Economy | Discuss Japan-Japan Foreign Policy Forum - パート 10
Discuss Japan > Economy

Archives : Economy

Economy, No.31  Jun. 5, 2016

Abenomics is Womenomics

“Creating a society in which all women shine” is one of the defining policies of Abenomics. Thanks to the measures introduced under the policy since the Abe administration’s establishment in December 2012, some one million women have newly entered the labor market and the number of female corporate board members has increased by approximately 30%.   Women’s social advancement is one of the most important challenges facing Japan today. Traditionally Japanese society has held the view that mothers should stay at home and take care of the family’s children rather than continue or seek employment, and even today about 60% of women quit their jobs when they get married or give birth to their first child. Women tend only to return to the labor market once their children have grown up and left home, a tendency revealed in the downward portion of the so-called ... ... [Read more]

Economy, No.33  Jun. 5, 2016

Interview: Intermediary Functions of Banks Have Declined ― Limits of Monetary Policies Have Been Exposed

IKEO Kazuhito, Professor, Keio University

--- The Bank of Japan (BOJ), which had maintained that it would “do anything possible” to achieve the target year-on-year consumer price index increase rate of 2%, decided to adopt a negative interest rate policy.
Ikeo: As BOJ Governor Kuroda Haruhiko said, there are still things the BOJ can do in the area of monetary policies. But that does not mean there are “effective measures” remaining. When I say “effective measures,” I am referring to policy measures that produce results which surpass adverse reactions in their own way and change the economy for the better. Whether the negative interest rate policy falls under this category is open to question. I think the latest BOJ decision actually revealed the limits of monetary policies]]> ... [Read more]

Economy, No.33  May. 30, 2016

Issues Presented in the Paris Agreement

ARIMA Jun, Professor at the University of Tokyo’s Graduate School of Public Policy

--- The parties to the United Nations Framework Convention on Climate Change adopted a new international framework for measures against global warming called the Paris Agreement at their 21st meeting (COP21) held in Paris, France in December 2015. Why is global warming a problem in the first place?
ARIMA Jun: The greenhouse gas (GHG) emissions are continuously increasing, which is causing gradual increase of global average temperature. While there are still some skepticism about global warming, the majority of scientists gathering at the Intergovernmental Panel on Climate Change (IPCC) are of the view that anthropogenic GHG emissions are the cause of global warming.]]> ... [Read more]

Economy, No.33  May. 18, 2016

The Good and the Bad of a Negative Interest Rate Policy:Zero Interest Rate on Cash Constrains the Policy’s Effectiveness Fears of currency weakness inviting competition ― Market senses limits to monetary policy

UEDA Kazuo, Professor, University of Tokyo

<Key points> The real economy’s limited response to monetary policy Views also exist that quantitative easing has limited room for further expansion Agony deepens among central banks as unstable market conditions continue The Bank of Japan blindsided most forecasts and decided to adopt a negative interest rate policy (a policy that sets the interest rate at below zero on current account deposits that banks keep with the BOJ) at its Monetary Policy Meeting on January 29. The context that can be suspected here is the concern, among others, that the economy would struggle further as a result of the great market volatility that has been occurring since the beginning of the year, as the inflation rate did not rise as intended despite the unprecedented quantitative and qualitative monetary easings that were implemented over a period of three years. In fact, expectations of inflation that ... ... [Read more]

Economy, No.32  May. 3, 2016

Mr. Governor, when will we finally be free from deflation? An 80-minute exclusive where we discuss everything from Abenomics to the his bazookas and his reading history

Mr. Kuroda, it was 20 March 2013 when you were appointed as the 31st Governor of the Bank of Japan (BOJ). Almost three whole years have passed since then. Today I’d like to have you reflect back over your time as governor since your appointment, and to hear about your outlook for the future. Firstly, could you please tell us about the way in which Prime Minister Abe Shinzo approached you with regard to your appointment to the role of Governor? Kuroda: At the time, I was working as president of the Asian Development Bank (ADB). I received a direct call from Prime Minister Abe at the ADB headquarters in Manila, in the Philippines. I’d prefer not to elaborate on the details of exactly what was said to me; but if I tell you my own feelings, it’s a fact that I was extremely ... ... [Read more]

