Japan’s New Growth Strategy to Create Demand and Jobs

This paper puts forward a strategy for Japan to forge new areas of growth, create demand and jobs through regulatory reform and fiscal measures. A series of key challenges are identified that include climate change, and ageing populations which, according to the strategy, can be turned into sources of green growth.

The strategy states that market‐based initiatives such as an effective emissions trading system would promote private investment and green innovation. Other policies that encourage further economic integration with Asia are discussed such as reducing agricultural subsidies and bringing down barriers to trade and foreign workers.

Seven strategic growth areas are presented in the strategy, one of which is green innovation. This area comprises three national strategic projects to promote green growth. These are:

• Introduce a feed‐in tariff system to expand the renewable energy market;

• Use the Future City Initiative to promote the use of eco‐products and services; and,

• Revitalise forestry and raise the self‐sufficiency ratio to over 50%.