Japan's COVID-19 relapse trumpets need for urgent economic action
That loud ticking sound emanating from Tokyo's political clock bodes the imminent explosion of costs resulting from Japan's tepid COVID-19 response.
Up until last week, the world's third-biggest economy seemed to be dealing successfully with the coronavirus. Prime Minister Shinzo Abe basked in global headlines pondering what others could learn from Japan's low infection and death rates. Now, Japan is witnessing 1,000-plus new infections daily, with talk of a second state-of-emergency declaration.
Yes, Japan's 35,000 cases are fewer than New York's Westchester County. And its 126 million population has 16,000 fewer cases than Singapore, population 5.8 million.
Still, outbreaks are relative and Japan is headed the wrong way. Its previous emergency decree, lasting from early April to late May, shoulder-checked an already feeble economy. That prompted Abe to devise a ginormous stimulus jolt amounting to more than $2 trillion, 40% of gross domestic product.
The Bank of Japan, meantime, has already supersized its balance sheet to exceed the nation's $5 trillion economy. It hoarded roughly half of outstanding government bonds and cornered the stock market via exchange-traded funds.
The economic fallout of recent months, though, suggests that Japan Inc. needs more thrust -- and a better, more targeted stimulus. Both Team Abe and the BOJ must act swiftly to devise fresh steps to stabilize growth. The more coordinated the efforts, the better.
Abe must start by dispensing with the denial about Japan's COVID-19 problem. Instead of following U.S. President Donald Trump's playbook, prioritizing stock market stability over underlying growth, Abe should heed Tokyo Governor Yuriko Koike's support for more sweeping lockdowns and a slower reopening.
Abe, right, should heed Tokyo Governor Yuriko Koike's support for more sweeping lockdowns and a slower reopening. (Photo by Akira Kodaka)
Even if the truth lies somewhere in between, Abe's $13 billion "Go To Travel" scheme to incentivize domestic travel may backfire, and end up causing more infections. Hence polls in the Mainichi newspaper showing that 69% of voters want the plan scrapped.
Next, Abe should name a COVID-19 recovery czar. Finance Minister Taro Aso, who turns 80 in September, has been mostly AWOL as Japan's recession deepens. And if you ask the average Japanese on the street, few could name the current economy minister -- Yasutoshi Nishimura, to save a Google search. Strategy needs to be centralized and policymakers empowered to think out of the box.
AP - Nov 26
Top diplomats from Japan and China met for bilateral talks Saturday as they try to resolve disputes including China's ban on Japanese seafood that has badly hit Japanese exporters.
Reuters - Nov 25
Japan passed on Friday an extra budget worth around 13.1 trillion yen ($88 billion) aimed at helping households cope with the rising cost of living and corporations boost domestic investment, even amid concerns over the country's worsening finances.
News On Japan - Nov 23
Japan hosted the "Self-Defense Forces Joint Exercise," from October 10, attended by the Japan Self-Defense Forces (SDF) and the U.S. military. JNN reports on Japan's only elite unit, the 1st Airborne Brigade, during their training.
The Diplomat - Nov 23
Japan’s biggest defense company, Mitsubishi Heavy Industries (MHI), has outlined plans for future growth through development investment in new major national defense projects, including standoff missiles and a joint next-generation fighter program with Britain and Italy.
NHK - Nov 22
North Korea's space agency says the country has launched a rocket carrying a military reconnaissance satellite and put it successfully into orbit.
Kyodo - Nov 22
A Japanese health ministry panel on Tuesday decided to ban HHCH, a synthetic cannabinoid, from Dec. 2 after many people who consumed gummies containing the compound had to go to the hospital.
dailymail.co.uk - Nov 22
The home of the US Ambassador to Japan Rahm Emanuel became the target of anti-Semitic vandals over the weekend who spray painted the word 'Nazis' on a fence outside his house in Michigan.
CNA - Nov 21
Japan has condemned the seizure of a Japanese-operated cargo ship by Yemen's Houthi rebels in the Red Sea, south of Israel.
AOL - Nov 19
Daisaku Ikeda, a former leader of Japan's influential Buddhist group Soka Gakkai, has died at the age of 95.
News On Japan - Nov 18
Edogawa Ward in Tokyo, which has the highest incidence of bicycle thefts in the city, announced the installation of 80 surveillance cameras in bicycle parking areas at private condominiums and other locations.
CCTV Video News Agency - Nov 18
Chinese President Xi Jinping met with Japanese Prime Minister Fumio Kishida in San Francisco of the United States on Nov. 16, reaffirming the positioning of comprehensively advancing the strategic and mutually beneficial relations between China and Japan.
eurasiareview.com - Nov 18
Japan’s Prime Minister Fumio Kishida’s inaugural two-day visit to Malaysia heralded a new strategic bulwark of defence and security criticality.
News On Japan - Nov 16
A car crashed into the barricades near the Israeli Embassy in Tokyo on Thursday morning, injuring a police officer.
NHK - Nov 15
Wednesday marks 46 years since a 13-year-old junior high school girl was kidnapped by North Korean agents.
NHK - Nov 14
Japan's government has approved the resignation of State Minister of Finance Kanda Kenji, who repeatedly failed to pay taxes for his company.
NHK - Nov 14
An NHK opinion poll shows the approval rate for the Cabinet of Japan's Prime Minister Kishida Fumio has fallen below 30 percent for the first time since he took office two years ago.