Japan to pursue 'third way' to beat economic difficulties: Kan+

TOKYO, Jan. 29 Kyodo -
Japan must break from out-of-date approaches and pursue a ''third way'' to
overcome economic and fiscal difficulties, Finance Minister Naoto Kan said
Friday.

In a fiscal policy address to parliament, Kan said the future prosperity of
Japan hinges on whether it will be able to transform ''an old-style allocation
of resources'' with strong political leadership.
He said Japan from now on needs to achieve economic growth by ''going along a
third way of creating new jobs and demand through exercising wisdom, instead of
relying on public works projects or calling for excessive market
fundamentalism.''
Amid fiscal constraints, Kan said the government led by the Democratic Party of
Japan did its best to shift the focus of outlays to measures aimed at
protecting and revitalizing the lives of many ordinary people, when it crafted
the budget for the year starting in April that needs to be approved by the
Diet.
Kan called for the smooth passage of the 92.30 trillion yen budget through the
Diet by the end of March, with many of the measures to be carried out from the
beginning of fiscal 2010.
At the same time, he said the government, formed in September, will work toward
rebuilding public finances and prepare a credible plan to rein in debt in the
first six months of 2010.
To that end too, Japan should make wise spending choices and transform the way
in which taxpayers' money is used from the time when the Liberal Democratic
Party was in power almost uninterruptedly for more than five decades, said Kan,
who became finance minister earlier this month to replace Hirohisa Fujii.
At a time when Japan remains mired in deflation, he also said the government is
hoping to work closely with the Bank of Japan.
Kan concurrently serves as minister in charge of economic and fiscal policy.
He made a separate economic policy speech to parliament, saying Japan is
neither too pessimistic nor too optimistic in overcoming a long slump.
''This year, we must provide a major turning point for the Japanese economy,''
he said.
After being the world's second-largest economy for about 40 years, Japan may
give over that position to China this year, Kan said, but he is confident
nevertheless that the nation will generate new sources of growth as it still
holds many cutting-edge technologies, as well as a high-quality and diligent
labor force.
Kan, however, warned against complacency, saying the DPJ-led government's
predecessors had penned numerous growth plans but the Japanese economy has not
yet returned to a sustainable recovery path.
''What was missing until now and what is now needed is political leadership,''
Kan said. ''The birth of the Hatoyama government amid the economic crisis is
also a big chance to break free from the chains of the past and turn the
economy into one that is intended truly for the benefit of the people.''
==Kyodo
2010-01-29 23:35:23


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