The Abe administration on Wednesday announced a draft of the "third arrow" of its economic growth strategy. It consists of three pillars — a plan to resuscitate Japan's industry, including increasing total capital investment by 10 percent in three years to reach ¥70 trillion, a plan to develop strategic markets, which range from health to energy and agriculture, and a plan to advance Japan into international markets, including Japan's entry into the Trans-Pacific Partnership free trade scheme.
Prime Minister Shinzo Abe's growth strategy contains few innovative ideas and differs little from growth programs announced by his predecessors. His strategy clearly attaches importance to deregulation and gives priority to strengthening major businesses, and is unlikely to directly benefit ordinary consumers.
The strategy contrasts sharply with the Democratic Party of Japan governments' approach of first helping to stimulate consumption by households, thus creating demand that will lead to expanded economic activities by businesses. Mr. Abe hopes that deregulation and various assistance will encourage major businesses to develop new fields or increase their capital investment.