Japan

   

Social Policies

#25
Key Findings
Facing equity and sustainability concerns, Japan falls into the lower-middle ranks (rank 25) in the area of social policies. Its score on this measure has improved by 0.2 points since 2014.

The country fared better than most other OECD countries in terms of COVID-19 cases and deaths, but the pandemic nonetheless strained the health system. The vaccination campaign was slow to roll out, but uptake was swift. A number of educational reforms are underway, seeking to improve creativity and add digital elements to the curriculum, for example. Education quality is a growing concern.

Generous childcare and other positive polices have not allowed women to advance careers, due to labor-market discrimination. The gender wage gap is large. A policy focus on social inclusion in recent years has not led to clearly positive outcomes. Income inequality is on the rise, and the population of “socially withdrawn” people is growing dramatically.

A pension reform has made it easier for part-time and contract workers to join corporate pension schemes. Old-age poverty is a serious problem. A series of piecemeal measures have in sum expanded the inflow of foreign workers considerably, though immigration policy remains restrictive overall. Crime rates are low.

Education

#18

To what extent does education policy deliver high-quality, equitable and efficient education and training?

10
 9

Education policy fully achieves the criteria.
 8
 7
 6


Education policy largely achieves the criteria.
 5
 4
 3


Education policy partially achieves the criteria.
 2
 1

Education policy does not achieve the criteria at all.
Education Policy
6
The Japanese educational system has experienced a steady gradual downturn over the last few decades. One of the challenges it currently faces is to deliver adequate quality. The LDP-led coalition has renewed emphasis on reaching the top international tier as well as on improving students’ English-language skills. While the number of students studying abroad has been on the decline for a number of years, this trend seems to have halted more recently.

The government is actively promoting reforms. In the context of the Third Basic Plan for the Promotion of Education (2018 – 2022), which stresses the development of creativity, policymakers announced in May 2019 that the general curriculum taught at schools would be revamped. A government panel in June 2019 proposed the inclusion of more digital, tech-based elements in the education system.

Another issue is rising income inequality at a time of economic stagnation. Measures providing free early-childhood education and free higher education, as well as additional policies related to the country’s expensive private high schools, have to be implemented.

In terms of efficiency, the ubiquity of private cram schools indicates that the ordinary education system is failing to deliver the desired results. However, the public’s general willingness to spend money for educational purposes reduces the pressure to economize and seek efficiencies.

There is growing concern that reform measures have not achieved their intended goals. Despite major university reforms and the government’s well-publicized intention to place 10 universities among the world’s top 100, the rankings accorded to leading Japanese universities have been disappointing in recent years. In the Times Higher Education 2022 World University Rankings, only two Japanese universities of (Tokyo and Kyoto) made it into the global top 200. However, this ranking seems to underrate the country’s university system.

Citations:
OECD, Education Policy in Japan: Building Bridges Towards 2030, Paris 2018

High School General course Education in Japan Up for Reform, News from Japan, 12 May 2019, https://www.nippon.com/en/news/yjj2019051000949/high-school-general-course-education-in-japan-up-for-reform.html

Japan Panel Calls for Promoting Digital Tech-Based Education, News from Japan, 6 June 2019, https://www.nippon.com/en/news/yjj2019060601162/japan-panel-calls-for-promoting-digital-tech-based-education.html

Times Higher Education, World University Rankings 2022, https://www.timeshighereducation.com/world-university-rankings/2022/world-ranking#!/page/8/length/25/sort_by/rank/sort_order/asc/cols/stats

Social Inclusion

#40

To what extent does social policy prevent exclusion and decoupling from society?

