Productivity Profile of Japan
Council on Investments for the Future (CIF): The CIF is an advisory council to Prime Minister that was founded in September 2016. Prime Minister is the chair of the Council, which consists of nine ministers and seven private-sector experts (two academic experts and five business persons). The Council’s task is to help develop economic growth strategy of the Cabinet. The Council does not have an English website, but its meetings are reported on the Prime Minister’s website.
Council on Economic and Fiscal Policy (CEFP): The CEFP is a statutory advisory body to the Prime Minister on economic and fiscal policy management that was founded in January 2001. The Prime Minister is the chair of the Council, which consists of five ministers, the governor of the Bank of Japan and four private-sector experts (two from academia and two from the business sector). The Council drafts the Cabinet’s annual Basic Policy on Economic and Fiscal Management and Reform, which articulates priorities of budget, tax and structural reforms of the year.
Council for Promotion of Regulatory Reform (CPRR): The Council is a statutory advisory body to the Prime Minister that was established in October 2019 as a permanent body, succeeding the role of the predecessor councils that were installed by temporary cabinet orders in every three years. The CPRR consists of 19 members from the business sector, academia and research institutes. Its mandate is to review and deliver an annual report on recommendations of regulatory reforms, which is to be endorsed as a cabinet decision that binds all relevant government agencies.
OECD: Economic Surveys Japan (multiple), Labour market reform in Japan to cope with a shrinking and ageing population (2019), Boosting productivity for inclusive growth in Japan (2017), Enhancing Dynamism and Innovation in Japan's Business Sector (2015);
Cabinet Office: Annual Report on the Japanese Economy and Public Finance (2018);
Cabinet Secretariat: Action Plan of the Growth Strategy (2019);
ESRI Discussion Paper Series: Management practices meet labour market outcomes (2019).
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Latest OECD Recommendations
Japan’s labour productivity remains well below the top half of OECD economies. Narrowing the gap with leading OECD countries requires bold reforms, such as enhancing trade integration and increasing business-sector dynamism through improved corporate governance and regulatory reform. Boosting investment in knowledge-based capital, such as vocational education and training, is also essential to spur productivity growth.
- Ease entry barriers and raise productivity of the service sector and SMEs, including through reform of the insolvency framework and consolidation of managerial resources in viable firms;
- Promote further corporate governance reforms, including careful monitoring of the implementation of the principles in the Corporate Governance and Stewardship Codes;
- Enhance labour market flexibility and mobility by breaking down dualism, improving the lifelong learning system, and making the tax and benefit system neutral to employment;
- Further promote trade openness through multilateral arrangements;
- Moving to a more market-based agricultural system by reducing commodity-specific payments to farmers and accelerating the consolidation of farmland.