Japan is becoming a society with a declining population, it is therefore important to enhance its industrial structure by supporting technical innovation in order to achieve sustainable economic development. A sophisticated industrial structure leads to high production capacity in domestic markets and ensures employment opportunities. It is also important to stimulate the economic cycle, where added values, born of high production capacity, are distributed among workers, new consumer needs are created, and further employment opportunities are created. In a society with a declining population, it is also necessary to develop care services for children and the elderly so that the life and work of those caring for the elderly and children becomes more fulfilling.

A society with a declining population must focus on human capability. It is a society in which the value people create by utilizing their abilities and wisdom has more emphasis placed on it than the value that machines, facilities, and other production methods may generate. The engine for economic development is having more people willing to work, and the demonstration of their underlying vocational capability is driven by their willingness to work. The value workers generate is not limited in a market sense. It will enhance mutual cooperation in the local community along with the expansion of care services for the elderly and children. Working in this type of society would mean not only earning an income but becoming self-reliant, finding one's role in society, and participating in society through work in order to fulfill that role. All members of society, including the young, female, elderly, and the disabled should work and support each other. This is fundamental to achieving a rich and fulfilling life in a society with a declining population.

## (Importance of mutual cooperation and working together for sustainable development in a society with a declining population)

It is hoped that a certain pace of economic development can be maintained in a society where the population is expected to fall in the future. In order to strive for further economic and social development, Japan continues to seek technological advances. However, technological advancement requires investment in new plant and equipment as well as growth in demand to activate the accumulated capital equipment.

The goals of the labour market are to provide the people who are willing to work with employment opportunities, to promote manpower supply, albeit even though there is a declining population, and to facilitate working environments in which each worker becomes motivated to play his or her role. The rate of decrease in the labour force appears to be gradually accelerating (Table 28). Thus it is important to stop this acceleration by developing a system to promote the supply of manpower from the elderly, youth, and female workforces. This will help to prevent a significant reduction in labour force for at least the next ten years. In addition, the Japanese economy is expected to continue to grow by focusing on the value-added facets of the economy (Table 29).

Keeping a dynamic economy alive requires the participation of various members of society that are working and mutual support, which in turn establishes a sustainable social security system and enables each social group to bear their tax burden and pay insurance.