Fukuda to launch task force to raise Japan's per-capita GDP

Monday 01st September, 06:01 AM JST

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11 Comments

tripank at 08:46 AM JST - 1st September

Less oil imports, less dependance on US markests, less monetary tie up to the US dollar, less ownership of US debt, for starters.

The US dollar is devalueating around 13% a year( inflation rate )Why connect your currancy to quickly devaueating monetary unit??

When the market you are selling to isn't buying find new markets, India, China among others. The increase sales of Japan's prduct is the only way to increase GDP for a mainly exporting country.
Dogdog at 09:34 AM JST - 1st September

The increase sales of Japan's prduct is the only way to increase GDP for a mainly exporting country.

Agreed, but Japan has to increase domestic demand. As long as the majority of the Japanese live in one room boxes, consumption of household appliances will be basic (one per household). A long term housing policy (a room for every member of the household) and legislation to penalize the building of 1LDKs is a first step to making a genuine middle class in Japan and with them will come a genuine middle class consumption: not just the nice suit, nice watch and nice family car.
tripank at 11:49 AM JST - 1st September

Yes I agreed with you Dogdog. But hasn't the Japanese government change the laws about opening farm land for new home building??? I firmly agree with the creation of a middle class, but aren't the elites and people in power in Japan fallowing the US model and trying to shrink the middle class??? In addition try to create a middle class in the middle of a economic slow down is hard to do. What do you think dogdog
jaybeeb at 12:01 PM JST - 1st September

Sustainable economic growth, a very popular oxymoron just now. Creation of industries sounds great, for example? Futile.
Richard_III at 12:23 PM JST - 1st September

They would also be advised to include some foreigners on this panel.

Much of the economic policy analysis documents produced in Japan often boil down to the same things. Perhaps some new subsidies for some SMEs, perhaps a little more money to support university ventures, perhaps some minor amendments to some regulation that may have a minor negative effect on economic development etc.

They could do with a bit of fresh thinking, and, possibly, some more controversial measures rather than the incremental tinkering that tends to be proposed.

I doubt much will come of it in the end.
Dogdog at 01:18 PM JST - 1st September

In addition try to create a middle class in the middle of a economic slow down is hard to do. What do you think dogdog

For Japan it would be quite an easy thing to do because of the large amount of capital in Japan. What stops it happening is that the Japanese economy is still playing to the developing economy rules (export driven) which puts it into direct competition with China and other genuinely developing economies. Japan should be and should have, 20 years ago, moved up into a developed economy, dependent on services. 70% of the growth in the global economy in the last 20 years has been in the service economy. While there are some good Japanese examples (IT exports to South Korea last year posted a Y30 billion surplus), the Japanese service economy is still in the 60's and 70's mindset of their sole role is to service Japan Inc and has disastrously missed out on a golden opportunity that will never arise again.

Now it is down to the central government to make the needed changes. 1. Change university education in Japan so that it does have a vital role in Japanese society, instead of the 4 year holiday that it is now. 2. Move government spending from industrial infrastucture to urban social infrastucture - affordable good housing, liberalizing housing zone building, a Paris style '2 speed' railway system etc 3. Implement legislation that gives back to the workers and their unions their cajonnes which they lost during the 1952-73 period. 4. Strict implemenetation of employment legislation - working hours clocked on/off, part time workers given full timers rights after 1 year of employment, private work agencies made illegal.

The list could go on and it doesn't take a great visionary, just someone with a basic knowledge of Keynes and a study of Western Eurpoean economies since 1953.

Sorry Americans, your economic model is one to ignore
yosun at 01:46 PM JST - 1st September

GDP figures-wise it may look good to raise Japan's per-capita GDP, but it doesn't mean that true consumption ability can be raised so it's not beneficial especially for med class. so i think a more free market policy might really work to stimulate economic growth and keep commodities price stable that is really better for the public. however, this way the government need to dare to face some crowd protest....
ColAmerica at 01:50 PM JST - 1st September

A bfree market is what Japan needs now. The LDP know it, but if they allow it, their support base will fall even further, and they will lose power.

The government in Japan wants what is best to stay in power, not what is best for the people.

The people never make a big fuss anyway, so the government just does what it pleases.
some14some at 02:25 PM JST - 1st September

Fine, let them try and if successful every country will form such a 'task force' !
LIBERTAS at 03:41 PM JST - 1st September

Pre-industrial goals in a post industrial world. Getting Japan into the league of top "quality of life" countries in the world in any terms would be a much better goal.
somo99999 at 09:28 PM JST - 1st September

speaking out my opinion : -

" Prime Minister Yasuo Fukuda will launch a task force later this year to draw up a long-term economic reform plan, government sources said Sunday. "

The part of the above statement which mentioned later this year makes me feel that Prime Minister Yasuo Fukuda is hiding something ?. Then i thought why is Japan taking so long to get some real affirmative action on the ground really done ?. I believe that the Japanese Government is financially tight. Over years and years the Japanese Government have been using the country's huge reserve to buy US Treasury Bonds. It was a safe bet until recently when the US Government could no longer honor any bond redemption as all their money is dried up fighting Bush's war on terror. Now the Japanese Government is stuck with US Treasury Bonds that are worth nothing and have no choice but to hold on to them with the hope that one day in the next year or two the US economy will recover and Japan will be able to redeem the US Treasury Bonds that they are holding and get some money back. In the mean time, every single Japanese citizen on the street will be struggling to cope with a higher cost of living, not enough money to balance expenses and mounting debt. I say we sack Prime Minister Yasuo Fukuda and get someone else whom really have some brains to get some action done now to help every Japanese citizen out there whom is struggling to survive and really need some money. Japanese people need financial help now and not end of the year or sometime next year. Prime Minister Yasuo Fukuda, wake up to the needs of the Japanese people whom are in need of your help. Prime Minister, Yasuo Fukuda you took on the job as Prime Minister to help and look after the well being of every Japanese citizen out there. You have to fulfill your responsibility or resign and give the job to someone else whom can get the job and responsibility done right now and immediate to help every Japanese out there whom is need of financial and economic help.