Japan's "third way" capitalism

Japan, the world's third-largest economy, has long been a bastion of modern capitalism. But newly-minted PM Fumio Kishida thinks it's time for a rethink of the neoliberal model.

Capitalism must further evolve, Kishida says during an exclusive address to our parent company Eurasia Group's 2021 GZERO Summit. And Japan can help lead the way along with other advanced democracies like the US and European countries in an increasingly G-Zero world.

But what does Japan's "third way" capitalism actually entail?

A big part is combating rising inequality, one of several market-based distortions that have led to electoral populism and "narrow-minded nationalism."

It's also about investing big in climate, digital transformation, and economic security — including health — for all citizens.

Kishida plans to detail his vision for a new capitalism in the spring.

In the meantime, the prime minister has already committed Japan to spending $4.4 billion on COVID vaccines and treatment, and to cut greenhouse gas emissions by a whopping 46 percent by the end of the decade in order to achieve net zero emissions by 2050.

Watch Kishida's speech and insights from other participants on Day 2 of the event on the GZERO Summit website.