Economic Survey of Japan 2005: Removing the obstacles to faster growth
This chapter of the OECD Economic Survey of Japan 2005 discusses policies to accelerate growth through regulatory reform and measures to strengthen competition. It looks at a number of major initiatives, including the privatisation of Japan Post, the Special Zones for Structural Reform and the use of market testing to allow a greater private-sector role in social welfare areas. The chapter concludes that improving regulatory tools, including the Administrative Procedure Law, the No-Action Letter system, the Public Comment Procedure and Regulatory Impact Analysis, would enhance transparency and encourage inflows of foreign direct investment. Strengthening competition requires upgrading the Japan Fair Trade Commission and increasing sanctions on violations of the Anti-Monopoly Act. In network industries, such as electricity and telecommunications, enhancing competition depends on improving the regulatory framework. Another priority is increasing openness to international trade through multilateral negotiations and free trade agreements with neighbouring countries. Progress in this regard will require reducing the high level of agricultural protection.
Long abstract
