Japan wants companies in the nation to concentrate on trail-blazing information technology such as artificial intelligence, but analysts are skeptical if the governmental initiative would revive the country’s economy.
Japan’s government wants to invest and promote communication systems in home automation by backing start-ups and information technology. The government’s plans have been viewed by Reuters in a draft. The Japanese Prime Minister Shinzo Abe’s government is interested in encouraging the use of robots, but the draft does not clearly indicate details about the steps that will be followed. The draft is expected to be finalized by the end of this month with details about the growth plan.
Analysts are unconvinced about the government’s assurance related to politically sensitive and bolder reforms such as the employment opportunities for foreign skilled workers. Hiroshi Shiraishi a senior economist is of the opinion that a series of reforms were needed that includes more involvement with regard to labor market, immigration, and free trade.
Since the Prime Minister took office he has been trying to boost economic growth with bold reforms but has not succeeded. If this final version does not provide improvement it would strengthen the fears of the nation not countering the negative impact of Japan’s manufacturing base and decreasing population.
According to Akira Amari the Economics Minister last year the goal was to create a worthy cycle of economic growth. Now the aim is to inspire capital expenditure, motivate industry expansion, and investment into research. The draft version includes the goals of increasing females in the workforce, inviting foreign skilled workers, and increasing efficiency but nothing has been put into practice.
Economic experts believe that the government needs to increase the birth rate and change the sharp drop in working age population through a drastic shift to services rather than manufacturing or there will be a fall in economic growth.