Japan is attempting to build a new economy, known by various names such as 'Society 5.0', 'sustainable capitalism', and 'a new form of capitalism'. This new economy is to be constructed through digital and green transformation, along with a 'virtuous cycle of growth and distribution'. The effort is not without contradictions and faces significant challenges, including demographic decline and ageing, Japan's external energy dependence and geopolitical turbulence, as well as the legacies of Japan's 'lost decades'. A ‘new trinity’ of labour market reforms—promoting re-skilling, ‘job-based’ employment, and inter-company mobility, along with diversity—similarly challenges traditional ‘Japanese-style’ employment.
This agenda strongly resonates with the EU’s recently announced Strategic Agenda 2024-2029, particularly in areas such as the ‘twin transitions’, creating an ‘innovation- and business-friendly environment’, and ensuring that ‘no-one is left behind’. These parallels indicate converging interests between parties seeking equitable socio-economic transformation.
A broad overview will be provided by Professor Hugh Whittaker, based on his new book, Building a New Economy: Japan’s Digital and Green Transformation, while Dr Fangmiao Zou will focus on attempts to reform Japan’s labour markets, and consequently, its social model.