The Abe Administrations Growth Strategy: Policy Idea, Institutional Change, and State- Driven Policy Governance

Abstract

This paper elucidates the unique qualities of Abenomics, the Abe administrations growth strategy implemented in 2012, in terms of its policy idea, institutional change, and policy governance. The administration of Prime Minister Abe Shinzō was tasked with setting up the main goal of the cabinet to break through the national crisis by designating the growth strategy. This new strategy is now considered to have been a success, a feat which the previous administrations never reached. Since the collapse of the bubble economy, many attempts were made by the previous administrations to reboot the economy, but none of them was ever fully successful. Meanwhile, although the Abe administrations growth strategy initially emerged from that of the Koizumi administration, it has been reformed year by year, corresponding to feedback and actual socioeconomic conditions. Abes strategy can be explained in three aspects: policy ideas, industrial legislation, and policy governance. In particular, the administration enacted industrial legislation that specify the governmentcentered goals and logistics, and it has developed industrial policies based on this notion by regulating loan policy and regulatory reform. The Abe administrations strategy is distinguished from other cases in that it reinforces the role of the prime minister over the entire decision-making process. Also, it stresses the horizontal relationship between government institutions and requires public support for cooperation between the government and the people.