diplomatic agenda |DIPLO M ATICA
Abenomics: Revitalizating Japan’s economy mances in socio- and we have experienced deflation for economic sectors. more than a decade. As a result of stagKaoru FIRST NAME: nated incomes, a new generation of JapaA c o m p re h e n Ishikawa sive and unbi- nese workers is unable to fully enjoy the LAST NAME: feeling of security and optimism that was ased evaluation Japanese CITIZENSHIP: taken for granted by their parents. of the overall CANADA: The Abe administration has attached performance of bassador TO am E M CA BE the highest priority to ending persistent Japan’s econ10 20 , 23 . pt Se omy over this deflation and fostering growth. To that s, Cairo, stings: Pari previous po period should end, “Abe-nomics” will be characterasa. ized by the development and impletemper the Geneva, Kinsh mentation of a three-pronged strategy doom and consisting of aggressive monetary polgloom most icy, flexible fiscal policy and a growth commentators have used to strategy that encourages private-sector investment. In implementing these describe this chapter in Japanese history. Having said this, there is no denying measures, the Abe administration seeks ollowi ng last December ’s gento revitalize the economy by fostering eral election in Japan, a coalition Japanese economic growth has been low government was formed by the Liberal Democratic Party and the New Komeito Party. LDP leader Shinzo Abe was elected as Japan’s prime minister to lead the coalition government. In his policy speech at the Diet (Japan’s national legislature) Jan. 28, 2013, he identified three major tasks for his government. They included revitalizing the Japanese economy, rebuilding after the Great East Japan Earthquake and reshaping Japan’s diplomatic and security environment. New policies pursuant to the stated goal of revitalizing the Japanese economy have attracted world-wide attention and will be the focus of my article. The term “lost decades” is frequently used to describe the Japanese economy since the early 1990s when the bubble surrounding the stock market and the real-estate market burst. I have made no secret of the fact that I believe much of the negative commentary used to describe this period of Japanese economic history has been greatly exaggerated. While some industries clearly faltered, others were resilient and innovative and are flourishing, particularly in the area of science and technology, in a rapidly changing international economy. It should also be noted that even in these “lost decades,” there were 11 Japanese Nobel laureates in physics, chemistry and physiology/medicine. The New York Times described the excessive negativity as “The Myth of Japan’s Failure” (Jan. 8, 2012), noting, for example, that most analysis failed to take into Japan and Canada have built a strong relationship in science and technology, including a colaccount factors such as superior perfor- laboration at the International Space Station. diplomat and international canada
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courtesy of JAXA/NASA
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