We Are Tomodachi Autumn / Winter 2017

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16Speech of the Prime MinisterDelivered at the New York Stock Exchange, Sept. 20, 2017Full text: http://japan.kantei.go.jp/97_abe/statement/201709/_00009.htmlFour years of breaking down wallsIn Japan, this month a young man in his twenties broke down a massive wall. Yoshihide Kiryu¯ became the first Japanese ever to break through the “10 second barrier” in the 100 meters.And I too have “walls” to take on. I will break down any and all walls looming ahead of the Japanese economy and map out a new trajectory for growth. This is precisely the mission of Abenomics.First of all, we have to change Japan’s corporate culture. Two years ago, we drew up a corporate governance code. This resulted in the percentage of listed companies with two or more independent outside directors rising to 88% now, up from 17% five years ago. We also formulated a stewardship code to strengthen governance by institutional investors, and over 200 institutions have already accepted it.Needless to say, the state sector must also change.We have been moving forward in reforming our corporate tax to be growth-oriented. Over the past four years, we have lowered the tax rate by more than seven percentage points. Despite this lower rate, thanks to solid corporate earnings growth, annual corporate tax revenue increased by close to 7 trillion yen (63 billion dollars).Moreover, we are casting off our inward-focused mindset and actively incorporating growth from around the world.In July, we reached an agreement in principle on an Economic Partnership Agreement with the EU. And in the Asia-Pacific region, we are accelerating negotiations aimed at the early entry into force of the Trans-Pacific Partnership, or TPP, Agreement, by 11 nations.We will use every means available to work to extend free, fair, rules-based markets across the world. Japan will continue to demonstrate leadership to this end.We will assemble outstanding human resources in Japan from around the world. I have set up a “fast track” to conduct visa screenings for these professionals within 10 days and created a system by which they can obtain a green card after as little as a year.The Japanese economy has now enjoyed positive growth for six consecutive quarters, for the first time in 11 years. Robust economic growth led by domestic demand is being realized through high levels of wage increases occurring four years in a row. The productivity revolutionNow is the time for us to take on the greatest structural issues facing the Japanese economy—our biggest “walls.” Those “walls” are the rapidly progressing issues of an aging society with a falling birthrate and also a shrinking population.We will raise the potential growth rate even in the midst of a decreasing population and simultaneously take steps to properly address the issue of a falling population. To make this a reality, I have been holding high the two banners of a “productivity revolution” and a “human resources development revolution.” Dramatically improving the labor productivity of each individual will also cause wages to rise. Even with a shrinking population, we should be able to accelerate the speed at which we pull out of deflation.