## Japan and the IMF: Working Together to Promote Inclusive and Sustainable Growth

_IMF News, November 7, 2017_

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## Bibliographic details
- Published: November 7, 2017

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### I. Introduction & Theme
- Partnership between Japan and the IMF forged over the past 65 years.
- Japan as a founding member has supported IMF analysis, policy advice, financial assistance, and efforts to strengthen economic governance and institutions.
- Shared priorities: inclusiveness and economic stability.
- Historical references:
  - 1964 IMF Annual Meetings in Tokyo: Prime Minister Hayato Ikeda on promoting stable economic growth and reducing disparity.
  - Recent reforms under Prime Minister Abe with increased focus on women’s economic empowerment.
- Central aim: strengthen partnership to promote more inclusive and sustainable growth.

### II. Shaping the Future of the Asia Pacific Region
- Regional transformation and growth:
  - Over the past three decades, Asia has helped transform the world, creating the world’s largest middle-classes and driving the greatest poverty reduction in history.
  - Over the past decade, Asia contributed two-thirds of global growth while other regions experienced weak recoveries.
  - Global economy expected to grow 3.6 percent and 3.7 percent (this year and next).
- Key long-term challenges for the region:
  - Demographics (young/growing populations vs. rapidly aging populations).
  - Productivity growth and reenergizing productivity to ensure higher living standards.
- Country group opportunities:
  - Countries with young populations (e.g., India and Indonesia) can reap a “demographic dividend.”
  - Countries such as China, Japan, and Korea must mitigate effects of rapidly aging populations.
- Japan’s policy experience and innovations:
  - Scientific and technological innovation: public initiatives promoting a “fourth industrial revolution” (artificial intelligence, big data, robotics, biotech).
  - Preparations for the 2020 Tokyo Olympics as a showcase of engineering excellence (examples cited: large, free-floating holograms; building a flying car to light the Olympic flame).
  - Commitment to boost proportion of women in the workforce:
    - Over the past five years, the number of female workers increased by 1.6 million.
    - Policy priorities include expanding access to childcare, reducing long working hours, and promoting “equal pay for equal work.”
    - Potential benefits: lift potential growth and improve inclusivity.
- Distributional concerns and policy responses:
  - Example statistic: combined wealth of 637 Asian billionaires increased by almost a third to US$2 trillion — compared to India’s GDP where the population is 1.3 billion.
  - IMF research: when benefits of growth are shared more broadly, growth is stronger, more durable, and more resilient.
  - Policy implications: retool tax systems and spending policies; emphasize conditional cash transfers for low-income families; expand access to health services and high-quality education.
  - Importance of cross-country sharing of experiences and effective policies.

### III. Fostering Stronger Cooperation
a) Asia, Japan, and the IMF
- IMF capacity development and country engagement examples:
  - Work with the National Bank of Cambodia to modernize its financial system.
  - Helping countries raise public revenues more efficiently.
  - Training nearly 30,000 individuals through free online economics courses.
- Japan’s financial and institutional support:
  - Over the past three decades, Japan contributed about $600 million to IMF capacity development efforts.
  - These efforts benefited more than 130 countries and contributed to economic transformations, especially in Asia.
  - Japan’s steadfast backing of the Regional Office for Asia and the Pacific in Tokyo; celebrating its 20th anniversary.
  - IMF membership: 189 countries.
- Personnel and knowledge exchange:
  - Over the past 10 years, some 150 Japanese economists have worked at the Fund.
  - Personal relationships and staff exchanges strengthen cooperation and mutual learning.
  - Reference to “heart-to-heart communication” — I-shin-den-shin.

b) The Global Economy and the IMF
- Shared global priorities with Japan:
  - Joint efforts on the Sustainable Development Goals and assistance to low-income countries.
  - Cooperation on international taxation, combating money laundering and terrorist financing, and addressing climate change.
- Climate impact estimate:
  - A 1 degree Celsius increase in a country with an average annual temperature of 25 degrees (examples: Bangladesh, Haiti, Gabon) could reduce per capita GDP by nearly 1.5 percent.
- Strengthening the multilateral system and global safety net:
  - Trade: example of the planned agreement between Japan and the European Union with provisions on antitrust, corporate governance, and sustainable development.
  - Financial safety net:
    - 2009: Japan committed $100 billion for IMF lending programs during the financial crisis.
    - Ongoing work with Japan to deepen engagement with regional financial arrangements to help ensure the global safety net’s layers work together seamlessly.

### IV. Conclusion
- Closing principle: “Cherish the harmony among people.” (ancient Japanese moral principle)
- This spirit captures the essence of the IMF–Japan partnership: fostering deeper understanding and trust among nations.
- Core message: by working together and trusting each other, partners can help create a harmonious economy in which all people can benefit.
- Closing remarks: “Thank you very much — domo arigato gozaimasu.”

*Keynote Address by Christine Lagarde, Managing Director, IMF — IMF Office for Asia and the Pacific 20th Anniversary: IMF-Japan Collaboration for the Asia-Pacific Region, November 7, 2017.*

---


## References

- [Digital Money and Payments in Transition](https://www.imf.org/en/videos/view/6385653284112)
- [Christine Lagarde](https://www.imf.org/en/About/senior-officials/Bios/christine-lagarde)
- [Japan and the IMF](http://www.imf.org/external/country/JPN/index.htm)
- [IMF-World Bank Debt Sustainability Framework for Low-Income Countries -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/imf-world-bank-debt-sustainability-framework-for-low-income-countries)
- [Speeches](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [http://www.imf.org/oap20](http://www.imf.org/oap20)
- [World Economic Outlook](https://www.imf.org/en/Publications/WEO/Issues/2017/09/19/world-economic-outlook-october-2017%203)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2017/11/07/sp110817-md-oapanniversary_