Japan PM: Abenomics did not create sustainable economy

FILE PHOTO: Japanese Prime Minister Fumio Kishida speaks during a news conference at the prime minister
FILE PHOTO: Japanese Prime Minister Fumio Kishida speaks during a news conference at the prime minister's official residence in Tokyo, Japan October 14, 2021. Eugene Hoshiko/Pool via REUTERS

TOKYO (Reuters) -Japanese Prime Minister Fumio Kishida said on Tuesday that steps taken under former premier Shinzo Abe's "Abenomics" policy of massive monetary and fiscal stimulus were not enough to create a sustainable and inclusive economy.

Under his "new capitalism" policy, Kishida aims to help create a virtuous cycle of economic growth and wealth distribution, he said during a speech at the World Economic Forum's virtual Davos Agenda conference.

Abenomics was deployed in 2013 to pull Japan out of economic stagnation, but it failed to close income gaps that widened as the ranks of workers in less-secure, low-paid jobs grew.

"Rather than leaving everything to market and competition, I will put emphasis on the government and private sector working together for socioeconomic transformation," said Kishida, who took office last October.

On climate change, Japan aims to cooperate closely with other countries in Asia so that they can jointly tackle the imminent global challenge.

"As the EU started out as the European Coal and Steel Community during the Cold War, I aim for the 'Asia Zero-Emission Community'," for jointly conducting technological development, infrastructure investments and fund raising, Kishida said.

The prime minister said he would like to present to the Japanese public a framework for a carbon pricing mechanism, as Japan strives to achieve carbon neutral by 2050.

(Reporting by Kiyoshi Takenaka, Ju-min Park; Editing by Catherine Evans and Frank Jack Daniel)

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