#6 Speculation over Snap election – Wang Yi visits Japan – Spike in COVID-19 cases – South Korea’s move to patch up diplomatic relationship.
HIGHLIGHTS: 15th Nov – 30th Nov.
● Japan is likely to declare a state of emergency, with a spike in the number of COVID-19 cases.
● The pandemic is pushing Japan’s healthcare industry to go digital.
● Japan remains firm over its stance on the wartime labor issue, unmoved by South Korea’s overtures.
● India, US, Australia and Japan conclude the second phase of the Malabar exercise in the northern Arabian sea.
1. POLITICS
● The government is looking at convening the next Diet session on Jan, 8, which is earlier than usual. This allows the possibility for dissolution of parliament and an early general election. The term of office of the members of the lower house of representatives is about to come to an end in September next year. Meanwhile, Prime Minister Suga has asked all ministries to formulate additional economic measures and a third supplementary budget to cover the costs incurred due to the coronavirus pandemic. If the Diet is convened on January 8, it would enable Suga to call for dissolving parliament immediately after the implementation of the third supplementary budget. If he does not call for the dissolution of parliament in January, chances are that elections will be held in April after implementing the budget in the new year or after the Tokyo Olympics & Paralympics.
● By December with the approval of Suga’s cabinet, Japan is gearing up for 35% of female representation in all spheres, viz., managerial positions, lawmaking, civil services and political realm in particular. This will increase the country’s image when it comes to issues of gender equality and parity.
● Despite Japan’s excellent healthcare system and rapid technological advancement, doctors are yet to adopt and adapt to digital management in the healthcare sector. Alongside the changes stirred by a coronavirus, and with digitizing Japan being the centerpiece of Suga’s economic agenda, the country’s healthcare system is supposed to reap the maximum potential benefit.
● Speaking of Suga's Science Council reform, Shinji Inoue, Minister of Science and Technology, said that he had asked the chairman of the Science Council, Takaaki Kajita, to consider utilizing the research results for 'dual-use', i.e., military and civil purposes. This announcement comes amid fresh efforts by the government to persuade the Science Council to consider resuming military research. This had been stopped for many years. The Suga administration is looking at reforming the Science Council in the wake of the problem due to refusal to appoint recommended members to the council.
2. COVID-19 Updates:
● According to Kamon Iizumi, NGA President and governor of Tokushima Prefecture, “Japan is in the midst of what appears to be a third wave of the virus”. Compared to the previous waves, the current spike is affecting older people more. Along with Tokyo, other hot spots include Hokkaido and the western prefectures of Osaka and Hyogo. Yasutoshi Nishimura, the virus response chief, warned that it is likely that a state of emergency will be imposed in the nation after monitoring the effectiveness and response of coronavirus containment measures during the next three weeks.
As on 30th November, the total cases had reached 147,457.
● With the rise in Covid-19 infections across the nation, Suga announced a pause in his Go To Travel campaign. This was one of the measures he had championed to bolster the economy. Earlier even with rising cases, he had insisted on continuing the campaign with few policy revisions. His reversal comes after he was criticized for being negligent towards public health .
The Go To Travel campaign is the government’s domestic travel promotion program.
● Chief Cabinet Secretary Katsunobu Kato said there will be policy revision on 'Go To Eat', such as limiting business hours, placing restrictions on the number of people, etc. These measures are being taken to prevent the spread of COVID-19, considering the threat of a resurgence in infections during the extended holiday period.
The Go To Eat Campaign was launched following the Go To Travel Campaign, a domestic travel campaign.The 'Go To Campaign', was designed to boost demand for industries that have been negatively impacted by COVID-19.
3. ECONOMY
● Population decline, low-interest rates, shrinking regional economy, digitalization, etc., highlight the various challenges faced by Japan's regional banking industry, which is facing a serious crisis. A study on the regional bank's interim financial results revealed a decrease in profits by 60%. Declining bank profits have aggravated and heavily impacted businesses. This situation is likely to persist due to the pandemic and persistent low-interest rates .
