General Overview Koizumi`s Reforms

Transcription

General Overview
Koizumi’s Reforms
— Accomplishments and Progress with regard to Economic Structural Reform —
Cabinet Office Government of Japan
http://www.cao.go.jp/
Opinions and Comments
http://www.iijnet.or.jp/cao/keizai1/opinion-shimon.html
For more details on this booklet, please contact:
August 2005
Central Common Government Offices No. 4, 3-1-1 Kasumigaseki,
Chiyoda-ku, Tokyo 100-8970 Japan
TEL: 03-5253-2111 (Main Switchboard)
Director General for Economic and Fiscal Management TEL: 03-3581-0958
Director General for Economic and Social Structure TEL: 03-3581-1041
Koizumi’s Reform
See the Koizumi Reform Process over the Past Four Years ...............3
—Buds of Reform will Grow into Large Trees—
The Koizumi Cabinet has advanced structural reforms such as financial system reform, regulatory reform,
tax reform and expenditure reform in line with the principles of “No Growth without Reform”, “Leave to the
Private Sector what It Can Do”, and “Leave to the Localities what They Can Do.”
Based on the accomplishments made so far, the Government considers the two years of FY2005 and
FY2006 as “the concentrated consolidation period”, striving to consolidate the foundation for new growth.
Contents
3 Industry and Finance
New buds (business startups) are sprouting with the renaissance of industries and SMEs
 Regaining Vitality of Small and Medium-Sized Enterprises and Industries ...............23
— Strong Back-up for Revitalization of Small and Medium-Sized Enterprises and Industries—(Industrial Revitalization)
 Spreading Money Flow into Every Corner of Business Area and Regions ...............25
— Toward Normalization of Non-Performing Loans (NPLs) Problems, and Creation of a Strong Financial System — (Financial Revival)
 The Motivation to Start a Business ...............27
— Supporting People’s High Aspirations to Start New Businesses, Including Entrepreneurship (Entrepreneurship)
 Revitalizing Japanese Economy through Globalization ...............29
— Further Strengthened Ties between Japanese Economy and World Economy — (Globalization)
 From the World, From Japan, Safe and Efficient Flow of Products ...............31
— Efforts are Underway for Improvement of Port Distribution System Services — (Distribution System)
1 Public Sector Reforms
From Public to Private Sectors
From the Central to the Local Governments
 Significant Advance in Realizing Streamlining in the Public Sector and Efficient Fiscal ...............5
— A Stable Path that Leads to a “Small and Efficient Government”— (Administrative and Fiscal Reforms)
 Abundant Society through Regulatory Reform ...............7
— Various Regulatory Reform Opportunities Mainly by “Opening up to the Private Sector” — (Regulatory Reform)
 For a Faster, Friendlier, and More Reliable Justice System ...............9
— Promotion of Justice System Reform — (Justice System Reform)
 Significant Progress Made in Tax Reform to Make the Social Economy Vital ...............11
— Tax Reform Steadily Leads Vitalizing the Socio-Economy — (Tax Reform)
 Leave to the Localities what They Can Do ...............13
— The “Reform Package of Three” Taking Shape by the Budget 2005 — (Central and Local Government)
[Column] Council on Economic and Fiscal Policy: Major Activities of the Year ...............14
2 Regional Stimulation
Various local activities will lead to vitality for the entire nation
 Local Vitality Contributing to the Whole Nation ...............15
— Special Zone Projects with Local Characteristics Have been Launched throughout the Nation — (Special Zones for Structural Reform)
 Local Communities Begin Approaches on a Voluntary Basis ...............17
— Approaches for Local Autonomy, Independence, and Originality— (Regional Revitalization)
 New Agricultural Administration that Draws out the Potential of Agriculture
to the Greatest Degree Possible ...............33
— Policy Change to “Aggressive Agricultural Administration — (Agricultural Policy Reform)
4 Knowledge and Technology
Efforts have been promoted for “Knowledge” and “IT” – keywords for Japan’s future
 Sending a Message from Universities to the World ...............35
— Further Improving “Knowledge” and Globalization — (University Reform)
 Realization of an “Advanced Science and Technology-Oriented Nation”
at the Highest Global Standards ...............37
— Strongly Supporting Ability to Create the Future and Upgrading the R&D Environment — (Science and Technology)
 Building an Abundant Nation by Taking Advantage of Intellectual Property ...............38
— Further Supporting Abundant Ideas of the Japanese People —
 Progress of IT Offers a More Convenient and Comfortable Life ...............39
— Building the World’s Most Advanced IT Nation — (IT)
5 Lifestyle and Employment
Aiming at a society where people are happy to be alive
 Toward Building a Sustainable Social Security System ...............41
— The Social Security Reform Program has been Underway toward Building a Sustainable Social Security System — (Social Security Reform)
 Building a Society where People can Feel the Joy of Raising Children and Working ...............43
— Elaborate Measures to Reverse the Declining Birth Rate and Aging Society and Support Employment
—(Measures against the Declining Birth Rate and the Aging Society and to Support Employment)
 Making Japanese Urban Areas More Attractive ...............19
 Be Prepared and Have No Regrets ...............45
 Toward an Attractive Country Attracting Many Visitors ...............21
 Aiming to Revive “Japan as the Safest Country in the World” ...............47
— New Urban Development in the 21st Century — (Urban Renaissance)
— Regional Stimulation through “Nation-Building that Provides a Good Living Habitat and a Good Place to Visit” — (Tourism)
— Promoting Disaster Prevention Measures as a Foundation of Sustainable Economic Development — (Disaster Prevention)
— Realizing a Crime-Resistant Society —(Restoration of Civil Order)
 In Pursuit of Further Enhanced Food Safety ...............49
— Efforts Have been Made to Ensure Food Safety and Maintain Consumer Confidence — (Food Safety)
 Toward Realizing an Eco-Friendly Society ...............51
— Efforts are Underway to Promote Low-Emission Vehicles, Solar Cells, and Recycling — (Environment)
 “Japan’s 21st Century Vision”
— Further Clarifying the Shape of the Nation after Structural Reform ...............53
A New Era of Dynamism — Closer Ties and a Wider Range of Opportunities —
1
2
See the Koizumi Reform Process over the Past Four Years
Buds of Reform are Growing
Reform Outcomes Reflected in Economic Indicators
 The Economy is Recovering at a Moderate Pace
Performance for FY2004 (Real 1.9%, Nominal 0.8%)
Prospect for FY2005
(Real 1.6%, Nominal 1.3%)
 Buds of reform are growing in a variety of fields as a result
of structural reforms consisting of financial system reform,
regulatory reform, tax reform, and expenditure reform.
 Financial Revival
Normalization of the NPLs Problems of Major Banks
8.4% (as of March 2002) => 2.9% (as of March 2005)
 Regulatory Reform
Regulatory Reform Covering More than 1,000 Items (3-Year,
until March 2004)
• Due to regulatory reform since the 1990’s, users’ benefit amounted to ¥14.3 trillion annually (about ¥110,000 per
capita) (FY2002).
• Implementation of model projects of “Market Testing” ( “Hello
Work” Public Employment Security Office, Social Insurance
Agency, and Prison Administration) for the promotion of
opening up to the private sector
 Globalization
The Cumulative Stock of Foreign Direct Investment in
Japan Increased by 1.5 Times
¥6.6 trillion (as of the end of March 2001) => ¥10.1 trillion (as
of the end of March 2004)
 Primary Balance
Prospects for Improvement
Minus 5.5% (FY2002)=>About minus 4% (Projection for
FY2005)
(Nominal GDP ratio comparison)
Primary Balance of the Central and Local Governments Combined
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Notes:
1. Prepared based on documents submitted to the Council of Economic and Fiscal
Policy by the Cabinet Office.
2. The primary balance refers to the fiscal balance of the “tax and other revenue
excluding borrowing” minus the “expenditure excluding principal and interest payments for the existent debts.”
3. The primary balance of the central and local governments is estimated figure based
on the definition of the System of National Accounts (SNA).
4. Figures should be interpreted with a considerable range because estimation necessarily includes errors.
— Growing Buds of Reform into Large Trees —
Annual Changes in Real GDP
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<Basic Concepts of Reform>
 No Growth without Reform
 Leave to the Private Sector What It Can Do
 Leave to the Localities What They Can Do
 IT
Broadband Rate at the Lowest Level in the World
• High-Speed and Ultra-High Speed Internet Services Rate
About 1/3 (about ¥7,800=> about ¥2,600)
Number of subscribers About 20 times
(about 0.85 million subscribers : as of March 2001=> about
19.5 million subscribers : as of March 2005)
• Terrestrial digital broadcasting started (December 2003)
The digital services are available about 20 million or more
households.
 Intellectual Property
Increased surplus in the balance of royalties and license
fee payments
Minus ¥80 billion (2001) => ¥223.1 billion (2004)
• Launch of the Intellectual Property High Court (April 2005)
 Postal System Reform
• Start of Japan Special Post (April 2003)
 Reforms of Special Public Corporations and Incorporated Administrative Agencies
• Out of 163 public corporations to be reformed, 136 corporations were underwent some measures; specifically, 16
corporations abolished, 36 privatized, and 39 corporations
turned into incorporated administrative agencies.
• The financial expenditure actually spent for public corporations was reduced by about 1.5 trillion yen during four years
after the reforms were started.
• The four Highway-Related Public Corporations will be privatized in October 2005.
• A decision was made for the Incorporated Administrative
Agencies; to be more specific, restructuring agencies by
abolition and consolidation (32=>22 agencies), and changing the status of public employees (about 8, 300 public employees of 25 agencies) into non-public employees basis
(December 2004).
 Social Security Reform
Discussions on an integrated reform of the Social Security
System
(“Committee on Social Security Review”)
 Tax Reform
• Significant progress in the Tax System Reform to make the
society and economy vital and sustainable
• The tax cuts amounting to about 1.8 trillion yen for FY2003,
and about 1.5 trillion for FY2004 were applied, contributing
to vitalizing a sustainable socio-economy
 Ensuring Safety and Reassurance of the Nation
• Formulation of Earthquake Disaster Prevention Strategy for
the Tokai earthquake and others (March 2005)
• Formulation of the “Action Plan for the Realization of a Society Resistant to Crime” (December 2003)
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(Prepared based on Quarterly Estimates of GDP : January-March 2005 (the 2nd preliminary by the Cabinet Office (June 2005))
 Total Unemployment Rate Decreased from the Highest
Rate of 5.5% to 4.2%
Effective Ratio of Job Offers to Applicants Reached the
Highest Level in about 12 Years; 0.96 Times (June 2005)
The employment situation is improving on
a broader basis, though some severe aspects remain.
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(Prepared based on the Labor Force Survey by the Ministry of Internal Affairs and
Communications, and the Monthly Labor Survey (establishments with 5 or more regular employees) by the Ministry of Health, Labor and Welfare.)
 The Number of Bankrupt Companies Has Remained at
A Low Level (1,207 Cases for June)
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(Source: Tokyo Shoko Research, Ltd.)
Growing Buds of Reform into Large Trees
 Growing Buds of Reform into Large Trees in local areas, as
well as in small and medium-sized enterprises
 The Reform Package of Three Issues
• Along with the concept of decentralization, more financial
sources should be sought so that local government authorities may make their own decisions on expenditure. Also, The
Reform Package of Three Issues will be promoted to realize a
simpler and more efficient administrative and fiscal system.
• In the overall picture of “The Reform Package of Three Issues”
by FY2006, decisions was made on the abolition or reduction
of subsidies of approximately 3 trillion yen, and on a transfer of
tax revenue resource of approximately 3 trillion yen and reform
of the local allocation tax.
(In FY2005 the reform for subsidies of 1.768 trillion yen, and transfer of tax revenue resources 1.116 trillion yen are to be implemented. The Government will conduct rationalization of the local financial plans and review of expenditures, while ensuring local allocation
tax necessary for sound fiscal management.)
 Special Zones for Structural Reform
548 Special Zones have been Approved.
 Regional Revitalization
453 Regional Revitalization Plans were Approved.
• Enactment and Enforcement of the Regional Revitalization Law
(April 2005)
• The support extend over subsidies to strengthen basis for
regional revitalization, tax incentives, and more unified and
prompt procedures to convert the facilities covered by subsidies.
 Urban Renaissance
From Wakkanai to Ishigaki: Urban Renaissance across the
nation
• 63 areas have been designated as the “Urban Renaissance Urgent Development Areas”.
• 19 projects were decided on as urban renaissance projects.
 Tourism
Overseas Visitors to Japan Exceeded 6 Million
• Overseas travel visitors to Japan increased from 4.77 million
(2001) to 6.14 million (2004). The Government aims to achieve
10 million overseas visitors to Japan by 2010
• Promoting the “Visit Japan” campaign and others
 Industrial Revitalization
Performance of the Industrial Revitalization Corporation of
Japan --- 41 Cases Decided on for Support
• The Organization for Small & Medium Enterprises and Regional
Innovate Japan dealt with counseling for about 6,000 corporations, supporting for formulation of revitalization plans for about
780 companies; about 360 companies have been completed
formulating plans. Employment was secured for about 26,000
personnel.
 Entrepreneurship
Taking Advantage of the Special Regulation, About 26,000
Companies Started Businesses over the Past Tow Years
• Special regulation governing minimum capita requirement (before the regulation, the number companies founded was about
90,000 per year. Business startups increased by 10% annually
as compared to before the launch of this system.
1,900 companies increased their capital to an amount equal to
or exceeding the minimum requirement
• Enactment of the new Company Law (June 2005)
 The 5.3 Million Job Creating Program
3.2 Million Jobs Were Created in Related Fields (From 2000 to
June 2005)
 Based on the accomplishments so far, the Government considers the two years of FY2005 and FY2006 as “the
concentrated consolidation period”, striving to consolidate the foundation for new growth.
3
4
Significant Advance in Realizing Streamlining in the Public Sector
and Efficient Fiscal System
— A Stable Path that Leads to a “Small and Efficient Government” —
 Executing the Reorganization and Rationalization
Plan for Special Public Corporations
From the viewpoint of reducing the size of the public sector, a plan to reorganize and rationalize public corporations has been executed. Out of the 163 corporations to
be reformed, 136 corporations were abolished, privatized
or underwent other measures.
Abolition: 16 corporations
Privatization: 36 corporations
Turned into Incorporated Administrative Agencies: 39 corporations
etc.
136 Corporations
Other actions are as follows:
• The financial expenditure actually spent for public corporations was reduced by about 1.5 trillion yen during
four years after the reforms were started.
• The four Highway-Related Public Corporations will be
privatized in October, 2005.
 Review of the Incorporated Administrative Agencies
Out of the 56 independent administrative agencies which
have mid-term goals that expire at the end of FY2005, 32
agencies were reviewed a year ahead of schedule. A decision was made to restructure 32 agencies into 22 agencies through a process of abolition and consolidation and
to change the status of about 8,300 public employees of
25 agencies into non-public employees (December 2004).
3 agencies
Abolition: 2 agencies
(The National Research Institute of Fire
and Disaster, and the National Farmers
Academy of Japan)
Consolidated:
14 agencies=>6 agencies
10 agencies decrease.
Only 1
agency!
Consolidation
(Example)
3 agencies which are the Independent Administrative Institution National Youth Houses,
the National Boy’s Nature Houses, and the
National Olympics Memorial Youth Center will
be consolidated into one organization.
The status of about 8,300 public employees of 25
agencies in relation to R&D, education, and other fields
Ch a n
publicge into non
emplo
yees
(Prepared by the Cabinet Office based on materials published by the Administrative Reform Promotion Bureau of the Cabinet Secretariat)
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 Given a Volume Expansion of Science and Technology Expenditures, the Government Aims at Quality Improvement
through Prioritized Budgetary Allocations based on Priority Ranking
150
Comparison of Science and Technology Expenditures
with General Expenditures
120
Science and
Technology Promotion
General Expenditures
100
FY1998
1999
2000
2001
2002
2003
2004
2005
• Projects are given varying degrees of attention based on
the “Priority Rankings (SABC)” formulated by the Council for Science and Technology Policy.
FY2004=>FY2005
S: 13% A: 7% B: -5% C: -15%
(Note)
1. Index numbers, 1998=100.
2. General expenditure after 1998 includes transfer to Industrial Investment Special
Account.
 In order to Ensure Security for the People, the Government is Increasing Security Personnel
• Increase in security areas 434 personnel (FY2001)
1,580 personnel (FY2005)
 Making Efforts for Further Efficiency
 In Order to Realize More Efficient Public Works, the Government will:
• Cost shrinking: “Structural Reform of Public Works Costs” is being promoted (aiming at 15% reduction in total costs over 5 years from
FY2003).
• When adopting new projects, their appropriateness is carefully examined using cost-benefit analysis. Even after a project has been adopted,
projects may be discontinued if, as a result of re-evaluation, their level of necessity is deemed to have diminished.
 Strengthening the Plan-Do-Check-Action Cycle, Efforts are being Made to Improve the Quality of the Budget
• Earlier submission to the Diet of settlement and report of settlement by GAO so that comments, resolutions and others in the National Diet
may be appropriately reflected in the budget compilation.
