Reports

This review assesses Japan's public health system, highlights areas of strength and weakness, and makes a number of recommendations for improvement. The review examines Japan's public health system architecture, and how well policies are responding to population health challenges, including Japan's ambition of maintaining good population health, as well as promoting longer healthy life expectancy for the large and growing elderly population. In particular, the review assesses Japan's broad primary prevention strategy, and extensive health check-ups programme, which is the cornerstone of Japan's secondary prevention strategy. The review also examines Japan's exposure to public health emergencies, and capacity to respond to emergencies as and when they occur.

Currently, Japan has the highest old-age dependency ratio of all OECD countries, with a ratio in 2017 of over 50 persons aged 65 and above for every 100 persons aged 20 to 64. This ratio is projected to rise to 79 per hundred in 2050. The rapid population ageing in Japan is a major challenge for achieving further increases in living standards and ensuring the financial sustainability of public social expenditure. However, with the right policies in place, there is an opportunity to cope with this challenge by extending working lives and making better use of older workers' knowledge and skills. This report investigates policy issues and discusses actions to retain and incentivise the elderly to work more by further reforming retirement policies and seniority-wages, investing in skills to improve productivity and keeping up with labour market changes through training policy, and ensuring good working conditions for better health with tackling long-hours working culture.

Under Action 14, countries have committed to implement a minimum standard to strengthen the effectiveness and efficiency of the mutual agreement procedure (MAP). The MAP is included in Article 25 of the OECD Model Tax Convention and commits countries to endeavour to resolve disputes related to the interpretation and application of tax treaties. The Action 14 Minimum Standard has been translated into specific terms of reference and a methodology for the peer review and monitoring process. The minimum standard is complemented by a set of best practices. The peer review process is conducted in two stages. Stage 1 assesses countries against the terms of reference of the minimum standard according to an agreed schedule of review. Stage 2 focuses on monitoring the follow-up of any recommendations resulting from jurisdictions' stage 1 peer review report. This report reflects the outcome of the stage 1 peer review of the implementation of the Action 14 Minimum Standard by Japan, which is accompanied by a document addressing the implementation of best practices which can be accessed on the OECD website: http://oe.cd/bepsaction14.

Japan’s education system is one of the top performers compared to other OECD countries. International assessments have not only demonstrated students' and adults' high level of achievement, but also the fact that socio-economic status has little bearing on academic results. In a nutshell, Japan combines excellence with equity. This high performance is based on the priority Japan places on education and on its holistic model of education, which is delivered by highly qualified teachers and supported by the external collaboration of communities and parents. But significant economic, socio-demographic and educational challenges, such as child well-being, teacher workload and the high stakes university exam, question the sustainability of this successful model. Policy makers in Japan are not complacent, and as Japan starts implementing its Third Basic Plan for the Promotion of Education (2018-22), they are carefully analysing tomorrow’s threats to Japan’s current success. This report aims to highlight the many strengths of Japan’s education system, as well as the challenges it must address to carry out reforms effectively and preserve its holistic model of education. The ultimate goal is to ensure that the education system delivers the best for all students, and that Japanese learners have the knowledge, skills, attitudes and values they need for the 21st century.

This report contains the 2018 Peer Review Report on the Exchange of Information on Request of Japan.