Economy, No.31  Apr. 24, 2016

Makeup Brushes, Kendama, and Sakata Seed… Products Made-in-Japan and Recognized by the World— Global Hits Offer an Uncompromising Quality

There are products made in Japan that win in the field of global competition, are recognized as international brands, and are praised by consumers around the world. How are hit products from Japan created? And why are they loved by people in other countries? We have visited six companies that are constantly devoted to creating products that make the most of Japan’s good quality.   Juki Corporation is a leading manufacturer of industrial sewing machines and holds a 30% global market share. With sales offices in eighty locations around the world, it began a full-fledged overseas expansion in 1970. “High quality and after-sale services are important since industrial sewing machines are production machinery. This is a weakness of Western companies. We stock other companies’ products and also provide consulting services. If we can establish connections through replacement parts and repair, chances are they’ll buy ... ... [Read more]

Economy, No.30  Mar. 23, 2016

Is Relocation to Regional Cities the Equivalent of Abandoning Old people in the Mountains to Die?Is the Long-Term Care Insurance System Sustainable? ―There are two issues to solve.

Kato Hisakazu, Professor, School of Political Science and Economics, Meiji University

Launched in April 2000, the Long-Term Care Insurance System is the newest social insurance system in Japan. The hardship faced by people giving family care began to be known widely to the public due to an older, full-length novel by Ariyoshi Sawako, which is titled Koukotsu no Hito (The Twilight Years). Since the late 1980s, the government has been addressing this issue by taking various measures, such as formulating the Gold Plan and the New Gold Plan to promote the establishment of facilities, the provision of welfare services at home, among other measures. However, it was difficult to address the issue fully with the welfare for the aged that was associated with the welfare placement system, or with the medical ]]> ... [Read more]

Economy, No.30  Feb. 15, 2016

Google vs. Local Competitors in Japan Any chance for the local competitors to win the AI market?

According to Sano Kyuuichirou, Director, Information Economy Division, Commerce and Information Policy Bureau, the Ministry of Economy, Trade and Industry (METI), “We share a critical feeling that Japan will lose its competitive advantage in every industry if no action is taken immediately to address the country’s status of falling behind its foreign counterparts in the field of artificial intelligence.” METI announced an interim report entitled “Changes in the response to the arrival of a data-driven society using CPS” on May 21, 2015. (Please refer to the Figure 2.) CPS stands for Cyber Physical System, meaning a system that analyzes data related to real-world problems with artificial intelligence (AI) technology and sends the analytical results back to the real world. In the field characterized by the theme of a data-driven society using CPS, Google is on its way to becoming a market leader. In this ... ... [Read more]

Economy, No.30  Feb. 15, 2016

Yahoo’s Strategy to Compete with Google in JapanWorld-class competition, A battle that cannot be lost

As the search engine giant, Google has a dominant market presence in Internet advertising by a significant margin. But Google doesn’t have a monopoly in every market. In Asia, in particular, local competitors have a great deal of importance within their own markets: Baidu in China; Naver in South Korea; and Yahoo with a stronghold over Japan. Please take a look at the figure on the lower right, which shows the search engine usage statistics for Japan. According to the statistical survey, Yahoo Japan (in red) has opened up a slight lead over Google (in blue) in terms of market share in Japan. It is true that Yahoo played a significant role in the early days of Internet services when they were first introduced to Japan in around 2000, and the company still maintains a strong brand image among search engine users in the ... ... [Read more]

Economy, No.29  Jan. 25, 2016

Special report/Is it “time to sell” in Japan? – Shedding light on what happenedFull Details of the Second Stage of Abenomics

Yamamoto Kozo, a member of the House of Representatives, of the Liberal Democratic Party, has been involved with the drafting of Abenomics initiatives, advocating, if nothing else, large-scale monetary easing since before the second Abe Shinzo administration was formed. Yamamoto, who is also the chairman of the “group that makes Abenomics a success,” a Diet member caucus, was reportedly surprised and could not keep himself from displaying anger when he heard the announcement of the second stage of Abenomics on September 24. The content of the second stage caught him by surprise like a thunderbolt, as he did not recognize any term such as “financial measures” in the list of policies. The Nagatacho sources consider that a significant change has taken place in the part of the brain of the Abe administration that drives financial measures. People who had advocated reflation were excluded from ... ... [Read more]