10
 9

Policies very effectively enable societal inclusion and ensure equal opportunities.
 8
 7
 6


For the most part, policies enable societal inclusion effectively and ensure equal opportunities.
 5
 4
 3


For the most part, policies fail to prevent societal exclusion effectively and ensure equal opportunities.
 2
 1

Policies exacerbate unequal opportunities and exclusion from society.
Social Inclusion Policy
4
Japan has developed considerable problems with respect to income inequality and poverty over the past decade. The COVID-19 pandemic worsened this situation. Former Prime Minister Abe’s economic stimulus measures included a focus on supporting women’s economic participation (“womenomics”). Nonetheless, gender inequality has remained a serious issue. The gender wage gap in Japan is one of the largest in the OECD (23%) while the share of women in parliament is lowest. The country now ranks in the bottom half of the OECD with respect to its poverty rate, income distribution measured by the Gini coefficient, and levels of life satisfaction. The World Economic Forum’s Global Gender Gap Report 2021 ranks Japan at a dismal 120th place out of 156 countries in the overall Global Gender Gap Index and among the bottom third out of 20 East Asian and Pacific nations. Japan also ranked 117th in terms of economic participation opportunities, and 147th in political empowerment for women.

Despite the LDP-led government’s relatively strong focus on social-inclusion issues since 2016 – also targeting groups such as people with disabilities and the elderly – there is little evidence that these policies have led to positive outcomes. While 2% of private sector jobs are to be provided to people with disabilities, the actual share sometimes seems to be over-reported. Recent reports suggest increased income inequality. In 2019, the government estimated that there are 1.15 million people in Japan who are socially withdrawn (hikikomori), which constitutes a major problem. Experts argue that this number may exceed 10 million. Many of these individuals are adolescents who are not well integrated into the education and employment systems, but the problem has also spread to middle-aged people. To combat the hikikomori problem, the government appointed its first Minister of Loneliness in February 2021.

Citations:
Cabinet (Japan), The Japan’s Plan for Dynamic Engagement of All Citizens, 2 June 2016

Global Gender Gap Report 2021, World Economic Forum, March 2021, https://www3.weforum.org/docs/WEF_GGGR_2021.pdf

Japan ministeries may have fiddled numbers of disabled employees, Reuters, 17 August 2018, https://www.reuters.com/article/us-japan-disability/ apan-ministries-may-have-fiddled-numbers-of-disabled-employees-media-idUSKBN1L20D5

The Rise of Hikikomori in Japan Restrains the Economy, Borgen Magazine, 20 August, 2021, https://www.borgenmagazine.com/hikikomori-in-japan/

Health

#16

To what extent do health care policies provide high-quality, inclusive and cost-efficient health care?

10
 9

Health care policy achieves the criteria fully.
 8
 7
 6


Health care policy achieves the criteria largely.
 5
 4
 3


Health care policy achieves the criteria partly.
 2
 1

Health care policy does not achieve the criteria at all.
Health Policy
7
Japan has a universal healthcare system. Life expectancies are among the top three in the world for women (87 years at birth) and for men (81 years). The Bloomberg Healthiest Country Index ranked Japan at fourth place in 2021. Infant-mortality rates are among the world’s lowest (2 deaths per 1,000 live births). A persistent shortage of doctors represents one serious remaining medical-system bottleneck. The number of doctors per capita is about 40% lower than that found in Germany or France. However, judging on the basis of fundamental indicators, Japan’s healthcare system, in combination with traditionally healthy eating and behavioral habits, delivers good quality.

Although Japan has fared comparatively better than other OECD countries in terms of COVID-19 cases and deaths, the pandemic has nevertheless strained its healthcare system. The political fallout of the pandemic has also been serious. The Abe administration was widely criticized for its poor handling of the COVID-19 outbreak in 2020, and in 2021, Prime Minister Suga was forced to resign only a year after assuming the position largely due to his administration’s decision to hold the Tokyo Olympics and the slow response to the pandemic prior to the event. Japan was also slow to roll out vaccination, which did not begin until the summer of 2021. By the end of the year, though, over 70% of the population were reported to be fully vaccinated. Challenges for the healthcare system also include the need to contain costs, enhance quality and address imbalances. The national health insurance program continues to show a structural deficit despite additional fiscal support that was provided in a 2018 reform package.