• Performance targets, methods of follow-up evaluation are clarified, and results of policy evaluation are applied to budget compilation.
• Making efforts for more efficient and rationalized budgets by making use of results of budget execution surveys (the following figures were
reflected in the next year budget: ¥18.9 billion FY2002, ¥49.2 billion FY2003, and ¥27.5 billion FY2004).
• Expansion of the “Model Projects” that allow efficient budget execution under quantitative goals. (FY2004: Strengthening the Management
Cycle in the budget
10 projects=>FY2005: 44 projects)
• Combination of the budget with regulatory reforms, system reforms, “Policy Packages” will be promoted
Plan
(Compilation)
to attain policy targets through collaboration between ministries and agencies. (FY2004: 10 “policy packages” FY2005: 18 policy packages)
Action
Do
(Execution)
• Each ministry and agency prepares financial documents to enhance accountability and to improve budget (Reflection)
Check
quality and efficiency.
(Evaluation,
 Comprehensive Study for All Special Account, for the Purpose of Reviewing Projects and EnhancAuditing)
ing Accountability
(Provisional Translation)
• Following the Council of Economic and Fiscal Policy (CEFP)’s “On the Reform of Policy-based Finance” (December 2002),
CEFP will deliberate through autumn of this year, and formulate a basic policy direction to achieve ideal government financial services.
• The Government will aim to effectively utilize central Government assets, including its properties, to their fullest potential,
and reinforce management of debts such as Government bonds. For this purpose, the Government will strengthen management of government assets and debts and carry out a “comprehensive review of the balance sheet”.
• Concerning local branch offices, the Government will carry out a drastic review and will clearly indicate the strategies for
FY2006.
• Concerning the “intensive reform plans” to be publicized to the people by local governments, the Government will provide information in a way that allows for the comparison of the progress of reform among different local governments.
• Both the central and local Governments should hold clear objectives, such as a “net reduction target” of personnel.
• The Government will establish a basic policy direction for the total personnel expenses reform by the autumn of FY2005,
and will reflect it in the budget and local financial plans of FY2006 and thereafter.
5
 Prioritization of Budget Allocation in an Extremely Harsh Fiscal Situation
* The increase includes: Prison +567, Immigration +174, Prosecution +43, Customs +195
Furthermore
Basic Policies 2005
The primary balance deficit of the central and local governments combined is expected to decrease from 5.5% (as percentage
of nominal GDP) in FY2002 to about 4.0% in FY2005.
 Budget Concentration in Priority Areas<Percentage changes in major expenditure categories (FY2001=>FY2005)>
 Promotion of Postal Reform, and Steady Advances in Special Public Corporations Reform
 Start of Japan Post and Deliberation on Privatization of Japan Post
The newly launched (April 2003) Japan Post has introduced private-sector management techniques, providing
higher quality service. Also, the Japanese postal market
was opened to private companies (with participants from
111 companies as of March 2005).
The Basic Policy on the privatization of Japan Post was
decided by the Cabinet (September 2004). Privatization
of Japan Post is characterized as “the most important
problem” of the Koizumi Cabinet’s structural reforms. The
Cabinet will continue to make efforts in realizing reform.
• Main Approaches after the Start of Japan Post
New establishment of the Customer Consultation Center, extended delivery service time and expanded nextday delivery area, implementation of standard parcel
service and review of the
price of non-standard-size
item and booklet parcel,
extended hours and expanded tie-ups with companies for ATM service.
• Alliances with convenience
stores (from January 1,
2003).
Japan post has started
service to pick up postal
items from postboxes
installed at convenience
s t o r e s ( a b o u t 12 , 6 0 0
stores nationwide as of
end of March, 2005).
 Promotion of Fiscal Structural Reform for Achieving a Surplus in the Primary Balance
in the Early 2010s
Public Sector Reforms
Public Sector Reforms/
Reforms/Administrative and Fiscal Reforms
Basic Policies 2005
• To achieve a surplus in the primary balance in the early 2010’s, the Government will promote the reform of both expenditure and revenue
in an integrated manner, following the three principles of 1) “small and efficient Government”, 2) vitality, and 3) transparency, and clarify
options for the direction of the reform and the process of the reform within approximately one year.
• The Government will prioritize and streamline its budgetary allocation, bearing in mind the “Three Principles for Revitalization”; i) Shift
policy towards “individuals” (The budget emphasis will be shifted from “objects” to human resources), ii) Shift to support front-runners
(Instead of a widespread and thinned-out budgetary allocation, the Government will boldly concentrate budget allocation to foster competitiveness), iii) Shift to global competition (The Government will foster competitiveness to win the international market).
• In budget requests, each ministry holds outcome goals and provides a better basis to implement sufficient ex post evaluations on each
project, while reviewing the necessity, efficiency , effectiveness, and so on.
• To shift the “Model Projects” from a trial to a general framework, the Government will establish the “Performance-based Projects” (provisional title) whose association with policy evaluation will be strengthened.
• The Government will review budget documents and closing statements so that the budgets and accomplishments can be assessed in
conjunction with the budget and final account for each policy (aiming for full implementation by the FY2008 annual budget).
6
■ Outcomes of Regulatory Reform
Abundant Society through Regulatory Reform
● Regulatory Reform Covers more than 1,000 Items
—Various Regulatory Reform Opportunities Mainly by “Opening up to the Private Sector”—
Due to regulatory reform since the 1990’s, users’ benefit
amounted to ¥14 trillion annually, and about ¥110,000 per
capita (estimated by the Cabinet Office Government of
Japan, FY2002).
A sign of new services in the fields of healthcare, education or those close to daily life
■ Three-Year Plan for Promotion of Regulatory
Reform (Revised Version)
(Cabinet decision, March 2005)
• Promotion of the opening up of government-driven markets
to private sectors; typically, in healthcare, education, welfare
and childcare, and other fields close to daily life.
• To realize the mandate to “Leave to the Private Sector what
It Can Do”, the Government reviews strengthening of the
systems, including legal frameworks (provisional name: the
“Market Testing Law”), for full scale launch of market testing.
■ Promoting Regulatory Reform under the
Following Structure
Prime Minister
The Council for the
Promotion of Regulatory Reform
(Headquarters Ordinance of Cabinet Office Government)
• Advisory Council
(Council of advisers to
the prime minister)
Temporary council with a
3-year life span
• Inv es tiga tions and
deliberations at commissions and working
groups in the Council.
Closely related with each other
■ Regulatory Reform Has Been Steadily Advanced
● Certain Pharmaceuticals Have Become
Available at Convenience Stores
About 370 items of medicinal products, such as digestives
or intestinal regulators which are classified as having no
particular safety problems, were transferred to the quasidrug category without altering the medicinal properties.
Those pharmaceuticals are now available at stores in addition to pharmacies and drug stores.
Public Sector Reforms/Regulatory Reform
● More Options Will Become Available for
Educational and Nursing Facilities for Children
• “Comprehensive Centers” will be established to unify
childcare and pre-school education. Test projects will be
implemented during FY2005 prior to fully-fledged implementation in FY2006.
• More options available in choosing childcare facilities to
meet various needs of parents.
The Hea dquar t er s
for the Promotion of
Regulatory Reform
(Cabinet Decision)
• Formulation of the “Basic
Policy for the Promotion
of Regulatory Reform
and Opening Up to the
Private Sector”.
• Participants include representatives from the
Council consisting all the
Cabinet ministers.
• Representatives from
the Council and the responsible minister (s) will
discuss individual issues
if necessary.
The Office for the Promotion of Regulatory Reform
The Office for Market Testing
● Diversification for Working Patterns Has
Become Available for Temporary Workers
• The expansion of business dispatching in fields such as
the manufacturing industry has increased temporary
workers’ job opportunities.
• The one-year limit on the dispatch of personnel was extended to up to three years.
• Rules were established for “permanent job placement
for temporary workers” which is a system for turning a
temporary position into a permanent position after hire,
eliminating
“mismatch”
in employment.
● Opinions from Parents Will be Reflected
in the Administration of New Schools
• The establishment of “Community Schools (School Management Council System)” was enacted in September
2004, enabling local residents, parents and guardians to
involve themselves in school management.
• This may encourage the creation of unique schools
which make the best use of originality and ingenuity in
the local community.
Requests from national citizens and those in business circles are invited two times annually; in spring and autumn
● Market Testing (Government-and-Private Sector Competitive Bid System) as a Cross Organizational Method for the
Promotion of Opening up to the Private Sector
The “Market Testing” is a system that conducts competitive tendering between the public and private sectors under transparent,
neutral and fair conditions so as to ensure quality services at affordable prices following successful bidding by highly-capable
providers.
Model Projects Introduced in FY2005 on a Trial Basis
1) “Hello Work” (Public Employment Security Office)
• “Publicly established and privately run “Career Exchange Plaza”
• “Publicly established and privately run “Career Exchange Plaza for Youth”
• Privatization of public services related to searching for employment offers
• Privatization of job training service provided by Ability Garden (Lifelong Human Resources Development Center)
2) Social Insurance Agency
• Collection of national pension premiums
• Prompting those entities not yet registered in the welfare pension insurance and government-managed health insurance
systems to join those systems
• Telephone pension counseling center
3) Prison Administration
• Auxiliary functions related to the equipment of facilities and the treatment of inmates
7
Basic Policies 2005
(Regulatory Reform and Opening Up to the Private Sector)
Under the policy; “Leave to the Private Sector What It Can Do”, the following approaches will be taken:
• Under close cooperation between the Council for the Promotion of Regulatory Reform and the Headquarters for the Promotion of Regulatory Reform, they should make intensive efforts on issues identified as top priorities at the Council.
• The Government should actively promote to transfer public services (privatization, transfer to private entity, contracting out) provided by
the central or local governments, incorporated administrative agencies, and designated corporations to private entities.
(The thorough Opening up of Public Services to the Private Sector, through such Means as the Full-scale Introduction of “Market Testing”)
To improve the efficiency of public services, the Government will develop a system aiming towards the full-scale introduction of “Market
Testing”.
For this, based on the “Three year Plan for Promotion of Regulatory Reform (revised version)”, the Government will swiftly prepare a
draft proposal of the “Improvement of Public Services Efficiency Bill (or Market Testing Bill) (provisional title)” to submit it to the Diet within
FY2005. In this regard, the Government should pay attention to the following points.
• Thorough disclosure of information and monitoring of the processes of public services which are objects for “Market Testing“ should be
carried out to ensure equalized competitive conditions by a neutral third-party organization.
In order to facilitate introduction of “Market Testing” into local governments, necessary measures should be taken, including revision of
laws and regulations which prohibit launch.
• As for the works of incorporated administrative agencies, the introduction should be appropriately promoted, including the evaluation performed at the end of a midterm target period.
8
For a Faster, Friendlier, and More Reliable Justice System
 Introduction of Saiban-in System
This system will enable the general public to participate in serious criminal trial. The system is scheduled to be implemented by
May 2009.
3
Judges
 Justice System Reform
In order to realize a “Fast, Friendly, and Reliable Justice System” to support our society in the 21st century, justice system reform has been promoted with the following three pillars as its principles.
Three Pillars of Reform
• Construction of a justice system that meets the needs of the people
• Reform of the judicial community to support the justice system
• Establishment of a popular base (Participation of the general public in the justice system)
Procedures Saiban-in Will Participate in
—Promotion of Justice System Reform—
Collabo6
ration Saiban-in
Some cases may be
handled by 1 judge
and 4 Saiban-in.
General Public
(Chosen by lotteries)
Reforms/Justice System Reform
Trial
Judges and Saiban-in will
examine the evidence.
Deliberation
Judges and saiban-in will
deliberate and decide
whether the defendant is
guilty or not guilty as well
as how heavy or light the
sentence should be.
The above image photo shows a court where saibanin participate. The three sitting in the middle in the
front are judges, with another three sitting at each
side, therefore six in total, are saiban-in. On the right
side in the front is the prosecutor, and the left is the
accused and a defense counsel.
(Source: Supreme Court)
Judgment
 Main Reforms Which Have been Implemented
 Comprehensive Legal Support (Japan Legal Support Center)
The Japan Legal Support Center will be newly established to enable people, no matter where they live in the country, to receive
information and services necessary to resolve disputes by legal means (The operations will start around autumn of 2006).
Background
Japan Legal Support Center
Users (General Public)
Consultation
 Measures for under-serviced regions
Access
• The Center will provide legal service in under-serviced regions
 Civil legal aid
• The Center will provide legal aid to people unable to
pay attorney’s fee
Provision
of Legal
Services
 Work related to the court-appointed defense counsel
system
• The Center will establish an integrated court-appointed
defense counsel system for suspects and the accused
to support the acceleration of trials and the implementation
of the saiban-in system
 Supporting for crime victims
• The Center will introduce to crime victims lawyers
and organizations experienced in supporting victims
• Bar Associations
• Judicial scriveners’
associations and other
organizations of legal
professionals.
Networking
(Coordination
and Cooperation)
• Local governments
• Counseling
organizations
1) Insufficient understanding and
information about ADR
2) Institutional limitation on ADR
 Information provision
• The Center , being consulted, will provide consultation and guide
counselees through the resolution of disputes
 Reinforcement and Vitalization of Alternative Dispute Resolution (ADR) Mechanisms
The reinforcement and vitalization of ADR procedures such as mediation will facilitate alternative dispute resolution responding
to the needs of people to settle disputes.
[Certification System for ADR Procedures Will Start in the Spring of 2007]
Provision of Information on ADR
Certification
of Private ADR
Services
Improvement of People’s Understanding, and Reinforcement of Cooperation
among Interested Parties
Notice of Certified ADR
Provision of a “Guide to Choose Procedures”
Provision of Legal Effects for Using
Certified ADR Procedures
(Interruption of Prescription
on demand)
Promotion of the Use of Certified ADR
Procedures
*ADR is an abbreviation for “Alternative Dispute Resolution”.
It includes civil mediation, as well as arbitration, mediation and intercession by administrative organs or private organizations such as Bar Association Arbitration Center and various
PL Centers.
 Major Challenges in the Future
 Expansion of the Legal Population
Efforts have been made to expand the legal population by increasing the number of successful candidates of bar exam.
*Passers of the bar exam: 994 (FY2000)=>1,483 (FY2004)
 Introduction of New Legal Training System
New legal training system has been introduced to systematically coordinate graduate law schools, the bar exam and legal apprenticeship.
 A Speedier Trials
The Law for Expediting Court Procedure has been enacted with the aim of bringing first instance trials to conclusion within two
years.
The Government will continue to make efforts in realizing a justice system friendly and reliable to the people through the implementation thereof consistent with the purpose of Reform, in order to enable the people to find a series of fruits of justice system reform promoted by the Office for Promotion of Justice System Reform.
Basic Policies 2005
To realize a justice system which is friendly and reliable to the people, the Government will continue to make efforts in promoting justice system reform, such as: 1) implementation and establishment of the structure of the comprehensive legal
support, 2) introduction of the Saiban-in System, and 3) reinforce and vitalization of the Alternative Dispute Resolution (ADR).
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10
Significant Progress Made in Tax Reform
to Make the Social Economy Vital and Sustainable
<Main Amendments>
—Tax Reform Steadily Leads the Vitalization of the Socio-economy—
 Progress in Tax Reform
The Government has been establishing a tax system to make the social economy vital and sustainable while ensuring everyone
bears common social costs fairly in response to structural changes of the socio-economy.
The FY2003 tax reform achieved reform of a wide range of tax items such as
R&D tax credit and investment tax incentives, reduction and simplification of
taxation of financial transactions and stocks. These measures resulted in tax
reductions amounting to about 1.8 trillion yen in FY2003, and about 1.5 trillion
yen tax cuts enacted in FY2003 were applied in FY2004.
FY2003 Tax Reform
With a view to contributing to economic vitalization and structural reform,
seamless measures have been implemented following the FY2003 Tax Reform.
FY2004 Tax Reform
 Outcomes of Tax Reform
 Promotion of R&D in Companies
• Trend of R&D investment has significantly changed from a
slight increase or a slight decrease to a significant increase
of 730 billion yen (6.2%) in FY2004 compared to the previous year.
Trend of R&D Investment
730 Billion Ye
Yen
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 Encouraging individual investors to actively
participate in the market
• Designated accounts are steadily increasing.
[Designated accounts in securities company]
1.01 million accounts (as of the end of January 2003)=> 5.58
million accounts (as of the end of March 2005)
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 Support for Business Restructuring
• Introduction of a consolidated tax system (FY2002 reform)
 Support for Positive Corporate Activities
• Focus and emphasis on reduced taxes on research and development and capital investment
(FY2003 reform)
• Creation of human investment tax credit (FY2005 reform)
 Promotion of International Investment Exchange (FY2004 reform)
• Complete revision of the US-Japan Tax Treaty, and improvement of related domestic statutes based on this revision.
