Japan Urged to Give More to Help Solve Global Problems

Japan should play a greater role in the international community by making use of its economic power and contribute more to resolving global problems, a government report said Tuesday.

The 627-page report released by the Economic Planning Agency said Japan, which has succeeded in weathering crises such as the negative impact of the yen’s sharp appreciation, now should adapt its economic structure to the globalization of its economy.

“Japan so far has devoted all its energy to strengthening its own economy, but now it must realize its responsibility as a nation with great economic power in the world,” the report said.

“It is necessary for Japan to create a new economic framework by adapting its economic structure to the ongoing globalization of its economy.”

The report said Japan should play a key role in various fields in the international arena and tackle such issues as environmental problems.

Living Standards Low

The report emphasized the importance for Japan to increase imports to correct its trade imbalance without stalling world economic growth.

Japan’s commitment to domestic demand-led economic growth is important to boost imports, it said.

Noting that the living standards of the Japanese people are still low when compared to the nation’s wealth, the report stressed the need to promote investment in social capital such as housing and narrow disparities in prices of domestic and imported products “so as to enable the Japanese people to enjoy a level of affluence that would reflect the nation’s economic power.”

The report attributed the low living standards mainly to spiraling land prices.

The widening gap in land assets between the haves and have-nots could cause feelings of inequality among the Japanese people, creating a negative effect on the overall economic performance, the report said.

“This poses a serious housing problem that cannot be ignored,” the report said.

It said Japan’s trade surplus in fiscal 1988, which ended last March 31, totaled $87.2 billion, while its current account surplus, covering both merchandise trade and services, stood at $70.7 billion.

“By capitalizing on its economic power to realize a society with wealth and contribute to world economic growth, Japan can win honor and the respect of other nations as a nation with true affluence,” the report said.