By Gerard Baker, George Nishiyama
In an exclusive, wide-ranging interview with The Wall Street Journal, Mr. Abe also defended his program of economic reforms against growing criticism that the package lacks substance—though he offered few details of new programs, or a timetable, that anxious foreign investors have been seeking.
“I’ve realized that Japan is expected to exert leadership not just on the economic front, but also in the field of security in the Asia-Pacific,” Mr. Abe said, referring to his meetings with the region’s leaders at a series of summits this month.
In his continuing attempt to juggle his desire to enact economic-stimulus policies with the need to pay down Japan’s massive debt, the prime minister said he was open to reviewing the second stage of a planned increase in the sales tax in 2015 if the economy weakens after the first increase is implemented in the spring.
Less than a year after taking office, Mr. Abe has already emerged as one of Japan’s most influential prime ministers in decades.
He has shaken up the country’s economic policy in an attempt to pull Japan out of a two-decade-long slump, and plotted a more active diplomacy for a country whose global leadership has been crimped by a rapid turnover of weak prime ministers.
In the interview, Mr. Abe made a direct link between his quest for a prosperous Japan, and a country wielding greater influence in the region and the world.
“Japan shrank too much in the last 15 years,” the leader said, explaining how people have become “inward-looking” with students shunning opportunities to study abroad and the public increasingly becoming critical of Tokyo providing aid to other countries.
“By regaining a strong economy, Japan will regain confidence as well, and we’d like to contribute more to making the world a better place.”
Mr. Abe’s views expressed in the interview reflect his broader, long-standing nationalistic vision of a more assertive Japan, one he has argued should break free of constraints imposed on Japan’s military by a postwar pacifist constitution written by the U.S.—and that has also been hampered by economic decline.
Mr. Abe made clear that one important way that Japan would “contribute” would be countering China in Asia.
In the interview, Mr. Abe made a direct link between his quest for a prosperous Japan, and a country wielding greater influence in the region and the world.
“Japan shrank too much in the last 15 years,” the leader said, explaining how people have become “inward-looking” with students shunning opportunities to study abroad and the public increasingly becoming critical of Tokyo providing aid to other countries.
“By regaining a strong economy, Japan will regain confidence as well, and we’d like to contribute more to making the world a better place.”
Mr. Abe’s views expressed in the interview reflect his broader, long-standing nationalistic vision of a more assertive Japan, one he has argued should break free of constraints imposed on Japan’s military by a postwar pacifist constitution written by the U.S.—and that has also been hampered by economic decline.
Mr. Abe made clear that one important way that Japan would “contribute” would be countering China in Asia.
“There are concerns that China is attempting to change the status quo by force, rather than by rule of law. But if China opts to take that path, then it won’t be able to emerge peacefully,” Mr. Abe said.
“So it shouldn’t take that path, and many nations expect Japan to strongly express that view. And they hope that as a result, China will take responsible action in the international community.”
China’s Foreign Ministry didn’t immediately respond to requests to comment on Mr. Abe’s assertions.
China’s Foreign Ministry didn’t immediately respond to requests to comment on Mr. Abe’s assertions.
In the past, the Chinese government has said that Mr. Abe’s government was in danger of leading Japan toward a revival of right-wing militarism.
Mr. Abe’s comments come amid a period of heightened tensions between the two Asian giants, as high-level diplomatic contact has virtually dried up amid a territorial dispute in the East China Sea.
Mr. Abe’s comments come amid a period of heightened tensions between the two Asian giants, as high-level diplomatic contact has virtually dried up amid a territorial dispute in the East China Sea.
While the conflict preceded Mr. Abe becoming prime minister in December 2012, Beijing has accused him of aggravating ties with assertive rhetoric defending Japan’s claims and ramping up Coast Guard defense of the Senkaku islands.
His remarks also follow months of active diplomacy that has taken him to summit meetings with heads of state in virtually every country in the region—with the notable exceptions of China and South Korea—which has its own strained ties with Tokyo.
In December, he intends to host in Japan the leaders of the 10 members of the Association of Southeast Asian Nations.
