OECD Economic Surveys: Japan

Description

Basic Statistics of Japan, 2017 Executive summary Key policy insights Output growth has peaked, but is projected to continue at a moderate pace Fiscal policy: short-term challenges and threats to long-run fiscal sustainability The new fiscal targets and preparing for the 2019 tax hike Ensuring long-run fiscal sustainability Monetary policy and the financial sector Recent developments in monetary policy The financial sector: strong at present but emerging concerns Sustaining labour inputs in the face of population ageing Narrowing the productivity gap with leading OECD countries Improving corporate governance in Japan Addressing corruption and other serious corporate offences Improving the performance of SMEs Green growth policies to improve well-being and promote sustainable growth More ambitious climate policy would have many benefits Policies to reach 2030 targets rely on higher efficiency as well as expanding nuclear energy and renewables Planned coal-fired power plants may lock in high carbon infrastructure Investing more in renewables can boost Japan’s competitiveness Japan needs to reform energy markets further to make the most of renewables The scope for increasing carbon taxation is large Bibliography Annex 1.A. Osaka: meeting the challenges of sustaining growth and providing social services in the face of population ageing Annex 1.B. Progress in structural reform Annex 1.B. Progress in structural reform Chapter 1. Labour market reform to cope with a shrinking and ageing population Extending working lives A reversal of falling employment rates for older persons since 2000 Japan’s traditional labour market practices Policies that have helped to lengthen working lives The skills of older workers Reforms to extend the careers of older persons Abolishing mandatory retirement Raising the pension eligibility age and reforming the pension system Flattening the seniority wage curve Maintaining and improving skills requires life-long learning in the digital age Providing effective job placement services Improving working conditions Reducing obstacles to the employment of women Improving work-life balance Providing high-quality, affordable childcare Ensuring that women do not have to leave their jobs to care for elderly relatives Reforming the tax system to remove disincentives to work for second earners Enhancing women’s role by reducing discrimination Making greater use of foreign workers Promoting inclusive growth by breaking down labour market dualism Bibliography Chapter 2. Meeting fiscal challenges in a rapidly ageing society Ensuring fiscal sustainability in Japan requires significant fiscal consolidation Japan’s new fiscal consolidation plan A path to fiscal sustainability Policies to control social spending while providing quality health and long-term care Factors driving health and long-term care spending More efficient use of healthcare resources Reducing the number of hospital beds and improving their allocation Reducing the high level of spending on pharmaceuticals Limiting spending on outpatient care Long-term care insurance Ensuring adequate income for the elderly Pension reform Minimum income security in the rapidly ageing society Policies to ensure sustainability of local government services Improving the efficiency of local government administration Ensuring sustainability of infrastructure investment and maintenance Promoting compact cities to achieve economic, environmental and social benefits Reinforcing the institutional framework for local land-use Raising revenue and removing disincentives to employment Further hikes in the consumption tax are needed Broadening the personal income tax base and reducing labour supply distortions Corporate income and capital taxation to promote inclusive growth Increasing the use of environmental taxation Bibliography Annex 2.1. Long-term debt sustainability analysis