K I ZU NA
Special Issue

Linking Japan and the World

Early Spring
2022

KIZUNA

KANAZAWA SHOKO
Calligraphy Artist
Born in Tokyo in 1985, she started learning
calligraphy from her mother when she wasfive years old. One of the notable young
calligraphers of today, her solo exhibitions
have been held throughout the world,in cities such as New York, Singapore,and Prague. She was selected as one of theofficial poster artists for Tokyo 2020.

Welcome to KIZUNA, the official
magazine of the Government of Japan.
This bold work of calligraphy is
絆(kizuna) written in Japanese. Kizuna
means the enduring bonds between
people—close relationships forgedthrough mutual trust and support.
Originally describing the rope used
to tether domestic animals such as
horses and dogs, the meaning of
kizuna has evolved over the years. A
passage in The Tale of the Heike,compiled in the 13th century, uses theterm to refer to the bonds of love
between a father and his children.
More recently, kizuna has gone
beyond bonds tying together family
and close acquaintances; it is now
used in a broader sense of human ties
and connections. Of particular note is
the kizuna born among people during
natural calamities, which fosters
feelings of solidarity and serves as theunderlying strength to overcome
hardships.
Similarly, the kizuna cultivatedamong the countries of the world has
the power to deepen cooperation for abetter future. By reporting on a wide
variety of topics concerning Japan, we
hope that this magazine will provide
opportunities for Japan and the rest of
the world to connect and build
strong kizuna.

CONTENTS
04

Building a Post-COVID-19 New Japan:
Policy Speech by PM Kishida

06

Prime Minister KISHIDA Fumio’s
Personal Timeline

08

Special Address at Davos Agenda
on a New Form of Capitalism
IN FOCUS: NEW FORM OF CAPITALISM

12

Lessons from SHIBUSAWA Eiichi, the Man Who
Formed the Foundation of Japanese Capitalism

14

Economic Measures to Overcome COVID-19
and Pioneer a New Era

16

Vision for a Digital Garden City Nation:
Achieving Rural-Urban Digital Integration andTransformation
IN FOCUS: VISION FOR A DIGITAL GARDEN CITY NATION

18

Tackling Local Challenges ThroughDigital Transformation
Early Spring 2022
PORTRAITS OF JAPAN20

Japanese Spring Blooms on the Dining TableTO READ MORE CONTENT,CHECK OUT OUR WEB MAGAZINE
https://www.japan.go.jp/kizuna/

COVER
Prime Minister Kishida attended theWorld Economic Forum (WEF)’s
online Davos Agenda meeting anddelivered a special address. In
response, Professor Klaus Schwab,
Founder and Executive Chairman of
the WEF, expressed his highexpectations for Japan’s
comprehensive efforts toward
economic and social reforms.

03

BUILDING A POSTCOVID-19
NEW JAPAN:
POLICY SPEECH BY PM KISHIDAAN EXCERPTJANUARY 17, 2022
Full Text: https://japan.kantei.go.jp/101_kishida/statement/202201/_00009.html

Introduction
The highest priority issue for the administration is
responding to COVID-19. It is precisely because we arefacing the hardship of COVID-19 that, rather than standtransfixed, we should build a post-COVID-19 new Japan,
with everyone taking up this challenge in cooperation.
Fundamental approach to COVID-19 responses
I advance our responses based on the most up-to-dateknowledge in a level-headed manner, as I listen to the viewsof experts. Even for policies on which decisions have alreadybeen taken, I intend to once again develop our response
flexibly and without hesitation if a better approach exists.
Responses to the Omicron strain
By adopting the most stringent border measures among
the G7 countries, we have minimized the inflow of theOmicron strain and we have had time to prepare for an
increase in the number of domestic cases of infection. We
will maintain the framework of border measures until theend of February.
Beyond that, from now we will place importance on
domestic countermeasures. We will redouble our efforts toensure that our medical treatment structures are solidly inplace, with a focus on providing unerring medical treatment
to patients with severe or moderate symptoms and persons
at high risk.
Reinforcing our domestic framework of prevention,
testing, and early treatment will also be critical. We willfurther accelerate the schedule for administering the third
vaccine dose. The orally administered therapeutic has
already been delivered to medical facilities.
A new form of capitalism
From the perspectives of both our Growth Strategy andour Distribution Strategy, we will embed structures into04

capitalism that correct its various harmful effects, thereby
maximizing the benefits that capitalism brings.
Under our Growth Strategy we will work to resolve social
issues, including digitalization, climate change, economic
security, and science, technology and innovation, andalso bring together investments from both the public andprivate sectors into fields where Japan has been weak thus
far to transform them into engines for growth.
We will also confront the problems of distribution anddisparities head on, leading to subsequent growth. In thisway, we will set the economy in motion from both thegrowth and distribution fronts, and by giving rise to a
virtuous cycle, we will create a sustainable economy.
The first pillar of the Growth Strategy is revitalizing
regions through digitalization. We will vigorously promotea Vision for a Digital Garden City Nation while also
realizing bottom-up growth, from the regions to the nation
as a whole.
Economic security is also a major pillar. We will enact
new laws to, among other things, provide support formaking the supply chain more resilient, prepare a safety
pre-screening system for critical equipment and systems
within core infrastructure, and prepare a patent nondisclosure system for inventions that are sensitive in termsof national security.
If we are to elevate social issues to become engines ofgrowth, the power of science, technology, and innovation
will be absolutely essential. Establishing a five-year plan, we
will work to get startups off the ground on a large-scale.
The key to realizing a sustainable economy is ourDistribution Strategy. First and foremost is wage increases.
Second, we will undertake a fundamental strengthening ofinvestments in people. We will at least double public andprivate investments made in people at an early time. Third,
we will maintain the middle class of the next generation,
which will shoulder the responsibilities of the future.

