Since the change in government in 2009, the Democratic Party of Japan (DPJ) has implemented a number of policies and measures. Here are some of the DPJ’s achievements in the areas of growth strategies, supports for small and medium sized entities (SMEs), and postal reform.


Growth Strategies

[Improve the functions of airports in Tokyo and encourage tourism by promoting Open Skies Agreements]

The DPJ Government believes tourism to be crucial for economic growth in Japan. The Government has promoted the conclusion of Open Skies Agreements in order to expand international flight networks to and from Japanese airports. These agreements authorize airlines to allocate flight arrival and departure slots, routes, and the number of flights per day on their own – all matters which were previously managed by the Government. The agreements are sure to bolster the convenience of aviation services as well as competitiveness of Japan's airlines.

Thus far, the DPJ has concluded Open Skies Agreements with the United States, the Republic of Korea, Hong Kong, Macau, Thailand, Vietnam, Malaysia, Singapore, Sri Lanka, Canada, Brunei, Taiwan, the United Kingdom, New Zealand, Finland, France, Netherlands, Denmark, Sweden, and Norway.

Since October 2010, formerly domestic airports have been available for international air flights. This has not only made air travel more convenient, it has also contributed to the economic growth of Japan.

[Develop new renewable energies to make zero nuclear power plant operation feasible in the 2030s]

The promotion of renewable energies is one of the most significant issues facing Japan, which is only 4% self-sufficiency for its energy. Environmentally friendly and producing little carbon dioxide during the electricity generation process, renewable energies are now attracting a lot of attention. The DPJ Government established a special measure on the procurement of renewable energies by electric power companies in August 2011 and launched a system that made it mandatory for power companies to purchase electricity generated by reusable energy sources at a fixed rate over a certain period in July 2012. It is expected that these measures will allow producers to recover development costs. Former administrations failed to promote and spread renewable energies. With the DPJ systems, now anyone can install generators using renewable energies in their own home.

What’s more, the Energy and Environment Council of the National Policy Unit approved the establishment of the “Innovative Strategy for Energy and the Environment,” a plan that aims to mobilize all policy resources toward making zero nuclear power plant operation feasible in the 2030s.


Encouraging the vigorous activities of small- and medium-sized enterprises (SMEs)

[Implemented countermeasures against a credit crunch or credit withdrawals]

In December 2009, the DPJ Government enacted the SME Financing Facilitation Act in order to undertake countermeasures against an inappropriate credit crunch or credit withdrawals by financial institutions. In March 2011, the aforementioned legislation was extended for one year. The DPJ Government also promoted efforts to review requirements for loan applicants in public financial institutions.

The DPJ Government reinstated the principle of the special credit guarantee system by introducing an emergency system in light of the economic climate, which was applied to specific industries in February 2010. Although the system ceased to exist in March 2011, the DPJ Government continued to support SMEs by expanding the applicable scope of Safety-net Guarantee number 5 (for companies in difficult business condition) to all industries.

[Continuously supported financing for SMEs through supplementary budgets]
Through the establishment of the 4th supplementary budget of fiscal 2011, the DPJ Government allocated about two trillion yen to measures supporting financing, leading to the provision of approximately 30 trillion yen to Japan’s SMEs. The DPJ strongly supported the SMEs affected by the Great East Japan Earthquake and appreciation of the yen, helping them smoothly conduct their businesses.

[Reduced the tax rate applied to SMEs to strengthen the foundation of the Japanese economy]

The DPJ considers support for SMEs and their owners as fundamental activity for the strengthening of the foundation of the Japanese economy. The DPJ Government implemented a 15% reduction in the corporate tax rate applied to SMEs as a part of a process to follow through with the promises of the 2009 DPJ Manifesto, which called for the reduction of the corporate tax rate from 18% to 11% and a reconsideration of the personal guarantee system used when taking out a loan from financial institutions.

The corporate tax rate is currently 16.5% in real terms due to tax increases to fund reconstruction from the Great East Japan Earthquake.

[Approved tax exemptions for specified family corporations]

In the 2010 reform on taxation systems, the DPJ abolished a measure that viewed the wages of the owners of specified family corporations as non-deductable expenses. The DPJ supported SMEs by abolishing this measure that had been criticized as an obstacle to their revitalization.


Postal Reform

[Revitalizing the post office network]

Due to the postal reforms of the Liberal Democratic Party and New Komeito being undertaken hastily, many serious problems were created that lowered the convenience of post offices and gave rise to the possible absence of fiscal services in some regions. Based on the DPJ Manifesto, the Government enacted legislation to freeze the sale of shares in three divided postal corporations immediately after the change in government in 2009. In April 2012, the DPJ established postal services legislation to partially adjust the postal system privatization process ensuring the offering of the same postal services nationwide and enhancement of customer convenience.

The legislation made Japan Post Network Co. and Japan Post Service Co. merge into a new corporation named as Japan Post Co. This integration of corporations enhanced management efficiency and eliminated inconvenient situations caused by a split-up, such as postal deliverers not being able to receive cash deposits for postal savings from customers at the time of delivery – something that would have caused inconvenience especially for those living in depopulated regions – and a system change through which parcels would no longer be delivered to the post office nearest the customer but to a defined post office.

The legislation requires Japan Post Co. to establish post offices nationwide and called for Japan Post Co. and Japan Post Holdings Co. to take responsibilities for the provision of basic postal and banking services at each post office. In order to secure such services, the Government will hold a more than 33% share in Japan Post Holdings Co., which in turn is obliged to hold 100% ownership of Japan Post Co.