Japan's Prime Minister, Yukio Hatoyama announced his new strategy for bolstering the nation’s slow recovery over the next decade on Wednesday. The administration has seen approval levels dip in the double digits over the last year as the nation continues to struggle with their recuperating. The lack of significant result has persuaded Hatoyama to recognize the shortcomings in the current method of attack and redesign a decade long strategy for Japan.
The new plan endeavors to promote 2 percent growth over the next 10 years and reach a gross domestic product of 650 trillion yen from the 473 trillion yen projected for 2010.
The plan is still in its fledgling stages, with details expected in June ‘10. The announcement will occur just prior to nationwide elections for the upper house of parliament, a vote which will determine whether the new government, which took power this year by taking the majority of the lower house, has lasting potential.
"With the understanding that the new government's ability to take action is being tested at this time, we will do whatever it takes to achieve this," Prime Minister Yukio Hatoyama said in a conference conference.
Whatever it takes also means relying less on the U.S. for economic support according to Hatoyama who plans to increase trade with its Asian neighbors and develop an Asian free trade zone by 2020.
The Prime Minister referred to Asia as the “new frontier” for economic growth. Still, the world’s second largest still has a lot of work to do before the area become secure. Japan intends to create a $540 billion market for green goods and renewable energy that will produce 1.4 million jobs. Additionally, it is looking to create 2.8 million jobs in the healthcare sector, which will benefit both the greater economy and Japan’s mature population.
The first step in this plan was revealed last week when Japan announced a groundbreaking $1 trillion budget for the upcoming fiscal year, making good prime minister's promise to increase expenditures for child support and cut inefficient pay outs on public works.
Economists with the Japanese government believe the early stages of the plan and the groundwork already laid will lead the nation’s economy to expand by 1.4 percent next year.
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