Focusing on families with small children and the young
generation, we will work to raise household income.
This spring we will compile both the grand design of the
new form of capitalism and an action plan. We will share
this same awareness of issues with leaders around the worldand build up a surge heading towards changes to capitalism.
Responses to the problem of climate change
The public and private sectors are working to share
a common overall vision, urgently at least doubling
investments into this field and we will be engaged in atransformation of our economy and society as a whole. We
will show to the public a path forward for economic andsocial changes, as our Clean Energy Strategy.
To contribute to the decarbonization of the world,
especially Asia, we aim to join forces with like-mindedcountries in creating the “Asia Zero Emissions Community.”
Towards a society in which all people can feel their purpose in life
We will work to foster women’s economic independence
and eradicate violence against women.
We will establish an Agency for Children and Families inorder to place policies affecting children at the very centerof our society.
Regional revitalization
We will work to transform agriculture, forestry, andfisheries into growth industries.
Keeping the post-COVID-19 world firmly in view, we
will promote a shift to greater added value in the tourism
industry.
Disaster response measures
I am strongly determined for us to reinforce our efforts toprevent and reduce disasters and enhance national resilience.
In regard to the reconstruction from the Great East
Japan Earthquake, we will advance our measures allowing
temporary stays in preparation for returning to the area,
moving towards the lifting of the evacuation order on
Reconstruction and Revitalization Bases.
Diplomacy and security
Firmly holding aloft the flag of ideals for the future,and, looking squarely at the actual situation, I will pursue“realism diplomacy for a new era.”As the first pillar, we will place importance on theuniversal values and principles of freedom,democracy, human rights, and the rule oflaw. I will hold talks with President Biden,
and we will further reinforce the deterrence
and the response capabilities of the Japan-U.S.
Alliance.
The abductions issue is one of the highest priority
issues. Working in cooperation with other countries, I will
do everything in my power to realize the return of all theabductees to Japan at the earliest possible date.
The concept of a “Free and Open Indo-Pacific” issupported by many nations. The Quad of Japan, Australia,
India, and the United States is advancing its cooperation,with practical cooperation taking concrete shape. We
will also strengthen our cooperation with ASEAN andthe countries of Europe. The peace and stability of ourneighboring region is also important.
As the second pillar, we will actively work to tackle
global-level challenges. I will establish the International
Group of Eminent Persons for a World Free of Nuclear
Weapons, with the participation of current and former
political leaders from around the world. We will convene
the first meeting in Hiroshima, aiming at sometime within
this year.
The third pillar is efforts to resolutely and fully defend
the lives and livelihoods of the Japanese people. We will
spend roughly a year drawing up a new National Security
Strategy, National Defense Program Guidelines, and MidTerm Defense Program.
We will realistically examine all options, including
possessing what is called “enemy base attack capability,”
without excluding any possibilities. We will fundamentally
reinforce our defense capabilities with a sense of speed,
including through the supplementary budget enacted lastmonth and the budget for fiscal year 2022.
Constitution
Within this Diet session too, I wholeheartedly lookforward to active debates on the Constitution being held.
Conclusion
Now, as we carve out a new era, we politicians and theadministration are called upon to reform and control
ourselves. I will engage in my duties humbly, aiming at politics
of trust and sympathy. I make a sincere request to all theJapanese people for their understanding and cooperation.

05PRIMEMINISTERKISHIDAFUMIO’SPERSONAL
TIMELINE

On October 4, Kishidaconducted his first press
conference as prime minister.

July 29, 1957
Born in Tokyo
Kishida was born in Tokyo in the early years of Japan’s economic boom—when the country was getting back on
its feet after the war—as the son of KISHIDA Fumitake, a government official at the Ministry of International Tradeand Industry (currently the Ministry of Economy, Trade and Industry). His grandfather, KISHIDA Masaki, was a
successful department store proprietor who also served as a member of the House of Representatives.

1963
Moves to New YorkWhen his father was assigned to work in the United States, the family
moved to New York. Kishida attended a local public elementary schoolfrom the first to third grades, where he was impressed by the liberal
ambience of the U.S. and learned to respect diversity.

1973
Student Days

Kishida (top row, second from right) withclassmates in Queens, New York.

After returning to Japan, Kishida attended public elementary and middle
schools before going on to Kaisei Senior High School, a prestigious
private academy. He was an enthusiastic member of the baseball team, an
experience that taught him the importance of working together as a team.
In 1978, he entered the School of Law at Waseda University. When his
father ran for the House of Representatives for the first time the following
year, Kishida helped him to campaign.

1982
Gains Work Experience at a Bank

Kishida (center) played second base for hishigh school team.

After graduating, Kishida joined the Long-Term Credit Bank of Japan (currently Shinsei Bank). He worked inforeign exchange in Tokyo and was subsequently transferred to the city of Takamatsu in Kagawa Prefecture where
his clients included maritime shipping firms. He gained firsthand knowledge of the unfavorable economic reality
there by watching small and medium-sized enterprises sometimes founder and fail due to cash-flow problems.

06

1993
Joins the Political World
Helping his father’s campaign and working for a bank awakened in
Kishida an urge to serve the people directly by protecting their lives
and improving society as a whole. That set him on his way to politics.
In 1993, after his father’s death, he ran for his father’s seat in a districtin Hiroshima and won his first political battle. He valued politicalstumping as a way to speak directly to voters—an approach thatbroadened his appeal and led to his winning the seat 10 times.

Kishida receives his
parliamentary badge
after being elected to
the House ofRepresentatives forthe first time.

