Abenomics, the Japanese science

JAPANESE Prime Minister Shinzo Abe pledged to raise incomes by 3 per cent annually and set up special economic zones to attract foreign businesses in the third tranche of measures aimed at boosting growth in the world’s third-biggest economy.
By The Newsroom
Published 6th Jun 2013, 01:01 BST
Japanese Prime Minister Shinzo AbeJapanese Prime Minister Shinzo Abe
Japanese Prime Minister Shinzo Abe

Abe is also considering a push for public pensions and other public funds – a pool of $2 trillion – to increase returns by raising investment in equities, a government draft growth strategy showed.

The government will seek the view of experts and aim to reach a conclusion by autumn, the draft said. Still, such a move could face opposition from Japan’s risk-averse voters.

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The steps are the last batch of proposals in a growth strategy that includes measures to mobilise women in the workforce, boost private investment and deregulate some sectors.

The package is set to be approved by the cabinet on June 14 along with macro-economic policy guidelines including fiscal reform targets to address Japan’s massive public debt.

However, some analysts were sceptical the strategy would achieve the goals of the prime minister’s ‘Abenomics’ policy given a lack of bold steps, such as changes to promote labour market flexibility and make it easier for companies to exit dying businesses while shifting to growth areas.

Tokyo share prices fell 3.8 per cent on the day.