A chieving "a strong economy" is one of Prime Minister Naoto Kan's three major policy goals, along with "strong finances" and "strong social welfare." To realize his idea, his Cabinet on June 18 announced a new economic growth strategy.
To attain nominal growth of 3 percent or more and real growth of 2 percent or more through fiscal 2020, it has picked four areas — the environment (eco-friendly industries), health (medical and nursing care services), Asia (exports) and tourism — as areas where high growth can be expected, and envisages these areas creating 5 million new jobs and demand worth ¥123 trillion. It also envisages lowering the unemployment rate to between 3 percent and 4 percent in a short period.
The strategy clearly reflects Mr. Kan's idea of pursuing a "third way," which tries to create demand and employment through efforts to solve various social and economic problems, in contrast with the "first way" of relying on massive public works spending and the "second way" of pushing market fundamentalism. Many people may support the basic approach.