2007
Receives First Cabinet Posting
Kishida joined the Cabinet for the first time as a Minister of Statefor Special Missions, a position in which he took on assignments invarious fields including Okinawa and Northern Territories Affairs,
Quality-of-Life Policy, and Science and Technology Policy. He
became Minister for Consumer Affairs in 2008, a position from which
he worked for the establishment of the Consumer Affairs Agency.

Kishida favors a hands-on approach and has visitedmany places throughout the country.

2012
Appointed as Minister of Foreign Affairs
In 2015, Kishida strove for the bilateralagreement between Japan and the Republicof Korea regarding the issue of comfort
women which was “resolved finally andirreversibly.” In 2016, he helped to actualize
a visit to Hiroshima by President Barack
Obama, the first ever such visit by a sitting
U.S. president. Kishida served as Minister of
Foreign Affairs consecutively for four years
and seven months, making him the longestserving foreign minister in postwar Japan.

October 4, 2021
Becomes Prime Minister
Upon winning the election for Liberal
Democratic Party president, Kishida was
appointed Prime Minister of Japan by an
extraordinary session of the Diet. He vowed
to lend a sincere ear to the voices of theJapanese people and to conduct politics in
an attentive and broad-minded manner.

Top: Kishida visited New York in 2016 to attend a
G7 Foreign Ministers’ Meeting as the chair.
Left:Kishida explains the symbolism of the Atomic
Bomb Dome to U.S. President Obama.

Kishida filled nearly 30 notebooks in 10
years with comments and appeals from thepeople of Japan.

His favorite food is Hiroshima-styleokonomiyaki ( Japanese savory pancake).
He ate the dish on the day that he waselected to head the Liberal Democratic
Party. “I’ll never forget how wonderful
it tasted,” he says.

07

SPECIAL ADDRESS AT DAVOS AGENDA ON

A NEW FORM OF CAPITALISMJANUARY 18, 2022
Full Text: https://japan.kantei.go.jp/101_kishida/statement/202201/_00008.html

On January 18, Prime Minister Kishida attended the World Economic Forum (WEF)’s Davos Agenda
meeting, which was held online. In his special address, he introduced his vision with an emphasis on the revivalof the Japanese economy through a “New Form of Capitalism.”
Pointing out global challenges ranging from climate change to social digital transformation, a widening of
the income gap and rising poverty, he underscored his determination to lead the global trend with this “NewForm of Capitalism,” demonstrating concrete examples of how capitalism can evolve.
The prime minister also stated that in this “New Form of Capitalism,” he would achieve a “virtuous cycle ofgrowth and distribution,” by launching new mechanisms to inspire investment and change the way of sharing
added values. He also elaborated on his priority policies: establishing a green society; promoting digitalization;and investing in people, and pledged to boldly pursue the inclusive transformation of Japan’s economy and society.

Prime Minister Kishida, in a speechat the Davos Agenda meeting,underscored his determination toachieve a “New Form of Capitalism.”

Professor Schwab,Distinguished guests,
First of all, let me extend my heartfelt congratulations
on the holding of the World Economic Forum’s “Davos
Agenda 2022” today.
1. Introduction
Last year, I went through some of the toughest
challenges that risked my political career. First, I ran

08

for presidential election of the ruling party (Liberal
Democratic Party: LDP) and won, taking the office as thePrime Minister. Then my party won the general elections
by securing a stable majority. My political style is to take anaggressive approach and introduce policies swiftly, while
placing the utmost importance to directly communicatingwith the people and workers at the frontline.
I will make the most of my approach to directly
tackle three agendas during my administration. First,

Growth provides resources through increasing
corporate profits and government revenue,
which leads to distribution.

overcoming the COVID-19. Second, reviving theJapanese economy through a “New Form of Capitalism.”Third, pursuing “realism diplomacy for a new era,” taking
a realistic approach in Japan’s foreign policy while aspiring
to the ideal.
Today, I would like to introduce my vision with anemphasis on the revival of the Japanese economy througha “New Form of Capitalism.”
2. What is a “New Form of Capitalism”?
We are facing a number of challenges ranging fromclimate change, social digital transformation, widening ofincome gap and rising poverty, chronic lack of mediumto-long-term investment, disparities between urban andrural areas, democracy in crisis due to shrinking middle
classes, to unforeseen emerging tensions in geopolitics andgeoeconomics.
If we look back on history, the world has gone throughseries of eras of paradigm changes, including, for example,
endeavors to establish welfare states and big governmentsin the 1950s and 60s, as well as the rise of neoliberalism
by President Reagan and Prime Minister Thatcher inthe 1980s and 90s. Just as the same historic scale as thesetimes, I believe that we are now in an era of anotherparadigm shift in policies.
I would like to pay respect to the role this Davos Forumhas played in leading vigorous and visionary discussions
on various topics including the Great Reset and the
Stakeholder Capitalism.
Some people point out that “state capitalism withunmonitored concentration of authority” is efficientin conducting social reforms. However, it is proven in
history that state capitalism without a function of checks
and balances carries a high risk of large side effects both athome and abroad.
That is why I will endeavor to transform the economy
and society toward a new era, while protecting theuniversal value of democracy. In other words, my goal is toachieve the “Great Transformation of Liberal DemocraticSociety.”
The Biden administration’s “Build Back Better” aswell as the European Union’s “NextGenerationEU”
are, I believe, also initiatives to achieve the same goal of
realizing historic social transformations.
I will steadily promote economic and social reforms,
while being subject to critical judgement by our

GrowthPublic and private
sectors work
together to achieve“growth” and“distribution.”