His remarks also follow months of active diplomacy that has taken him to summit meetings with heads of state in virtually every country in the region—with the notable exceptions of China and South Korea—which has its own strained ties with Tokyo.
In December, he intends to host in Japan the leaders of the 10 members of the Association of Southeast Asian Nations.
The event is intended to mark 40 years of Japan’s ties with the bloc that includes countries from Thailand to Indonesia to the Philippines to Myanmar, but also to further elevate Japan’s role as a leader in a region where China has also sought influence.
Mr. Abe’s pursuit of a more expansive role was on full display at a pair of summits in Southeast Asia this month, where he openly took sides in public comments with the Philippines in a South China Sea territorial dispute between Manila and Beijing.
Mr. Abe’s pursuit of a more expansive role was on full display at a pair of summits in Southeast Asia this month, where he openly took sides in public comments with the Philippines in a South China Sea territorial dispute between Manila and Beijing.
Mr. Abe’s role in those meetings was amplified by the absence of President Barack Obama, who canceled his participation in the Indonesia and Brunei summits amid budget paralysis back in Washington.
Some leaders expressed concern that Mr. Obama’s absence symbolized a pullback in U.S. participation, and influence, in the region, as domestic political divisions undermine the American leader.
Mr. Abe declined to answer directly a question about whether he was concerned about a decline in the clout of Japan’s close ally.
“In the world today, there are many things which only the U.S. can take care of. And in this context, the U.S. takes leadership and we expect the U.S. to do so going forward.”
Mr. Abe has accumulated unusual power for a Japanese leader, steering his party this year to unified control of parliament, riding the popularity of his economic program, dubbed Abenomics.
Mr. Abe has accumulated unusual power for a Japanese leader, steering his party this year to unified control of parliament, riding the popularity of his economic program, dubbed Abenomics.
A quick dose of stimulus—easy money from the Bank of Japan, and new public-works spending—has given Japan the fastest-growing economy and stock market of the advanced economies this year.
But now Mr. Abe’s economic program is at a turning point.
But now Mr. Abe’s economic program is at a turning point.
The next phase involves debating politically difficult economic reforms and deregulation measures, like making it easier for companies to shed workers, or reducing farmers’ protections.
He is facing increasing criticism from local media, economists and global investors that these “pro-growth” plans are too vague.
Mr. Abe said the government had submitted related bills to the parliament, stressing that what mattered were the results.
“I am aware of the various criticism over my growth strategy. It may lack the flashy sort of features, but I think what is important is the outcome.”
Mr. Abe said the government had submitted related bills to the parliament, stressing that what mattered were the results.
“I am aware of the various criticism over my growth strategy. It may lack the flashy sort of features, but I think what is important is the outcome.”
He said he expected the economy to be dragged down by the tax increase effect from April to June, and the key would be how it recovers afterward.
“I would like to watch carefully how much it can recover in July, August and September. And then I’ll make an appropriate decision.”
But Mr. Abe stopped short of shedding light on whether he would proceed with some key measures seen vital for growth.
On whether to review a 40-year-old system providing income support for rice farmers, long blamed for their low productivity, the prime minister said he would let experts discuss the issue first.
And on slashing the corporate-tax rate, one of the highest among advanced economies, which critics blame for the low foreign investment in Japan, Mr. Abe said his ruling party is the one in charge of setting tax policy.
Asked about whether he would proceed with a plan to raise the sales tax again to 10% in October 2015, Mr. Abe said he would first review the impact of the increase to 8% in April from the current 5%.
But Mr. Abe stopped short of shedding light on whether he would proceed with some key measures seen vital for growth.
On whether to review a 40-year-old system providing income support for rice farmers, long blamed for their low productivity, the prime minister said he would let experts discuss the issue first.
And on slashing the corporate-tax rate, one of the highest among advanced economies, which critics blame for the low foreign investment in Japan, Mr. Abe said his ruling party is the one in charge of setting tax policy.
Asked about whether he would proceed with a plan to raise the sales tax again to 10% in October 2015, Mr. Abe said he would first review the impact of the increase to 8% in April from the current 5%.
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