Japan's never–ending social security reforms

This paper examines implications of the 2002 population projections for future trends in pension and healthcare costs in Japan. Current redistributive pension and healthcare programmes have resulted in considerably higher per capita income for the aged than the non–aged population. Substantive reforms are needed to lessen the extent of such redistribution, but political considerations have meant that only incremental reforms have been feasible. A start, however, has been made on introducing private initiatives in pensions; and shifting from the command and control model operated by the central government to a contracting model for healthcare.