energy costs through energy and environmental policies, tackling 2. the continuously increasing social insurance burden in the aging society, and 3. the higher effective corporate tax rates compared with those in other countries, 4. seeking early conclusion of the TPP and other economic partnership agreements contributing to the national interest, 5. making the flexible labor market). It must build a nation that can attract both domestic and overseas investments.
In response to the government's efforts, companies will open up new horizons for business activities and achieve powerful growth led by the private sector, through strengthening its own innovation capacity. Through coordinated efforts by the public and private sectors, it is necessary to aim at swift recovery of the Japanese economy.