Regional benefits to reap ¥17 trillion

Kyodo

The regional development initiative will generate more than ¥17 trillion in economic growth and around 710,000 new jobs in the year to March 2016, according to government sources.

The estimates were to be presented at a meeting of the government’s National Strategy Council later Thursday, and will be reflected in a strategy the Cabinet plans to adopt by late June to rebuild Tohoku after the March 2011 calamities and to overcome persistent deflation, the sources said Wednesday.

The initiative, which will provide greater deregulation and tax incentives in designated areas, is seen creating a combined ¥6.96 trillion in seven zones selected as bases to boost Japan’s global competitiveness, for instance in the agricultural and aerospace industries. These zones will be created in prefectures including Hokkaido and Aichi.

Meanwhile, 26 regional invigoration zones are projected to create ¥7.40 trillion in economic benefits, while 11 zones designed to build environmentally friendly towns will result in growth of around ¥1.32 trillion. Urban redevelopment zones will generate an additional ¥1.57 trillion. The jobs to be created under the initiative include 298,000 in the international competitiveness zones, 257,000 in the regional rejuvenation zones, 113,000 in the urban redevelopment zones and 45,000 in the eco-friendly community zones.