Regionomics and Womanomics

“Local” and “Woman” were made two keywords in this fall session of the National Diet. In his policy speech at the first day of the session, Prime Minister, Shinzo Abe, insisted that he would take advantage of vitality of local community for his economic agenda and create basis for all women to participate in business. Exercise of collective self-defense right, raising the rate of consumption tax, and resumption of nuclear reactors were dropped from his list of core policies. He looks like tired of sharp arguments.

Critics against Abe’s economic policy argued that Abenomics only helped big corporations and mid and small businesses in local community were left behind. Growth in Japanese economy has actually been seen in big companies or exporters benefited by cheap yen. Small businesses suffered from high price of raw materials. Actual wage of ordinary workers is not raised, because employers have not distributed their profits to their employees.

The concept of encouraging local community is quite simple. It is to encourage distributing wealth from Tokyo to other cities and appeal successful image of Abenomics to every corner of Japan. Abe insisted that new policy would support unique business in local cities, make a great number of jobs, and keep local communities vigorous. He expects those local energy will support growth strategy, which has been recognized as the third arrow of Abenomics.

However, the policy concept of local initiative is nothing new, because the idea was fabricated by bureaucrats in Kasumigaseki, mainly Ministry of Finance. Although the details of policy package have not been explored, it is already predicted that most measures will be some versions of subsidy. For example, the ministry will approve helping money to a small town that has a unique plan for selling fish caught in the sea the town faces. Basic system of concentration of power in Tokyo will not be changed. The policy is actually a new package of bureaucrats to rule local communities.

Reform of woman policy will be far from success. Abe’s “bright future for women” will, at worst, be enforcement of labor to every woman. Supposed policies are eliminating waiting kids for nursery or encouraging husbands to take care of their children, which have been tried for many years. The greatest appeal point of Abe in his speech was a meeting with Hillary Clinton in New York, in which they talked about status of women.

Those strange policies showed a fact that Abe has worn out his option for economic agenda. Abenomics is on the verge of failure with no sign of benefit for the middle class. Rift between the rich and poor is getting wider than ever.