Political and Economic Situation in
Japan and Japan-Sweden Relations
For Sweden-Japan Parliamentary Association
On 16 February 2011
By Yoshiki Watanabe, Ambassador of Japan
2
Quick look on Japan
 Total population: 127 million
Under 14: 17 million
15-64 :
81 million
Over 65: 29 million
 47 prefectures
 1,777 municipalities
3
Separation of Powers
Diet
Legislative branch
Dissolution of
the House of
Representatives
Designation of the
Prime Minister
Set up the
Impeachment court
Non – confidence
resolution
Executive branch
Nomination and Appointment
of the Supreme Court judges
Constitutional
Review
(on Legislation)
Judiciary branch
Constitutional Review
(on Administration)
Cabinet
Court
4
The Diet (Bicameral system )
The House of Representatives
480
4 years
Over 20 years old
The House of Councillors
Membership
242
Term
6 years
Suffrage
Over 20 years old
(full fledged universal suffrage since 1945)
Over 25 years old
① Single-seat constituency: 300
② Proportional representation: 180
Yes
Eligibility for election
Election system
Dissolution
Over 30 years old
① Prefectural constituencies: 146
② Proportional representation: 96
No
5
Diagram of Legislative Procedure
(Regular procedure for ordinary, non-urgent bills)
6
Strength of Political Groups
House of Councillors
House of Representatives
others 8
SPJ 2(0.4%)
YP 5(1.0%)
SDP 6(1.3%)
JCP 9(1.9%)
480
242
Total
NK 21(4.4%)
LDP
117(24.4%)
others 3
NPN 1(0.2%)
PNP 3(0.6%)
SDP SPJ NRP
YPJCP 10
5
2
16 15
NK 19(7.9%)
others 3
NRP 2(0.8%)
SPJ 3(1.2%)
SDP 4(1.7%)
JCP 6(2.5%)
YP 11(4.5%)
NK
40
LDP
201
DPJ
411
LDP
84(34.7%)
others 1
PNP 3(1.2%)
DPJ
305(63.5%)
NPN
PNP
1
6
DPJ
106(43.8%)
Ruling coalition
312 (65%)
Ruling coalition
110 (45.5%)
Opposition
168 (35%)
Opposition
132 (54.5%)
7
Parliament Activities
Japanese Parliament
Year
2005
2006
Government bills
(Swedish Parliament)
Members’ bills
Passed
(submitted)
Passed
(submitted)
97
(113)
25
(77)
102
(103)
21
Year
Acts
Government
bills
Members’
motions
(submitted)
(submitted)
2007-2008
82
(168)
(3577)
2008-2009
93
(232)
(3961)
2009-2010
108
(246)
(4022)
(77)
2007
104
(107)
35
(108)
2008
77
(95)
18
(75)
2009
76
(81)
24
(101)
2010
47
(84)
22
(84)
8
Assessment of the current economic state
(January, Cabinet office)
• As for short-term prospects, although some weak
aspects remain for a while, the economy is expected to
be picking up, reflecting improvement in overseas
economies and the effects of various policy measures.
• On the other hand, there are the risks that the economy
is depressed by a possible showdown in overseas
economies and fluctuations in exchange rates.
• It should also be noted that there is still a risk of the
influence of deflation on the economy and a concern
about a possible deterioration of the employment
situation.
9
Key Economic Indicators
■Real GDP Growth■
(%)
(%)
10.0
6.0
4.1
4.0
4.6
0.0
-2.0
1.6
0.2
-0.1
2.5 2.5
1.4
3.4
3.1
2.7
2.0
1.4 1.9
0.3
3.7
3.3
7.1
3.4
2.4
(%)
14.0
1.3
4.1
4.1
12.0
7.8
6.6
6.0
1.7
■Unemployment rate■
9.3
8.2
8.0
7.4
6.8
6.8 6.8
4.9
11.8
7.3
10.0
9.9
8.3
6.9
8.0
3.8 4.0 3.7 3.9
3.7
3.3
3.8
3.3
3.7
3.0
3.5 3.1 3.7
3.6
6.0
3.4
3.2
2.5
2.9
2.7 2.2 2.3 2.6
2.8
2.0
2.2
4.0
1.4
1.1
0.0
2.0
4.0
-0.6
-1.2
-2.0
-4.0
-6.0
（as a percentage of GDP)
4.4
4.6
3.7
4.4
2.9 2.9
2.0
■Current account balance■
-5.1
-5.2
1997 1999 2001 2003 2005 2007 2009 2011
5.9
4.7 4.7
3.4
4.1
8.3
7.7 7.7
8.4
8.0
7.1
6.1
5.4
5.0 5.3
6.8
6.2
5.1
6.1
4.7
5.1
4.1
4.4
3.8
4.0
4.9
-1.3
0.0
-2.0
1993 1995 1997 1999 2001 2003 2005 2007 2009 2011
7.5
