Fundamental Principle of the Third Arrow （１）
1) Promotion of Investment
- ■ Corporate investment is to be encouraged to maximize the potential of the private sector.
- - Bold regulatory and institutional reform, bold tax incentives for capital investment.
- ● Major Key Performance Indicators (KPI)
- Return capital investment to the pre-global financial crisis level within three years (target: 70 trillion per year; FY2012: 63 trillion yen).
- Enhance the ratio of business startups to exceed the ratio of business closures and bring those ratios to a level comparable to the U.S. and UK, which is above 10% (current rate in Japan is around 5%).
2) Strengthen Utilization of Human Resource
- ■ Increase workforce participation of women, youth and the elderly.
- - Support the advancement of women's roles in the workforce and support youth in their search for employment.
- ● Major Key Performance Indicators (KPI)
- Improve female (25 to 44 years of age) participation in the workforce from the current rate of 68% to 73% by 2020.
- Reduce by 20% the number of long-term unemployed (more than 6 months) over the next five years and increase the rate of employment change and new hiring from 7.4% in 2011 to 9%.
- Double the number of international students by 2020 (university students and other students from 60,000 to 120,000).
Strengthening the Growth Strategy
- The Growth Strategy is not merely words on paper. It (1) places the highest priority on putting strategies into action and (2) continue to evolve to achieve further reforms.
- In December 2013, Prime Minister Abe gave the following two instructions in order to further strengthen the third arrow:
Development of an “Action plan for the implementation of Japan Revitalization Strategy”
- The action plan is to be developed by the end of January 2014 to facilitate steady implementation of Japan Revitalization Strategy policies.
- The action plan will outline implementation periods for major policies and the ministers responsible for the respective policies. Implementation of the policies will be managed through a PDCA cycle.
Development of an “Direction for consideration of further reforms”
- Pursuing further evolution of the Growth Strategy, an revised Growth Strategy will be developed in mid 2014.
- Leading up to that, the Industrial Competitiveness Council (chaired by Prime Minister Abe) will develop a “Direction for consideration of further reforms” that will focus on structural reforms in the fields such as employment, human resources, agriculture, health care and nursing care.