Mr. Abe's Assignments

There are many problems with which Mr. Abe should deal. Previously I wrote about that issue. Today I write and summarize what Mr. Abe should do as a next prime minister.

Mainly there is put into three points:

(1) Diplomatic Policy

Now Japan can't do without the interdependences with the East-Asia countries like China and South Korea. So Japan should build a close friendship with them as well as strengthen the Japan-U.S. alliance for the sake of the security of Asia and Pacific region.

To promote the prosperity of the Asia and Pacific region and build a safer and stable community in the Asia and Pacific region, we must face the nuclear and kidnapping concerns and tensions on the Korean Peninsula and must persuade the Chinese and South Korean leaders to cooperate with each other toward the strategic regional security.

(2) Economic Policy

The Japanese economy is recovering from the persistent decade-long recession. Mr. Abe has the prime mission to promote the economic growth. He also gives priority to reducing government spendings and staffs. In the point of keeping the government's budget sustainable, he makes a right remark. However, he needs to propose raising the consumption tax rate at a time in the future for the sound pension system and social security. Raising consumption tax rate is likely to decrease the aggregate demand and make the economy gloomy. He faces a difficult policy choice between tax hike and growth promotion.

(3) Social Security Policy

Mr. Abe fails to convey a strong message on how to rectify the gap between the rich and the poor. I don't think that the social gap is the problem. However, it is likely the symptom of the problem. I think that he should keep in mind the free market economy and relatively reasonable government to conduct any policies. A free market economy benefits many people but on the other hand causes the economic gap and thus the conflict. Mr. Abe needs to remedy any tensions led by the cut-throat competition in order it can't impede the works of market mechanism and the economic gain caused by hard work.

To do that, he should revise the pension system and build firmer social security system for elder people. He suggests that the poor and the unhappy be provided with many opportunities to work for company and to brush up career skills. To create employment, he should also boost the demand of economy by cutting taxes and supplying money. It is, however, very hard to implement such a fiscal expansionary policy.