Distribution

Distribution increases demand in consumption andin investment while strengthening the potential for
growth, which leads to further growth.

citizens through elections. In order to do this, leaders ofgovernments, industries and labor must work together togenerate a massive momentum and create a tide of history
for a global paradigm shift in policies.
Japan is determined to lead the global trend with this“New Form of Capitalism” and will demonstrate concrete
examples of how capitalism can evolve, as Japan willassume the G7 Presidency next year.
3. Efforts to revive Japan’s economy“If general perception changes from seeing the glassas ‘half-full’ to seeing it as ‘half empty,’ there are majorinnovative opportunities.”
This is the theory of the “glass half empty”, quoted by
the famous scholar in management, Peter F. Drucker.
Japan is a prosperous, peaceful country and comfortable
to live in; this is one of the reasons why people in Japantend to cuddle themselves in their own silos, satisfied,and see things as “half-full.” However, through our fightagainst COVID-19, things have dramatically changed inthis time and age.
Nowadays, every day, we feel a sense of global crises in
our lives. When each person and each business share thisfeeling of “half-empty,” I am convinced, Japan will be able
to greatly transform itself with its bond of solidarity thatis inherent in our spirits.
In this “New Form of Capitalism,” I will demonstrate
to the people a clear and full picture of the historicchallenges the Japanese economy and society are currently
facing. Rather than leaving everything to the market andcompetition, we will focus on having both the public andprivate sectors work together towards reforms, sharing thefull picture of social and economic transformation. Japan’s

09Japan commits itself toachieving carbon neutrality
by 2050. Fukushima
Hydrogen Energy Research
Field (FH2R) is one of thelargest facilities producing
hydrogen from renewable
resources.

10

strong sense of solidarity becomes a foundation of a new
public-private partnership.
I will also launch new mechanisms to inspire
investment and change the way of sharing added values.
I will integrate them into both growth and distribution
strategies to achieve a full-scale “twin-engine of growthand distribution.”

Emissions Community” in Asia where both geopoliticaland geo-economic challenges are intensifying. This
community would become a platform to advance efforts
such as international joint investment on development ofzero-emission technologies and hydrogen infrastructure,joint financing, standardization of related technologies,
and establishment of an Asian emissions trading market.

4. Transformation of economy and society(1) Green society
To fulfill the Paris Agreement, Japan has committed
itself to the goals of achieving 46 per cent reduction inemissions by Fiscal Year 2030 and carbon neutrality
by 2050. The journey to achieving these goals is
extraordinarily challenging. Japan does not haveinternational grid connections. There remains strong
public distrust of nuclear power following the accident
in Fukushima. The cost of renewable power generation isinevitably high because Japan is an insular state with steep
mountains and surrounded by deep sea. These factors
create vulnerability in the Japanese economy.
In order to overcome such vulnerability on the supplyside, the private and public sectors will intensively work
together to transform and innovate toward a carbon
neutral society on both demand and supply side.
Our efforts include institutional reforms andsupporting policy in order to double investment as earlyas possible, as well as accelerating the development of
next-generation grids. In addition, I will also work on
carbon pricing and labor market reforms to transform
industrial structure and individual consumption. Japanis determined to boldly adopt policies that have been
politically difficult in the past, against the backdrop of the
public’s sense of urgency to tackle climate change.
I am also aware that many Asian countries have energy
structures that are similar to Japan. Just as the European
Union started as the European Coal and Steel Community
during the Cold War, Japan envisions an “Asia Zero

(2) Digital
Another important pillar is digitalization. In Japan,
progress in digitalization had been insufficient. People inJapan did not really feel a pressing need for transformation,and just wanted to keep the way of working they were used to.
The COVID-19 pandemic, however, sparked many
people once again how far behind we are in digitalization
while realizing the convenience of digital technologies. In
addition, we realized that the power of digital technology
is indispensable in solving Japan’s social problems amid
rapid progress of depopulation of rural areas and an aging
population.
Now is a “chance” for Japan. Taking this opportunity,
I will push forward Japan’s digitalization at a stretch. The
key to this is infrastructure.
Japan will build submarine cables around the country as
well as optical fiber networks throughout the archipelago.
In order to prepare for the surge in data processing withthe advent of the full-scale digital age, Japan will disperse
large-scale data centers throughout Japan. In addition,
Japan will promote next-generation networks using
optical communication technology that is 100 times
faster in speed and reduces electricity consumption to one
tenth.
An autonomous drone carries a box
containing hot meals for a field test of fooddelivery in Tokyo in November 2021. AFLO

Japan’s public and private sectors will jointly set
numerical targets and develop such infrastructure in aplanned manner. Japan will make it possible for people
to use ultrahigh-speed and large-capacity lines on a “oneperson, one line” basis.
As our existing systems do not meet the needs of
new businesses and services, my government will review
40,000 regulations and systems under the new guiding
principle of digitalization, which set up the principles
of how Japanese society is to be digitalized. I consider it
important to create a new market by setting new ruleswith an eye on frontier technologies like drones andautomated driving as well as recent developments in suchareas as healthcare and education.
In addition, I will take the “Data Free Flow with Trust(DFFT)” that Japan proposed three years ago in Davosanother step forward. Based on trust as a foundation,
we will realize a free flow of data which will bring about
innovation and bridge the wealth gap.
(3) Investment in people
Investment in people is the key to achieve both a carbon
neutral society and digitalization. In our time, creativity
and ingenuity of human beings provide the clue to solving
problems and the source of innovation.
For years, Japanese companies have tried vigorously
to curb cost and supply cheaper products than theircompetitors. In this endeavor, “investment” in people
has often been regarded as a cost. As a result, wage levelremains stagnant, and investment in human resources
development has also been limited.
As we move forward, we must build a virtuous cycle
where investment in people leads to continuous increasein company value and attracts further investment in
human capital. The government will introduce systems
to support human capital that fits this age of digitaltransformation, such as creating new employability skills
training program, promoting the appointment of female
executives, and utilizing side businesses.
In doing so, it is important to create a common
understanding not only among business people but
also with market players that investment in people
is a source of corporate value. This is essential increating a system that attracts more funds to companies
that promote medium-to-long-term corporate valueenhancement. To this end, Japan will create a disclosure