 Response to Reconstruction of Corporations and Disposal of Non-performing Loans
• Extension of the period of loss carryover (5 years to 7 years) (FY2004 reform)
• Creation of special treatments for taxation/deduction of appraisal gain/loss of their assets and preferential deduction of outdated loss carried foward (FY2005 reform)
 Reinforcement of SME Business Infrastructure and Competitiveness, and Facilitation of Business Transfers
• Enhancement of tax systems connected with SMEs (addition of the R&D tax system, partial cessation of taxation on undistributed profits of affiliated companies, exemptions in the Instant Amortization System for petty
sum depreciable assets) (FY2003 reform)
• Review of tax system for improvement of the foundation of SMEs (FY2005 reform)
• Reinforcement of the “angel tax system” , extension of the applicable period (reform from FY2003 to 2005)
• Lowering of the maximum Inheritance Tax rate, relaxation of tax rate progressiveness (FY2003 reform)
• Creation of integration measures for the Inheritance and Gift Taxes (FY2003 reform)
Response to
structural changes
of economic society
Promotion of
decentralization
 Transfer of Tax Revenue Sources (reforms in FY2004 and FY2005)
• Transfer of a portion of income to local governments by Income Transfer Tax as a temporary measure until fullfledged transfer of tax revenue source from the Income Tax to Individual Inhabitants Tax takes effect.
 Review of Per-capita Levy of the Individual Inhabitants Tax (FY2004 reform)
 Introduction of Pro Forma Standard Taxation to the Corporate Enterprise Tax (FY2003 reform)
Improved reliability
and transparency of
the tax system
 Improved Reliability and Transparency of the Consumption Tax System
• Review of special exemptions for small and medium businesspersons, review of the frequency of self-assessment and payment, and compulsory making of full price on merchandise, etc. (FY2003 reform)
 Obligation to Attach a Copy of National Pension Premium Receipts when Filing Tax Returns (FY2005 reform)
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(Prepared by the Ministry of Economy, Trade and Industry (METI) based on the ”Survey of Research and Development” (FY2004 Edition) by the Statistics Bureau of the
Ministry of Internal Affairs and Communications. The FY2004 increase was estimated
by the METI using questionnaires collected by the METI)
(Note)
The growth rate in FY2001 temporarily increased because of the expansion of the
covered industries by the survey from 2002. Therefore, if excluding the added industries, the actual growth rate for FY2001 turns out to be minus 0.5%.
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 Activation of Land Transactions
• Reduction in tax rate on capital gain from land transfers, abolition of aggregation of profit and
loss, etc. (FY2004 reform)
• Reduction in Registration and License Tax and Real Estate Acquisition Tax, etc. (FY2003 reform)
 Support for Home Ownership and Moving
• Extension and increased priority on reduced taxes on home loans (FY2004 reform)
• Creation of exemptions for capital to purchase housing in the settlement of inheritance taxation system (FY2003 reform)
• Expansion of the scope of old houses covered by exceptional tax treatment (FY2005 reform)
 Promoting a “Shift from ‘Deposits’ to Investment”
• Introduction of a framework for tax payment using a 20% tax that is withheld at the source (favorable tax rate of 10% for the initial 5 years) for dividends, etc., paid on listed shares, etc. (i.e., a
system that does not require tax declaration) (FY2003 reform)
• Consideration for risks borne by investors that includes the creation of a carryover deduction
system for losses on stock transfers (reform of November 2001, reform from FY2003 to 2005)
 Review of Taxation of Individual Income
• Review of deductions (abolition of special exemptions for spouses (added-on portion) (FY2003),
correction of pension taxation) (FY2004 reform)
• Reduction of the across-the-board tax credit (FY2005 reform)
 Raising of the Contribution Limit of the Defined Contribution Pension Plan (FY2004 reform)
 Relaxation of Approval Conditions of the Approved NPO and Corporation System (reforms in
FY2002, 2003 and 2005)
 Review of International Taxation in Response to the Reality of Economic Activities, etc. (FY2005 reform)
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Encouragement of
business competitiveness and industrial
structure reform
• Support for business
restructuring and
growth in strategic sectors
• Support for venture
business and SMEs
• Support for international investment exchange
Having a vision for anticipated review of individual income taxation at national
and local levels in the FY2006 tax reform, the FY2005 tax reform will reduce
the benefits of the proportional across-the-board tax credit while appropriate
measures will be taken in taxation of housing.
FY2005 Tax Reform
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Stimulation of the
use of assets to deal
with deflationary
asset prices
• Activation of land
transactions, support
for home ownership
• Promote a shift from
deposits to investment
(stock, etc.)
The consolidated taxation system was introduced in order to promote efficient
corporate management.
FY2002 Tax Reform
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 Recent Tax Reforms (main points)
Public Sector Reforms/ Tax Reform
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Basic Policies 2005
Concerning the tax system reform, in order to revitalize the economy and society sustainably, a comprehensive and fundamental examination will be continued to reach a conclusion within the concentrated consolidation period (by the end of
FY2006) based on the “Basic Policies 2004” and outlines of the tax system reform prepared by the ruling party.
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Council on Economic and Fiscal Policy: Major Activities of the Year
Leave to the Localities what They Can Do
— The “Reform Package of Three Issues” Taking Shape by the Budget 2005 —
 Implementation of the “Reform Package of Three Issues” (the Following Reforms
will be Implemented by FY2006)
Along with the concept of decentralization, more financial sources will be sought so that local government authorities may
make there own decisions on expenditures and realize a simpler and more efficient administrative and fiscal system.
The Council on Economic and Fiscal Policy (CEFP) is headed by the Prime Minister, and includes the Chief Cabinet
Secretary, the Minister of State for Economic and Fiscal Policy, other relevant ministers (the Minister for Internal Affairs
and Communications, the Minister of Finance; the Minister of Economy, Trade and Industry), the head of relevant institutions (Governor of the Bank of Japan), and private-sector experts.
The Council is a council system organization situated inside the Cabinet Office. Its purpose is to facilitate full exercise
of the Prime Minister’s leadership while sufficiently reflecting the opinions of private-sector experts in economic and
fiscal policy formation.
 The Overall Picture of the Reform Package of Three Issues by FY2006
Reform of Subsidies
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Transfer of Tax
Revenue Resources
from Central to
Local Governments
• Including budget accounts for FY2004, the Government will aim for a transfer of tax
revenue resources of approximately three trillion yen.
• Tax revenues should be shifted from income tax to the individual inhabitant tax, basically, flattening the rate of individual inhabitant tax on an income basis.
• A radical review of individual income taxation both in the central and local governments.
• Steadily responding with the widening financial gap among local governments
Reform of
the Local
Allocation Tax
• Evening the total amount of general revenue sources, including local allocation tax
grants and local taxes, which are necessary for sound fiscal management of local
governments.
• For achieving a surplus in the primary fiscal balance in the early 2010’s, the central
and local governments will make efforts in reducing expenditures in a manner that
will be acceptable to both central and local governments. More rationalized and
transparent local financial plans will be formulated.
• Taking appropriate measures against widening financial disparity
due to the transfer of tax revenue resources.
• Early disclosure of closing account.
• Decision of mid-term local financial vision.
• Expansion of number of local governments (population) that do not receive grants.
The Following Reforms are In Progress as of FY2005
 Abolished or Reduced Subsidies Amounting to 1.7681 Trillion Yen
 Transfer of Tax Revenue Resources of 1.116 Trillion Yen due to the Income Transfer Tax and Transfer of Special
Grants for the Scheduled Transfer of Tax Resources
 Reform of the Local Allocation Tax
(Ensuring total general revenue resources, including local allocation tax grants and local taxes, which are necessary for sound
financial management of local governments, while formulating more rationalized and transparent local financial plans)
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 Promoting Mergers of Cities, Towns and Villages
Basic Policies 2005
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• Abolishment or reduction of approximately three trillion yen in the budgets of FY2005
and FY2006 etc.
• The decision on the remaining issues will be made by autumn 2005.
The number of cities, towns and villages is expected to decrease to
1,822, a drop of 1,410 (about 40%) as compared to 3,232 at the end of
March 1999, as of the end of March 2006 when the law Concerning the
Special Cases of Mergers of municipalities (Municipal Merger law) is set
to expire.
Column
Reforms/Central and Local Government
April 2005, a new city, Nagaoka-shi, was
born by merging one city and five towns and
villages; former Nagaoka-shi, Nakanoshimamachi, Kosiji-machi, Oguni-machi, Mishimamachi, and Yamakoshi-mura.
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To complete the reform package of three issues by FY2006, the Government will implement reforms of subsidies, of the
transfer of tax revenue resources of approximately three trillion yen, and of local allocation tax.
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14
Regional Stimulation/
Stimulation/Special Zones for Structural Reform
Local Vitality Contributing to the Whole Nation
— Special Zone Projects with Local Characteristics Have been Launched throughout the Nation —
Introduction of regulatory exceptions considering the local
characteristics for structural reform and regional revitalization
Establishment of Special Zones for Structural Reform
=>Revitalizing the Economy through Wisdom and Invention!
Through industrial accumulation and
creation of new industries in response to
local characteristics
Revitalization of Local Economy
Expanding successful cases in special zones
to the whole nation
Revitalization of the Economy of the Entire
Country
Proposals on regulatory reform are welcomed from anybody including local governments, private
entities, NPOs, and individuals
Regulatory Reform Programs Implemented
in Special Zones
194 Items
Regulatory Reform Programs Implemented
throughout the Nation
312 Items
(As of July 2005)
 Regulatory reforms were realized, such as allowing corporations to participate in the fields of education, agriculture, and
medical treatment (These reforms were considered difficult in
the past)
 Proposals on special zones will continue to be invited about
twice annually
 Special Zone for Education
Special Zone for Business Resources Development
[Osaka City]
The City of Ota and the
private sector together will
establish a school integrating
all three levels, elementary
through high school. Classes
are conducted entirely in
English with the exception of
Japanese class.
Fostering internationally minded people
with broader perspectives
 Special Zone for International Logistics
Special Zone for International Automobiles
[Aichi Prefecture, Toyohashi City, Gamagori City, Tahara City, and Mito Town ]
Temporary number plates for
cars are necessary when they
are landed from or shipped
on board vessels for automobiles. Simplified system to
display the temporary numbers will allow more efficient
logistics.
More efficient shipping operations will significantly
reduce the costs
(Some 20,000 automobiles monthly equivalent to saving about 666 hours a month)
 Special Zone for International Logistics
Special Zone of Kitakyushu for International Logistics
[Kitakyushu City, Fukuoka Prefecture]
Using regulatory reform items to be
implemented in Special Zones,
Local governments will formulate special
zone plans
To be approved by the Prime Minister
548 Special Zones have been Approved Nationwide.
(as of July 2005)
Regulatory Exceptions without Any Special Problems Should be Expanded to the Whole Nation
(Regulatory exceptions covering 46 items are decided
to be expanded to the whole nation for FY2004)
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 Special Zone for Education
Special Zone in Ota for English Education
[Ota City, Gunma Prefecture]
The Harbor operates 24hrs
a day 364 days a year by
maintenance of custom clearance operations outside duty
hours, and by reduction of
the charges for extra operation.
It aims to connect the Yellow Sea area and North
America/Europe as a hub port
Basic Policies 2005
The Government authorized
business corporations to
establish colleges, universities and professional graduate schools with an aim to
develop human resources
equipped with a high expertise. (Opening as they get
ready, from April 2004)
Regional Stimulation
 Establishment of Special Zones for Structural Reform (December 2002)
 Local Governments’ and Private Sector’s Wisdom and Invention are Utilized
in Special Zones for Structural Reform
About 640 graduates and non-degree students are expected to start up businesses by the fiscal year 2013
 Special Zone for Agriculture
Special Zone for Japanese Hometown Revitalization
[Tono City, Iwate Prefecture]
The regulatory exception
allows simplified fire extinguishing equipment at guesthouses run by farmers. Deregulated requirements apply
to manufacturing of unrefined
sake, “doburoku”, which is
expected to encourage new
c ommuni t y -b a s e d businesses and promote regional
revitalization.
• Tourists to Tono city surged (economic ripple effects of
about 220 million yen due to the increase of tourists)
• Expected to set up 20 farm guesthouses by
the fiscal year 2007
 Special Zone for Industrial Renovation
Special Zones for Industrial Renovation Utilizing Technology Concentration
[Mie Prefecture, Yokkaichi city, and Yokkaichi Harbor Administration Union]
The regulatory exception for the
petrochemical complexes’ layout
facilitates capital investment, taking
advantage of the existing petrochemical complexes.
• A cluster of high value-added industries responding
to the new era is created around the area
• About 75 billion yen capital investment is expected
by the fiscal year 2008
Toward the expansion of the Special Zones for Structural Reform, the Advisory Council selected 18 “priority items” out of
the proposals made for Special Zones that have yet to be implemented. The selection has been done on the basis of a
comprehensive review of the special zones policies. Suggestions and comments will be raised for implementation by the
Advisory Council by autumn 2005.
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 Examples of Regional Revitalization Plans Approved based on the Regional Revitalization Law
Stimulation/Regional Revitalization
Local Communities Begin Approaches on a Voluntary Basis
— Approaches for Local Autonomy, Independence, and Originality —
Establishment of the Headquarters
for Regional Revitalization
Promotion of local economy, creation of local employment on a
comprehensive and efficient basis
(Cabinet Decision as of October, 2003)
 Miura-Style Development Project through building
the Sixth Economy
Fukui Prefecture, Katsuyama City (Utilization of subsidies
for road building and sewage treatment facilities)
Miura-City, Kanagawa Prefecture (Tax Incentives, utilization of
preferential loans by the Development Bank of Japan)
As the city is famous for excavation sites of dinosaur fossils,
the whole city has been turned into a museum, developing and
improving road networks by subsidies for road building so that
people may tour inside the city. In combination with these, subsidies to improve wastewater treatment facilities are applied to
improve the living environment. These are considered to contribute to tourism accommodation.
• Improvement of forest and city roads to eliminate areas where
large-sized automobiles find it difficult to pass (FY2010)
• Facilitation of wastewater treatment facilities:
As of the end of FY2004 83.1% => The end of FY2011 89.9%
Formulation of the “Program for the Promotion of Regional Revitalization”
(Decided by the Headquarters for the Regional Revitalization as of February 2004)
Local governments will formulate Regional Revitalization plans based
on the program’s support measures to obtain approval by the Prime
Minister.
With synergy effects brought by combination of the first industry
(agriculture and fishery industries) x the second industry (processing industry) × the third industry (tourism), the City builds a
new economic system (1 x 2 x 3=the “Sixth Economy”), creating
new business and employment opportunities. At the same time,
it aims at increasing interchange population with the metropolitan areas by proposing a “Miura Style” (an enjoyable life and
business style) to the people living in the capital sphere.
 Approaches for Regional Revitalization
 Plan to promote the Ecomuseum in Katsuyama City,
The Furusato Genki Museum
• Increase in the number of new business setups in relation to
marine product processing:
30 companies by the end of FY2010
• Creation of new employment opportunities:
500 or more workers by the end of FY2010
278 Regional Revitalization Plans were Created by All Local Governments
(as of March 2005)
Enactment of the Regional Revitalization Law for Construction of a Full-Fledged Framework
(Enacted in April 2005)
453 Regional Revitalization Plans were Formulated based on the Regional Revitalization Law
(as of July 2005)
 Procedures for Proposing and Approving Plans for Regional Revitalization
Proposals of Support Measures
Approval of Plans
Local
Governments
Understanding
Needs
Application
Approval
Central
Government
Formulation
Formulation Understanding
Needs
Regional Revitalization Plans
Office for the Promotion
of Regional Revitalization
Projects Cabinet Office
Coordination
(Consensus
Discussion)
Private
Companies
Local
Governments
Individuals,
NPOs
Selection
Basic Policies for Regional
Revitalization
Local
Communities
Private
Companies
Each Ministry
Proposal
Individuals,
NPOs
Formulation
Proposal
Formulation
Proposal
 “Toshima Art Canvas” Project for Creation of a Cultural
and Artistic City
 Revitalization Plan for Mountain Lifestyles (Promotion
Project for Intermediate and Mountainous Area)
Toshima Ward, Tokyo City (Support for NPO activities which
contribute to regional revitalization)
Nagaoka City, Niigata Prefecture
(Formulation of the “Special Region Project Team”)
The ward holds artistic events and symposiums for the
residents under cooperation with the ward residents,
NPOs, business entities, and local government. The purpose of this project is to revitalize the regional community
and create a cultural and artistic city.
The city aims at establishing an “Intermediate and Mountainous Area Promotion Model” with support from the
project team organized by a state entity. The purpose of
this project is to realize the slogan, “Creation of a New
Regional Community where People may Have Future
Dreams”, a long-term reconstruction vision held by Yamakoshi and Ota areas which suffered huge damage due
to the Mid-Niigata Earthquake.
Office for the Promotion
of Regional Revitalization
Cabinet Secretariat
Coordination
Itemization
Implementation of Art Programs which connect art and
the community:
Total participants of about 3,000 annually
• Agricultural output (vegetables)
2001 50 million yen => 2015 60 million yen
• Tourists (hot spring spa)
2003 60,000 => 2015 80,000
Each Ministry
 Enactment and Enforcement of the Regional Revitalization Law (April 2005)
Local Governments
Central Government
Headquarters for the Regional Revitalization
“Regional Revitalization Plans” formulated
by local government on a voluntary basis
Projects necessary
for regional revitalization
Approval
Support
Basic Policies for Regional Revitalization
Preferential Treatments
1) Tax Incentives
2) Subsidies to strengthen basis for regional revitalization
3) More unified and prompt procedures to convert
facilities covered by subsidies
Regional Revitalization (Revitalization of regional economies by taking advantage of local knowledge and uniqueness, creation of employment opportunities, and other revitalization activities)
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Basic Policies 2005
The way of regional societies function has significantly changed due to the consolidation of municipalities. With this background, local
communities are now required to reorganize their potential and enhance their local power.