● Healthcare industry is one amongst other industries facing the heat due to the pandemic. Financial survey results on hospital management revealed that the profit margin in the industry is at -2%, an improvement from -10% during April to June. The downturn during April-June was due to patients avoiding consulting doctors at hospitals.
● A new Financial Times article discusses lessons that countries emerging from the coronavirus crisis can learn from Japan. For thirty years on and still, the Japanese economy is facing persistent low inflation and interest rates.
“One is that the route to zero interest rates and zero inflation does not matter. The crucial requirement is to find a way to stop a temporary plunge to zero interest rates from becoming a self-fulfilling prophecy.
Most important is the need to look past the specifics of Japan’s experience and recognize that whatever the difficulties, countries must not give up on the quest for growth, and do whatever is necessary to raise it to levels that keep employment high, wages rising and inflation from sinking to zero.”
“Recognizing the importance of financial stability and growth strategy while devising policies that address both the demand and the supply side of the economy is important.” says former Bank of Japan Deputy Governor Hiroshi Nakaso.
● Japan’s industrial output had risen in October for the fifth straight month. Industrial production for October rose by 3.5% from the previous month and showed that output in some sectors returned to pre-pandemic levels. At 17.9%, general machinery production was the biggest contributor to overall output; auto production also jumped by 6.8%. The Ministry of Economy, Trade and Industry (METI) said that in the coming quarter, there are chances of downside risks to both domestic and overseas economies.
4. FOREIGN AFFAIRS
● The International Hydrographic Organization has tentatively approved the plan for use of the name “Japan Sea”, or the Sea of Japan in referring to the waters between Japan and the Korean Peninsula. The decision comes in support of Japan which had been claiming to use the name as such while South Korea has been calling for the usage of the name “East Sea”.
● Despite efforts by Seoul to patch the Japan-Korea relationship by sending high-ranking government officials and lawmakers to Japan, Tokyo has been unyielding in its stance on compensation over wartime labor issue. Instead, it wants measures from South Korea to address the issue.
● Japan to assist India with 5G technology. With concerns over Chinese telecom suppliers, Japan has firmed its partnership with India in the field of telecommunications and digital infrastructure. Both countries’ governments have signed a comprehensive agreement on information and communications. This partnership aims to promote cooperation in 5G technologies, Internet of Things and Artificial Intelligence and key areas of cybersecurity.
5. DEFENCE CAPABILITIES
● The highlight of the recently concluded quad countries’ second phase of the Malabar naval exercise was the participation of the Indian navy’s Vikramaditya carrier battle group and US navy’s Nimitz strike group. This demonstrated improved ability to carry out coordinated operations of increasing complexity among the four navies.
● Chinese Foreign Minister Wang Yi visited Japan last week. During the visit, Wang faced questions over Beijing’s increasing intrusions in the East China Sea. Both sides are said to have agreed to avoid provocative actions in the disputed areas.
● Japan’s cabinet is set to approve plans to build two new Aegis-equipped ships as missile interceptors. These plans were earlier kept on hold over costs and safety concerns. North Korea had recently tested its new-short range ballistic missiles, which prompted Japan’s cabinet to allocate $4.8 billion for the defense proposal.
6. Other Stories of Interest
● In its efforts to promote digitalization and increase usage of cards, the LDP government submitted its proposal on using the MyNumber card as a health insurance card, which will put an end to the usage of the health insurance card in the future.
● Japan`s Immigration Services Agency said that it will allow 28 hours of part-time work for stranded foreign nationals without working visas on meeting some general criteria. The pandemic has left many foreign nationals stranded in Japan.
● On December 6, spacecraft Hayabusa2 of Japan Aerospace Exploration Agency (JAXA), is expected to reach Earth and drop a capsule containing the precious samples that is believed to provide clues to the origin of life on Earth. The pan -shaped capsule with a diameter of 40 centimeters, containing the precious samples of organic materials taken from under the asteroid Ryugu’s surface, will be dropped by Hayabusa2 in a remote, sparsely populated area of southern Australia, leaving it for the analysis of the scientists.