Sitting down to talk with a groupof auto mechanics, Prime Minister
Kishida said that raising wages
would be an investment in growth.

system for investments in non-financial assets such as
human capital.
5. Toward a sustainable Japanese economy
Japan’s “Abenomics” was based on the three pillars ofmonetary easing, fiscal expansion, and growth strategies,
including global standard corporate governance. As aresult, the Japanese economy is no longer in a deflationary
situation, and has achieved the expansion of women’slabor participation and employment.
“Abenomics” achieved great results, but it is clear thatthe efforts made thus far are not enough to transform theJapanese economy into a sustainable and inclusive one.
My cabinet will build on Abenomics’s achievements
regarding macroeconomics and market, and boldly
pursue the transformation of Japan’s economy andsociety, including green transformation and digitaltransformation.
Against the backdrop of the people’s sense of crisis, I will
design and implement a mechanism that will bring out thepeople’s endeavor and promote investment, especially, inthe areas of vulnerability in the Japanese economy.
6. Conclusion
The time to design a world beyond the Great Resetcannot wait.
To open up this new era, it is vitally important to haveas many people as possible to connect amongst each otherbased on trust through continual conversations whichtranscend differences in values, circumstances and views.
The Davos Forum has embodied such spirit andattracted political and economic leaders from all over theworld for a long time.
I am convinced that there is heightened importancefor both political and economic sectors to discuss publicaffairs and act together beyond their differences. In thiscontext, this Forum will become even more significant.
Finally, I would like to conclude my remarks by wishing
the continued success of Professor Schwab and the membersof the World Economic Forum as well as all the guests.
Thank you very much for your attention.

11

IN FOCUS: NEW FORM OF CAPITALISMLESSONS FROMSHIBUSAWAEIICHI
THE MAN WHO FORMED THE FOUNDATION
OF JAPANESE CAPITALISMSHIBUSAWA Eiichi—the industrialist who helped build Japan’s new economic system in the late 19th to early
20th centuries and who was involved in the establishment and management of nearly 500 companies. What lessons
are there to learn from this man, who made it his goal to build a fair and inclusive capitalist economy based on his
unwavering stance of placing importance on not only profits, but public interests as well?

The global economy is
man who similarly pursued
now at a major turning
not only profits but also
point. Capitalism has long
public interests, aiming tobrought
prosperitytorealize a fair and inclusive
the world, and since theform of capitalism. This
1980s, neoliberalism, with
was SHIBUSAWA Eiichi,
its focus on free-market
an industrialist active fromcompetition, has been thethe late 19th to early 20th
wellspring for growth. Yet,centuries, and who is known
it also has increased poverty
as the “father of Japaneseand social disparities, andcapitalism.” At that time,
made the issue of climate
Japan was confronted with thechange more serious bydaunting task of rebuilding
placing larger burdens on
its political, economic, andA book compiling Shibusawa’s thoughts on various issues,
the natural environment. The Analects of Confucius and the Abacus, is still widely read tosocial foundations in order toAmid such a situation, the this day. Due to his contribution to Japan’s modern economy,
modernize the country after
he has been selected toworld has begun seeking out become the face of thethe end of more than 200
a new model for capitalism. new 10,000-yen bill inyears of national seclusion in
2024.
Prime Minister Kishida of FROM TOP : GETTY IMAGES,
1854.
Japan, who assumed office in THE MAINICHI NEWSPAPERS
A key figure taking up thisOctober of 2021, announced
challenge was Shibusawa.
his determination to realize a “new form of Recognized at a young age for his resourcefulness,
capitalism,” stating that the government will generate he was mandated by the government to travel togrowth by solving such issues as climate change, and Europe when he was 27 years old, where he witnessed
will distribute the fruits of this growth to human advanced industrial and economic systems. Upon his
capital so as to achieve further growth. By creating return to Japan, he quickly climbed the bureaucraticsuch a virtuous cycle of growth and distribution, he ladder to become a high-ranking official in theaims to build a sustainable economy.
Ministry of Finance, but resigned at the age of 33 toMore than a century ago in Japan, there was a promote private-sector business. He then established12

Left: June 1878, in the early days after the Tokyo Stock Exchange was opened as Japan’s first official stock-exchange organization. THE MAINICHI NEWSPAPERS
Right: Photo of Shibusawa (front row, third from the left) together with faculty members from Japan Women’s University at the time of its founding. In
addition to serving as president of this university, Shibusawa was the director of Tokyo Jogakkan Schools for Women, which he also helped to found.
JAPAN WOMEN’S UNIVERSITY

