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NEWS FLASH - MAY 2001

(Selected information on social & labour developments in Japan)


May 2001

Summit to propose plans for redressing digital divide

In early May, the eight Summit countries have drawn up a blueprint for action to redress the so-called "digital divide" between advanced and developing countries. The plan proposes to organize an international body by January 2002 with the purpose to assist the advancement of information technology (IT) in developing countries. Japan will announce its financial and personnel cooperation to this plan at the July Summit meeting to be held in Genoa.

The plan consists of four pillars: (i) development of policy environment conducive to IT diffusion; (ii) development of a foundation for information and telecommunication; (iii) human resources development and (iv) participation in a global electronic commerce network. It is dubbed "Genoa Action Plan." The international body will consist of professional members from governments, international organizations, private companies, and NPOs.

In the area of human resources development, the plan includes action for the diffusion of IT to students and training for teachers, and promotion of distant learning.

The preparations for the plan have been in progress since the last Summit in July 2000, which adopted the Okinawa IT Charter. The working party set by the eight countries included representatives from developing countries, World Bank and UNDP as well as NPOs.


The number of elderly households hit record high

According to a survey released by the Ministry of Health, Labour and Welfare on 17 May, the number of households comprising only of members older than 65 had stood at 6.24 million in 2000, which account for 13.7% of the total households. 3.79 million of these households were those that elderly people lived alone.


ODA Reform: Overall ODA programmes to be reviewed

The Second ODA Reform Consultation Meeting, an advisory organ attached to the Minister of Foreign Affairs, held its first session on 23 May, in order to examine and review the overall ODA policies and programmes, which may result in substantial reduction of Japan's ODA.

Japan has been experiencing prolonged fiscal and economic difficulties and government expenditures including ODA budget are to be cut in line with the newly formed Cabinet policy for structural reform, which is strongly supported by the general public.

The meeting, which is composed of knowledgeable people mainly from academia, is to publish an interim report of the examination around July to call opinions widely from the public, and subsequently to make final report around November this year.


A plan to increase employment proposed

Economy, Trade and Industry Minister Takeo Hiranuma proposed a plan on 25 May to expand business and increase jobs, in order to counteract the expected increase in unemployment due to corporate restructuring by disposal of nonperforming loans. The plan was proposed at a meeting of state task force aimed at coping with industrial structural reforms and employment. The team is led by Prime Minister Junichiro Koizumi. The plan consists of 15 items under two main pillars: the creation of new businesses and the reform of the current employment system. It includes measures to facilitate venture businesses by optimizing research outcomes at universities. The plan targets to create 1,000 such ventures in a three-year period.


Draft guidelines for economic revival

The Council of Economic and Fiscal Policy revealed a draft guideline aimed to promote structural reforms to revive the ailing economy on 31 May. The draft consists of seven reform agenda, including privatization and deregulation, entrepreneurship, social security, human resources and innovation of lifestyle by such measures as child care support. As for specific measures, it is expected that the guideline will call for the privatization of public entities and the overhaul of the social security system as well as the creation of 5 million jobs over the next 5 years with reforms in education, science and technology, tax and labour market policies. The final policy guideline is expected to be announced by late June.


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April 2001


(Purpose of the news flash is to provide readers with rough idea of social and labour developments in Japan. It is not an official document of the ILO. The designations employed do not imply the expression of any opinion whatsoever on the part of the ILO concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. Reference to names of firms and commercial products and processes does not imply their endorsement by the ILO, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval.)

Updated by EU. Approved by MH. Last update: 8 August 2001