1997 1999 2001 2003 2005 2007 2009 2011
Source: OECD Economic Outlook 88 database (December 2010)
4.5
10
■Demographic Situation■
Population aged 65 and over (Proportion)
(%) 45
Total Fertility Rate
2.2
40
2
35
1.8
30
25
1.6
20
1.4
15
10
1.2
5
1
0
1950
1960
1970
1980
1990
2000
2010
2020
2030
2040
1990
2050
1992
1994
1996
1998
2000
2002
2004
2006
2008
Source: NIPSSR (Japan) , SCB (Sweden)
■Fiscal Situation (General government)■
Financial balance
(%)
(%)
240.0
4.0
2.0
(Per cent of nominal GDP)
180.0
0.0
-2.0
120.0
-4.0
-6.0
Gross financial liabilities
(Per cent of nominal GDP)
60.0
-8.0
-10.0
0.0
-12.0
11
20
09
20
07
20
05
20
03
20
01
20
99
19
97
19
95
19
93
19
Source: OECD Economic Outlook 88 database (December 2010)
11
Other economic indicators
(￥100 million)
2009
2010
Current Account
132,867
170,801
Trade Balance
40,381
79,969
Foreign direct investment (net)
- 69,896
- 49,792
Inward direct Investment (net)
11,171
-1,447
2009
2010
Industrial Production Index (2005 = 100)
89.7 (Dec)
94.6(Dec)
Consumer Price Index (2005 = 100)
99.6 (Dec)
99.6(Dec)
10,194.50 yen (Dec)
10,257.35 yen (Dec)
Interest Rate
0.10%
0.0～0.10%
Wage Growth (year to year)
-3.8%
0.9% (3Q)
Foreign Trade per GDP
2008
2009
Japan
17.5%
12.6%
Sweden
53.5%
48.4%
Stock Price
12
Tax and Social security burden ratio（2007）
（Percentage of National Income)
70%
60%
17.1%
Social Security Contribution
50%
5.3%
Property Tax, etc
15.0%
17.4%
Consumption Tax
20%
3.6%
6.9%
5.1%
Corporation Tax
10%
6.5%
19.9%
Income Tax
40%
30%
0%
7.6%
Japan
Source: OECD, Ministry of Finance Japan
Sweden
13
Budget(FY2010,General Account)
Expenditure for Social
Security
(Trillion yen)
27.8
9.8 Gap
Expenditure
for Elderly
・Pension
・Medical care
・Elderly care
16.6
VAT (to State)
6.8
14
Social Security Expenditure (2008)
(Trillion yen)
Unemployment
1.2(1%)
Housing
0.4
Social assistance 2.4(3%)
and others
Family benefits
3.2
3%
Sickness
and health
29.1
31%
Old age
Total
94.1
47.3
51%
Survivors
Employment injury
1(1%)
Invalidity benefits 3(3%)
6.6
7%
Source:IPSS
15
Trade Union and Wage determination mechanism
Wage determination mechanism
Rate of trade union organization
●Every early spring (February and March),
Employer and Trade Union negotiate working
conditions (include wage)
(Labor negotiations called “Syuntou”)
Year
Rate
1980
30.8
1985
28.9
1990
25.2
1995
23.8
●Wages are revised based on the results.
2000
21.5
2005
18.7
※In Japan, there is legal minimum wage.
(Minimum wage act)
2010
18.5
Major trade union (national center)
・Japanese Trade Union Confederation (JTUC)
・Japan Council of Metalworkers’ Unions (IMF-JC)
・Zenroren
16
Recent Speeches by Prime Minister Naoto Kan
• Policy speech at the Diet on 24 Jan.
- The 21st -century opening of Japan
- Achieving a society in which human suffering is
reduced to a minimum
- Politics that rectifies absurdities
• Speech at the WEF, Davos on 29 Jan.
- Opening ourselves up
- Creating new bonds (“Kizuna”)
- Achieving a cross-coupling for Japan and for the wider
world
17
5 basic principles for the reform
of the social security system
• A format that encompasses all generations
• Investing in the future
• Benefits in the form of support-type services
• Overcome vertical divisions in the systems and in public
administration to provide comprehensive assistance that
takes the viewpoint of the person receiving the service.
• Ensure stable fiscal resources so that the burden is not
passed on to future generations.
18
Lecture presentation on foreign policy
by Prime Minister Naoto Kan on 20 Jan.