Although spending levels are relatively low by international standards, Japan’s population has reasonably good healthcare access due to the comprehensive National Healthcare Insurance program. A 2019 OECD review on public health in Japan reaches a positive verdict on Japan’s primary strategy, Health Japan 21, but points to room for improved focus and coordination.

Citations:
Japan’s health insurance system remains deficit-ridden despite reforms, The Japan Times, 17 August 2018, https://www.japantimes.co.jp/news/2018/08/17/national/japans-health-insurance-system-remains-deficit-ridden-despite-reforms/

OECD, OECD Reviews of Public Health: Japan, Paris 2019

Healthiest Countries 2021, World Population Review, https://worldpopulationreview.com/country-rankings/healthiest-countries.

Families

#30

To what extent do family support policies enable women to combine parenting with participation in the labor market?

10
 9

Family support policies effectively enable women to combine parenting with employment.
 8
 7
 6


Family support policies provide some support for women who want to combine parenting and employment.
 5
 4
 3


Family support policies provide only few opportunities for women who want to combine parenting and employment.
 2
 1

Family support policies force most women to opt for either parenting or employment.
Family Policy
5
While the employment rate among women aged 15 to 64 remains at around 71% in 2021 – a level higher than that observed in the United States – the majority of employed women work in part-time, non-regular jobs. Several policy measures aimed at addressing these issues have been implemented since the 1990s but without much success.

The LDP-led government has sought to provide support for women in the labor force (so-called womenomics). For example, it has made efforts to expand the provision of childcare in order to improve conditions for working mothers. Efforts to abolish kindergarten waiting lists have made some progress, as the daycare capacity has expanded from 2.2 million in 2012 to 2.8 million in 2018. The ratio of fathers taking paternity leave has also increased significantly, from around 2% in 2012 to 5% in 2017, but this number is still low, and many fathers take only a few days leave.

In 2020, the country recorded its lowest number of births, at 840,832.The birth rate has stabilized at a low level of around 1.4 births per woman with the government’s target rate of 1.8 remaining out of reach.

The main reason the Japanese government is unable to achieve its aims of improving women’s employment conditions and raising fertility rate is that its family policies are not in sync with labor market and employment policies. Women are unable to gain a greater foothold and advance their careers despite generous childcare and other positive family policies because employers and employment practices continue to discriminate women. As women continue to experience gender inequality and employment insecurity in the labor market, they will continue to postpone marriage and childbirth. The question is whether the government is willing to address this gap between positive family policies and the lack of gender-sensitive employment and labor market policies

Citations:
Kathy Matsui et al., Womenomics 5.0, Goldman Sachs, Portfolio Strategy Research, 18 April 2019

Tatsuya Goto, Japan’s moms stay in work in record numbers, 27 February 2018, Nikkei Asian Review, https://asia.nikkei.com/Economy/Japan-s-moms-stay-in-work-in-record-numbers

Japan’s births in 2020 lowest ever: fewer marry since WWII’s end, Asashi Shimbun, June 4, 2021, https://www.asahi.com/ajw/articles/14365588

Pensions

#33

To what extent does pension policy realize goals of poverty prevention, intergenerational equity and fiscal sustainability?

10
 9

Pension policy achieves the objectives fully.
 8
 7
 6


Pension policy achieves the objectives largely.
 5
 4
 3


Pension policy achieves the objectives partly.
 2
 1

Pension policy does not achieve the objectives at all.
Pension Policy
6
Given the rapid aging of the population, Japan’s pension system faces critical challenges. Already, more than 28% of the population is older than 65. The last major overhaul of the pension system occurred in 2006. Under its provisions, the value of future pension disbursements would rise less than inflation, payments would eventually commence at age 65 instead of 60, contributions would top out at 18.3% of income, and a payout ratio of 50% was promised. The program’s assumed relationship between future payment levels, contributions and the starting age for receiving benefits was based on optimistic macroeconomic forecasts, but so far only minor revisions have taken place.