The government will strengthen its efforts toward regional revitalization, based on concrete proposals from local residents, and promote
measures such as;
1) Human resource development by, for example, catalyzing local people’s ties (“social capital”) through the activities of NPO’s, residents’
associations etc.
2) Utilization of the funds and expertise of the private sectors.
3) Subsidies reform in order to give local governments greater discretion.
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Stimulation/Urban Renaissance
Making Japanese Urban Areas More Attractive
—New Urban Development in the 21st Century—
 Community renovation activities utilizing historical resources
Kita-Kyushu City, Fukuoka Prefecture
Kakunodate Town, Akita Prefecture
Surrounding the Murasakigawa River flowing in the center of Kita-Kyushu City, local people actively carry out
community renovation activities utilizing public space that
creates festivity.
The Town aims at revitalization of the town by improving the downtown area which is characterized by the
Bukeyashiki (old samurai’s residence) street, the surrounding traditional streets, and division of the town here
and there.
 Epoch-Making Scheme for Urban Renaissance
 Support for community renovation activities by citizens
Since enforcement of the “Special Measures Act for Urban Renaissance” in June 2004, 63 areas around 6,400 hectares (through
fourth designation of May 2004) have been designated as “Urban Renaissance Urgent Development Areas”. The projects are
now underway at various areas throughout the nation.
Preferential Treatments for City Planning
 Prompt urban renaissance with private originality and
inventiveness
• Certain requirements such as usual land use or floorarea ratio (FAR) are excluded from the regulations
• Private entities may make proposals on planning with
more than two-thirds approval of land owners and
leaseholders
• Establishment of city plans within six months
after proposal
Support for Urban Renaissance Projects by Private Entities
 Financial Support System Authorized by Minister
of Land, Infrastructure and Transportation
Support for private entities that implement projects
• Support for improving public facilities (loans bearing no
interest)
• Financial support for business startups (financial
contribution, acquisition of corporate bonds,
debt guarantee)
 Tourism Promotion Involving Local Citizens
Matsuyama City, Ehime Prefecture
With the spirit of the novel, “Saka no Ue no Kumo” (Clouds above the Top of a Hill), whose theme is to “keep your dream
and hope in mind and accomplish your goal”, many sites associated with characters of the novel all over Matsuyama City
are included in the Field Museum. As such, community renovation activities involving local citizens play a role of promotion
of tourism in the city.
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(Area surrounding Nagoya Station, Fushimi and Sakae districts)
4-7 Mei-eki (Toyoda and Mainichi Building) Project
(Akihabara and Kanda districts)
Akihabara UDX Building Project
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 Promoting Urban Renaissance across the Nation – From Wakkanai to Ishigaki
With support for urban renaissance activities under the slogan of “local communities that think and act for themselves”, “everyday” quality of life has been improved and revitalization of “regional economy and society” has been promoted.
 Based on proposals from local governments (about 1,000
proposals), investigation groups established per theme
promote putting projects into shape.
[Examples]
Plans have been made to promote urban tourism
in Wakkanai, Matsuyama, Ishigaki and other areas.
 Support has been provided to the urban renaissance
activities with a slogan of “local communities that think
and act for themselves” as the “Model Survey for
Urban Renaissance across the nation”. This aims at
pioneering urban renaissance activities in various parts of
the country.
 Three Laws on Landscape and Greenery were established
with a view to ensuring comprehensive implementation of
favorable landscapes and abundant greenery.
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 Basic framework for supporting Urban Renaissance across
the nation was constructed.
• Use of Community Renovation Grants which allow each
municipality to bring out originality and inventiveness (The
government spending budget is 193 billion yen for FY2005)
• Integrating the authority of municipality in relation to
community renovation activities as much as possible
(transfer of authority to establish city plans and implement
road projects from the national government to local
governments)
• Collaboration between government and private entities for
community renovation including, typically, NPOs
• Authorization system for private projects by the Ministry of
Land, Infrastructure and Transport (MLIT) together with the
“Community Renovation Grants” and support for funding
the projects
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Basic Policies 2005
The Government will promote urban development by private entities to cope with international competition among urban
areas. In addition, the Government will promote voluntary and independent urban renaissance projects with local originality
and inventiveness; specifically, through revitalization of downtown areas. As part of the approach, the Government will develop cadastral maps for metropolitan districts.
20
Stimulation/Tourism
 Japan Tourism Promotion Strategy Council
Toward an Attractive Country Attracting Many Visitors
The Government has organized the “Japan Tourism promotion strategy council” consisting of academic experts from private
entities, and finalized the “Report from the Japan Tourism promotion strategy council” which includes four challenges and 55
proposals.
In the future, the state, local entities, and industrial circles will promote realization of a tourism based country on this report.
— Regional Stimulation through “Nation-Building that Provides a Good Living Habitat and a Good Place to Visit”—
 Report from the Japan Tourism Promotion Strategy Council (November 2004)
To achieve the “nation-building that provides a good living habitat and a good place to visit” slogan, the ministerial council on
tourism promotion finalized the Japan Tourism Action Plan (July 2003).
Challenge 1 Creation of Internationally Competitive Multi-faceted Sightseeing Areas
This challenge will include: 1) increase of sightseeing contents, 2) development of new tourism resources, 3) maintaining beautiful landscapes, and 4) networking of sightseeing spots.
Significance of Japan Tourism initiative
Imbalanced Exchange in International Tourism
Overseas visitors
to Japan 5.21 million (32nd in the
world ranking)
3.5 billion dollars
(31st in the world
ranking)
Provisional figures extracted from data 2003 (*2002)
(Source: Japan National Tourist Organization)
Japanese travelers overseas
16.83 million (13th
in the world ranking)
2.67 billion dollars
(4th in the world
ranking*)
Ise City, Mie Prefecture
Kawagoe City, Saitama Prefecture
By increasing overseas visitors to Japan, the Government aims to achieve the following:
• Promoting exchange among people
• Significant economic effects
• Nurturing of confidence and pride local citizens have in their community
International tourism shows an imbalance: the number of overseas
visitors to Japan is less than onethird of that of Japanese who travel
overseas.
The government carried out
appropriate development
projects together with a
campaign initiated by local
citizens, “Preserving Traditional City Streets with Old
Japanese Warehouses”. At
present the area around Ichibangai is more festive than it
used to be.
Challenge 2 Soft Infrastructures for Strengthening
International Competitiveness
• Promoting modernization and rationalization of tourism
related industries which produce “travel”
• Developing human resources for travel related industries
The number of visitors to
Naikumonmae Town near
Ise Grand Shrine stagnated
to around 200,000 annually
during the 1980’s in Ise City
of Mie Prefecture. “Okage
Yokocho (Side Street)”, reproducing old city streets, ie.,
“Japanese Culture and Japanese Life”, attracted about
3 million visitors annually in 2002, showing a way toward
regional revitalization in the future.
Roadmap to Achieve 10 Million Overseas Visitors to Japan
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Challenge 3 Attracting More Overseas
Visitors to Japan
• Simpler and smoother procedures for entry formalities
• Preparation for accepting overseas travelers in regional areas
• Provision of strategic information to foreigners
• Promotion by the Prime Minister as well as
each Minister when visiting overseas
• Public relations through foreign media
(TV appearance by the Prime Minister)
• Providing information to overseas travel agents
Visit Japan campaign’s logo
Tourism promotion ambassadors of Japan and Korea with
Prime Minister Junichiro Koizumi (July 2004)
 The Ongoing Approach is to Make Tourist Spots More Attractive
• “Tourism Charisma School” provides special
training that develops human resources that
can play a pivotal role in revitalizing resort
areas
• Establishing traffic signs written in foreign
languages in public transportation system
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 Promoting the Visit Japan Campaign
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The target is to double the number of overseas visitors to Japan to 10 million by the year 2010
 Japan Tourism Action Plan
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Data by 2004 Source: Japan National Tourist Organization
Challenge 4 Promotion of Tourism for the Japanese
This challenge will include: 1) facilitation of taking days off and dispersing holidays, 2) decrease travel costs, and 3) provision of
strategic information to Japanese residents.
Multi-Language Traffic Display in Public Transportation System
Basic Policies 2005
To strengthen tourism promotion strategies, the state, local entities and industrial circle will be engaged in an approach
based on 55 proposals provided in the “Report from the Japan Tourism Promotion Strategy Council” (November 30
2004), and aim to achieve 10 million overseas visitors to Japan by 2010, reviewing the political effects annually.
21
22
 Utilization of the SME Revitalization Support Council
Industry and Finance/Industrial Revitalization
Regaining Vitality of Small and Medium-Sized Enterprises
and Industries
— Strong Back-up for Revitalization of Small and Medium-Sized Enterprises and Industries —
 Creation of Innovation with a Core of “New Industry Promotion Strategy”
Seven Strategic Areas
1) Strategic areas which will support future development of Japan
2) Highly needed areas from the people which will
contribute to domestic demand-led growth
3) Areas which take advantage of our strength;
industrial concentration
4) Areas where public and private sectors must
develop comprehensive measures on an integrated basis
For Seven Areas in Total
About 300 Trillion yen Output is Expected (2010)
Cutting-Edge New Industry Areas
Fuel Cells 1 trillion yen
A comprehensive scenario written by public and
private sectors
Home information appliances 18 trillion yen
Improving competitiveness of downstream
consumer electronics
industry
Robots 2 trillion yen
Promoting development
for prior use
Contents 17 trillion yen
Facilitating international
development
New Industry Areas Coping with Expanded Market
Needs
Healthcare, welfare,
appliances and service 75 trillion yen
Comprehensive development (including food
industries)
Environment, energy,
appliances and services 78 trillion yen
Facilitating research and
development
Business support
service 107 trillion yen
Human resource development
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(Prepared by the Cabinet Office based on data by the Ministry of Economy, Trade and
Industry)
 Utilization of the Revised Law on Special Measures for Industrial Revitalization
 Steady Operation of the Revised Law for Industrial Revitalization
The Law for Industrial Revitalization was revised (April 2003) to provide revitalization of industry and finance on an integrated
basis. This includes a package to support active revitalization efforts by companies, including business combination and advanced capital investment.
 Achievement of the Plans Approved
366 cases (out of which, 162 cases occurred after enactment of the revised law)
For each of the seven
areas, action plans
will be pre sente d
specifying concrete
market size and target years.
 Utilization of the Industrial Revitalization Corporation of Japan (IRCJ)
Industrial Areas for
Regional Revitalization
Cutting-edge industries (IT, biotechnology, etc.)
Reinforcing network
among public, private
and academic partnerships
Manufacturing industries
Concentrated on using
advanced components
Regional Service Industry
(Attracting customer
and exchange service)
Rediscovering and disseminating attractiveness of local areas
Food industry
Advertising local brands
Innovation technologies (nanotechnology, biotechnology, IT and environment)
and traditional technologies (gimmick-like technologies, techniques, etc.)
23
Transition in the number of revitalization plans formulated
and employment performance
by the SME Revitalization Support Council
Industry and Finance
 Formulation of New Industry Promotion Strategy
• The Government formulated “New Industry Promotion Strategy” (May 2004); growth strategies that allow Japan to achieve
sustainable mid- and long-term economic development by taking advantage of our strength, and by overcoming the tough
situations our economy has faced since the 1990’s.
• A steady promotion of the Strategies requires that “Plan, Do, Check and Action” procedures to be implemented. The “New
Industry Promotion Strategy 2005” (June 2005) was thus formulated toward a further development of these policies and measures.
These Strategies consist of the following three pillars:
1) Highly-value added industrial groups which can survive in international competition
2) Industry groups that can cope with social needs including healthcare, welfare and environment
3) Industrial groups that can contribute to regional revitalization
With the above three pillars in mind, the Government has projected the magnitude of the markets in the future, formulating action plans to achieve them. Furthermore, various cross-sectional approaches have been promoted in such fields as “human resource development”, “protection of intellectual properties”, and “research and development”, in order to realize and cope with
various challenges in implementation.
 Establishment of the SME Revitalization Support Councils at All Prefectures
• The SME Revitalization Support Councils established at
all prefectures intend to support revitalization of small and
medium-sized enterprises which are diverse in nature and
have many local characteristics.
• Collecting the total power from experts and professionals
with abundant knowledge and experience in SME revitalization and from local financial institutions, the Council provide
elaborate support for the enterprises in revitalization approach.
 Achievement of Program Outcomes
Providing counseling service about 6,000 corporations
Support for formulation of revitalization plans about 780 corporations
(Out of the above, about 360 companies have completed formulating plans while employing about 26,000 personnel) (as
of March 2005)
Prioritized Measures
1. Reinforcing human resources in industries
• Promotion of investment in
human resources by business corporations
• Reinforcement of rewarding programs in order to
nurture excellent human
resources
• Enhancement of manufacturing training
2. Improving protection of
intellectual properties
• Improving protection of intellectual properties including trade secrets
• Thorough prevention of a
technical drain
3. Prioritized research and
development
• Drastic prioritization of
strategic areas in research
and development
 Establishment of the IRCJ (April 2003)
• The IRCJ was established with the mission of supporting business revitalization, from a fair and neutral standpoint, within limited time periods. The aim of the IRCJ is to reconstruct our industry and finance systems on an integrated basis.
• The JRCJ steadily implements business projects determined to be covered by programs, presenting model cases for business revitalization. At the same time, they contribute to development of human resources that will become main players in
business revitalization, as well as to the improvement of mechanisms and market expansion through feeding back findings
and expertise the IRCJ possesses.
 Achievements of Revitalization Support Program Outcomes
Decisions were made to provide support for 41 cases; out of which, 13 cases were already completed.
 Utilization of the Resolution and Collection Corporation (RCC)
 Efforts for Corporate Revitalization by Utilizing RCC Functions
The “Corporate Reorganization Fund Scheme”, “Trust Scheme of SME Revitalization” and other programs were developed,
making the most of the trust and revitalization functions of RCC.
 Results of Assistance for Corporate Restructuring
351 revitalization programs already implemented, 113 programs proposed for revitalization.
Basic Policies 2005
(Promotion of New Industry Promotion Strategy)
• Based on the “New Industry Promotion Strategy 2005” the Government will develop seven strategic industrial areas to
support the development of Japan in the future, while reinforcing and strengthening regional clusters; a place of collaboration among the public, private and academic sectors. These Strategies will support “Skilled SMEs” which own diversified skills and technologies, formulating programs to improve concentration of advanced components and materials
within FY2005. At the same time, priorities are placed on the development of human resources, R&D, IT usage, etc.
• The Government will promote establishment, business management innovation, revitalization, succession of technologies
and skills, and securing human resources of SMEs.
24
Industry and Finance/Financial Revival
 Financial System Reform
Spreading Money Flow into Every Corner of Business Area
and Regions
The Government will make efforts in early legislation of the “Investment Service Law” (tentative name) based on the “Intermediate
Summary”; a cross-sector legislation pertaining to financial and investment services prepared from the following perspectives: 1)
improving and thoroughly implementing user protection rules, enhancing market functions and improving reliability.
— Toward Normalization of Non-Performing Loans (NPLs) Problems, and Creation of a Strong Financial System —
Current Situations of Financial Legislation
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Bank
Law
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(Rules for sales, solicitation and others)
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(Data submitted by the Financial System Council)
The Government will further promote community-based financing, putting emphasis on the relationship between SMEs and
regional financial institutions from a viewpoint of facilitating regional regeneration, revitalization and financing of SMEs. Furthermore, it will promote financing which will not excessively depend on bonds, collaterals and guarantees by financial institutions.
Announcement of the “Program for Further Financial Reform - Japan’s Challenge: Moving toward a Financial Services Nation-” which is a Guideline for Financial Administration for FY2005 and 2006 (December 2004)
 Change of Phases Surrounding the Financial Environment
— From Emergency Reaction Phase to a Desirable Financial Situation—
Emphasis on “financial system vitality”
(Establishing a desirable financial system
for the future)
 Desirable Financial System
by the effort of the “private sector”, not led by the “public sector”
Any user of financial products and services has access to options for diversified and good-quality financial
products and services at anytime, from anywhere, at an appropriate price
(a financial system superior in its conveniences, price advantage, diversification,
international aspect and reliability)
 Five Points in the Challenge Moving toward a “Financial Services Nation”
Emphasis on users’ needs
and thorough implementation
of user protection rules
Formulation and release of the “Action Program to Promote Further Enhancement of Region-based Relationship Banking
Function” (FY2005 – FY2006)
I. Basic Concepts
1) Continued promotion of Relationship Banking
2) Promotion of Relationship Banking based on correct understanding of its nature
3) Promotion via “selection and concentration” reflecting regional characteristics and user needs
4) Promotion of disclosure and discipline thereby
II. Specific Measures
1) Business revitalization and facilitation of SME financing
2) Strengthening of management functions
3) Enhancement of convenience for regional users
III. Implementation Methods
Each financial institution is required to submit a “Relationship Banking Promotion Plan” to FSA by the end of August 2005
and to publicly release it.
