The government decided Wednesday to designate the coming three years as an “intensive investment prompting period” to accelerate its economic growth strategy aimed at conquering nearly two decades of Japan’s deflationary recession.
In the outline of the strategy, presented by economic and fiscal policy minister Akira Amari earlier in the day, the government also positioned the next five years as an “emergency structural reform period,” pledging to bring about industrial reorganization by taking such measures as promoting labor market flexibility.
After a meeting of the industrial competitiveness council, which has been discussing the strategy, Amari told reporters that Prime Minister Shinzo Abe’s administration will present a rough draft of the strategy at the next gathering of the panel, scheduled to be held next week.
The growth strategy, one of the “three arrows” of Abe’s economic policies dubbed “Abenomics” along with drastic monetary easing and massive fiscal spending, will be adopted by the Cabinet in mid-June, with the aim of activating the economy through private investment and achieving wage hikes and higher employment.
Amari said the strategy has been “80 percent” completed, but he added the government “will continue to discuss some areas,” including agriculture and employment rules, as private sector members of the panel, such as academics and company executives, have called for more sweeping deregulation.
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