In March 2020, the government passed a pension reform bill that is designed to make it easier for part-time workers to join public corporate pension schemes (kosei nenkin). Starting in October 2022, part-time and contract workers in workplaces with more than 100 employees will be eligible to join kosei nenkin. This will be extended to workplaces with more than 50 workers in 2024. The planned reform also includes benefit reductions for workers aged 60 to 64, and options for workers to continue paying into the pension system until they reach 70, and to start receiving pensions as late as age 75.

Another pressing issue is Japan’s high old-age poverty rate of 19.6% (OECD average: 13.5%), with the poverty rate among men standing at 16.2% and women at 22.3%.

The Government Pension Investment Fund has shifted its asset portfolio somewhat away from bonds (and away from Japanese government bonds/JGBs in particular), toward other assets such as domestic and international stocks. Japanese corporate pension funds are following this trend, with their exposure to domestic government bonds dropping to 18.3% by March 2019. Many observers are concerned about the higher levels of risk associated with stocks. However, JGBs are also risky due to the Japanese state’s extraordinary level of indebtedness.

Citations:
OECD, Pensions at a Glance 2019. https://www.oecd-ilibrary.org/sites/fb958d50-en/index.html?itemId=/content/component/fb958d50-en

How Japan’s prime minister plans to cope with daunting demography, The Economist, 17 November 2018, https://www.economist.com/asia/2018/11/17/how-japans-prime-minister-plans-to-cope-with-daunting-demography

Thisanka Siripala, Report: Japan’s Public Pension Fund Not Enough to Cover Post-Retirement Needs, The Diplomat, 27 June 2019, https://thediplomat.com/2019/06/report-japans-public-pension-fund-not-enough-to-cover-post-retirement-needs/

Japan adopts pension system reform plan, Japan Times, March 3, 2020, https://www.japantimes.co.jp/news/2020/03/03/business/pension-system-reform-plan/

Integration

#36

How effectively do policies support the integration of migrants into society?

10
 9

Cultural, education and social policies effectively support the integration of migrants into society.
 8
 7
 6


Cultural, education and social policies seek to integrate migrants into society, but have failed to do so effectively.
 5
 4
 3


Cultural, education and social policies do not focus on integrating migrants into society.
 2
 1

Cultural, education and social policies segregate migrant communities from the majority society.
Integration Policy
4
In spite of its aging and shrinking population Japan maintains a fairly restrictive immigration policy. The number of legal foreign residents reached a total of 2.9 million in 2020, the highest number on record; yet, the foreign-born workforce represents only about 2% of the total.

Bilateral economic-partnership pacts have allowed Filipino, Indonesian and Vietnamese nurses and caregivers to enter Japan on a temporary basis since 2008. Efforts to attract more foreign workers have been piecemeal. For example, the LDP-led government has relaxed some immigration restrictions in an effort to attracting highly skilled foreign professionals. In mid-2018, then-Prime Minister Abe announced plans to allow about 70,000 workers into Japan annually until 2025, for a total of about 500,000. Two new temporary visa categories were added in 2019, covering low-skilled and semi-skilled workers in 14 industrial sectors facing labor shortages. The resultant gradual increase in the number of foreign workers has not lessened the country’s serious labor shortages, which has been exacerbated by the demographic shifts and the pandemic-related demand for low- and semi-skilled workers, including care workers. Concerns over human-rights issues related to the treatment of the technical interns and other low-skilled workers, and the lack of adequate labor protection and long working hours imposed on foreign workers have also contributed to Japan’s reputation as a not-so-attractive destination for foreign workers. In November 2021, the government announced plans to give foreign workers in certain blue-collar jobs long-term residency beginning in 2022. Japan will have to implement more open immigration policies and stronger employment protections if it wants to attract more foreign workers of all skill levels.