• The Government will create a framework for supervision with a view toward enhancing governance of financial institutions
and risk management by financial institutions. This will contribute to the qualitative improvement of our financial system and
the prevention of the recurrence of non-performing loans issues problem.
• In response to the increase in international competition among financial markets, it should be a priority to make Japanese
markets a financial base in Asia. The Government make efforts to raise the international position of Japanese markets by developing market infrastructure so that it can adjust to structural changes such as diversified financial products and services.
Strategic use of IT for strengthening the competitiveness of financial institutions and further
developing financial infrastructure
Basic Policies 2005
Further development of a financial system which is
internationally open and the financial administration
with an international perspective
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Insurance
Business
Law
Investment Service Law (Financial Service, Market Law)
2.9%
 Japan’s challenge: Moving toward a Financial Services Nation
Emphasis on “financial system stability”
(Emergency reaction to the non-performing
loans problem)
means investors not protected by laws)
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Interests/foreign
exchange swap
transactions
(The terms and phrases in
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Financial Futures
Transaction Law
Other laws to
regulate investment
services
(Mortgage
Securities Law,
Product Fund Law)
*All deposits in checking or ordinary accounts without any interest will
be protected as the “account for settlement”. As for fixed deposits
and ordinary accounts with interest, protection will be applied for original principal amounts of up to 10 million yen together with the interest
thereof per capita for each financial institution.
Transition of Major Banks’ NPL Ratio
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Transaction Law
Civil Law/Anonymous
Association
(Ramen Fund, etc.)
Insurance
Business Law
• The total amount of NPLs of Japanese major banks as of the end of March 2005 decreased by more than 19 trillion yen as compared to that of the end of March 2002. The
major banks’ NPL ratio also dropped by 5.5%
(8.4% =>2.9%) , and the goal of the “Program
for Financial Revival” to reduce major banks’
NPL ratio to about half was achieved.
• With this background, the payoff (deposit insurance cap) system has been implemented
as scheduled since April 2005.
Bank Law
 Achievement of Targets to Normalize the NPLs Problems
—Program for Financial Revival—
Hospital Bonds
School Bonds
 Creation of a Strong Financial System
Contribution to
regional economies
Establishment of a reliable
financial administration
The Government will move forward with steady implementation of measures in relation to promotion of financial system reform based on the “Work Schedule” of the “Program for Further Financial Reform”, in order to create a “Financial Services
Nation” in which the level of users’ satisfaction is high, which is rated well internationally, and which contributes to regional
economies.
26
Industry and Finance/Entrepreneurship
 “Dream Gate” Project (July 2003~)
The Motivation to Start a Business
In order to raise entrepreneurial and independent awareness across
all levels of civil society, the Government launched the “Dream Gate”
project for 300,000 or more would-be entrepreneurs, providing a comprehensive support service for business setup (The registration service
reached about 330,000 users as of July 2005).
— Supporting People’s High Aspirations to Start New Businesses, Including Entrepreneurship —
 Special Regulations Governing Minimum Capital Requirements (February 2003~)
A special regulation governing minimum capital requirements was implemented. With this system, when individuals who are not
engaged in business are approved by the Minister of Economy, Trade and Industry (METI), they will be able to found companies
without subject to the minimum capital requirements.
*Commercial Law (Private Company Law) provided that, under the Minimum Capital System, companies needed a minimum prescribed capital amount (10 million yen for business corporations, and 3 million yen for private companies) at the time of incorporation.
 Business Startups Increased by 10% Annually as Compared to before the Launch of this System
Transition in Accumulated Users of the Special Regulations
Governing Minimum Capital Requirements
Effects of the Special Regulations Governing
Minimum Capital Requirements
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 Targets
• To boost business startups and establish an entrepreneurial culture in
Japan
• To accelerate moves toward implementation and achievement of the
“Program to Double Business Startup and Foundation” and the “1,000
University-Born Venture Companies Plan”
=>The “1,000 University-Born Venture Companies Plan” was accomplished in FY2004.
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about
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Boost10%
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of
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Trade and Industry, and the Ministry of Justice)
1,112
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The Counseling Corner established at the “Big-Challengers Tokyo” event,
one of the largest events to support business startup in Japan
(Source:
METI)
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(Prepared by the Cabinet Office based on data by the Ministry of Economy Trade
and Industry)
Furthermore, the new Company Law (June 2005) was enacted which provided that the minimum capital system be eliminated.
Under this law, business startups approved by the treatment scheme with a minimum capital of only 1 yen will be generalized to
facilitate business startups.
 A Surge in the Number of Establishments in New Fields
Top 5 establishments with increased business startups (1999 – 2004)
Social welfare and care services such as home care help service
Worker dispatching services
Welfare services for the aged and care services, except home care help services
Welfare services for disabled persons
Computer services programming and other software services
All industries
(Prepared by the Cabinet Office based on the “2004 Establishment and Enterprise Census of Japan Interim Report” )
University-born bio venture companies research drug development based
on core technologies in protein and sugar chains
 Facilitation of Financing of Business Startups
While the number of offices in all industries is decreasing, those in new fields are sharply increasing, including social welfare,
nursing care and business dispatch services.
27
 Thanks to the Special Regulation Governing Minimum
Capital Requirements about 26,000 Corporations Started Businesses over the Past Two Years (Out of which,
about 1,900 Companies Increased their Capital to an
Amount Equal or Exceeding the Minimum Requirement)
 Concrete Example of Businesses
• Providing information (on business startup or the counseling thereof)
through websites
• DREAM GATE “Entrepreneurs Internship” project
(+157%)
(+150%)
(+82%)
(+50%)
(+30%)
(-8%)
The Government makes efforts in facilitating financing at the time of setting up businesses by: 1) improving the system of lending to venture funds, 2) expanding the “angel taxation’’ system, and 3) establishing loan system using government affiliated
financial institutions.
Basic Policy 2005
• The Government will promote establishment, business management innovation, revitalization, succession of technologies
and skills, and securing human resources of SMEs.
• To deliberate on comprehensive support measures for women in issues including their reemployment and business promotion, the Government will establish “Conference on support measures for women’s renewed challenges” (provisional
title) by related ministers, and within 2005 will formulate the “Support plan for women’s renewed challenges” (provisional
title).
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Industry and Finance/Globalization
 Doubling the Cumulative Stock of Foreign Direct Investment in Japan
Revitalizing Japanese Economy through Globalization
 Effects Brought by Foreign Companies Advancing in
Japan
1) Introduction of foreign technology and management
know-how
2) Presenting new products and services
3) Supplying funds necessary for business startup and regeneration
4) Creation of employment
— Further Strengthened Ties between the Japanese Economy and the World Economy —
 Economic Partnership Agreements (EPAs) Concluded
Japan’s cumulative FDI stock is still at a low level
—Inward direct investment levels in major developed countries —
(Stock-base as of the end of CY2003 in relation to Nominal GDP)
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 Japan-Singapore Economic Partnership Agreement
(Signed in January 2002, and entered into force November
2002)
 Japan-Mexico Economic Partnership Agreement
(Signed in September 2004, and entered into force in April 2005)
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Japan has been making efforts to promote EPAs mainly with East Asian countries. Japan reached agreements in principle on
major elements of the EPAs with the Philippines, Malaysia and Thailand. Japan is also conducting EPA negotiations with the
Republic of Korea (ROK), Association of Southeast Asian Nations (ASEAN) as a whole and Indonesia. The possibility of negotiating an EPA with India, Chile and other countries is also being studied.
EPAs will bring benefit of expanding trade and investment, and revitalizing the economies of member countries of the agreement.
Explanation
What is the Economic Partnership Agreement (EPA)?
The Free Trade Agreement (FTA) aims to liberalize trade in goods and services through elimination or reduction of tariffs
and other barriers between countries and regions. The Economic Partnership Agreement (EPA) aims to strengthen economic partnership not only with elements of FTA but also in a wider range of areas, encompassing (1) facilitation of investment, movement of natural persons, (2) rulemaking in such areas as government procurement, competition policy and intellectual property, and (3) cooperation in various fields including development of human resources and economic system.
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IMF “International Financial Statistics December 2004”
Transition of Japan’s FDI Stocks
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 Government’s Initiative
• “Invest Japan” desks were established in related ministries and agencies, JETRO and other organizations as the
contact/information desk on direct investment to Japan (May
2003).
• The entire Government has been working toward the goal
to double the cumulative stock of FDI in Japan within five
years. For these past three years the balance has increased
by about 1.5 times as compared to that as of the end of
2001 (6.6 trillion yen as of the end of 2001=>10.1 trillion yen
as of the end of 2004).
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Under the target to double the cumulative stock of
Foreign Direct Investment (FDI) in Japan, the Government is making various efforts in line with the
“Program for the Promotion of Foreign Direct Investment in Japan”
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(Prepared by the Cabinet Office based on the “’International Investment Position of
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“Invest Japan” logo
Examples of the Effects Brought by Foreign Companies Advancing into Japan
 Returning the Benefit
A local Japanese corporation of a French company known for famous fashion brands has kept a steady
growth in Japan, returning the profits to Japan. They expanded investment and contributed to job creation by establishing a new facility in a shipping warehouse, which also functions as a training place for
fashion consultants in 2003, as well as by opening a new office building in Ginza, Tokyo in 2004.
Japan’s EPA Negotiations
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Basic Policies 2005
ASEAN
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The Government will accelerate international partnership by promoting EPAs and by strengthening and accelerating the
Program for the Promotion of Foreign Direct Investment in Japan. From this perspective, the Government will work on the
following points.
• The Government will significantly increase the conclusion of Economic Partnership Agreements (EPAs) while working
actively towards reaching a substantive achievement in the WTO Doha Development Agenda (DDA) negotiations by
the end of 2006. To this end, the Government as a whole will strategically promote high-quality economic partnerships,
mainly with East Asian countries, as is mentioned in the “Basic Policy towards further promotion of Economic Partnership Agreements (EPAs)”, and to this end, will review the economic effects of the EPAs numerically or by other measures
at appropriate times. While making the most of ODA and private resources, the Government will support development of
the human resources and institutions in partner countries.
• The Government will analyze the economic effects of EPAs and utilize the result with a view to realizing high-quality economic partnership which would lead to greater economic effects.
• The promotion of foreign direct investment in Japan will result in the creation of new markets and of employment through
new management know-how, introduction of technologies and so on. To this end, the Government will accelerate and
enhance the “Program for the Promotion of Foreign Direct Investment in Japan” (March 27 2003) toward doubling the cumulative stock of direct foreign investment in Japan as of the end of 2006.
30
Industry and Finance/Distribution System
From the World, From Japan, Safe and Efficient Flow of Products
— Efforts are Underway for Improvement of Port Distribution system Services —
 Shortened the Time Required from Entrance into Ports to Approval of Maritime Cargo Imports
To shorten the time required, efforts have been underway toward around-the-clock, fully-opened cargo handling and gate operations (except January 1st ) as well as improvement of custom clearance work during off-duty time.
 Promotion of International Standardization and Simplification of Port Related Procedures including Export/Import
Procedures
Procedures for entering and leaving of Japanese Ports used to be cumbersome. By adopting the International Standard Format, the procedures will be more simplified and speedy, resulting in a more convenient port for users.
Simplified Procedures in Accordance with the Convention on Facilitation of International Maritime Traffic
(FAL Convention)
• The related ministries will adopt the common International Standard Format used in procedures covered by the FAL Convention, including general declaration.
• As for various pre-arrival port related procedures other than those provided in the convention, the items will be drastically
simplified and categorized in unified common formats.
• Regulations for the night entrance to the ports are eliminated.
Changes in the Time Required from Arrival in Port to Approval
of Maritime Cargo Imports
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(Prepared by the Ministry of Land, Infrastructure
and Transport (MLIT) based on the data by the Ministry of Finance)
 To Make the Ports and Harbors More Attractive and Convenient
 Promotion of the Super-hub Port Project
The super-hub port initiative has been implemented in order to reduce port related costs by 30%, and to reduce cargo discharge time in ports to about one day. Under this initiative, the Keihin Port, the Nagoya Port, the Yokkaichi Port, the Osaka
Port and Kobe Port were designated as Super-hub Ports to promote integration and expansion of those international container terminals , aiming to surpass the levels of the main ports in Asia in terms of costs and services.
Support for Establishment of Mega Container Terminals
• Lending system of public assets consisting of Mega Container
Terminals (including piers and yard sites)
• Lending system of interest-free funds in relation to improvement of
freight handling facilities
Documents Provided in the FAL Forms
(16 categories=> 8 categories)
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Captain of the Port
Declaration Inward Outward of Vessel
Port Management Body
Custom Office
Immigration Bureau
Custom Office
Cargo Manifest
Port Quarantine Station
Cargo Manifest
Custom Office
List of Ship’s Stores
Custom Office
Declaration of Crew’s Baggages
Custom Office
Crew Manifest
Immigration Bureau
Crew Manifest
Crew Manifest
Custom Office
Passenger Manifest
Immigration Bureau
Passenger Manifest
Passenger Manifest
Formulation of the Unified Application Format
for all the Related Ministries and Agencies
(Document Version) [End of 2004]
General Declaraton
Cargo Declaration
Declaration Ship’s Stores
Crew’s Effects Declaration
Crew List
Unified Application Format for all
the Related Ministries and Agencies
Passenger List
Captain of the Port
Application to load/discharge dangerous goods
Dangerous Goods Manifest
Maritime Declaration of Health
Maritime Declaration of Health
Electronic application procedure
will be available
[from November
2005]
Others (5 categories => 1 category)
Documents Not Provided
in the FAL Formats
(8 categories => 1 category)
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Number of items:
about 200
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Number of items:
about 600
Captain of the Port
Application for berth assignment
Application for berth charge
Port Management Body
Application for moorings
District Transport Bureau
Report on the Financial Security
Information based on the Law on Liability
for Oil Pollution Damage
Japan Coast Guard
Pre-reporting based on the SOLAS Act
Eliminated (3 categories => 0 category)
Captain of the Port
Application for the night entrance to the port
Immigration Bureau
Arrival Notice
Attached report
Pre-arrival
Procedure Form
Abolished
Mega Container Terminals (Port Island District of the Kobe Port)
Basic Policies 2005
The Government will formulate a new outline of comprehensive distribution policies within 2005 in order to establish an efficient international distribution system, and promote distribution measures on a comprehensive and integrated basis, while
assessing the effects of the measures annually.
31
32
 Matters to be addressed
Industry and Finance/
Finance/Agricultural Policy Reform
New Agricultural Administration that Draws out the Potential
of Agriculture to the Greatest Degree Possible
 Creation of New Agricultural Values
— Policy Change to “Aggressive Agricultural Administration” —
 New Direction of Agricultural Policy
Export of Agricultural, Forest and Marine Products
Promotion of comprehensive efforts to facilitate exportation
[Target]
To double the export value of agricultural, forest and marine products within five years
300 billion yen (2004)
=> 600 billion yen (2009)
From Food Industry to Bio-Resource Industry
Realization of a new recycling-based society, “Biomass
Nippon”
 New Agricultural Administration Promoted by Related Ministries as a Whole
• Promotion of New Agricultural Administration in the 21st Century
(Decided by the Headquarter for the Promotion of Policies on Food, Agriculture and Rural Areas: March 2005)
Taking an aggressive approach to agricultural policies, the Government presented directions of the policies which will boost
agricultural administration focusing on consumers, as well as high aspirations, originality and inventiveness in regional and agricultural management.
• Basic Plan for Food, Agriculture and Rural Areas (Cabinet Decision, March 2005)
Based on situational changes surrounding the food, agriculture and rural area, the Basic Plan clarifies priority issues and measures that the Government should tackle in the future.
Technical Development to Cultivate the Future
Taking advantage of the ability to develop new varieties or
breeds will create new demands and drastically promote
international competitiveness
[A Concrete Approach]
Development of a rice variety to alleviate hay fever
(The variety may suppress symptoms of hay fever if the
patient keeps eating for several weeks)
 Advance of Structural Reform in Agriculture
 Changes in Situations Surrounding the Food, Agriculture and Rural Area Issues
Roots of “aggressive” approaches taken by regional
communities
(Including export, local brand products, utilization of Special Zones for Structural Reform)
Advance of globalization
Sluggish Food Self-Sufficiency
(1965
73% => 2005 40%)
Changes in Food Self-Sufficiency (calorie basis)
Examples of Exported Agricultural,
Forest and Marine Products (2004)
Items
Apple
Export Value
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As Compared to 2000
2.9 billion yen
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105%
Green tea
1.7 billion yen
146%
Japanese Yam 1.3 billion yen
205%
Salmon
8.9 billion yen
1,300%
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Securing human resources
who will sincerely use farmland and their participation
33
All farmers
Principal
farmers
Pricing measures for individual commodities
Stabilization measures for management by focusing
on the management
entity
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 Improvement of Food Self-Sufficiency
At the same time reviewing diet habits, the Government will promote production in response to demands by customers and
the food industry, improving food self-sufficiency rates.
