JETRO, 1221
Avenue of the Americas, NYC, NY 10020 May 25, 2001
METI Minister Announces
Plan to
Create New Markets and New Jobs in Japan
This morning, at the first meeting of the newly established taskforce
to implement structural reform and employment measures in Japan, Minister
of Economy, Trade and Industry Takeo Hiranuma presented a "Hiranuma
Plan" containing specific measures to encourage new market and
job creation. Prime Minister Junichiro Koizumi himself has characterized
his cabinet as a "Structural Reform Implementation Cabinet".
This taskforce, led by the Prime Minister and joined by all his cabinet,
will take a leading role in developing the roadmap that will guide Japanese
efforts to revitalize and reform its economy.
Creating new markets and business opportunities is the primary challenge
that Japan will face moving forward, linked with a need to resolve problems
of the past, such as the writing off of non-performing loans. The development
of jobs and new employment measures is also essential to provide the
necessary "safety net" that will allow Japan to achieve this
important transformation.
The following summary outlines the goals and objectives of the Hiranuma
Plan. An English translation of the entire text will be made available
shortly.
15 Policy Proposals to Create
New Markets and New Jobs in Japan
Japan needs to resolutely and aggressively implement
structural reform measures in order to prepare both for a“"liquidation
of past debts" and for the economic "challenges of the future"
.
It has just begun to move ahead with the final disposition of non-performing
loans. To deal with concerns about employment and other issues that
arise during this process, it will need to proceed in a comprehensive
way with measures to enhance skill development, while rebuilding businesses
and accelerating reforms aimed at the creation of new markets and
new jobs.
One reason for the stagnation of the Japanese economy is the“"shrinkage
of demand" that has resulted from anxiety about the future and
the " lack of innovation " that prevents the development
of potential demand. The essential challenge for a new growth track
lies in presenting a clear vision of an economic society in which
the Japanese people will be able to feel secure and hopeful. It will
also require a dramatic shift of public and private sector resources
to programs that will help to promote these developments, thereby
starting a positive cycle in which innovation begets demand and demand
begets innovation.
The Hiranuma plan establishes specific goals that are easy to understand.
They provide clear direction toward“"investment in the
future" and present a package of policy measures that will help
to achieve these objectives. This will help the Japanese government
to draw out the potential vitality of its economy. It will also encourage
the creation of new markets and new jobs, and over time enhance the
competitiveness of Japan's business environment.
These fifteen policy proposals include:
I. Building Innovation Systems
and Fostering Venture Businesses to Create New Industries
1
Preparing the infrastructure
for innovation
Encouraging university reform and the
creation of“"1,000 Venture Firms Originating in Universities"
through a strategy of transferring technology from academia to industry
2
Concentrating investment in strategic bases and cross-disciplinary
fields
Realization of technological innovations in
strategic areas such as the environment, biotechnology, IT/telecommunications,
nano-technology and materials, by combining the forces of industry,
government and academia
3
"Doubling New Business Opening" Program
Preparation of a multi-faceted venture
support environment including the use of human resources, funds and
management, creation of local industrial clusters and networks for
human contact
4
Creation of health market
Establishment of competitive medical
and nursing care systems by making maximum use of private sector vitality
and the adoption of electronic systems
5
Establish a socioeconomic infrastructure that allows women to continue
working
Expansion of ability of women to continue
working after they have had children through improved access to, and
availability of, private day care services and consideration of current
pension and other systems
6
Promotion of employment and realization of fulfilling lifestyles for
the elderly
Development of a nursing care services
industry that responds to the diverse needs of elderly people, correction
of age limits at time of soliciting and hiring, consideration of reverse
mortgage systems
7
Switch to environment and energy as growth engines
Transformation of all industrial structures
and economic systems to“"environmentally friendly models"
8
Rebuilding of distribution systems
Enhancement of competitiveness of distribution
bases and development of a“"Comprehensive Distribution
Policy Outline" aimed at a competitive distribution services
market
9
Regeneration of urban living environment
Encourage maximum use of urban land
and space
10
Creation of new lifestyles
and social systems using information technology
Realization of socioeconomic systems
that make use of a truly fair and competitive environment for IT/telecommunications
and IT development such as Intelligent Transport Systems, smart appliances,
and IC cards
11
Cultivation of Non-Profit
Organizations
Support for Non-Profit Organizations
and streamlining of public sector
II. Reform of Employment
Systems and Maintenance of Safety Nets
12
Creation of a variety
of employment styles
Review of systems based on the assumption
of lifetime employment
13
New skill development
system
Transition from“"corporate
human resource development" to "social systemization of
human resource development"
14
Facilitation of labor
mobility
Resolution of imbalances in employment
through private-sector activity, and development of measures to enhance
pension portability
15
Maintenance of safety nets
Support for re-employment, review of
current support for part-timers, etc., and facilitated access to financing
for small and medium-sized businesses
For
additional information, please contact Hidehiko Nishiyama, Executive Director
of JETRO NY at Tel: 212-997-0416, Fax: 212-997-0464, E-mail: nishiyamah@jetro.go.jp.
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