SGI 2022 | Japan | Key Challenges

Key Challenges

Recent Governments Experts

SGI experts on Japan

Karol Żakowski

Karol Zakowski, PhD (2010) and habilitation (2016) in political science, is Associate Professor at the Department of Asian Studies, Faculty of International and Political Studies, University of Lodz. He specializes in decision-making processes and foreign policy of Japan. His recent monographs include: Decision-Making Reform in Japan: The DPJ’s Failed Attempt at a Politician-Led Government (Routledge, 2015), Japan’s Foreign Policy Making: Central Government Reforms, Decision-Making Processes, and Diplomacy (co-authored with Beata Bochorodycz and Marcin Socha, Springer, 2018), and Gradual Institutional Change in Japan. Kantei Leadership under the Abe Administration (Routledge, 2021).

Steffen Heinrich

Steffen Heinrich is visiting professor in politics and political economy of Japan at Freie Universität Berlin. He holds a doctorate in comparative political sciences from Heidelberg University and a MA from Munich University (LMU) in political science, Japanese studies and economics He has worked at the German Institute for Japanese Studies (DIJ) in Tokyo, and has held academic positions at the University of Duisburg-Essen (East Asian studies) and Heidelberg University (political science). His research interests include comparative welfare state studies, work and employment in Japan and Japanese politics. At present, he is working on a research project studying the impact of economic stagnation and demographic ageing on social policy in Japan in comparative perspective.

Patrick Köllner (Coordinator)

Patrick Köllner has been director of the Institute of Asian Studies, German Institute of Global and Area Studies (GIGA) since 2011. He is also a professor of political science at the University of Hamburg. His research focuses on political regimes and organizations in East Asia and in comparative perspective. Between 2007 and 2013 he co-edited the yearbook Korea: Politics, Economy and Society. Köllner holds a doctorate in political science from the Humboldt University of Berlin and a venia legendi in political science from the University of Trier.

Japan needs to address a range of issues related to the accountability of political decisions, a stagnant economy, population aging, fiscal imbalance, incoherent climate change policies and slow adaptation to technological change.

Institutional reforms, which have centralized decision-making, and strengthened the prime minister and the Cabinet Secretariat, need to be accompanied by measures to strengthen accountability and democratic control. The introduction of an ombudsperson to investigate human rights abuses could lead to better protections for the rights of women, immigrants and non-regular workers. The government should also intensify efforts to empower women in all aspects of employment as well as in politics. The role of the Supreme Court, as the only organ that can issue legally binding interpretations of the constitution, should be reinvigorated. Meanwhile, the Cabinet Legislation Bureau should be better insulated from political pressure. The role of the Diet – weakened by informal decision-making, and a lack of resources for individual members of parliament to challenge the government or initiate legislation – should be strengthened through the enhancement of its deliberative, oversight and investigative functions. In addition, it would be desirable to establish a more permanent and transparent institutional framework in which civil society actors are consulted and informed on legislative projects, similar to consultative processes in EU legislation. The creation of an independent regulatory oversight body could improve policy evaluation processes. Despite its effective healthcare system, Japan also needs to strengthen its resilience by improving the coordination and allocation of medical resources, collaboration between healthcare providers, as well as cross-sectional data sharing.

Japan’s strategy to counter climate change and reduce emissions is too incoherent and lacks ambition. Japan should reinforce its commitment to achieving climate neutrality by 2050 and pursue bolder, unambiguous policies to reduce reliance on fossil fuels. Moreover, Japan needs to clarify the criteria for reducing greenhouse gas emissions when distributing public funds for decarbonization, rethink its stance on “clean coal” technologies and raise the level of the planned carbon levy. In general, SDGs must play a more critical role in the evaluation of government policies.

A key challenge for Japan is how it can retain its ability to finance investments in the transition to a low-emission economy, support families with children and improve social security, while maintaining intergenerational and social equity. At the moment, the cost of additional debt remains low due to low bond yields. However, it is conceivable this could change once the Bank of Japan normalizes monetary policy and raises interest rates. In addition, at some point, the central bank may no longer be available as the main buyer of government bonds. The government should openly discuss the options for, and costs and benefits of tax increases and other measures to narrow the fiscal deficit, and invest in Japan’s future, as spending cuts will be unpopular and may negatively impact social cohesion.

The pension system needs to be refined to more effectively prevent poverty, especially regarding the growing number of irregular workers, workers earning low wages and workers with nonlinear work histories. These groups are not only ill-served at the moment, but also the recent expansion of private pension plans does little to alleviate these structural deficiencies. Prime Minister Kishida’s “new capitalism” vision must take seriously its promise that Japan’s growth and wealth will be distributed so that all strata of society benefit.

The over-representation of the older (male) generation in Japanese politics, society and the economy remains a major challenge. It is detrimental not only to the labor market but also to technological innovation. Apart from enhancing support for families, measures to address the implications of population aging should include promoting a better work-life balance for regular workers with long working hours, simplifying immigration procedures and implementing more coherent integration policies. Improved occupational mobility for foreign manual and service workers is inevitable not least because labor market participation is already high for all segments of the domestic workforce. A more comprehensive and cohesive immigration policy should be accompanied by more stringent measures against xenophobia and racism. The government also needs to put more resources into the digital transformation of Japan’s economy, which would make it more competitive globally.