Key points: The government outlook is premised on growth, with some uncertainty. Distinguish between risk dispersion and redistribution functions Intensively direct public funds to those in desperate need The consumption tax rate has been raised to 10%, marking the end of the comprehensive reform of social security and taxation systems that started in the mid-2000s. But we face the 2025 problem of the baby boomers reaching the age of 75 and social security reform is now entering a crucial stage. As poverty grows amid slower economic growth and depopulation and population aging begin deepening in earnest, politicians are now expected to reconstruct sustainable social security; that is, to carry out sweeping reforms to facilitate the balance between social security benefits and contributions. The starting point for the fiscal reform debates is the May 2018 paper, “The Projections for the Future of Social Security with ... ... [Read more]

Key points: Virtually sealed off the imposition of additional tariffs on automobiles Digital trade rules to be applied to the Japan-US Trade Agreement in advance Persuade the US to return to the TPP On October 7, the Japan and the US governments signed the Trade Agreement between Japan and the United States of America (Japan-US Trade Agreement) and the Agreement between Japan and the United States of America concerning Digital Trade (Japan-US Digital Trade Agreement). One year since the agreement on the start of negotiations in the Japan-US joint statement announced on September 26, 2018, and half a year since the start of substantive negotiations in April 2019, they have concluded the following. In the Japan-US Trade Agreement, Japan responded to the US demand for the liberalization of agricultural products, including beef, while negotiations will continue on the US’ elimination of tariffs on automobiles ... ... [Read more]

Key points: Decreased expectations for the effects of unconventional monetary easing policy Monetary easing is used as an alternative to appropriate policy measures Wise spending should be emphasized in expanding fiscal policy Up until 2018, a lot of attention was focused on an exit from monetary easing. The situation completely changed in 2019, when the Federal Reserve Board (FRB) lowered interest rates three times starting in August and the European Central Bank (ECB) decided in September on additional monetary easing, including the further lowering of already negative interest rates. Financial markets are caught up in the atmosphere of global monetary easing. Now, however, we are in a different environment than in 2010 to 2012, when unconventional monetary easing policies were implemented all around the world. Quite a few economists and economic analysts have a critical view of the recent monetary easing. First, developed countries ... ... [Read more]

Today, Japan’s convenience stores (konbini) can already be considered a form of so-called social infrastructure. However, in the face of Japan’s current social circumstances, with the decline in population size and the progression of population aging, konbini now find themselves standing at a crossroads, unable to cater to various changes in consumer lifestyles. In this article, we will consider the reasons behind this situation, and explore ways in which konbini can continue to function as a true part of social infrastructure in the future, based on the history of their evolution up until this point. Konbini at a crossroads Until now, konbini have been recognized/acknowledged as a part of Japan’s social infrastructure, as opposed to simply “convenient” stores at which to shop. This is due to the fact that, despite individual stores being small in scale, convenience store chains have provided not only products ... ... [Read more]

Nomura Mansai, Kyogen stage actor; Chief Executive Director, Tokyo 2020 Olympic and Paralympic Games Interviewer: Editorial staff of Gaiko (Diplomacy)   ――Mansai-san [Mr. Mansai], you have performed around the world. Nomura Mansai: My father[1] put effort into overseas performances from early on, and I started travelling with him when I was an elementary school student. I was 9 years old when I traveled with him for the first time. We went to Hawaii when he became a visiting professor at the University of Hawaii. We performed Igui[2]. Two years later, I played the part of a baby monkey in the play Utsubozaru[3], which was staged in Paris and London. Since then, I have performed in many countries, including the United States, Europe, China, Russia, Australia and Malaysia, because just like my father, I attach importance to overseas performances and cultural exchange. I truly appreciate ... ... [Read more]

Sasae Kenichiro, President and Director General of the Japan Institute of International Affairs (JIIA) Interviewer: Tawara Soichiro Looking Back at the Past Agreement and Declaration Tawara Soichiro: Japan and the Republic of Korea (ROK) are currently in serious conflict with each other. I therefore wish to direct this question to Mr. Sasae, who served as Director-General of the Asian and Oceania Affairs Bureau and Vice Minister for Foreign Affairs at the Ministry of Foreign Affairs (MOFA). What do you think of the current Japan-ROK relations and the relationship between Prime Minister Abe Shinzo and President Moon Jae-in? Sasae Kenichiro: As you are aware, there have been a number of twists and turns in Japan-ROK relations. In particular, you need to understand that in the ROK, domestic affairs have an impact on the diplomacy between the two countries. The left-leaning governments of the ROK began ... ... [Read more]