The Japanese Economy : strategies to Cope with a shrinking and ageing population

Table of Contents

List of figures ....................................................................................... xii

List of tables ........................................................................................ xxi

List of boxes ....................................................................................... xxiii

The author ...........................................................................................xxiv

Preface and acknowledgements ........................................................ xxv

Acronyms and abbreviations ...............................................................xxvii

1 From the collapse of the bubble economy to the COVID-19

pandemic: An overview of the Japanese economy from 1990–2020 .... 1

2 Key challenges facing Japan ............................................................. 20

PART I

Labour market reform to sustain economic growth and promote

social inclusion ................................................................................... 37

3 Expanding the use of foreign workers and raising the fertility rate

to cope with demographic challenges ................................................... 39

4 Extending the careers of older persons .............................................. 57

5 Promoting employment and leadership opportunities for women ....... 75

PART II

Raising productivity to sustain living standards in the face of a

shrinking and ageing population ....................................................... 93

6 Improving the innovation framework to boost productivity .................. 95

7 Advancing the digitalization of Japan to raise productivity and

well-being .............................................................................................. 111

8 Improving the education system and increasing human capital ......... 125

9 Strengthening the integration of Japan in the world economy to

benefit more fully from globalization ...................................................... 146

10 Accelerating regulatory reform to strengthen competition and

boost productivity ................................................................................. 164

11 Upgrading corporate governance to revitalize the Japanese economy  179

12 Improving the insolvency regime to improve resource allocation ...........197

13 Making small and medium-sized enterprises a driver of growth

and innovation ............................................................................................ 211

PART III

Improving performance in key sectors ................................................... 229

14 Enhancing productivity in the service sector .......................................... 231

15 Upgrading productivity in the agricultural sector .................................... 246

16 Financial sector reforms to promote growth and financial stability ......... 262

PART IV

Macroeconomic policies to promote economic growth and fiscal

sustainability ........................................................................................ 277

17 Improving the fiscal framework to ensure long-term fiscal

sustainability ........................................................................................ 279

18 Providing universal high-quality healthcare while controlling spending .. 296

19 Improving local government finances in tandem with the central

government .......................................................................................... 318

20 Reforming Japan’s tax system ........................................................ 336

21 Monetary policy: Unconventional measures to achieve the

inflation target ....................................................................................... 355

PART V

Enhancing well-being ............................................................................ 371

22 Reducing income inequality and poverty to promote social inclusion . 373

23 Reforming the energy sector to achieve green growth and improve

the environment ................................................................................... 390

PART VI

Summary ............................................................................................. 407

24 Summary: Addressing Japan’s economic challenges ..................... 409

Index .....................................................................................................422