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  5. Report "GOVERNANCE INNOVATION Ver. 2: A Guide to Designing and Implementing Agile Governance" Compiled

Report "GOVERNANCE INNOVATION Ver. 2: A Guide to Designing and Implementing Agile Governance" Compiled

July 30, 2021

The Ministry of Economy, Trade and Industry (METI) has released a report titled "GOVERNANCE INNOVATION Ver. 2: A Guide to Designing and Implementing Agile Governance" in which it explains that implementing "Agile Governance" will be necessary for achieving “Society 5.0.” ("Agile Governance" means that a diverse range of stakeholders update rules and systems rapidly on a continuous basis.)

1. Background

Japan is aiming to achieve "Society 5.0," a human-centered society where high integration of cyberspace and physical space can promote economic development and solve societal issues. Progressively implementing innovative technologies in society toward achieving Society 5.0 will require fundamentally reforming the governance model, in light of changes in social structures brought about by new technologies. Given the awareness of this issue, at the G20 Ministerial Meeting on Trade and Digital Economy hosted by Japan in June 2019, the ministers released a ministerial statement and declared the need for "Governance Innovation" that meets social changes brought about by digital technologies, and for its social implementation.

In light of this, the Study Group on New Governance Models in Society 5.0 (hereinafter referred to as the "Study Group") established under METI released a report in July 2020 titled "GOVERNANCE INNOVATION: Redesigning Law and Architecture for Society 5.0" (hereinafter referred to as the "First Report"). The First Report described a governance model based on multiple stakeholders across multiple sectors. The description included goal-based regulations, placing importance on corporate accountability, and incentive-oriented enforcement.

Following this, the Study Group created a draft report titled "GOVERNANCE INNOVATION Ver. 2: A Guide to Designing and Implementing Agile Governance," and opened a call for public comments on the draft. Based on the outcomes of the First Report, the draft report presented the idea of Agile Governance (which will form the basis for governance in Society 5.0) and various governance mechanisms based upon it, including corporate governance, regulations, infrastructure, markets, and social norms.

We received variety of comments from experts around the world, both through the official reception counter and opportunities such as international conferences. METI has updated the details of the draft report based on these comments, and has now released a revised version.

2. Related materials

3. Links to references

Division in Charge

Digital Economy Division, Commerce and Information Policy Bureau