The book describes Japan’s efforts since 2015 to exit the deflationary ‘lost decades’ and chart a new economic course through digital and green transformation, as well as ‘new/sustainable capitalism.’

Japan is attempting to revitalize and re-orient its economy through digital and green transformation. At the same time it is seeking to make a more equitable and sustainable transition through ‘new/sustainable capitalism.’ These twin efforts face strong headwinds, not least from a declining and ageing population, and social divisions from earlier neoliberal policies. There are also contradictions, which are highlighted by corporate governance and labour market reforms, as well as technology push and competitiveness versus social needs-oriented innovation. The chapters in this volume, by Japanese and non-Japanese experts, highlight the emerging path of change towards Society 5.0, the quest to combine green and growth, and continued obstacles for full participation of women. They especially highlight the need for Japan to invest in people again, matching ‘human-centred’ rhetoric with concrete policy commitments and implementation. Only then will Japan truly emerge from its ‘lost decades.’

This book is relevant for students, researchers, and policymakers in the fields of economics, sustainable development, environmental studies, public policy, and social sciences.

The chapters in this book were originally published as a special issue of Asia Pacific Business Review.