Japan’s first bank in 1873 and the stock exchange
in 1878. He applied himself to directing funds to abroad range of new industries, from sectors concernedwith infrastructure to textiles and insurance, and was
involved in the establishment and management ofnearly 500 companies.
“Many of the companies that Shibusawa helped
establish in a diversity of fields remain today. Thiscannot be found in any other country in theworld,” says Christina Ahmadjian, professor at
Hitotsubashi University Graduate School of Business
Administration, and the director of the Shibusawa
Scholar Program. Moreover, the world-renowned
economist Peter Drucker mentioned in his book, The
Age of Discontinuity, that “[Shibusawa’s] achievements
were a good deal more spectacular than those ofRothschild, Morgan, Krupp, or Rockefeller.”
Ahmadjian notes, “Rather than on profiting for
himself, his business ideas were always based on
how to create a society in which people are happy.
He believed in the power of business as the engine
to solve social problems and create a better world.”
What Shibusawa advocated was gapponshugi, which
can be defined as the pursuit of profits and theraising of capital through stock—similar in concept
to ordinary capitalism—while also calling for the
pursuit of public interests and the distribution of
profits to all stakeholders. “Shibusawa’s goal was tocreate a fair and inclusive economy that would enrich
the lives of a broad range of people and provide themwith various opportunities,” says Ahmadjian.
Believing that nurturing talent for new businesses
would lead to the creation of a prosperous nation,

Shibusawa also focused on education. He establishedmany schools specializing in business, including theCommercial Training School (now Hitotsubashi
University), and gave lectures and guidance at variousorganizations and meetings. Additionally, so thatwomen—who make up half of the population—could
contribute more to society, he also advocated thenecessity of their higher education and supported
the establishment of such schools as Tokyo Jogakkan
Schools for Women and Japan Women’s University.
According to Ahmadjian, “Looking now at the SDGs,
you can see that Shibusawa had already put most ofthem into practice, including gender equality. The
essence of the challenges facing human society is thesame in any era. Shibusawa was able to grasp thatessence.”
How can we create a world that will bring happinessto people? As new ordeals shake the global economy,
now may be the time for us to look to Shibusawa’s
doctrine for new hints on how to address this basic
question. 

Christina Ahmadjian, professor at
Hitotsubashi University Graduate
School of Business
Administration, and the directorof the Shibusawa Scholar
Program, which has the goal of
nurturing global leaders. “Now,more than ever, the world needs
leaders like Shibusawa,” she says.
“Shibusawa is a really good rolemodel, not just for his visions but
for his ability to act on them. The
world has a lot to learn from him.”

13

ECONOMIC MEASURESTO OVERCOME COVID-19 AND PIONEER A NEW ERANOVEMBER 19, 2021

On November 19, the Japanese government determined new economic measures amounting to a projectwith a scale of 78.9 trillion yen, accompanied by a fiscal expenditure of 55.7 trillion yen.
Japan’s national economy, having suffered damage due to the COVID-19 epidemic, remains beset bynumerous difficulties. The number of new infections is on the wane, however, and restrictions on the activities
of Japanese people are gradually being eased.
The government will turn this situation into an opportunity and use the momentum of the new measures torestart socioeconomic activity at a near-normal level, as quickly and as early as possible, while still in the
COVID-19 era. A “New Form of Capitalism” will be launched to achieve a virtuous cycle of growth anddistribution, thereby setting the economy on a self-sustaining growth trajectory.
In order not to lose any of the momentum that Japan has gained so far, the government will adopt all feasiblemeans of risk management to deal with a possible resurgence of COVID-19. In addition, the government will
pay close attention to the downside risks that a new wave of infections or a disturbance in supply chains would
pose, thus preventing the bottom from falling out of the economy.
The four pillars of the new economic strategy and their economic effects are as follows:

Ⅰ

Prevention of the spread of new coronavirus infections

22.1

trillion yen

In view of the suppressed infection rate due to the increase in vaccinations, the government will reinforce
the medical care system, promote further
vaccinations, and ensure the procurementof therapeutic drugs. In conjunction withthese efforts, the government will disburse
cash benefits, in proportion to the scale ofoperations, to business owners who havesuffered a significant impact. Financial aid will
also be offered to people in dire circumstances.

Ⅱ Resumption of socioeconomic activities in a “Live withCoronavirus” environment and preparation for the next crisis

9.2

trillion yen

Vaccines and testing packages will be used to monitor and control the risk of infection spread. To stimulate theresumption of socioeconomic activity, the government will endeavor to boost demand in business sectors thathave suffered significant losses due to COVID-19. The government will promote the domestic development ofvaccines and therapeutic drugs in preparation for the possible appearance of new variants and/or new infectious
diseases. Japan will also contribute to international efforts to end the worldwide spread of COVID-19.

14

Ⅲ Launching a “New Form of Capitalism” to carve out
a future society

19.8

trillion yen

By growing the economy and distributing the fruits of that growth, Japan will achieve a widespread increasein national income, leading to further economic growth. In order to realize this virtuous cycle of growth anddistribution, the government will promote a growth strategy for a post-COVID society by making boldinvestments toward three primary pillars: the realization of a “science and technology nation,” the launch of a
“Vision for a Digital Garden City Nation,” and the attainment of economic security. The government will also
implement a distribution strategy that strongly supports the strengthening of distribution in the private sector, as
well as bolstering the distributive functions in the public sector.
Regarding the growth strategy, the realization of a “science and technology nation” will include theestablishment of a 10-trillion-yen university fund, investment in clean energy, and thorough support for startups. The “Vision for a Digital Garden City Nation” will involve the development of digital infrastructure, thepromotion of online administrative procedures, the encouragement of local regions to become the originators ofchange, the revitalization of agriculture, forestry and fishery industries, along with that of the tourist industry, andassistance to small and medium-sized enterprises to enable them to refurbish themselves and improve productivity.
Furthermore, a fundamental reinforcement of economic security will provide the nation with autonomy,competitiveness, and indispensability, and ensure that Japan achieves an autonomous economic structure.
The distribution strategy calls for a strong investment in people, thereby bringing security and growth. The
measures that the government will undertake include support for pay increases, investment in human capital andwork-style reform, increased distribution to non-regular employees, a review of the state of public prices, andsupport for children and their caregivers. These measures will build a society that leaves no one behind and will
strengthen distribution to workers as well as to those who have not benefited from economic growth in the past.

