May 21, 2022 at 16:47 JST
Prime Minister Fumio Kishida addresses a meeting of the government panel on social security on May 17. (Koichi Ueda)
One vital policy challenge facing Japan is how to revamp its social security system in response to the rapid aging of society amid low birth rates so as to ensure a fair sharing of the burden.
This daunting task requires broad public debate and it falls to the ruling camp to offer viable policy options ahead of the Upper House election this summer so voters can express their choices.
We urge the government to demonstrate its solid commitment to reshaping the already burdened social security system to ensure it is capable of meeting the increasingly complicated and demanding needs of a nation whose elderly population will peak in the 2040s.
A panel of experts to advise the government on achieving the policy goal of building a “social security system oriented to all generations” recently published an interim report on key issues that need to be addressed.
The issues referred to by the panel, set up by Prime Minister Fumio Kishida’s administration, will be incorporated into the annual “Basic Policy on Economic and Fiscal Management and Reform,” known as “honebuto no hoshin” (big-boned policies), to be unveiled in June, for no-holds barred debate within the government.
The expert panel cited support to families with children and young people as the most urgent policy issue. It called for “additional policy responses” to reduce the financial burden borne by this generation and make it easier for non-regular workers to take childcare leave.
The panel also proposed comprehensive debate on widening the scope of the social insurance system to cover freelance and part-time workers. It stressed the need to consider institutional responses to tackle challenges raised by the COVID-19 pandemic. In this respect, it called for family doctors to play a more effective role in the nation’s health care system and securing housing for the needy and the elderly.
All of these are certainly vital policy challenges. But the panel’s report on key issues offers no clues to the costs of implementing the proposed policy measures, which are vital for evaluating the options and making decisions.
It would be a shame if the panel avoided offering cost estimates out of consideration of the unwillingness of the administration and the ruling coalition to address issues concerning “burdens and benefits” prior to the Upper House poll.
When it embarked on “integrated social security and taxation reforms” in the 2010s, the government offered estimates of how the benefits and burdens would change over time in various scenarios, with or without reforms.
To ensure meaningful public debate on social security reform, it is crucial to offer cost estimates, possible financing plans and other information to weigh the pros and cons of various options.
The envisioned social security overhaul will also test the administration’s ability to overcome political obstacles. Proposals to expand the scope of social security programs to cover free lance and other non-regular workers have been discussed for years at study groups and advisory councils at the labor ministry. But no notable progress has been made.
Any major reform of the health care system to enhance the roles of family doctors could face strong opposition from the Japan Medical Association and other lobbies.
It should also be noted that some important social security issues escaped mention in the panel’s report. One issue that is of high public concern is a decline in the level of basic pension benefits. This problem has been raised every time the program is reviewed.
The downtrend of birthrates in recent years may further jeopardize the financial future of the public pension program. It is imperative for the government to respond to these concerns.
A broad array of issues needs to be addressed for social security reform. The government should prioritize them into short-term challenges and medium- to long-term ones. Otherwise, its policy responses will fail to keep up with the harsh realities of the nation’s social security system. Further delaying the work is clearly not an option.
--The Asahi Shimbun, May 21
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