Candidate in Japan race calls for new capitalism, recovery

One of the main candidates to be Japan’s next prime minister says the country needs a new type of capitalism to address income and social gaps caused by the pandemic

TOKYO -- One of the main candidates to be Japan's next prime minister said Wednesday the country needs a new type of capitalism to address income and social gaps caused by the pandemic. Former Foreign Minister Fumio Kishida is the only announced candidate so far in the race to lead the governing Liberal Democratic Party and succeed outgoing Prime Minister Yoshihide Suga. Whoever wins the Sept. 29 party vote is almost certain to be the next government leader. Kishida focused on his economic policy, which he described as a shift from the neo-liberalism and deregulation started by a reformist former leader Junichiro Koizumi in the early 2000s that Japan has since adopted. While deregulation and structural reforms have strengthened Japan’s economy and promoted growth, they also “created a gap between the rich and the poor, and those who possess and others who don’t,” Kishida said. The coronavirus pandemic has worsened the disparity, he said, noting tourism industry workers, contract workers and women are among the worst-hit.