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Calorie Basis
Aiming at 50% or more in the future
[Target for the time being]
FY2003 40% => FY2015 45%
Basic Policies 2005
Sampling party to promote Japanese-brand rice in Taiwan
Support for:
(Rice, wheat, soy
beans, etc.)
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Transformation to cross-commodity policies
(Materialized in autumn 2005)
Methods of Support:
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0.5 billion yen
Concentrated and prioritized
measures for principal farmers
(Introduction of cross-commodity policies)
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482%
Orange
Establishment of structures
with principal farmers
Increased consumers’ interest in food safety and wholesome diets
Identifying principal farmers
Fresh-from-the-farm outlet full of customers
Production Value Basis
Setting new targets as an indicator of the “aggressive”
agricultural policy where highly-added value may be evaluated
[Target for the time being]
FY2003 70% => FY2015 76%
In order to foster strong agriculture, forestry and fishery industries, the Government will advance structural reform based on
policies such as the “Basic Plan for Food, Agriculture and Rural Area”. Furthermore, efforts to expand the export of agricultural, forest and marine products will be accelerated.
(Transforming into Competitive Agriculture, Forestry and Fishery Industries)
• Process control will be appropriately carried out toward realization of the “Basic Plan for Food, Agriculture and Rural
Area”, including targets for food self sufficiency.
• Cross-commodity policies should be applied to entities with a certain size of management. Details on the policies will be
materialized by autumn 2005, and the bill will be submitted within FY2005. In addition, the Government will promote new
entries by individuals, stock companies and other entities, as well as promoting the consolidation of farmland use to principal farmers.
• Food related industries will be vitalized by responding to the demands on the food industry, reducing costs from production to consumption, creating a food industry clusters, and promoting technological development which will generate new
demands.
34
Knowledge and Technology/
Technology/University Reform
Sending a Message from Universities to the World
—Further Improving “Knowledge” and Globalization—
 Increase in the Number of Graduate Schools to Cope
with a More Advanced and Complicated Society
Number of universities which have graduate schools
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Transition in the Number of Professional Graduate Schools
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 Incorporation of National Universities (April 2004)
 Each University Incorporated, and Autonomous Management Ensured
By individuation and revitalization of universities, attractive education is being actively promoted
 Institutionalization of Participation by the External People in University Management
Carrying out university management by reflecting opinions from society
 Switch to a More Flexible Personnel System (Non-Public Servant Type)
Further vitalization of cooperation among industry, academia and government
 The Ex-Post Check System Based on the Implementation of Evaluation
Ensuring transparency to national people and increasing social contribution
 In Principle, Study Outcomes will Belong to the National University Corporation
Allowing intellectual properties to be managed on a strategic basis toward regional revitalization and
creation of new industries
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(Note) As of May 1 each year
 University-born Venture Corporations Appearing One
by One
They number 1,112 companies as of the end of 2004. The
“1,000 University-Born Venture Companies Plan” have been
achieved, out of which 12 companies went on the TSE’s
Mothers Market and so on.
Changes in the Number of University-Born Corporations
During the past several years four Nobel Prize winners were selected.
2000 Hideki SHIRAKAWA (Chemistry)
2001 Ryoji NOYORI
(Chemistry)
2002 Masatoshi KOSHIBA (Physics)
2002 Koichi TANAKA (Chemistry)
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*“Professional Graduate School” refers to new schools institutionalized in 2003.
Like professional schools in Europe and the United States, they specialize in nurturing human resources that will be engaged in occupations requiring high levels of
expertise.
 Increase in the Number of Patent Applications Filed by
Japanese Universities
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Changes in the Number of Patent Applications Filed
by Japanese Universities
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Knowledge and Technology
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 Japanese “Knowledge” Outcomes Promoted and Improved Mainly by Universities
��
(Prepared by the Cabinet Office based on the data by the Ministry of Education,
Culture, Sport, Science and Technology)
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(Prepared by the Cabinet Office based on the data by the Ministry of Education,
Culture, Sport, Science and Technology)
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 A Surge in the Number of Professional Graduate Schools
which Nurture Highly Skilled Professionals
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(Prepared by the Cabinet Office of Japan based on the Data by the Ministry of Economy, Trade and Industry)
 Accelerated Establishment of Approved TLOs
4 institutions (December 1998 when the Law Promoting Technology Transfer from Universities to Industry
was enacted)
39 institutions
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(Prepared by the Cabinet Office based on the Data by the Patent Agency)
Transition in the Number of Patent Applications and Income
by Royalties Handled by the Approved TLOs
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License income significantly increased in recent years, reaching about 29 billion yen on a single year basis of FY2004.
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*TLO is an abbreviation for the Technology Licensing Organization. This is a corporation
which obtains patents for study outcomes from universities, providing the patents to corporations for licensing.
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 Active Collaboration in Joint Studies between Universities and Companies
FY2004 10,728 cases (record high)
<= Increase by 16% on a YoY basis
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Royalty income figures for 2004 include proceeds from sales of equities.
(Prepared by the Cabinet Office based on the Data by the Ministry of Economy, Trade
and Industry)
Basic Policies 2005
• Concerning higher education, the Government will promote improvement in the quality of education and research in graduate schools.
• The Government will promote business-university networks in the regions.
35
36
Knowledge and Technology/
Technology/Science and Technology
Knowledge and Technology/Intellectual Property
Realization of an “Advanced Science and Technology-Oriented
Nation” at the Highest Global Standards
Building an Abundant Nation by Taking Advantage
of Intellectual Property
— Strongly Supporting the Ability to Create the Future and Upgrading the R&D Environment—
—Further Supporting Abundant Ideas of the Japanese People Have—
 Government Measures to Realize an “Advanced Science and Technology-Oriented Nation”
at the Highest Global Standards
 Improvement of the Environment, Acceleration of the Nation Building on a Foundation
of Intellectual Property
 Budget for Science and Technology (S&T) will be Prioritized as the Following Four Priority Sectors:
Life sciences, information and communications technology, environmental sciences, and nanotechnology and materials
 Drastically Strengthening R&D Taxation System
Establishing special tax credit for total research expenses (FY2003)
 Revitalizing the Economy through Innovation
Promoting R&D projects for economic stimulus (the Mirai Souzou Project) (FY2003~)
 Promoting the Knowledge Cluster Initiative and the Industrial Cluster Project
• Enactment of the Basic Law on Intellectual Property (December 2002)
• Establishment of the “Strategic Program for the Creation, Protection and Exploitation of Intellectual Property” (July 2003)
• Establishment of the “Intellectual Property Strategic Program 2005”
• 21 bills in relation to intellectual property laws were enacted, including the “Law for the Establishment of the Intellectual Property High Court”, by July 2005
 Accomplishments Made So Far
The number of patents registration in the
four priority areas
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Increase in the Budget of Competitive Research Grant
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(Data by the Cabinet Office)
[Competitive Research Grant]
“Competitive Research Grant” is research and development funds offered by entities that will: 1) invite research proposals which will be bid on for R&D funding on
a broad basis, 2) conduct peer review, by experts and professionals, which select
themes from scientific and technical standpoints, and 3) allocate funds to the selected researchers.
 Strengthening Measures against Counterfeits and
Pirated Copies
—The Government has been strengthening measures
against the increasingly serious issue of counterfeits
and pirated copies dealt with in overseas countries—
• Strengthening cooperation within the government
Establishment of the “Government’s Comprehensive
Office for Consultation Services on Counterfeits and
Pirated Copies” within the Government (August 2004)
• Formulation of “Package for Acceleration of Measures
against counterfeits and Pirated Copies “(December
2004)
• Calling for a Counterfeits/Pirated Copies Nonproliferation Treaty (June 2005, Strategic Program 2005)
 Promoting Content Business
— Sending a message of “Attractive Japan” to the
world —
The Government of Japan will promote content business
including movies and animations.
• Formulation of the “Content Business Development
Policy” (April 2004)
• The Government of Japan will promote the creation of
attractive Japanese brands in the fields of food, local
products, and fashion.
Formulation of the “Promotion of Japan Brand Strategy
” (February 2005)
Strengthening Regulations of Crime at the Border
—Increase in the Cases of Import Suspension—
Increased Surplus in the Balance
of Royalties and License Fee Payments
 Increase in Budgets of Competitive Research Grant
296.8 billion yen (FY2000) =>467.2 billion yen (FY2005)
 Exercise of “Intellectual” Potential
Of the scientific papers cited in major scientific journals
around world (statistics from 1994 through 2004), Japanese
universities rank in the top class in the fields of materials
science, physics, chemistry, biology and biochemistry out
of 22 fields.
 Patent Registration Status in the Four Priority Areas
24,193 cases (2001)=>27,478 cases (2004)
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Carbon Nanotube
The Carbon Nanotube is an epoch-making and
typical nanotechnology material with many potential
usages expected.
Basic Policies 2005
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(Prepared by the Cabinet Office based on the data of Japan Patent Office)
Success in launch of H-II
A launch vehicle No. 7 in
February 2005
(Realization of an “Advanced Science and Technology-Oriented Nation”)
The Government will formulate the Third Science and Technology Basic Plan within FY2005 in order to promote science and technology programs supported by society and citizens, while returning benefits. The Council for the Science and Technology Policy will, acting as a control
tower, promote reforms and prioritization of investments. Also, the “Mirai Souzou Project” will continue to be promoted for economic revitalization.
(Science and technology policies to strengthen selection and concentration, as well as examination of outcome goals and ex post verification)
The Third Science and Technology Basic Plan formulated within FY2005 should include, in principle, outcome goals as well as input goals.
Regarding human resources and allocation of priority funding areas under the First and the Second Science and Technology Basic Plans,
ex post verification should be strengthened to reflect the outcomes thereof in the next plan. In compiling the Basic Plan, the following
should be emphasized.
• The progress and accomplishments of the outcome goals should be periodically followed up.
• As for fostering young researchers, fund allocation should be clearly shifted from middle age to young researchers by expansion of publicly inviting funds designed for young researchers with a view towards emphasizing individual subsidies.
Therefore, evaluation methods on competitive research funding should be reformed to those putting more emphasis on research plans than
on past research performance. Also, the database on researchers should be prepared at an early stage.
• The Council for Science and Technology Policy will play a further leadership role in an attempt to promote prioritization and efficiency of the
programs. The four priority areas should be further refined to establish methods of ensuring higher investment effects.
37
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(Prepared by the Cabinet Office based on the Data by the Ministry of Finance)
Basic Policies 2005
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(Prepared by the Cabinet Office based on the “Statistics on the International Balance of Payments” by the Bank of Japan)
Based on the “Intellectual Property Strategic Program 2005” (June 10 2005), the Government will promote measures for
the creation, protection and use of Intellectual Property; specifically, including the speedy and appropriate patent application at the world highest level, calling for a Counterfeits/Pirated Copies Nonproliferation Treaty and aiming for early adoption thereof. At the same time, the Government will enhance efforts toward building a nation of cultural creativity by taking
advantage of contents, such as promotion of Japan’s Brand Strategies.
38
Knowledge and Technology/IT
Rapid Progress in IT Areas
Based on the above Results, Entering in the Final Stretch toward the World’s Most Advanced IT Nation in 2005
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(Prepared by IT Policy Office, Cabinet Secretariat)
 Electronic filing is available for almost all procedures that the state handles, including online applications and tax payment, as a result of improvement in the legislative infrastructure such as the three laws for providing online administrative
procedures.
 The “e-Document Law” provides provisions on storage of electronic documents owned by private entities since April
2005.
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 Internet connections have been completed for almost all public schools throughout the nation.
• Public schools with access to the Internet: 57.4% (end of March 2000)=>99.8% (end of March 2004)
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[Outcomes Realized by the “e-Japan Strategy”, “e-Japan Strategy II”,
“e-Japan Strategy II Acceleration Package”
 Improvement of the Environment for Internet Use
• High-Speed Internet Access (DSL) access:
46.3 million households (March 2005)
• Ultra-High Speed Internet Access (FTTH) access 35.9 million households (March 2005)
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Four years have already passed since the “e-Japan Strategy”, aiming at the world’s most advanced IT nation, started in 2001.
This period saw a steady growth in IT use as demonstrated by an explosion in the use of broadband connections.
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International Comparison of Broadband Fees (July 2004)
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 Promotion of IT Use and Improvement of its Infrastructure Based on the “e-Japan Strategy”
Transition in the Number of Users and Rates of High-Speed
and Ultra-High Speed Internet Services
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—Building the World’s Most Advanced IT Nation—
 Achievement of World’s Lowest Broadband
Price Levels
 Dissemination of High-Speed and Ultra-High
Speed Internet Services at Lower Rates
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Progress of IT Offers a More Convenient and Comfortable Life
(Prepared by Ministry of Internal Affairs and Communications based on the “ITU
The Portable Internet Statistical Annex” (September 2004))
*Number of High-Speed and Ultra-High Speed service subscribers = total subscribers of DSL, cable internet and FTTH
*Rate = communication fee + ISP fee, plus other costs
March 2001: A Company’s ADSL service (1.5 M)
March 2005: B Company’s ADSL service (12M)
*Broadband = DSL, cable internet
*Fee per 100kbps
 Terrestrial Digital Broadcasting Started (December 2003)
The digital services are available about 20 million or more households.
Utilization of RFID for Safety of School Children
Antenna
Electronic
camera
 More Efforts will be Made in line with the “IT Policy Package - 2005”
Internet
School bags with
attached RFID tags
 Medical Care (Safe and secured advanced medical
treatment)
Further promotion of IT utilization for medical services on
the medical treatment fee system
 Education and Human Resources (Highly advanced
education and diversified learning styles)
Providing assistance to the “Classroom Networking Movement”, such as LAN within schools
 Lifestyle (Ensuring a safe and convenient life)
Organizing the “IT Anshin (worry-free) Meeting” across the
ministries to quickly respond to social issues arising from
the Internet, such as phishing
39
 e-Commerce (Creation and revitalization of the market
by adding value)
Promoting revitalization of SMEs through the utilization of IT
 Information Security and Protection of Personal Information
(Safe and Secured Environment for the Use of IT)
Strengthening government functions through establishment
of the “Information Security Policy Council” and the “National Information Security Center”
 International Policy (Asia to be an information hub in the
world)
Prioritization of subject fields and partner countries in international IT policy
 Research and Development (Society that creates next
generation knowledge)
Promoting R&D mobile, optics and devices, to contribute to
the building of a global IT society
Image data
RFID tag data
Dedicated line
connection
With this initiative, the Government will make efforts to further enhance our efforts mainly in those areas that are closely related
to people, such as public services, medical services, and education, and to realize a society in which people can have a real
sense of the changes and benefits to be attained through IT.
 Public Service (User friendly public service)
Efforts to promote the use of online procedures that handle
a large number of applications annually, such as registration
and national tax payment
Internet Data Center
Antenna
e-mail
Downloaded
image
Checking the school arrival and departure
School bags with
attached RFID tags
Basic Policies 2005
The left figure shows a system that records the school arrival and departure times of children, and notifies parents
of this information in order to ensure their children’s safety.
This system utilizes an ubiquitous “RFID” technology for
which demonstration tests have been already implemented.
In the questionnaire survey given to the participants after
the test, most of the respondents indicated that they felt
more reassured throughout the program.
The Government aims at realizing a “ubiquitous network
society” where easy connections to networks are ensured
“anytime, anywhere, by anything and anyone.”
*”Ubiquitous”, a word becoming rapidly popular, means being present everywhere, diffused throughout every part of your life.
Parents’ mobile phone
(Prepared by Cabinet Office based on the “2005 WHITE PAPER Information
and Communications in Japan”)
The following “e-Japan Strategy” programs, which sets goals “to make Japan the World’s most advanced IT nation”,
should be promoted by the Cabinet on an integrated basis.
• To steadily promote the “e-Japan Priority Policy Program – 2004” (June 15 2004) and “IT Policy Package 2005” (February
24 2005) by focusing on IT use in the fields of medical care, education, etc.
• From the standpoint of users and consumers, the Government should evaluate the e-Japan Strategy programs implemented so far, as well as formulate new IT strategies during FY2005.
• To improve efficiency of the administration and services to residents by promoting e-Government and e-Community.
• To promote information security measures by public and private entities on an integrated and cross-sectional basis.
• As for the field of networking, to promote the “u-Japan Policy” to realize a ubiquitous network society by 2010.
• To promote an IT approach so that people feel safe and reassured.
• To continue to promote efforts in correcting the digital divide.
40
Lifestyle and Employment/
Employment/Social Security Reform
 Outline of Long-term Care Insurance System Reform
Toward Building a Sustainable Social Security System
The Government has engaged in reforming the Long-term Care Insurance System in order to reform Japan’s “unprecedented
super-aging society” into a “bright and active society”.
— The Social Security Reform Program has been Underway toward Building
a Sustainable Social Security System —
 Basic Viewpoints
 Toward a Sustainable Social Security System
— To create a society that provides young people with a promising outlook for the future and older people with a sense of security —
 Starting with the medical system reform in FY2002, programs have been implemented in such areas as pension and Longterm Care Insurance. The Government will further make efforts in medical system reform in FY2006.
 The Government will continue advancing the review not only of each social security system, but also of pension, medical
care and Long-term Care Insurance and other issues in an integrated manner.
