In laying out his strategy on national television Friday, Abe accused the previous government, led by the Democratic Party of Japan, of ‘‘utterly failing’’ to figure out how to expand the economic pie.
Many in Japan believe that long-term growth will hinge on fundamental reforms of the government’s powerful bureaucracy, politics and educational system.
In picking key industries, such as renewable energy, for support Abe’s administration is taking a strongly interventionist approach. Abe also has insisted that the Bank of Japan commit itself to an inflation target of about 2 percent and that it adjust its asset purchasing and other policies to allow for even more monetary easing after years of near-zero interest rates.
‘‘Abenomics is big government, direct intervention,’’ said Kichikawa. While that approach could end up protecting inefficient industries, it also could be used to complement new private sector initiatives, for example supporting investments in costly renewable energy development.
‘‘We need to see how the Abe administration will conduct this ‘new’ strategy,’’ he said. ‘‘Let’s see what the ‘new’ means.’’
Associated Press writers Malcolm Foster and Mari Yamaguchi contributed to this story.