Society | Sep 19

'Suganomics' will target quick wins, not grand visions

Japan's new prime minister will pursue economic structural reforms through a mixed bag of policies that target specific industries, rather than a grand strategy to reshape society and boost long-term growth.

Armed with a strong grip on Japan's bureaucracy, Yoshihide Suga knows which levers to pull to get results, say government and ruling party officials who know him or have worked with him.

But an initial need to consolidate popular support means he will first target quick policy wins that will later give him the political capital to pursue tougher reforms, they said.

"He isn't after visions. He's someone who wants to accomplish small goals one by one," said political analyst Atsuo Ito, a former ruling party staff. "He'll initially focus on pragmatic goals that directly affect people's livelihood."

Suga has said he will continue his predecessor Shinzo Abe's pro-growth "Abenomics" strategy aimed at pulling Japan out of deflation with heavy monetary and fiscal stimulus coupled with structural reforms.

But unlike Abe, Suga's plans for structural reforms will focus more on spurring competition, rather than deeper social change.

For Suga, economic reform will be a political priority in its own right, unlike Abe, whose reforms were wrapped up in a broader political agenda that included the thorny challenge of revising Japan's pacifist constitution.

Suga must act quickly as his current term lasts for only for a year unless he calls a snap election to win the public's mandate to run a full, three-year term.

That means he will first seek "quick-hit" achievements that directly channel money to households. Among the sweeteners would be to slash cellphone charges by around 40%, raise the minimum wage and increase payouts to cushion the blow from the pandemic.


MORE Society NEWS

The Imperial Household Agency has announced that Princess Kako, the second daughter of the Akishino family, is scheduled to visit Greece in late May to promote international goodwill.

The Taiji Town Whale Museum in Wakayama Prefecture conducted a memorial service on Tuesday for marine mammals and fish that have died in captivity.

A startling projection has been unveiled, suggesting that if current trends continue, every Japanese person might eventually be named 'Sato'.

POPULAR NEWS

Four men have been arrested by Tokyo police for allegedly recruiting women for prostitution in the United States via a website, promising encounters with affluent clients and high earnings.

For the first time in 73 years, Japan has unveiled a newly constructed whaling mother ship, equipped with drone technology for whaling operations in the Antarctic Sea.

The Liberal Democratic Party (LDP) in Nara Prefecture has disciplined its former Youth Division Chief following a controversial dance party incident.

Residents of Japan's oldest student dormitory, self-managed for over 100 years, are digging in as Kyoto University attempts to evict them from the premises.

A Japan Airlines flight en route from Melbourne to Narita Airport encountered sudden severe turbulence on April 1, causing injuries to several cabin crew, including a broken leg.

FOLLOW US