New Growth Strategy Envisaged for the Post-Economic Crisis Period

-- Five Fields of Expected New Demand, and Three Pillars of Policy to Support Sustained Growth --

On December 15, Nippon Keidanren announced its proposal "New Growth Strategy Envisaged for the Post-Economic Crisis Period." This proposal is a compilation of economic policies for achieving the sustained growth of the Japanese economy into the future after the country's recovery from its economic crisis.

After being severely impacted by the global recession last year, the Japanese economy has been emerging from its most difficult period, but given factors such as the severe employment situation and persistent deflation there remains little cause for optimism. Japan is also undergoing structural change on an unprecedented scale in the form of a relentless population decline and rapid aging of the population, making it difficult to discern how its socioeconomic future should be shaped. Combined with the uncertainty over the social security system, anxiety among citizens about what the future holds is mounting day by day.

In order to break free from this situation and create an economy and society that gives people hope for the future and peace of mind in their daily lives, it is essential to ensure the early formulation and implementation of a growth strategy that will enlarge the entire economic pie. If the economy grows and the pie expands, it will also make it possible to build a sustainable social security system and to take vigorous steps to restore the nation's fiscal soundness.

Accordingly, this proposal addresses the kind of growth strategy that Japan should adopt by setting out five fields in which new demand is expected, and three pillars of policy to support sustained growth.

First, the five fields in which new demand is expected.

1. Encouraging further economic integration with the aim of achieving development in tandem with the rest of the Asian region, a world growth center.
2. Contributing to the resolution of resource, environmental, and energy problems through the diffusion of solar power generation and energy-saving products.
3. Fostering e-government through astute use of information and communications technology (ICT).
4. Addressing the declining birth rate and aging society primarily in the fields of medical care and caregiving.
5. Fostering the development of regionally based industries in such spheres as agriculture and tourism, so as to realize the potential of regional areas.

We have calculated the job-creation effect in these fields based on certain assumptions. The results show, for example, that the increase in exports resulting from growth in Asia is estimated to have created some 1.3 million jobs domestically in 2008, and that the creation of approximately 1.7 million additional jobs is expected in the fields of medical care and caregiving by 2030.

The three pillars of policy to be implemented are as follows.

1. The further enhancement of the strength of industries that are internationally competitive, by such means as establishing a tax system that promotes economic growth, and developing business infrastructure in other parts of Asia.
2. The creation and fostering of the development of wellsprings of Japan's growth capability by nurturing new domestic demand, such as the environment, medical care, and caregiving, into the next pillars of external demand.
3. The utilization of a diverse workforce and the enhancement of its quality.

In addition to the above, to ensure that this growth strategy is implemented in a well-balanced way from both the supply and demand perspectives, it is important to maintain a timely grasp of its implementation status. In consequence, we request that a plan-do-check-act (PDCA) cycle be implemented.