What We Expect from New Government Economic and Fiscal Management for Structural Transformation of Japanese Economy
November 12, 2024
Takeshi Niinami, Chairperson
Keizai Doyukai
The result of the 50th Lower House general election on October 27 has made it clear that the distrust of the public in politics had not been removed yet, due to the political funding issue. Meanwhile, Japanese economy has now made a remarkable shift from deflation of more than 20 years to inflation, giving a once-in-a-lifetime chance to press ahead with reform to a new economy and society. However, the country is facing mounting challenges like labor shortages, declining fiscal and social security sustainability, and higher tensions in national security.
Amid these challenges, we request Prime Minister Ishiba's new cabinet to take on, first of all, quick and far-reaching solutions to the political funding issue to recover the trust of the public in politics. At the same time, the ruling and opposition parties must share a sense of urgency that we can spare no more time before transforming our economy and solving challenges we face, thereby setting about discussions on major policy measures without paralysis of the national political process. Such discussions must also have a medium- to long-term view, facing an inconvenient truth to the public head-on, and prevent populist policies that lead to fiscal expansion. We request the new cabinet to demonstrate its political leadership in initiating the reforms in this regard.
- Realization of national vision that promotes the well-being of the public
- Economic and fiscal management toward transformation to private-sector-driven economy
(1) Establishment of a system for constant wage hike and response to labor shortages
(2) Energy policies to respond to electricity demand growth and carbon neutrality
(3) Regional revitalization amid shrinking population
(4) Fiscal consolidation and institutional design for social security reform
(5) Institutional reform to promote DEI in society - Press ahead with political reform to recover the trust of the public
(1) Far-reaching solutions to the political funding issue and enhance political party governance
(2) The Diet reform that enables primary policy deliberations by the ruling and opposition parties