Establishment of a bright
and active Super-Aging
Society
Sustainability of the System
Comprehensive Social
Securities
 Outline of the Pension System Reform
 Clarification of Benefits and Burdens for the Next 100 Years
• Aiming to maintain balance between the benefits and burden for a period of about 100 years
• Establishing fixed ceiling on future insurance premium levels which should be stipulated under
law, including the process thereof
• The lowest benefit limit should be stipulated under law
Review of the pension system is implemented every
five years in order to maintain equilibrium between
the benefits and burden in the future
The Fixed Ceiling on Insurance Premiums after FY2017
• Employees’ Pension 18.3% (Increase by 0.354% annually)
• National Pension
16,900 yen (Increase by 280 yen annually)
(Both charges are as of FY2004)
Premium Rates of Employees’ Pension
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25.9%
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Note: The premium rates are all calculated on a total income basis
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Note: The figures are nominal after FY2003.
Introduction of mechanisms for automatic adjustment of benefit levels according to a decrease in
the number of premium payers (insured persons)
 Benefit Levels Secured to Support the Primary Portion of Living Expenses after Retirement
With only mechanisms for automatic adjustment, the
benefits could decrease without limit
For standard households receiving benefits, the benefits levels should be maintained at 50% or
higher of average income of the generations still working
 The Ratio of State Contributions to Basic Pensions should be Increased from One-Third to One-Half
1/3 State contribution for basic pensions
The efforts in increasing the ratio have been implemented since FY2004
It is expected to reach the target by FY2009
<The process should be stipulated by law>
 Social Insurance Agency Reform
Concerning Social Insurance Agency reform, the following programs will be implemented.
• As for Government-managed health insurance, its operation will be separated from the central government with the aim of establishing a public corporation run on a national basis.
• As for public pensions, the measures to be taken include operation by a new governmental system with a drastically reformed
organization and function.
41
*The scope of insured persons and recipients will be considered together with a comprehensive
review of the social security system and necessary steps will be taken hopefully in FY2009.
29,500yen
 Mechanisms to Keep a Balance between the Premium Payers and Benefits
Pension benefits are base on the slide system according to
take-home wages per capita or increase in prices
Establishment of a new service system
• In order to promote the care for dementia sufferers and community care, a
system will be established to provide various forms of services within surrounding living environments (establishment of community-based services
and community comprehensive support center, etc.).
Review of public burdens and system administration
• The Government will set premiums with due considerations to low-income
earners, review Long-term Care requirement certification and strengthen their
function as insurers of municipalities.
Premium Rates of the National Pension
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Review of facility benefits
• With due considerations to low-income earners, in terms of fairness, a review
will be made on the burden (housing and food costs) on Long-term Care Insurance facility users.
Lifestyle and Employment
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Shift toward a prevention-oriented system
• Aiming at a bright and active super-aging society for the elderly, establish a
comprehensive system for Long-term Care prevention (creation of new prevention benefits and community support projects).
Improvement of service quality
• For improvement of service quality, thorough information disclosure by businesses as well as reviews on regulations on businesses and care management will be conducted.
 Establishing Fixed Ceiling on Future Insurance Premium by Suppressing the Increase as Much as Possible
Before the Reform
• Employees’ Pension 13.58%
• National Pension
13,300 yen
 Outline of the Reform
Basic Policies 2005
(An integrated review of the social securities)
Building on the “Basic Policies 2004,” the Government will continue advancing the integrated review of the social security.
(Measures to suppress an excessive increase in expenditure to secure sustainability)
In a super-aging society, the sustainability of social security system is essential for the life of the nation. The perspectives
of “reassurance of the nation” and “sustainability” are of primary importance when thinking of social security benefits in the
future. To that end, it is necessary to pay attention to Japan’s economic scale and its trends, while concretely and strictly
suppressing an excessive or unnecessary increase in expenditure. From this perspective, the Government will work on the
following points, among others.
(1) Concerning the increase of social security benefits, taking note especially of rapidly increasing medical services, the
Government will set a policy objective aiming for a substantive achievement in rationalizing medical expenses. Necessary measures will be taken to achieve this objective after reviewing achievements periodically from all perspectives.
Concerning the abovementioned objective, a conclusion will be reached by the end of 2005, along with concrete measures to achieve it by considering issues such as the burden level that the nation can tolerate, the aging population,
local efforts and characteristics of medical services. On that basis, the Government will boldly implement the FY2006
medical system reform.
(2) In order to achieve the abovementioned objective, comprehensive and immediate efforts will be made while assessing
the effects of measures taken so far.
(3) In the Medical System Reform in FY2006, a broader review will be made on details of insurance benefits from the perspectives of adequacy and appropriateness. In addition, the remuneration for medical services and the NHI price revision will need a further review based on recent trends in wages and prices or on the balance with economy and finance.
42
Employment/Measures against the Declining Birth Rate and the Aging Society and Support for Employment
Building a Society where People can Feel the Joy
of Raising Children and Working
— Elaborate Measures to Reverse the Declining Birth Rate and Aging Society and Support Employment —
 Formulation of the “Child-Care Support Plan”
(Decision by the Declining Fertility Society Policy Council in December 2004)
Promoting environments for the growth of children and childcare support by the entire society
 Formulation of the “Youth Independence and Challenge Plan”,
and the “5.3 Million Job Creation Program”
— Elaborate efforts have been employed for employment issues —
 Youth Independence and Challenge Plan
The Government has been promoting the “Youth Independence and Challenge Plan” in order to enhance the motivation for
working among young people and to promote professional independence for all motivated young people. To this end, the Plan
is aimed at decreasing the upward trend in the number of unemployed young people by FY2006.
 5.3 Million Job Creation Program
With a central focus on service industry, the “5.3 Million Job Creation Program” has been formulated, including such measures
as regulatory reform, use of private vitality, and improvement in the quality of service.
 Outline of the Child-Care Support Plan
[Examples of the Measures and Targets Implemented during Five Years by FY2009]
• Active utilization of probation (trial) employment of young persons
• Implementation of programs to provide experiences and activities at elementary,
junior high and high schools throughout the nation
Support for balancing
work with family life
and review on work styles
• Dissemination of formulation of action plans by companies, Implementation support
and good examples
• Promotion of voluntary efforts by workers and employers for improvement in setting
working hours while taking consideration of individual lives, as well as of the Work-Life
Balance Campaign
Understanding
the great value of human
life and roles of households
• Providing opportunities for junior and senior high school students so that they may
interact with preschool children at day care centers, children’s houses and healthcare
centers
• Promoting education to raise understanding for child-raising at junior and senior high
schools throughout the nation
New Mutual Support
and Cooperation
for Child-raising
• Building platforms for the support of local child-raising (Achievement of the targets of
municipal action plans)
• Further promotion of the “Zero Waiting for Day Care Programs” campaign (Intensified
improvement of the program at 95 municipalities with many children on the waiting list
for nursery schools )
• Organizing networks to prevent child abuse
• Promotion of barrier-free facilities for child-raising (Elimination of difference in level
on the floor of buildings, public transportation facilities and public facilities, as well as
preparation of a barrier-free map)
 The Government will Make Efforts in Further Promoting the "Zero Waiting
for Day Care Programs" Campaign
 Measures to Support Employment for Young People
 Development of One-Stop Service Centers for Young People (Job Café)
The Program promotes establishment of Job Café one-stop service center to offer employment related services to young people by using private entities in the
community.
Specifically, in addition to job fairs and elaborate counseling services for young
people, it aims at further enhancing job support functions, including job-hunting
activities voluntarily contemplated by young people.
[Performance (FY2004)]
Total users: about 1.09 million people
Number of job finders: about 53,000 people
Counseling with a career advisor.
 Expansion of Employment Opportunities for Elderly People
 Strengthened Relations between the Employment and Pension Systems
The revision of the Law Concerning Stabilization of Employment of Older Persons obliges employers to take measures for
ensuring employment of elderly people, including the extension of the retirement age to 65, which is also the starting age for
receiving pensions, on an incremental basis by FY2013, and introduction of a continuous employment system, etc.
Furthermore, with a labor-management agreement it is also possible to specify the terms and conditions of workers covered
under the continuous employment system (Enacted in April, 2006).
 Guidance of Elimination and Alleviation on the Restrictions over the Maximum Age for Recruitment
A target was established where the share of jobs available to all ages in the Hello Work job-placement office should be increased to 30% in FY2005.
As the target was accomplished, partly thanks to the effects of the Law Concerning Stabilization of Employment of Older
Persons, a new target of 50% was set up by the FY2007.
[Four Priority Issues]
Independence of
a young generation
and healthy growth
of children
The program mainly targets municipalities with 50 or more children on the waiting list for nursery schools, aiming at increasing
the number of children accepted by nurseries during three years by FY2007 so that it may reach 2.15 million in FY2009 (2.03
million children in FY2004).
Basic Policies 2005
• The Government will improve the cooperation system between ministers and experts, following up the “General Principles Concerning Measures for the Society with a Declining Birthrate” and the “Child-care Support Plan” for steady implementation. At the same time, the Government advances reviewing the issues raised in the plan.
• While inspiring an incentive to work within young workers, the Government will promote their vocational independence. To
reverse the trend of an increasing number of the NEET and the “freeters” (job-hoppers), the Government will strengthen
and promote the “Independence and Challenge Plan for Young Workers.” For example, the Government will enhance and
strengthen the plan to convert 200,000 ‘freeters’ to full-time employees and take measures concerning the NEET such as
improving the local consulting systems. The Government also will further promote measures such as career education to
cultivate views toward work, etc. among children and students and promote business-university networks in the regions.
43
44
Employment/Disaster Prevention
 Promotion of Emergency Evacuation Support Measures for Elderly People in Case of Disaster
Be Prepared and Have No Regrets
 Formulation of guidelines for the issuance or communication of an evacuation order, for the provision of evacuation
support for elderly people in case of rainstorm or other disasters (March 2005)
—Promoting Disaster Prevention Measures as a Foundation of Sustainable Economic Development—
 Efforts in Disaster Prevention by the Government as a Whole
 For the Mid Niigata prefecture Earthquake and Typhoon No. 23 in 2004, the Headquarters for Major Disaster Management was established for implementation of emergency measures by the Government as a whole.
 Promotion of the Erosion and Flood Controls in Case of Typhoon, Rainstorm and Other Disasters
• Implementing emergency inspection of dikes and banks (Of all 975 points which need counter-flood works 98% were completed) (as of June 2005)
• Formulating guidelines for the inspection and measures for levees and dikes of small and medium rivers (November 2004)
Implementing measures to strengthen riverbanks
• Revising the Flood Fighting Act (Promulgated in May 2005)
Obligation to prepare and publish a “flood hazard map” for the main small and medium size rivers (about 1,800 municipalities
by FY2009)
Establishment of water levels (special warning water level) indicating the need of evacuation for the main small and medium
size rivers (about 2,000 rivers by FY2009)
Foundation of a system in which NPOs engage in activities through cooperation with flood fighting corps and fire organization
• Preparing and publishing a “flood hazard map” for landslide disasters (about 6,000 points by FY2009)
 Active Promotion of the International Cooperation for Disaster Reduction
Prime minister inspecting disaster location
Site of rescue mission after the Niigata prefecture Chuuetsu
earthquake
 The Danger of an Epicentral Earthquake of M7 Class in the Tokyo Metropolitan Areas is imminent
 Estimated Damages Caused by Earthquakes Directly Below the Tokyo Metropolitan Area
<North Tokyo-Bay Earthquake: M7.3, 18:00 in Winter, Wind Velocity of 15m/s>
Points of Measures to Mitigate the Damage
1) To secure continuity of core functions of the capital
2) To respond to a tremendous amount of damage (damaged
houses, evacuators, commuters unable to return home)
3) To respond to spreading fire
Main Damage Items Projected
• Houses totally destroyed and burned down:
about 850,000 houses
• Death toll: about 11,000 people
• Economic Loss: about 112 trillion yen
• The Japan Disaster Relief Team was dispatched in response to the Indian Ocean Earthquake and Tsunami. (December 2004)
• The World Conference on Disaster Reduction (WCDR) adopted the “Hyogo Framework for Action 2005-2015” as a guiding
framework on disaster reduction in the international community and the “Hyogo Declaration”. (January 2005)
• Prime Minister Koizumi called for a special session on the Indian Ocean Disaster for the course of the WCDR which was successful in delivering the “Common Statement”. (January 2005)
• Japan actively pursues international cooperation for disaster reduction, including thorough provision of knowledge and expertise on tsunami disaster countermeasures, in particular for the establishment of the Indian Ocean Tsunami Warning and Mitigation System.
 Formulation of Earthquake Disaster Prevention Strategy with Targets to Mitigate Damage for the
Tokai and the Tonankai-Nankai Earthquakes (March 2005)
Earthquake Disaster Prevention Strategy for the Tokai Earthquake
Death toll About 9,200 people => About 4,500 people
Economic loss About 37 trillion yen =>
About 19 trillion yen
To reduce the damage by half over the next 10 years
Earthquake Disaster Prevention Strategy for the
Tonankai-Nankai Earthquake
Death toll About 17,800 people => About 9,100 people
Economic loss About 57trillion yen =>
About 31 trillion yen
To reduce the damage by half over the next 10 years
[Main Countermeasure: promotion of
the earthquake-proofing of houses]
[Main Countermeasure: raising awareness
of tsunami evacuation]
Formulation of Earthquake Disaster Prevention Strategy for Earthquakes Directly Below
the Tokyo Metropolitan Area within FY2005
 Efforts in Constructing Earthquake-Proofing of Houses and Buildings
• Damage by the Great Hanshin Earthquake
Houses totally or half destroyed: about 250,000
Of all of the victims, 80% or more were people crushed
by destroyed houses.
• Houses without earthquake-proof designs numbered about 11.5
million houses (accounting for about 25%).
• Earthquake protection questioned for 54% elementary and lower
secondary schools, 44% hospitals, and 33% social welfare
facilities. (According to a survey by the Cabinet Office in 2003)
45
Setting a Goal toward Constructing
Earthquake-Proof Houses
The ratio of houses with
earthquake-proof design over
the next ten years:
About 75% (2003) => 90%
World Conference on Disaster Reduction
Activities of the Japan Disaster Relief Team (Medical Team) (Source: JICA)
Initiate a Nation-Wide Movement for disaster reduction actions to protect our own lives and properties aimed at
building the resilience of our nation and communities to disasters
Basic Policies 2005
(Ensuring Safety and Reassurance of the Nation )
• While ensuring safety and reassurance of the nation is one of the fundamental responsibilities of the Government, it also
serves as the basis for economic revitalization.
• The Government will promote disaster prevention investments including measures against large-scale earthquakes such
as earthquake-proofing of public facilities and housings, as well as soil conservation and flood control measures.
• Including measures against large-scale earthquakes such as earthquakes directly below the Tokyo metropolitan area and
soil conservation and flood control measures, the Government will set targets for disaster prevention measures of fire organization and other entities to mitigate damage, and promote strategic and priority measures.
• The Government will strategically promote chiefly improvement of prompt communication systems for disaster information, construction of public facilities and houses which may serve as a local platform for disaster prevention, advancement
of disaster prevention, improvement in prevention abilities of regions and companies with ongoing projects, and promotion
of international disaster prevention cooperation.
46
 Steady Promotion of Measures with Cooperation by the People, Employers and Municipalities
Employment/Restoration of Civil Order
Aiming to Revive “Japan as the Safest Country in the World”
— Realizing a Society Resistant to Crime —
Decrease in the number of acknowledged criminal cases
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 Efforts to Realize a Crime-Resistant Society
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 The “Action Plan for the Realization of a Society Resistant to Crime” (Decision by Ministerial Meeting Concerning Measures Against Crime, December 2003)
The “Action Plan for the Realization of a Society Resistant to Crime” was formulated in order to eliminate anxiety over crime,
limit the growth of crime, and to create a turning point in the critical safety situation.
Aggravated safety levels
Increased anxiety among the people
September 2003
Establishment of Ministerial Meeting
Concerning Measures Against Crime
December 2003
Chaired by the Prime Minister
Members: All Ministers
Formulation of the “Action Plan
for the Realization
of a Society Resistant to Crime”
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1 Deterrence of immediate crime that threatens
the public peace
Ex) No empty “Koban” (police boxes)
2. Efforts to deter juvenile crime taken by the society
as a whole
Ex) Enhance juveniles’ respect for social norms
through education, such as seminars to prevent delinquency
3. Response to cross-border threats
Ex) Establish a cooperation system at international air ports and
harbors
4. Protection of the economy and society from criminal
organizations
Ex) Interdict drug smuggling at the border
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(Prepared by the Cabinet Office based on data by the National Police Agency)
 Measures for Prevention of Terrorism
 Action Plan for Prevention of Terrorism (Decision by the Headquarters for Fighting against Transnational Organized Crime
and Other Relative Issues and International Terrorism)
The “Action Plan for Prevention of Terrorism” was adopted so to protect lives of Japanese nationals against threats through
united action taken by the Government.