The Japanese government still appears reluctant to embrace a full-fledged immigration policy and is cautious of rhetoric pointing in this direction. Despite the Japanese public’s positive support for immigration, the nationalistic viewpoints held by many LDP lawmakers pose a particular challenge in this regard. Nevertheless, while the new measures cannot be regarded as a comprehensive package, there has been some progress in facilitating an increased inflow of valuable foreign workers.

Citations:
Himeda Konatsu, Easier Permanent Residency for Highly Skilled Foreign Professionals – Is Japan Ready?, Nippon.com, 11 April 2017, http://www.nippon.com/en/currents/d00304/

How Japan’s prime minister plans to cope with daunting demography, The Economist, 17 November 2018, https://www.economist.com/asia/2018/11/17/how-japans-prime-minister-plans-to-cope-with-daunting-demography

Arnab Dasgupta, Japan’s Immigration Policy: Turned Corner or Cul-de-Sac?, The Diplomat, 21 February 2019, https://thediplomat.com/2019/02/japans-immigration-policy-turned-corner-or-cul-de-sac/

Jeremy Davison and Ito Peng, Views on Immigration in Japan: identities, interests, and pragmatic divergence, Journal of Ethnic and Migration Studies, 2021, 47(11): 2578-2595. https://www.tandfonline.com/doi/full/10.1080/1369183X.2020.1862645

Long closed to most immigration, Japan looks to open up amid labor shortage, Washington Post, 18 November 2021, https://www.washingtonpost.com/world/2021/11/18/japan-labor-shortage-immigration/

How Japan risks losing its shine for foreign workers, Nikkei Asia, 22 August 2021, https://asia.nikkei.com/Spotlight/Japan-immigration/How-Japan-risks-losing-its-shine-for-foreign-workers

Safe Living

#3

How effectively does internal security policy protect citizens against security risks?

10
 9

Internal security policy protects citizens against security risks very effectively.
 8
 7
 6


Internal security policy protects citizens against security risks more or less effectively.
 5
 4
 3


Internal security policy does not effectively protect citizens against security risks.
 2
 1

Internal security policy exacerbates the security risks.
Internal Security Policy
9
Japan enjoys a very low crime rate, although it is unclear how much the effectiveness of internal security policies contributes to this. For major crimes such as homicide or hard-drug abuse in particular (950 cases or 0.1% of total crime in 2019), Japan’s good reputation is well deserved. The number of recorded crimes reached a postwar low in 2020, with thefts accounting for 70%, and seniors making up 22% of offenders. In 2019, Tokyo was again ranked by the Economist Intelligence Unit as the world’s safest (major) city, with Osaka ranking third. Low crime rates, however, should not be equated with low levels of violence as crime such as domestic violence is often not accounted for in national crime statistics. Indeed, the number of incidents involving domestic violence in Japan is high. In 2020, it rose to a record level of 132,355, up from 119,267 in 2019.

Terrorism also poses no major discernible threat today. Nevertheless, ahead of the Tokyo 2020 Olympics, parliament passed an “anti-conspiracy bill” in 2017 that considerably expanded police power. This bill has been strongly criticized for curbing civil liberties. Unsurprisingly, the massive security system in place for the Olympic Games in 2021 and related mobility restrictions were widely criticized as being overly heavy-handed.

The existence of organized gangs, the so-called yakuza, remains an issue. These groups have moved into fraud and white-collar crimes. Unlike the Italian mafia, yakuza gangs are not forbidden in view of the constitutionally protected right of association. However, the number of their members has declined sharply, from around 90,000 in the early 1990s to an estimated 25,900 in 2020. Aside from police efforts, low unemployment levels have played a major role in reducing the incentive, or felt need, to join a gang.

