Plan for the Creation of New Markets and New Jobs

Hiranuma Plan (outline)

May 25, 2001

Ministry of Economy, Trade and Industry

• This plan was put forward by Minister Hiranuma as material for discussion at the "Policy Meeting for Employment and Industrial Structure Reform" on May 25, 2001.

• Japan needs to resolutely carry out structural reform in order to prepare both for a "liquidation of the past" and for the economic "challenges for the future."

• Japan has just begun to move ahead with the final disposition of non-performing loans. In order to cope with fears about the employment situation and other matters during this process, we must be ready to ride out the difficulties caused by moving towards a unified employment policy based on support for skill development, while speeding up reform aimed at the creation of new markets and new jobs, and proceeding with business reconstruction.
• At the same time, two of the reasons for the stagnation of the Japanese economy are the "shrinking demand" that has resulted from anxiety about the future, and the "insufficient innovation" preventing the development of potential demand. The essential challenge for a new growth track lies in presenting a clear vision in which the Japanese people will feel secure and hopeful. This will require a drastic shift of public and private sector resources to programs that will help to promote these developments, thereby starting a positive cycle in which innovation begets demand and demand begets innovation.
• Taking the above points into consideration, and in order to draw out the potential vitality of Japan's economy, create new jobs and new markets, and improve the mid- to long-term competitiveness of Japan's business environment, this plan establishes specific, comprehensive goals. These provide clear direction for "investment in the future" and will stimulate the Japanese government to consider specific policies.

15 Policy Proposals to Achieve the Creation of New Markets and New Jobs

I. Building Innovation Systems and Fostering Venture Businesses to Create New Industries

1. Streamlining the infrastructure for innovation (creating "1,000 Venture Firms Sprung From Universities",through the strategy of reforming universities and transferring technology from academia to industry)
2. Concentrating investment in strategic bases and the fusion technology field (realization of technological innovation through utilizing the combined strengths of industry, government and academia in strategic concentrated areas, such as the environment, biotechnology, data transmission, nano-technology, and materials.)
3. Implementing "Doubling New Business Openings" Program (organizing a multi-faceted support environment for venture businesses through the use of human resources, funds, and management resources ; promoting the formation of industrial clusters and building human networks, in local areas)
4. Creating the health market (building competitive medical and nursing care systems by making maximum use of private sector vitality and the adoption of electronic systems)
5. Building the infrastructure of an economic society that allows women to continue working (expanding public child care services so that there are more opportunities for women at all stages of life to work, and reconsideration of the current pension system, to achieve with the goals of 'no children waiting for day care' and 'changing the appearance of the M-shaped graph of female employment')
6. Promoting employment and a fulfilling consumer life for the elderly (building up the care service industry to meet the diverse needs of the elderly, amending age limits on job advertising and applications, studying reverse mortgages)
7. Transforming environment and energy into engines of growth (amending all industries structures and economic systems so that they are 'environmentally friendly models')
8. Rebuilding distribution systems (developing a 'Comprehensive Distribution Policy Outline' aimed at strengthening the competitiveness of distribution bases and the competitive distribution services market)
9. Revitalizing the urban lifestyles environment (encouraging maximum use of land and space in urban areas)
10. Creating new lifestyles and social systems using IT (realization of socioeconomic systems that make use of a truly fair and competitive environment for IT/telecommunications and IT developments such as ITS, information household appliances, and IC cards)
11. Fostering NPOs (supporting NPOs and streamlining the public sector)

　

II. Reform of Employment Systems and Maintenance of a Safety Net

12. Organizing diverse types of employment (reviewing systems based on the assumption of lifetime employment)
13. New skill-developing systems (changing from 'corporate in-house human resources development' to 'social systemization of human resource development')
14. Facilitating labor mobility (abolishing employment mismatches through private sector activity, developing measures to enhance pension portability)
15. Maintaining a safety net (assistance for re-employment, review of types of assistance for part-time workers, etc., and facilitated access to financing SMEs )