Ⅳ Ensuring safety and peace of mind through measures
to prevent and reduce disasters and to enhancenational resilience

4.6

trillion yen

Measures to prevent and reduce disasters and to enhance national resilience will be taken against storm andflood damage, which has become increasingly catastrophic and frequent due to the effects of climate change, as
well as against large-scale earthquakes and tsunamis.
Every effort will be poured into the restoration and reconstruction necessitated by the Great East Japan
Earthquake of March 2011 and other natural disasters, including the torrential rains of summer 2021.
Furthermore, as the security environment surrounding Japan is becoming increasingly severe, the country will
resolutely defend its territory, territorial waters, and airspace, as well as the lives and assets of the Japanese people.

Economic effect of the new measures
The smooth and steady application of these measures will strengthen the economy,
offset the downside risks, deal effectively with the threat posed by COVID-19,
stimulate private-sector demand, and place the economy on a self-sustaining growthtrajectory led by that demand.
New expenditures related to the above measures are estimated to support and boost
real GDP by approximately 5.6%.

GDP
%
5.6
boost

15

VISION FOR A DIGITALGARDEN CITY NATIONACHIEVING RURAL-URBAN DIGITAL INTEGRATION AND TRANSFORMATIONDECEMBER 28, 2021

To maintain future prosperity in the outlying regions of Japan and to encourage many people around the world
to gain a deeper understanding of and connection with the country’s rural areas, Prime Minister Kishida has put
forward his Vision for a Digital Garden City Nation, which aims to achieve rural-urban digital integration andtransformation.
The vision focuses on four broad initiatives, as follows:Ⅰ

Building digital infrastructure90%
5G coverage

The first is the building of digital infrastructure that stretches to every corner of the country, comprising
the following four goals: 1. The completion, in roughly three years, of a digital superhighway using submarine
cables surrounding the islands of Japan; 2. The building of more than a dozen regional data centers in about five
years; 3. Making optical fiber a universal service by 2030, with 99.9% coverage of households, and; 4. Achieving
5G coverage for 90% of the Japanese population by the end of fiscal 2023 (March 31, 2024). With thoseobjectives completed, it will be possible to use high-speed, large-capacity digital services anywhere in Japan.

II

Developing and securing
human resources with digital skills

2.3

millionhuman resources

The second initiative is the development and securing of tech-savvy human resources. Aiming at theacquisition of powerful digital skills on the part of university students and those receiving vocational training,etc., the initiative will establish a program to annually train 450,000 personnel to be responsible for thepromotion of digitalization in local regions, by the end of fiscal 2024 (March 31, 2025), reaching a total of 2.3
million by 2026.
The Tsuruoka Science Park, located among the beautiful rural
scenery surrounding Tsuruoka City in Yamagata Prefecture in
northern Honshu, is home to research institutes and venturecompanies that continue to create innovative technologies.

16

III Implementing digital services to solve rural issues

NEW

digital services

The third initiative builds on the first two initiatives to provide new digital services. For example, thefollowing goals will be being worked towards: 1. Realizing an agriculture sector by 2025 in which almost all
farmers in the country will practice “smart agriculture” with advanced technology—including AI, robots, andIoT—for improved efficiency and productivity in the face of labor shortages due to an aging population; 2.
Implementing new mobility service initiatives across about 40% of local governments nationwide, such as
setting up mobile clinics to eliminate medical disparities among regions; 3. Achieving digital transformation
at approximately 70% of all logistics companies, including the use of drones and automated delivery robots,by fiscal 2025 (ending March 31, 2026); 4. Providing an educational ICT environment that is fair andoptimized individually for each child, by distributing a digital device to each student attending school. The
aim is to let children from diverse backgrounds
further develop their qualities and abilities
without anyone being left behind; 5. Working
on revitalizing the country’s outlying regions
through digital technologies, by carrying out
such actions as promoting remote work atsome 60% of all local public organizations so
as to create a flow of people and work, and; 6.
Utilizing digital tools to connect local small
and medium-sized enterprises with overseas
businesses, so as to introduce the advantages ofJapanese products more widely and deeply.
Top: In November 2021, Prime Minister Kishidavisited Ehime Prefectural Matsuyama Higashi
High School to inspect a class making use of ICT.
Left: Digital technology is being introduced into
Japanese agriculture to improve the efficiency offarm work and the quality of products.
Right: The imminent use of drones to deliver
packages to depopulated areas is highly
anticipated.

Ⅳ Initiatives to leave no one behind

10,000digitalization supporters

The fourth initiative will, in addition to the previous three initiatives, establish a human-resource support
system to promote and realize a digital society where no one is left behind and where everyone can enjoy
the benefits of digital technologies regardless of his or her age, gender, or geographical location, among othercharacteristics. The system will begin in fiscal 2022 (i.e., from April 2022), with more than 10,000 digitalization
supporters nationwide, and will be enlarged as time goes on.

The above four initiatives, using digital technology, will realize new rural environments nationwide that areboth convenient and attractive while maintaining their prosperity, and will revitalize Japan as a whole throughthe bottom-up growth emanating from such areas.

