japan government, reconstruction budget

Gov’t council compiles basic strategy for Japan’s revitalization, mainichi, 12/23/11

TOKYO (Kyodo) — The government’s national strategy council compiled on Thursday a basic strategy for Japan’s revitalization, featuring a target of realizing an average 3 percent expansion of the economy annually from fiscal 2011 to 2020 through an increase of middle-class citizens.

The council, headed by Prime Minister Yoshihiko Noda, said the government will strive to realize an early recovery of areas hit by the March earthquake and tsunami through the utilization of special tax and deregulation treatments for such areas to attract investments by companies from Japan and abroad.

”Our country is confronting a huge risk,”the council said in a statement, referring to the yen’s appreciation, global financial markets turbulence, and aging of Japanese society, in addition to the natural calamities and the subsequent nuclear disaster at the Fukushima Daiichi power complex in Fukushima Prefecture.

By addressing the issues while pursuing fiscal reform, Japan needs to realize the ”resurgence”of a large number of middle-class households and realize the nation’s revitalization, it said.

The 3 percent annual economic growth target in nominal terms, or without adjustment for changes in prices, will be the basis of the Japan revitalization strategy that the government plans to compile around mid-2012.
In this Sunday, Sept. 4, 2011, photo, a woman walks through the ruins of her home, which was destroyed by the March 11 tsunami, near the waterfront in Minamisanriku, Miyagi Prefecture. (AP Photo/Greg Baker)
In this Sunday, Sept. 4, 2011, photo, a woman walks through the ruins of her home, which was destroyed by the March 11 tsunami, near the waterfront in Minamisanriku, Miyagi Prefecture. (AP Photo/Greg Baker)

In price-adjusted or real terms, the council targets achieving around 2 percent annual growth from the current fiscal year to fiscal 2020.

Economic and fiscal policy minister Motohisa Furukawa said the government will strive to realize the growth targets by helping to ”realize innovations and boost potential growth rate.”

The council called for the promotion of freer trade, and the need to take advantage of the strong yen by increasing mergers and acquisitions with overseas companies and securing natural resources.

Steps the council called for include submission to the next ordinary Diet session of a bill to realize strategic space development and establishment by mid-2012 of a strategy for helping youths secure jobs.

The council will deepen its discussion next year to show how to realize the revitalization, including a time frame and numerical targets, and incorporate the detailed plans into the revitalization strategy to be set up in mid-2012.
A bicycle is left near the station in the part of the town of Minamisoma, which is inside the 20-kilometer (12-mile) evacuation zone, in Fukushima Prefecture, Japan, Thursday, April 21, 2011. (AP Photo/Sergey Ponomarev)
A bicycle is left near the station in the part of the town of Minamisoma, which is inside the 20-kilometer (12-mile) evacuation zone, in Fukushima Prefecture, Japan, Thursday, April 21, 2011. (AP Photo/Sergey Ponomarev)

To craft a long-term strategy for Japan, the government has decided to set up a subcommittee under its national strategy committee.

Takashi Onishi, the head of the panel and a professor of the graduate school of the University of Tokyo, said Thursday in a statement that the panel will work to present directions Japan should pursue toward 2025, with an eye to the nation’s future through 2050. It aims to present such a vision around mid-2012.

(Mainichi Japan) December 23, 2011

About liz

from the u.s., recently moved from kobe to sendai, japan, researching community-based housing recovery after disaster.

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