JAPAN

At rank 21, Japan’s status performance continues to rank among the bottom third of the SGI (no change relative to SGI 2009).

The DJP’s landslide victory in the 2009 lower house elections ended decades of LDP-dominated rule. The political system experienced considerable turbulence, wearing down 4 PMs in 4 years.

There are concerns that governments have been unable to tackle many of the pressing socioeconomic and political issues.

Despite a moderate economic upswing since 2003, the huge public debt leaves little financial scope for wide-ranging reforms. Growing inequality and increasing demands on the pension system, among others, pose a difficult challenge for the new DPJ government.

Japan ranks 24th in terms of its quality of democracy.

Electoral processes are generally fair. Despite cases of perceived censorship and oligopolistic media structures, there is a diversity of opinions expressed in print and digital media. Government information is widely accessible.

Civil rights are protected by the constitution; however, official authorities tend to go unpunished when accused of violations. Whether the DPJ-government is able to implement a major judicial reform is unclear.

Legal provisions are sophisticated and predictable, and courts act independent of the government. But the appointment process of Supreme Court justices is not at all transparent. Corruption and bribery remain pervasive issues.

With serious economic concerns evident even before the onset of the worldwide crisis, Japan’s economic policy rating has fallen two ranks to 18th place.

The second-largest economy in the world enjoys high trust levels despite the highest debt-to-GDP ratio in the OECD. The opportunity afforded by the moderate but stable economic upswing between 2003 and 2007 was not used to create a sustainable growth model.

Labor market policy has successfully kept unemployment at tolerable levels, but the share of irregular jobs has significantly increased.

The tax system is assessed as modern and reasonably fair. A general tax reform as well as an upgrade of the social welfare system is being discussed.

Showing little overall change from the SGI 2009, Japan’s social affairs rating (rank 20) was harmed by significant declines in pension system evaluations.

Income inequality and poverty levels have risen in recent decades. With early counter-measures in place, the DPJ government has promised further action addressing social inclusion.

Successive governments have proved unable to eliminate mounting social problems. Gender roles are still informed by traditional values, making balancing work and family difficult for women. The pension system is in dire need of reform. Governments have not proactively supported immigration or integration.

The Japanese constitution does not allow for military forces. The so-called self-defense forces are therefore mandated to protect national security alone. Post-war Japan has relied on a strong military alliance with the USA and its nuclear umbrella. However, the new DPJ-led government has oscillated between maintaining a strong pro-American stance and a stronger Asian focus, giving rise to uncertainties.

Internal security is generally provided for. While terrorist threats and rates for serious crime are low, lesser offenses have become more widespread. Organized gangs (yakuza) are still active but rarely attack ordinary citizens.

Japan continues to receive high scores in terms of resource sustainability (rank 5).

For decades, policies aimed at pollution reduction and energy conservation have been among the most sustainable worldwide. The new DPJ government announced even more ambitious CO2 reduction targets, and introduced a feed-in tariff system as of November 2009 to support renewable energy sources.

As one of the world’s leading producers of R&D, Japan developed a sophisticated fund allocation system with a shifting focus. The DPJ administrations have deemed “green development” a top priority.

The education system faces a number of challenges. The quality of university training needs to be improved, the interests of diverse stakeholders need to be addressed, and opportunities for socially disadvantaged students need to be expanded.

Management performance in Japan has shown significant improvements, moving up to position 15 (+6 ranks relative to SGI 2009).

The DJP government has taken steps to improve strategic planning and the efficacy of the prime minister’s authority, particularly in budgetary matters. It has also broadened the base of societal consultation by seeking advice from trade unions.

The government continues to struggle with efficiency in policy implementation, a problem further complicated by the fact that most recent prime ministers have not remained in office for long.

The capability to adapt to new challenges has been tested during the global financial turmoil. All-out institutional reform has not yet taken effect.

At rank 15, the steering capability of the Japanese executive has markedly improved (+8 ranks relative to SGI 2009).

The new DPJ-led government has sought to strengthen prime ministerial leadership and improve strategic government planning. Effective control over the budget is being transferred from the Ministry of Finance to the newly established National Strategy Office, chaired by the prime minister.

The number of policy evaluations performed has significantly increased.

The DPJ administrations have had close links to the trade union sector, shifting the focus of societal consultation away from the “iron triangle” (elected politicians, bureaucracy, business) of past LPD governments.

Policy communication, often through extremely detailed “white papers,” has long been a priority for Japanese governments.

At rank 21, policy implementation capacity in Japan has been undermined by a fast succession of governments.

Due to their short periods in office, the Hatoyama, Fukuda and Aso cabinets lacked the time to pursue their chosen agendas effectively.

Despite a formally powerful position, the prime minister can not always ensure ministerial compliance. The Cabinet Office offers a means of monitoring ministry activities.

Local and regional governments depend strongly on central government financial transfers. Local governments have only limited practical policy autonomy, as they are generally required to execute centrally determined policies. Local autonomy is guaranteed by the Japanese constitution, but the relevant passages are very short and quite unspecific.

At rank 21, Japan’s assessed institutional learning capacity has shown marginal improvement (+2 ranks) relative to the SGI 2009.

Reform processes are typically driven by domestic developments and interests, but international models or perceived best practices do play a role at times.

Japan was actively involved in the new G-20 mechanism as it sought to meet the challenges of global financial turmoil. As its part of the multilateral effort, Japan contributed an economic stimulus program of considerable size.

Institutional reform has been a major theme of debate for more than a decade, but post-Koizumi administrations have lacked the time to develop strong reform initiatives. A reform putting elected politicians in charge of the government apparatus is underway.

At rank 14, Japanese executive accountability has shown marginal improvements (+3 ranks) relative to the SGI 2009.

A substantial amount of information on policies and policy-making is publicly available, though many citizens feel dissatisfied, considering the information to be untrustworthy.

Parliamentary committees have substantial oversight powers, able to request government documents and summon ministers or experts.

The publicly owned media provides ample and in-depth information on policy issues. Parties have improved their ability to offer coherent policy proposals. Business interests are influential, but non-economic civil society organizations do not have a long tradition.