Abenomics didn't create sustainable economy, says Kishida

TOKYO • Japanese Prime Minister Fumio Kishida said that steps taken under former premier Shinzo Abe's "Abenomics" policy of massive monetary and fiscal stimulus were not enough to create a sustainable and inclusive economy.

Under his "new capitalism" policy, Mr Kishida aims to help create a virtuous circle of economic growth and wealth distribution, he said during a speech yesterday at the World Economic Forum's virtual Davos Agenda conference.

Abenomics was deployed in 2013 to pull Japan out of economic stagnation, but it failed to close income gaps that widened as the ranks of workers in less secure, low-paid jobs grew.

"Rather than leaving everything to market and competition, I will put emphasis on the government and private sector working together for socio-economic transformation," said Mr Kishida, who took office last October.

On climate change, Japan aims to cooperate closely with other countries in Asia so that they can jointly tackle the global challenge.

"As the EU (European Union) started out as the European Coal and Steel Community during the Cold War, I aim for the 'Asia Zero-Emission Community'," for jointly conducting technological development, infrastructure investments and fund raising, Mr Kishida said.

He said he would like to present to the Japanese public a framework for a carbon pricing mechanism, as Japan strives to become carbon neutral by 2050.

On the pandemic, Mr Kishida also vowed to directly tackle the issue of Covid-19 and pursue "realism diplomacy for a new era", taking an aggressive approach and introducing policies swiftly.

REUTERS, XINHUA