Japan Economy and Covid: Update Jan. 29

 Article Source:  https://mainichi.jp/english/articles/20220112/p2g/00m/0na/055000c

Article:

TOKYO (AP) -- The Japanese minister responsible for containing COVID-19 while steering the world's third largest economy toward growth says he is confident he can carry out that precarious "balancing act."

"We know infectious diseases aren't going away ever," Daishiro Yamagiwa said Wednesday at the Japan National Press Club in Tokyo. "Co-existing with them while revitalizing the economy toward growth is our job," he said.

Japan had managed to cut new infections to very low levels last fall, then loosening precautions mean to keep the virus at bay. But medical experts warn it should expect a surge of COVID infections in the next few weeks. Daily reported cases are totaling several thousand nationwide, roughly tripling from last week.

Japan has responded flexibly against its "invisible enemy," setting up a system of quarantines at home for those sick with the omicron variant of coronavirus, instead of hospitalization for all, and speeding up vaccine boosters, said Yamagiwa, a veterinarian and graduate of the prestigious Yamaguchi University.

Ideas:

The Japanese government seems to have done a decent job of trying to maintain a balance between controlling the virus situation and making sure the economy can still show some growth.

The balanced or flexible strategy might be the best strategy to use while the virus situation is a very serious situation, so is mantaining the livlihoods of working people and the economy.

From here on in, the idea of co-existing most likely is what is going to be the new normal for now on, not just in Japan but globally.

Yes, at last count the omicron situation has exploded. And yes there are some serious cases, but not to downplay the omicron situation, it appears to be a lesser strain that what delta was.

And this might be the future, that newer strains are going to get weaker and weaker each time or hopefully that is what is going to happen.

As a Phizer exec suggested getting a booster shot several times a year is not the best strategy, and that a once a year booser shot is probably the best strategy.

Or even for example, a booster pill that can be bought at a pharmacy, and if possible, even make it volunatary, especially if the future strains become weaker and weaker.

Just like in the past with polio shot, chicken pox shots, and of course flu shots which aren't required but some people still get the flu shot each winter.

Article:

Boosters have lagged in Japan, compared to the U.S., South Korea and parts of Europe. Although about 80% of Japanese have received two shots, fewer than 1% have gotten a booster.

Most people are not expected to get booster shots until after March, possibly weeks or months longer than the recommended six-month gap after the second COVID-19 shot.

Critics have long said Japan needs to break out of entrenched bureaucracy and vested interests to reinvent itself and become more dynamic and competitive.

Yamagiwa said Japan needs to nurture digital technology, artificial intelligence, sustainability and biotechnology to break out of the decades-old doldrums that have worsened with the pandemic.

Ideas:

In South Korea, for example, the government reduced the time length from  six months to 3 months. Even though the South Korean government has increased booster shots, the omicron situation is at record levels.

And except for those over 60 they have introduced a new rapid testing scheme to speed up tesing as the omicron situation worsens.

But this weekend is going to be very interesing weekend as its the Lunar New Year holiday period, and five day holiday period and the government has recommended people not travel but already it is predicted that over 200,000 people will travel to the island of Jeju, the main holiday and travel destination for many Koreans.

Japan may have a entrenched bureaucracy problem but it may take a long time to fix or transform, just like some traditional Japanese companies. 

If there is one area in Japan that seems to have embraced new innovations and new technologies, especially related to health care it seems to be Kanagawa prefecture. They seem to be putting a lot of effoer into health care innovations and technolgies.

So even though Japan has takend a more flexible approach to the pandemic, there might not have been any best way to deal with it as has been seen with many countries globallly, and there been many different approaches to how countries deal with pandemic from China at one extreme to other countries being more open and flexible. There might not be any best approach other than to continue to get the booster shots, wear masks, socially distance as needed.

Article:

The Japanese economy is expected to grow in the current fiscal year, which ends in March, after contracting last year. But the latest wave of infections adds to uncertainty.

"Like many other countries in Asia, Japan's latest GDP data demonstrate that COVID is still exerting a strong influence on the economy," said Robert Carnell, regional head of research, at ING, noting restrictions on people's activity have dampened spending, trade and investment.

The government recently ordered restrictions in Okinawa, Yamaguchi and Hiroshima prefectures, where COVID surges have been most serious.

Ideas:

Yes, the omicron strain is going to pose some challenges to the Japanese economy and the Japanese health care system.

Hopefully after almost two years you would think that Japanease health care providers and hospitals have learned how to handle the situation by now.

And yes, especially the services sector, the challenges are there and for the most part have not left. 

If social distancing is still an important strategy, then retail places and restaurants need to make sure they have strategies in place to ensure customer safety.

For example, in Yokohama, where I use to go to two or three times a year before the pandemic Yokohama station is not a social distance friendly area if you know or see how many people move through there everyday. But of course any or most train/subway stations in Japan would have the same challenges.

For example Sogo department store on one end of Yokohama station and Takashimaya on the other end are not reall social distance friendly stores, meaning their first floors sometimes are so crowded you have to walk through them single file.

So I'm sure they are using the strategy of only allowing so many people in at any time, limiting the number of people into the stores becuase of the shortage of social distancing areas in the stores.

As sources have told me H&M in Landmark tower in Yokoham has actually been limiting the number of customers into thier store, making people wait outside in lines until they can get in.

It might not work for Landmark tower to do it, as it would cause some real logistics challenges and most likely lose a lot of customers.

Article:

Throughout his presentation, Yamagiwa returned to the theme of Prime Minister Fumio Kishida's "new capitalism" platform.

While critics say it's just a slogan and is scarce on specifics. Yamagiwa said the government will work to raise wages, invest in people and nurture startups and research.

He acknowledged Japan has fallen behind other leading economies in digitization, market capitalization of companies and even Nobel laureates.

But he said Japan had what he called "moonshot" goals, including leading the world in avatar technology by 2050 and investing in a Japanese university so it "becomes a Stanford."

"Japan will become No. 1 in the world," he said.

Ideas:

Again its not exactly clear as to what is the new capitalism that Prime Minister Kishida has been promoting. Its sounds like a very good idea, but as complicated as the Japanese economy is, can Japan re-distribute wealth to where poverty is lessoned and the lower and middle classes actually feel positive about their situatons. 

Investing in people and nuturing start-ups is a good first step. But just what does it mean investing in people. Is it more jobs, better salaries, more jobs for women in management positions, more investmens in training and education, better health and welfare systems, with lower medical fees and so on.

Helping startups seems to be one area that Japan is really behind compared to some other countries. It seems that South Korea, once one of the worst related to startups because of the market power of large companies has turned the corner and is well on its way to being a startup friendly country.

All of those ideas that Yamagiwa has suggested are very good. But South Korea for example, seems to always come up with slogans or strategies that sound good but never really work or are not sustainable.

So Japanese needs to have concrete plans and strategies that are sustainable or they will be nothing more than a slogan today and forgotten tomorrow.

Have a nice day and be safe!