Feb 18 • 20:00 UTC 🇯🇵 Japan Asahi Shimbun (JP)

Will the Prime Minister's Commitment to 'Crisis Management Investment' Lead to Economic Growth? Confusion with Multiple Meetings

The Japanese Prime Minister's push for 'crisis management investment' aimed at economic growth faces confusion amid numerous meetings and lack of clear direction.

Japan's newly formed cabinet under Prime Minister Sanae Takaichi is accelerating discussions on implementing 'responsible aggressive fiscal policy', particularly focusing on 17 strategic sectors such as AI, semiconductors, and shipbuilding, with plans to develop a roadmap by spring. However, there are concerns within the government about the overwhelming number of meetings and the lack of a coherent vision, which has led some officials to express confusion over the overall strategy. Prime Minister Takaichi's plan emphasizes the government's proactive role in minimizing various risks through crisis management investments, while also fostering growth through technological advancements. This approach, coined in her economic policy termed 'Sanaenomics', seeks to define a strategic investment framework that contrasts with former Prime Minister Fumio Kishida's focus on addressing inequality and climate change. By identifying potential products and technologies within the selected strategic areas, the government aims to establish a robust investment roadmap. The government is drawing inspiration from a previously established framework for supporting the AI and semiconductor industries, proposing significant public funding over a seven-year period. Economists within Takaichi's circle argue against limiting growth investments to tax revenues alone, suggesting that bond issuance should not be hesitated. As the government prepares to draft a 'Japan Growth Strategy' this summer, the proliferation of 26 committees and working groups could further complicate the decision-making process and create a perception of disunity among policymakers.

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