• The Japan-US alliance as the cornerstone of Japanese
foreign policy
• The new development of foreign relations with Asia
• The promotion of economic diplomacy
• Efforts to address global issues
• Japan itself responding with precision to the security
environment surrounding it
19
Education in Japan
2010
Number of Schools
Number of Students
Number of Teachers
Elementary School
22,000
6,993,376
419,776
Junior High School
10,815
3,558,166
250,899
High School
5,116
3,368,693
238,929
University/ College
778
2,887,414
174,403
Overall Reading scale
Mathematics scale
Science scale
PISA 2009 Ranking
8th
9th
5th
PISA 2006 Ranking
15th
10th
6th
PISA 2003 Ranking
14th
6th
2nd
PISA 2000 Ranking
8th
1st
2nd
OECD PISA
(The Programme for
International Student
Assessment )
20
Foreigners in Japan
Foreign tourists to Japan
Registered foreign nationals
(10,000)
1000
900
835
800
861
835
732
679
673
700
600
500
476
400
300
200
100
0
2000
2005
2006
2007
Year
2008
2009
2010
21
Other Social Indicators
Number of reported cases for penal code offenses
Number of Suicide cases and Traffic deaths
(1,000)
35,000
4,000
30,000
3,500
3,000
25,000
2,500
20,000
２,３９９,７０２
2,000
15,000
1,500
10,000
1,000
5,000
500
0
0
2005
2006
2007
2008
2009
2010
Suicide cases
Traffic deaths
1946
2009
22
Main political agenda in the 1st half of 2011
• Passing the fiscal 2011 budget in the divided Diet
• April’s gubernatorial, mayoral and local assembly elections
• Joining the Trans-Pacific Partnership (TPP) negotiations
• Starting nonpartisan deliberations on social welfare and tax
reform including a consumption tax hike
23
High level visits
• Japan→Sweden
T.M. Emperor and Empress (2007)
H.I.H. Crown Prince(2010)
Vice-Speaker Eto of the Lower House (2009)
Prime Minister Koizumi (2006)
Education and Science Minister Takaki (2010) etc
• Sweden→Japan
T.M. King and Queen (2007)
H.R.H. Crown Princess (2005)
Speaker Westerberg of Riksdagen (2010)
Prime Minster Reinfeldt (2008)
Justice Minister Ask (2011) etc
24
Policy dialogue
• Political consultation (held on ad hoc basis, but recently
once a year)
• Trade and economic consultation (so far 26 times)
• MoD dialogue (the 1st dialogue held on 10 Feb.)
• Joint committee on science & technology (so far 4 times)
• Social security pact and an agreement on exchanging
financial information related money laundering and
terrorist financing in sight
25
Cooperation for world’s peace
• Japan Self Defense Force (JSDF) personnel to
Swedish International Center (SWEDINT)
• Folke Bernadotte Academy (FBA) instructors to
Hiroshima Peacebuilding Center (HPC)
• Off the coast of Somalia operations against piracy on the
high seas
• Seminar and exhibition on nuclear non-proliferation and
disarmament
26
Defense forces
2009
Defense budget
Defense budget per GDP
Defense forces
Japan
Sweden
US$52.6 billion
US$5.61 billion
0.99%
1.3%
230,300
13,050
(The Military Balance 2010)
27
Trade and investment
• As trade partner, Japan ranked 18th in Sweden’s export
(timber, optical and communication equipment) and 14th
in import (vehicle, video equipment)
(2009,SCB)
• Investment flow (1983-2009)
(1$=83\)
To Japan
$ 812 million (IKEA, H&M)
To Sweden $2,845 million (BT industry, Garphyttan)
• Japan External Trade Organization (JETRO)
Swedish Trade Council and Invest Sweden
28
Toward Japan-EU EPA
• Japanese and EU leaders agreed to comprehensively
strengthen the Japan-EU relationship in the annual
Japan-EU summit on April 2010
• Established a Joint High Level Group (JHLG)
• Japan-EU EPA is the key to strengthening both
economic and political cooperation
• Completion of a few specific non-tariff issues in JHLG on
December 2010
①Guideline for advanced Automobile Safety Technology
②Government Procurement
③Wooden Construction Materials
④Medical Devices
Next Japan-EU summit in May
29
Social security cooperation
• Frequent study-visits of Japanese MPs to Sweden
(Lower House committee on Health, Labor and Welfare
etc) and less frequent visits of Swedish MPs and
Ministers (Göran Hägglund and Maria Larsson etc) to
Japan
• Local and inter-institutional exchange
(Umeå & Fukushima Pref., Silviahemmet & Japan
Sweden Care Institute (JSCI))
30
Science and technology cooperation
• Bilateral agreement on S&T cooperation (January 1999)
• Japan Society for the Promotion of Science (JSPS)
opened a regional office in Stockholm (May 2001)
• Numerous and increasing research cooperation (ex. Brain
research between Karolinska Institute and RIKEN)
• Gross Domestic Expenditure on Research and Development
Japan 3.4%
Sweden 3.75% (2008)
(3rd in OECD)
(funded by industry 78% )
(2nd in OECD)
(funded by industry 64%)
31
Cultural and people-to-people exchanges
• Increasing popularity of Japanese food and popular culture
• Rise of the number of Swedish tourists to Japan
(7,000(00)→14,000(now)) and students learning Japanese
(1,400(06)→ 2,500(now))
• Local communities exchanges between Leksand & Tobetsu,
Nyköping & Oarai etc
• Swedish design and music highly appreciated,
and “Millenium” as one of the best-sellers in Japan
32
The way ahead
• International arena
As democracies, sharing such fundamental values as
freedom, human rights, the rule of law and market
economy, we can further enhance our cooperation so as
to address and solve major global issues.
• Domestic front
Facing common domestic challenges in socio-economic
fields such as ageing society and job creation etc, we
can mutually benefit from up-graded interchange of our
experience and knowledge.