Gov't seeks nominal 3% growth through 2020 by demand in key areas+

TOKYO, Dec. 30 Kyodo -
The Japanese government unveiled Wednesday a basic policy for its growth
strategy through 2020, aiming to achieve an average economic growth of 3
percent in nominal terms by boosting demand in the environmental, health and
tourism fields and creating a total of 4.76 million jobs in related industries.
Under the New Growth Strategy whose basic policy was approved at an
extraordinary Cabinet meeting in the morning, the government will strive to
lift the nation's nominal gross domestic product to around 650 trillion yen in
fiscal 2020 from the expected 473 trillion yen in fiscal 2009 through next
March.
The government will also target reducing the nation's unemployment rate from
the current 5 percent level to the 3 percent level in four years.
The Democratic Party of Japan-led government, which took office in September,
said its growth strategy focuses on generating demand and jobs by implementing
measures to improve the lives of households, and is different from the previous
government's emphasis on expanding business activities to boost the economy.
''What is lacking in Japan now is confidence, hope and a sense of feeling that
things will be all right if we pursue a certain path,'' Prime Minister Yukio
Hatoyama said at a separate meeting with Cabinet members. ''A growth strategy
is necessary in Japan, and we want to reshape the nation into one where the
government firmly and proficiently supports (growth).''
Hatoyama said past strategies launched by previous governments depended on
growth led by public works or a focus on market capitalism, and did not
necessarily lead to growth for the entire nation.
''We changed the past idea that was biased toward (encouraging) the supply
side, and we intend to firmly generate demand,'' he said.
The nominal economic growth target is a jump from a record 4.3 percent
contraction the government projects for fiscal 2009.
On a price-adjusted real basis, the government will aim to post a 2 percent
annual expansion in the nation's economy on average over the next decade.
Designating the environment, health and tourism as key areas for growth, the
government plans to generate more than 100 trillion yen in new demand in the
three industries by 2020.
But it has yet to show a clear picture for its fiscal spending plan to achieve
these targets. Details of the growth strategy, including a time schedule for
achieving the targets, are expected to be decided around next June, the
government said.
The government last week approved a record 92.30 trillion yen budget for fiscal
2010 to help prevent the nation from falling into a double-dip recession amid
deflation and a strong yen, but it has been criticized for lacking a long-term
growth strategy.
In addition to the environment, health and tourism, it has also pledged to
place priority on development in science and technology, employment and human
resources, and efforts to create demand from fast-growing Asian economies.
To help achieve the economic targets, the government plans to support
technology development for next-generation cars and rechargeable batteries, and
encourage the diffusion of sustainable energy through other policies.
By doing so, it aims to generate 1.4 million jobs in environment-related
businesses and to cut 1.3 billion tons in global greenhouse gas emissions by
2020 from the current 28 billion tons.
To boost tourism, the government plans to make it easier for people from other
Asian countries to obtain tourist visas.
The strategy also aims at raising the nation self-sufficiency ratio on foods
and timber to 50 percent to help activate the regional economies.
In the field of medical and nursing care services, the government will help
companies cultivate overseas markets, especially in Asia. By also promoting the
spread of barrier-free housing among other steps, the government plans to
create 2.8 million jobs in the sector.
The government also intends to set up a Free Trade Area in the Asia-Pacific
region by 2020 and turn Tokyo's Haneda airport into a hub airport operating
around the clock.
On employment issues, the government vowed to halve the number of so-called
''freeters,'' or non-student part-time workers excluding housewives, and enable
any woman who has given birth to return to work if she wishes.
The growth strategy also stated that Japan's public and private sectors
together should spend the equivalent of 4 percent of GDP or more in science and
technology-related research and development projects to help support the
nation's growth.
==Kyodo
2009-12-30 21:30:30