Economic policies that instill hope need to be carried out speedily
(From The Japan Times September 30 issue)

早急な経済政策実施で国民に希望を

As Prime Minister Naoto Kan's new Cabinet goes into full swing, it is important for the government to adopt and carry out effective economic policies speedily. With economic policy, not only substance but also psychological factors are important.

Under the shadow of long deflation, people and enterprises are suffering from a sense of helplessness. The government should present policy measures that help them to discard their gloomy outlook and take a positive view of the future.

As Japan faces the strengthening of the yen and the downward trend in stock prices, the crucial task for the Kan administration is to take every step to prevent the Japanese economy from falling into a second dip.

On Sept. 10, the Cabinet adopted a package of economic measures. They include deregulation, and measures to stimulate consumption, improve anti-disaster efforts and help enterprises to increase investment inside Japan. The government decided to use a ¥915 billion emergency fund included in the fiscal 2010 budget to implement the measures — a reasonable move.

As a second step, the government plans to submit a supplementary budget to the Diet session that began in early October. The planned budget will move forward the spending intended for areas in which new growth is expected — environment-friendly industries, medical, nursing care and child rearing-related services, etc.

To fund the supplementary budget, the Kan administration plans to use a surplus of some ¥800 billion from the fiscal 2009 budget. It is also considering using ahead of schedule the ¥1 trillion that has been set aside in the fiscal 2010 initial budget for future yearly installment payments.

The political ability of Mr. Kan, his Cabinet members and the Democratic Party of Japan leadership will be tested in their efforts to get cooperation from the opposition forces, which control the Upper House. The Kan administration also must prioritize projects in the fiscal 2011 budget because budget requests from ministries and agencies have ballooned.

It is imperative that the government achieve results whose effects people and enterprises can feel.

政府は菅改造内閣の本格始動とともに効果的な経済政策を早急に採用して国民の閉塞感を打ち破り、景気の二番底を避けることが重要だ。

政府は規制緩和、消費刺激、防災や国内投資に関する経済対策を閣議決定した。その実施に2010年度の予備費9150億円を投入し、臨時国会に提出予定の補正予算には環境や医療、介護、子育てなど成長分野の事業を前倒しで盛り込む。

菅内閣と民主党の政治力はねじれ国会で野党の協力を得られるかどうかで試されるであろう。また、各省庁の概算要求が増えるなかで、2011年度の事業の優先付けすることも必要だ。国民と企業が感じ取れる結果を出すことが政府の急務だ。