Future Policy Responses (Immediate Future, Short-Term, Medium to Long-Term) –Provisional Translation

May 17, 2011
Cabinet Office

Reference Materials for the “The Guideline on Policy Promotion”
Basic Policy

 We will overcome the restrictions brought about by the great earthquake—such as by restoring economic circulation as soon as possible—in asequential and steady manner. At the same time, we will strengthen initiatives for achieving new growth and restore the growth potential of theJapanese economy.
 The need to ensure the sustainability of public finances and social security and maintain confidence in such institutions, which had been major issues
from before, has increased all the more because of the great earthquake. As such, we will promote sound initiatives for achieving this.

Immediate Future• Damage to capital stock (¥16-25 trillion)• Supply chain disruptions• Impact from electricity restrictions• Negative impact from rumors anddeteriorating consumer confidence• Impact on employment, etc.

Short-Term (About 3 Years from Now)

Medium to Long-Term• Concerns that the electricity
restrictions will remain• Concerns over outflows ofcompanies and humanresources, etc.

• Concerns over energy andenvironmental restrictions• Concerns over outflows ofcompanies and humanresources, etc.

Restriction
factors
Reconstruction
demandImmediate
futurePolicyresponses<Prompt recovery from the great earthquake>
Assistance for the disaster victims, assistance for thevictims of the nuclear disaster, disaster relief, andpromptly responding to the accident at the nuclear plantClearing away the mood of self-restraint
Rebuilding production equipment and facilities
Measures for electricity supply and demand
Restoring and reconstructing supply chainsEmployment measures
Preventing negative impact from rumors in Japan andabroadOngoing observation of the financial and capital markets
and the exchange market, etc.

New demand for earthquake-resistanthousing, electricity-conserving / energy
conserving investments, etc.

Short-term<Lay the foundations for self-sustaining growth>Support for full-scale restoration of the disaster region
Policy responses to the electricity restrictions and thecreation of a system for supplying energy that is resistant todisasters
Restoring and strengthening Japanese brands
Preventing outflows of companies and human resources
overseas and ensuring inflows
Restoring tourism demand by overcoming the damage fromrumors
Creating a virtuous cycle for fostering new seeds of growth(compact cities; energy conservation and new energy; andthe collaboration of primary, secondary and tertiaryindustries in agriculture, forestry, and fisheries, etc.) andexpanding capital demands
Assuring the sources of finance for reconstruction
Putting into practice the integrated reform of the social
security and tax systems, etc.

GDPMedium to long-term<Sustainable and self-sustaining growth> Realizing new energy and environmentalstructures
 Realizing robust economic structures thatare fortified against enormous risks
 Expansion of new growth sectors
 Carrying on with the integrated reform of thesocial security and tax systems, etc.

(Note) This material was created by the Cabinet Office to serve as reference for the “The Guideline on Policy Promotion” (Cabinet Decision, May 17, 2011), and is not
subject to the cabinet decision.