[Reinforcing Immigration Examinations]
• Efforts have been made
to improve effectiveness
of border measures at the
border by the introduction
of new methods such as
the Advanced Passenger
Information System and by
development and trial of the
IC Passport Certifi cation
System.
[Strengthening Surveillance in the Sea Areas]
• Surveillance in sea areas has been strengthened via
monitoring by patrol vessels, airplanes and others.
The picture shows an experiment to
test compatibility of the e-passport in
Tsukuba in March 2005
(Source: Immigration Bureau of the
Ministry of Justice)
Patrol vessels on duty around the sea area of the Oi Atomic Power Plant (Fukui Prefecture) (Source: Japan Coast Guard)
 Future Approaches
 The Government continues to make efforts in enhancing and reinforcing corrective and social treatment (probationary supervision). The Ministry of Justice provides the National Police Agency and other organizations with information on criminals
after release from prison in an effort to prevent recommitment for the same crimes.
 The “Basic Law on Crime Victims” was enacted in 2004. Under this law, the Government will formulate the “Basic Policy Programme on Crime Victims” by the end of 2005. This aims at promoting measures for crime victims on a comprehensive and
planned manner.
[Nationwide Plan for Building Safe Reassuring Communities]
1. Development of safe and reassuring communities nationwide founded on
resident participation
• National campaign to build safe and secure cities
• Support for voluntary, anti-crime activities
• Development of environments for the construction of a collaboration system between public and private sectors
Basic Policies 2005
2. Ensuring the safety of residential areas and children
• Building crime-resistant residential streets
• Efforts to secure the safety of children taken by the whole community
3. Revitalization of robust, attractive commercial
and entertainment districts
• Strengthened restrictions on illegal adult entertainment clubs,
crime syndicates, or illegal employment
• Eradication of the criminal infrastructure on streets
• Purification of environments by preventing public nuisance
and improving the cityscape
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5. Development of infrastructure for the restoration
of public security
Ex) Increase manpower, including local policemen,
prosecutors, custom officers, maritime safety officials,
and drug control officers.
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[Five Priority Issues in Response to the Crime Situation]
 Nationwide Plan for Building Safe Reassuring Communities
(Decision by Ministerial Meeting Concerning Measure Against Crime, June 2005)
The Meeting formulated the “Nationwide Plan for Building Safe Reassuring Communities” with a view to support voluntary local
activities and to promote efforts in building safe and secure cities through cooperation between public and private sectors.
In conjunction with the 9th Urban Renaissance Project the Meeting will promote the plan.
Residents take part in town-building efforts
(source: Shinjuku Ward Office)
*Rebuilding of Safe and Reassuring Urban Areas through Coordination and Cooperation between Crime Prevention Measures and Community Planning
(Decision by Urban Renaissance Headquarters, June 2005)
47
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Decrease in the number of “Empty Police Boxes”
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(Ensuring Safety and Reassurance of the Nation)
• As for the security issue, the “Action Plan for Achieving Crime-Resistant Society” (December 18 2005) and the “Action
Plan to Prevent Terrorism” (December 10 2004) should be steadily implemented in order to revive “Japan as the Safest
Country in the World”.
Efforts should be continued for the enhancement of security related manpower and facilities, and the improvement of
legal framework, as well as the thorough implementation of efficient operations, PFI, the expansion of outsourcing to
private entities, and the promotion of anti-crime activities to protect children through mutual cooperation between public
and private sectors. In addition, the package will include measures to prevent recurrence of crimes, further promotion
of building safe and secure cities with cooperation of public and private sector in crime prevention, and use of biometric
technology at the time of immigration checks.
• The “Basic Policy Program on Crime Victims” should be formulated by the end of 2005 to promote measures for crime
victims.
48
Lifestyle and Employment/Food Safety
 The following efforts have been advanced.
In Pursuit of Further Enhanced Food Safety
 Implementation of Risk Assessment (Food Impact Assessment on Human Health)
On request basis, the Food Safety Commission assesses the probability and degree of adverse impact of certain food human
health.
(Ex)
• BSE related
Implementation of assessment on the review of the BSE control measures in Japan
• Genetically modified foods (seed plants) related
The guideline on Genetically modified foods safety assessment should be formulated to evaluate 11 items
( until the end of July 2005)
• Food additives related
31 food additives should be evaluated (by the end of July 2005)
 Risk Communication
The Food Safety Commission, the Ministry of Health, Labor and Welfare, and the Ministry of Agriculture, Forestry and Fisheries
jointly carried out risk communication activities for 151 times in total (from July 2003 to the end of July 2005).
 Joint Meeting on the Food Label System
Joint efforts have been made to review the entire food label standard (ie., label items and methods) by the Ministry of Health,
Labor and Welfare, and the Ministry of Agriculture, Forestry and Fisheries.
 Establishment of the Traceability System
The Government has been promoting introduction of the system to demonstrate when, where and how food products were
produced and distributed.
— Efforts Have been Made to Ensure Food Safety and Maintain Consumer Confidence —
 Ensuring Food Safety through Roll-sharing and Cooperation among Central Competent Authorities
The food safety administration has been improved, including enactment of the Food Safety Basic Law and establishment of the
Food Safety Commission within the Cabinet Office (July 2003). This organization is independent from risk management organizations, and is responsible for risk assessments on food in a scientific, independent and fair manner.
Food Safety Commission
Risk Assessment
(Food Impact Assessment
on Human Health)
Food Safety Information Call
Illustration of the Traceability System
Production
Distribution
Processing
Consumer
“I want to
get more
info on
details”
Ministry of Agriculture,
Forestry and Fisheries
Risk management in relation to
agriculture, livestock
and marine products
• Monitoring and guidance for food-related
business operators
• Monitoring and guidance for imported
food at quarantine stations
Guidance on proper use of agricultural
chemicals, ensuring food safety from
farm to consumer, and enhancing epidemic prevention of domestic animals
and fowls
• Name of producer
• Breed
• Pesticide, fertilizer
• Harvest date, etc.
• Receipt date
of raw materials
• Processing date
• Shipment date, etc.
• Receipt date
• Display date
• Storage conditions
Ministry of Health, Labor and Welfare
Risk management in relation
to food sanitation
“This food
seems
safe”
• Name of producer
• Breed
• Pesticide
• Fertilizer
• Harvest date
• Processing date
• Receipt date
• Display date, etc.
Barcodes, identification numbers, etc.
Risk Communication
Exchange of information
and opinions among stakeholders
Consumers, Food Business
Operators, etc.
 Food Safety Information Call
The Food Safety Information Call opened within the Food Safety Commission to provide accurate food safety information to
the public and to handle their questions and opinions.
Call Number: 03-5251-9220/9221
49
 Promoting Food Education
• The Food Education Basic Law came into effect (July 2005), aiming at developing the general public’s food knowledge and
ability with regard to food choice through various experiences leading to healthy lifestyle practices by promoting food education comprehensively and systematically as a national campaign.
• The “Food Balance Guide” was formulated which clearly shows “what” and “how much” to eat.
Basic Policies 2005
• Food safety and consumer confidence based on science should be secured through measures against BSE, review on
the food label standards, enhancement of safety measures on imported food, etc.
• Based on “Food Education Basic Law” the Government will draw up a basic promotion program for Food Education, and
will promote food education as a national campaign through the cooperation of related administrative agencies and other
institutions.
50
 Leading the World in Environmental Actions
Lifestyle and Employment/Environment
Toward Realizing an Eco-Friendly Society
 The Government Introduced the First Fuel Cell
Vehicles in the World
(December 2002)
Eight cars were introduced as of July 2005
 The World’s First Household Fuel Cell Cogeneration Systems for Commercial Use was Installed for
Residential Use at the Prime Minister’s New Official
Residence
—Efforts are Underway to Promote Low-Emission Vehicles, Solar Cells, and Recycling—
 Further Promotion of Measures against Global Warming
 Entry into force of the Kyoto Protocol (February 2005)
Japan is required to achieve its international commitment to
reducing greenhouse gas emissions by 6% compared to 1990
levels within five-year period from 2008 through 2012.
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The world’s first household fuel cell cogeneration systems for commercial use installed at the Prime Minister’s new official residence
 Basic Plan for Establishing a Sound Material-Cycle Society (Cabinet Decision, March 2003)
The “3R” (reduce, reuse and recycle) approach should be promoted.
 3R Initiative
The “3R Initiative” was proposed by Prime Minister
Junichiro Koizumi at the Sea Island Summit (June
2004). The aim of this initiative is the establishment of
a Sound Material-Cycle society through global practice of the reduce, reuse and recycle initiative
• A Ministerial Meeting was held in Tokyo (April 2005).
Participants included ministers for the environment
from the relevant countries
• The “3R initiative” was launched
 “Biomass Nippon” Strategy
(Cabinet Decision, December 2002)
The Action Plan, consisting of concrete 78 items, will
be formulated by the year 2010
• Help creating a mechanism to collect food wastes
• Developing facilities which may turn livestock waste
into fertilizer or electricity
• Biomass-derived plastic materials are used for trial
at restaurants in central government and agency
buildings (November 2003 ~ end of March 2005)
• Biomass-derived plastic materials were actively
introduced to the EXPO 2005 Aichi Japan. Furthermore, livestock waste such as raw materials was,
after separately collected, used for power generation by methane fermentation
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 The World’s Most Strict Regulations on Diesel Cars
(Introduced in October 2005)
 Wind power generation increased by 20 times or
more over the past six years
38,000 kW (FY1998)
=>927,000 kW (FY2004)
 Decrease in the Amount of Industrial Waste Finally
Disposed
Minus 5% on yoy basis for FY2002
 Law for the Recycling of End-of-Life Vehicles Started
(January 2005)
 Efforts to Build a Sound Material-Cycle Society
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(Prepared by the Cabinet Government Office of Japan based on the data of
the Ministry of Land, Infrastructure and Transport)
 Increase in the Number of the Four Home Electrical
Appliances (Air Conditioners, Televisions, Refrigerators, Washing Machines) Brought into Recycle
Plants
8.37 million units (FY2001)
=>11.21 million units (FY2004)
51
Transition in the number of registered
low-emission Vehicles
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 Kyoto Protocol Target Achievement Plan
(Cabinet Decision, April 2005)
In order to ensure 6% reduction commitment, a series of efforts,
including additional policies and measures, should be promoted,
namely reduction of greenhouse gas emissions, carbon dioxide
sinks by forests (maintenance and conservation of forests), and
the Kyoto Mechanism (reduction of emissions in overseas countries), with participation and cooperation by and among the state
and local governments, business entities as well as citizens.
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 Rapid Dissemination of Low-Emission Vehicles
630,000 units (as of the end of FY2000)
9.68 million units (as of the end of FY2004)
69.7% of all newly registered cars (The latter half of
FY2004)
 Domestic Solar Power Generation (1,130,000 kW for
FY2004) and Production of Solar Cells (600,000 kW
for 2004) Grew to the World’s Highest Level
 “EXPO 2005 Aichi Japan” was Held
With the main theme of “Nature’s Wisdom”, the EXPO 2005
shows a way to realize the coexistence of humankind and
nature by introducing cutting-edge technologies in the environmental field.
Basic Policies 2005
• While maintaining a balance between environmental and economic goals, measures for global environmental issues will
be strengthened. Aiming for the achievement of the reduction pledged in the Kyoto Protocol and the development of a
society that emerges from global warming, strategies to effectively utilize the Kyoto Mechanism will be carried out based
on the “Kyoto Protocol Target Achievement Plan” such as reductions of greenhouse gas emissions and carbon dioxide
sinks by forests, which will be promoted by the maintenance and conservation of forest. Along with this, the Government
will promote national campaigns and advance technological developments. Furthermore, the Government will work to establish a Sound Material-Cycle society and, in this regard, will respond to environmental and energy issues in a comprehensive manner.
• Domestic restrictions should be strengthened on reduce, reuse and recycle (so-called “3R”) as well as on unauthorized
dumping. Furthermore, under the Japanese traditional slogan of Mottainai (what a waste!), support should be provided to
help create a Sound Material-Cycle society in developing countries. Thus, international efforts based on the “3R initiative”
should be promoted.
52
The next one or two years will be
a turning point
(Concentrated Consolidation Period)
Scenario if Japan
neglects to carry
out reform
Scenario
if Japan carries
out reform now
Scenarios to avoid
1) The economy stagnates and contracts.
In the context of a declining population, if
there is continued failure to make full use
of the abilities of human resources and
funds, Japan will lag behind in responding to environmental changes and, as
a result, the economy will stagnate and
contract.
2) The Government becomes a weight
and a burden on private-sector economic activity.
If fiscal deficits are ignored, the prices of
Japanese government bonds and bills
will drop rapidly and long-term interest
rates will rise rapidly. If the Government
attempts to reconstruct finances entirely
by means of tax hikes, the burden on
individuals and businesses will grow significantly heavier, and Japan will become
a highly burdened, highly dependent society.
3) Japan is left behind in globalization.
If Japan is left behind in the wave of economic integration in the world (EPA and
other such arrangements), it will lose opportunities for growth.
4) Increasing numbers of people lose
hope and society becomes unstable.
Disparities become fixed within a society
as defined by the disparity in hope. The
effects of ultra-aging and population decline then become serious. Some of the
former “new town” residential developments will become ghost towns.
Strategies to Escape from the Scenarios to Avoid
The Council on Economic and Fiscal Policy announced “Japan’s 21st Century Vision” in order to further clarify the shape of the
nation that is supposed to be realized by structural reform.
Growing Income
• Japan will win the world’s trust and
confidence through international exchanges and contributions to the world
community
• Japan will win recognition in the world
by transmitting its culture and technology. Japan will become an attractive
country that has an influential presence
in the world.
• Create an education system that will enhance human resources (individual motivation, capability and other skills)
• Establish intellectual foundations and dissemination of innovations
• Economic integration and assurance of peace and stability
in East Asia
• Receive foreign workers in an active and orderly manner
• Japan will be a diverse, multi-talented
society in which individuals can keep
their health, are rich in free time and
various choices, realize their dreams
and can try again for success.
• The emphasis is placed on preventing disease and keeping
health
• Support a wide range of individual choice in work and
study modes, and prevent the entrenchment of disparities
by assuring the equality of opportunities
• Improve the environment so that children can be brought
up with a sense of security. The above will focus particularly on the upcoming period of five or so years, and will be
implemented in a versatile manner.
A prosperous public, a small
government
 Formulation of “Japan’s 21st Century Vision” (April 2005)
• Reform should be advanced in order to
avoid passing any burden on to future
generations
• Leave to the private sector what it can
do, and leave to localities what they
can do. Shift power closer to beneficiaries.
• The public services that are required
by the members of the public are provided in abundance by a variety of actors and methods.
• Japan should reduce dependence on the younger generation, and enhance the sustainability of the social security
system.
• Employ marketization tests (competitive bid between government and private sector), carry out thoroughgoing local
decentralization of authority, and institute wider regional
government bodies
• The payment of official subsidies to NPOs and other such
organizations should be promoted through the choice of
the public. Also, social investment funds are utilized.
• Realize a financial system in which risk is converted into
opportunities
(Favorable Cycle)
Attracting human
resources, funds
and technologies
to Japan
Investment in overseas countries
Rising Productivity
Taking maximum advantage
of globalization
Efficient service
which responds
more to the
needs of society
“The Public” chosen
by the people
 The Image of the Economy and Indicators in 2030
Despite the decreasing population, the real GDP growth rate will
be somewhere on the order of 1.5%, and about 2% per capita.
Reducing the disparity between the average lifespan
and a healthy lifespan, raising the latter from 75 to 80.
The view of the Per capital real GDP
The real GDP growth rate holds somewhere on the order of 1.5%, and per capital real GDP
grows at about 2%.
“A New Era of Dynamism” for 2030
��
��
 Supported by rising labor productivity, the real GDP growth rate will
be somewhere on the order of 1.5%.
• The real GDP per capita and the real consumption rate will increase by about 2%.
• There will be an expansion in new consumption demand, which includes the growth in the health, lifetime learning, and child-rearing
services, etc.
 The Government will achieve a surplus in the primary balance in the
early 2010s, and make government small and efficient thereafter.
 Economic partnership should be expanded. Furthermore, Japan
should develop into an investment-based country that carries on
global investment activities.
 Individuals will be the principal actors, and Japan will become a society in which it is easy for individuals to realize their dreams and try
again for success.
Growing number of world front-runners will lead in innovation and
creation of world standards.
��
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Healthy life expectancy
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*Per capital real GDP growth rate=Real GDP growth rate-Population growth rate
Shimon kun
53
Specific courses of action
Healthy Life Expectancy of 80 Years Enjoyed by “People rich
in free time”
A New Era of Dynamism — Closer Ties and a Wider Range of Opportunities —
Conception of a future
toward which Japan should aim
An Open, Culturally
Creative Nation
“Japan’s 21st Century Vision”
– Further Clarifying the Shape of the Nation after Structural Reform
 Three Conceptions of a Future and Specific Courses of Action
��
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 Council on Economic and Fiscal Policy web pages
http://www.keizai-shimon.go.jp/english/index.html
• Japan’s 21st Century Vision
http://www.keizai-shimon.go.jp/english/publication/vision/index.html
��
Vi-sion
54

General Overview Koizumi`s Reforms

Transcription

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