Japan's 'Suganomics' will target quick wins, not grand visions

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TOKYO (Reuters) - Japan's new prime minister will pursue economic structural reforms through a mixed bag of policies that target specific industries, rather than a grand strategy to reshape society and boost long-term growth.

Armed with a strong grip on Japan's bureaucracy, Yoshihide Suga knows which levers to pull to get results, say government and ruling party officials who know him or have worked with him.

But unlike Abe, Suga's plans for structural reforms will focus more on spurring competition, rather than deeper social change. "At this moment, he has to focus on very short-term issues like how to stimulate economy," said Heizo Takenaka, who served in the cabinet of reformist former premier Junichiro Koizumi.

Suga relaxed visa requirements to boost inbound tourism, overcoming push-back from the justice ministry. He also cut through bureaucratic opposition and expanded a scheme that gave tax breaks for donations to Japan's regional areas.

 

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