Category: Japan

Japan PM Shinzo Abe’s Economic Strategy Includes “Womenomics”

‘Womenomics’ is a key pillar of Prime Minister Shinzo Abe’s economic growth strategy. In 2013, just 64 per cent of Japanese women aged 15–64 were participating in the labour force — a low rate by OECD standards. As Japan’s labour force is already in decline, it is wasteful that women, and particularly those who have a higher education, have been underutilised. To address this, Abe has set a target to increase the ratio of female managers to over 30 per cent by 2020. In response, several large firms have set similar numerical targets.

Northeast Asian Stability and Japan’s Security Policy

On 1 July 2014, the Abe government made a cabinet decision to reinterpret the Article 9 peace clause of Japan’s constitution to recognise the exercise of collective self-defence under limited circumstances. While the scope of the proposed changes are an evolution rather than a revolution in Japanese security policy, especially due to the tough negotiations with Abe’s coalition partner New Komeito, furor and misconception have surrounded the move.

Will Kuroda’s ‘can do’ approach succeed for Japan’s economy?

Under the leadership of Governor Haruhiko Kuroda, the Bank of Japan (BOJ) in March-April 2013 did a 180-degree turnaround: it declared that it had the monetary policy wherewithal to end Japan’s chronic, mild deflation and secure a rate of inflation of around 2 per cent and announced bold monetary action to that end. For BOJ-watchers this was revolutionary stuff — and it was coming from establishment Japan.

More about ‘Abenomics’ in Japan and it’s Potential

After two decades of stagnant growth and the Fukushima triple disaster, Japan appears more confident both domestically and internationally. The economy has been inflated, much-needed social change is being discussed with some progress being made, and international diplomacy is once again active.

Slower growth is to be expected with an ultra-modern economy that has a shrinking population. And Japan has continued to contribute to the peace and stability of the region, underpinned by the US-Japan alliance and the Article 9 peace clause of its constitution.

Lessons from Japan’s ‘Abenomics’

One of the striking things about the past few decades of Japan’s economic history has been the fact that textbook macroeconomics could have predicted most of it. Back in the late 1990s, this was a controversial point of view. Many people spoke about the ‘specialness’ of the Japanese economy, just as they have about the ‘specialness’ of recent monetary policy. This over-complication seems unnecessary. In the political economy of reform, as in macroeconomics, we can learn a lot from the Japanese experience.

Attracting Foreign Talent Means Overcoming the Japanese Language Barrier

In May 2014, the Japanese government announced its plan to attract ‘foreign talent’ as part of a campaign to further economic growth. The plan consists of three key points.

First is a review of the Technical Intern Training System. This will be done by strengthening management and supervision of the system, widening the job categories covered by the system, extending the training period from the current period of three years to a maximum of five years and expanding the admission quota.

The Latest on Uridashi Bond Issuance

Weekly MOF data shows that Japanese investors have remained net buyers of foreign bonds in recent months.  After a weak start to the year that saw Japan investors shed nearly $58 bln of foreign bonds in the 16 weeks through mid-April, the flows have largely reversed.

In the 23 weeks since then, there have only been 6 weeks of foreign bond sales.  Total net foreign bond purchases in those 23 weeks stand at $75 bln through the week ended September 26, and have more than fully offset the bond sales seen through mid-April. 

Surprisingly Optimistic Japanese Youth Face a Bleak Future

The youth of Japan appear to face a bleak future — a catastrophic budget deficit, ageing population and collapsing social security system. Despite this, according to data released last year, Japan’s youth are astonishingly positive in their outlook. In the government-run Public Opinion Survey Concerning People’s Lifestyles, levels of youth life satisfaction reached 78.4 per cent — the highest they had been since 1967 and higher than during Japan’s booming ‘bubble economy’ period.