17IN FOCUS: VISION FOR A DIGITAL GARDEN CITY NATIONTACKLING
LOCAL
CHALLENGES

Bandai Town is working on digital tranformation such as
issuing a digital currency using blockchain technology. It
also holds smartphone classes for seniors so that everyone
can enjoy the digital life. HIRO/A.COLLECTIONRF/AMANAIMAGESTHROUGH DIGITAL TRANSFORMATION

Efforts are underway across Japan to tackle local challenges through the power of digital transformation, leading toregional revitalization. One such example is the digital transformation being implemented in a rural area of
Fukushima Prefecture.
The Aizu region of Fukushima Prefecture is locatedabout 200 km north of central Tokyo. Blessed with
an abundance of nature, including Mt. Bandai and
Lake Inawashiro, Aizu is emerging as a region where
digital transformation is being incorporated into thevery fabric of local government. The need for digitaltransformation stems from the same challenge being
faced by regions throughout Japan: an aging andshrinking population.
With a population of just 3,300, Bandai Town
was the first local government in the country to
appoint, in November 2019, a Chief Digital Officer,

18

or CDO. “We’ve been working to move our systems
online, to the cloud, so that anyone, anywhere, cantake part in local government administration,” states
SUGAWARA Naotoshi, the town’s CDO. “Anoutflow of human resources has been an issue in the
countryside, but with the obstacle of transportation
removed, those living outside the town have been able
to get involved in matters of management. Where
there are people, more ideas are generated, and that
attracts even more people. The shortage of humanresources can be overcome with digital technology.”
In July 2021, Bandai Town issued its own digitalAizu region

Top: Prime Minister Kishida taking a look at
Aizuwakamatsu’s smart city initiative. With
the large screens at Smart City AiCT, users
can hold meetings online as if in the sameroom with each other.
Bottom: Opened in 2019, Smart City AiCT
has helped to create jobs in the region. New
innovations are expected to emerge from its
open interaction environment.

currency using the blockchain platform known as
Hyperledger Iroha. Hyperledger Iroha is an industrystandard technology from Japan developed incollaboration with Soramitsu Co., Ltd., a company
with a proven track record in blockchain technology
around the world, and the University of Aizu,
dedicated to computer science and engineering
education. The year before, the National Bank of
Cambodia chose Hyperledger Iroha when it launched
the world’s first central bank digital currency, and thetechnology is also being considered by the central
banks of Laos and Fiji for similar purposes. “Digitalcurrency enables the visualization of local economies
through the analysis of recorded data. The challenge
is how to circulate this currency within the region,”says Sugawara.
Ever since it pledged a decade ago to become a“smart city,” Aizuwakamatsu, one of the primarycities of the Aizu region, has been promoting theuse of ICT. The city has been making innovations
specifically aimed at its citizens, having developeda system of telemedicine using tablet devices, forexample, as well as a real-time display to show
where its snowplows are working, given the area’s
particularly heavy snowfall.

SUGAWARA Naotoshi,
appointed as Bandai Town’s CDO
two years ago, says, “I want todevelop the potential of the region
through the power of digitaltechnology.”

In 2019 the city opened an ICT office known as
Smart City AiCT to attract talent from the greater
Tokyo area and create jobs for young people. Thirtyseven companies from Japan and overseas, including
NEC, Microsoft, and Accenture, have offices atthe open innovation base. With a population of
120,000 and as a hub for industries in the ICT sector,
Aizuwakamatsu City is fast becoming a place where
forward-looking proof-of-concept trials are being
conducted in a wide range of fields full of potential,from new forms of mobility and self-driving robots
to the establishment of energy management systems
with electric vehicles as storage batteries.
To realize the sustainable society outlined by theJapanese government’s Vision for a Digital Garden
City Nation initiative, each region is working on
carrying out a digital transformation in its own
way, consistent with its needs and scale. Asked
about what Bandai Town will be like 10 years fromnow, Sugawara replies, “I doubt the town will havechanged much. Because digital technology is a meansof infrastructure, I imagine the town’s residents will
be able to continue living the same happy lives incommunities that are aided by the power that digitaltechnology provides. That is Bandai Town’s digitaltransformation.”

19

SPRINKLED
SUSHI
No flower-viewing party or spring banquet iscomplete without vividly colorful sprinkled
sushi (chirashi sushi). Sushi rice, flavored withvinegar and sugar, is festooned with seafood,vegetables, and other treats, truly expressing
the joy of welcoming a new season. Witha different character for each region andhousehold, even for Japanese people this isspecial. Schools, businesses, and other Japaneseinstitutions start a new year in April. Everyone
gathers around a table laid with festive foods
and celebrates the season of new beginnings.
20

PORTRAITS OF JAPANRegistered by UNESCO as an
Intangible Cultural Heritage,
Japanese cuisine is also praised
as an expression of natural
beauty and the passage of thefour seasons. A supreme example
is nerikiri, dainty confections
molded into the shape of flowers
and other symbols of the season.
Amazing morsels are created bytraditional, detailed handicraftfrom bean-and-sugar paste andgiven a variety of colors. The
advanced artisanal skills and highaesthetic consciousness bring thedelights of spring to the hearts
and eyes of the beholder.

JAPANESESPRINGBLOOMS
ON THE DINING TABLE

As sunshine warms the days, Japanese tables are laden with gorgeous dishes.
Traditional flavors that sparkle with artisanal skills quicken
the hearts of people impatient for spring.

JAPANESESWEETSAFLO

AFLO

SAKE OF SPRING
Each regional Japanese sake has a unique taste. Determined to rise from the devastation of theGreat East Japan Earthquake, the Tohoku region, including Fukushima, produces sake of highinternational renown, winning many prizes, such as the International Wine Challenge, thestrictest in the world. Spring sake—perfect for pouring into each other’s cups while appreciating
cherry blossoms in full bloom—has a floral aroma, subtle sweetness, and glides gently down
the throat. Brands with a pale pink color resembling cherry blossoms are also popular.
21

Early Spring 2022

Published by

Edited by

Public Relations Office, Cabinet Office
andOffice of Global Communications, Cabinet Secretariat
1−6−1 Nagatacho, Chiyoda-ku, Tokyo
100−8914, Japan

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