Citations:
Crime at New Low in Japan, But Seniors Commit 22% of Offenses, Nippon.com, 12 January 2021, https://www.nippon.com/en/japan-data/h00898/

Thisanka Siripala, Japan’s Once Powerful Criminal Underworld Hits Record Low Membership, The Diplomat, 16 May 2019, https://thediplomat.com/2019/05/japans-once-powerful-criminal-underworld-hits-record-low-membership/

Domestic violence cases in Japan hit record high in fiscal 2020, The Japan Times, 13 January 2021, https://www.japantimes.co.jp/news/2021/01/13/national/domestic-violence-cases-record-high/

Fortress Olympics: peak security measures dampen the mood as the games begin, The Independent, 23 July 2021, https://www.independent.co.uk/news/world/olympics-security-opening-ceremony-tokyo-b1889195.html

Michelle Ye Hee Lee and Julia Mio Inuma, As Japan’s yakuza mob weakens, former gangsters struggle to find a role outside crime, The Washington Post, 17 October 2021, https://www.washingtonpost.com/world/asia_pacific/japan-yakuza-crime-gangsters/2021/10/17/556a255c-2b0a-11ec-baf4-d7a4e075eb90_story.html

Thomas Hahn, Stehen die Yakuza vor dem Aus?, Süddeutsche Zeitung, 18 October 2021, https://www.sueddeutsche.de/panorama/yakuza-japan-mafia-corona-1.5442980

Global Inequalities

#15

To what extent does the government demonstrate an active and coherent commitment to promoting equal socioeconomic opportunities in low- and middle-income countries?

10
 9

The government actively and coherently engages in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. It frequently demonstrates initiative and responsibility, and acts as an agenda-setter.
 8
 7
 6


The government actively engages in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. However, some of its measures or policies lack coherence.
 5
 4
 3


The government shows limited engagement in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. Many of its measures or policies lack coherence.
 2
 1

The government does not contribute (and often undermines) efforts to promote equal socioeconomic opportunities in low- and middle-income countries.
Global Social Policy
7
The total amount of official development assistance (ODA) stood at $16.3 billion in 2020 (at current prices), making Japan the fourth-largest OECD Donor Assistance Committee donor country in absolute terms and the largest in Asia. ODA represents 0.31% of Japan’s gross national income (GNI).The quality of ODA has improved in recent years, but assistance has been increasingly aligned with Japan’s broader international security concerns, a trend which can be criticized from the perspective of potential recipients or indeed the development community at large. The country’s 2015 Development Cooperation Charter stresses the principle of cooperation for nonmilitary purposes; the important role of partnerships with the private sector, local governments, NGOs and other local organizations and stakeholders; an emphasis on self-help and inclusiveness; and a focus on gender issues.

Another Japanese ODA priority, with strong geostrategic roots, is infrastructure development. The concept of a “Free and Open Indo-Pacific” has gained further traction, with the Trump and Biden administrations having latched on, although with a somewhat less pronounced economic focus than is the case in Japan. Japan has shown active interest in development cooperation with Africa, underlined by the Tokyo International Conferences on African Development (TICAD).

The government used the 2019 G-20 Summit in Japan to support major initiatives aimed at achieving the UN Sustainable Development Goals.

Tariffs for agricultural products remain high, as are those for light-industry products such as footwear or headgear in which developing economies might otherwise enjoy competitive advantages. On the non-tariff side, questions about the appropriateness of many food-safety and animal- and plant-health measures (sanitary and phytosanitary measures) remain.

Citations:
Ken Okaniwa, Changes to ODA Charter reflect new realities, The Japan Times, 29 May 2015, http://www.japantimes.co.jp/opinion/2015/05/29/commentary/japan-commentary/changes-oda-charter-reflect-new-realities/

Government of Japan, Towards Free and Open Indo-Pacific, June 2019

SEEK Development, Donor Tracker, Japan report, https://donortracker.org/country/japan (accessed 18 February 2022)
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