Good afternoon, ladies and gentlemen. I am Shinzo Abe. It was my intention to talk about how many times I have made speeches to the Research Institute of Japan, but this has already been mentioned by others today. It was noted earlier that the speech I gave last year actually marked the first time a prime minister had made five speeches to the institute. Some of you may feel that five speeches is probably enough. Be that as it may, I would like to set a new record today: Five consecutive speeches and seven speeches in total. Three generations of fathers and sons. A triple crown, you might say. Mr. Yoshiharu Habu was recently bestowed with the People’s Honor Award for holding all seven major shogi titles. I hope that I might receive something similar to the People’s Honor Award, a “Research Institute of Japan Honor Award” perhaps?
 
When I was giving my speech last year, I did not think that I would end up calling a snap election this year. Some predicted that my administration may potentially lose a significant number of seats, in light of the threat of North Korea, as well as the declining birthrate and aging population, which is the greatest barrier that Japan faces. Nevertheless, I called this election to take on the challenges posed by these national crises.
 
I think, therefore, that the kanji character that best symbolizes the coming year for me is “idomu” meaning “to take on challenges.” I talked about that last week, and, purely by chance, I saw in the newspaper the following day that Mr. Yoshiharu Habu, the shogi champion, had also chosen “idomu” as his kanji character for 2018.
 
Holding all seven major shogi titles at once is a truly historic triumph, which is why he was considered for the People’s Honor Award, together with Mr. Yuta Iyama, who has twice managed to hold all seven go titles at once.
　
If you do not take on challenges you cannot accomplish great things. The same holds true for Mr. Habu and Mr. Iyama. It is not notoriety and slogans that will shape the future of our country. Rather, it is policy.
　
When the Liberal Democratic Party lost past elections it was not because of poor notoriety. We were able to return to retake the reins of government by formulating stronger policies based on the exacting views of the people. In fact, I spoke about this very issue in Osaka in the following way. What do the Hanshin Tigers do when they lose? They don’t change the name of their team, they practice. The audience responded very favorably.
　
In the lead-up to that election the public told us to strongly advance our policies based on a stable political foundation. The ruling coalition was able to gain the confidence of the public, winning more than two-thirds of the seats of the House of Representatives.
　
Many people said that we won the election because the opposition parties were divided, but of the last three general elections, it was in the most recent one that we received the most votes, both in single seat constituencies and proportional representation constituencies. I am filled with the utmost sense of determination. While taking the weight of this responsibility firmly to heart, I will continue to work humbly to implement each of the policies promised during the election campaign, one by one, and deliver results.
　
Since then, the election has been a frequent topic of discussion in my meetings with various world leaders at APEC and the East Asia Summit meetings. Perhaps because they are not really aware of how the election was reported on domestically, people overseas have told me that they were impressed with the move to call a snap election, and mentioned the difference in the number of seats gained by the Liberal Democratic Party and the largest opposition party. Of course, since we all became the leaders of our countries by winning elections, when heads of state meet we often talk about how we managed to win and what kinds of election campaign strategies we employed, as they are topics of great interest to us.
 
We received a large number of requests for bilateral talks, and administrative staff grumbled about having to schedule bilateral meetings with 14 different countries. In the eyes of overseas leaders, winning elections gives you the ability to put your declarations and promises into practice, and because of that, I now feel that the extent of the public’s confidence in one’s administration can become a major strength in matters of diplomacy.
　
“Congratulations on your tremendous victory. I hope it will enable us to implement all of our plans.”
 
This was the congratulatory message that President Putin extended to me. When I spoke to you all last year, I talked at length about the diplomatic discussions I held with President Putin when I welcomed him to my hometown, Nagato. In the year since, a great deal of progress has been made on the Nagato Agreement.
 
We have conducted local surveys for joint economic activities in the Northern Territories and are accelerating discussions toward the materialization of projects in five fields by next spring. In order to consider legal frameworks and a framework for the movement of people, we have agreed to hold vice-ministerial-level discussions next year. We realized the first ever grave visits via airplane by former residents of the Northern Territories in September, and have reached an agreement to enable them to do so again next year. We will steadily advance the Nagato Agreement. We will also take firm steps toward resolving the issue of the attribution of the Four Northern Islands and concluding a peace treaty.
 
With regard to the growing threat posed by North Korea as well, I met face-to-face with President Putin in Vladivostok in September and we agreed to work together on the issue at the United Nations. Based on subsequent Japan-Russia consultations, Russia agreed to officially support a new United Nations Security Council (UNSC) resolution imposing tough sanctions on North Korea.
 
With the North Korean situation now approaching a critical juncture, there is a major role for China to play. My talks with President Xi Jinping and Premier Li Keqiang were carried out in a very friendly and relaxed manner, and we were able to engage in frank exchanges of views. As President Xi put it, these talks marked a fresh start for Japan-China relations. I agree wholeheartedly. With regard to the issue of North Korea, we agreed that all United Nations member countries must strictly implement the UNSC resolutions. I also proposed that Japan and China work together to develop business opportunities in third countries, and we were able to reach a shared understanding regarding this. I would like to hold a Japan-China-Republic of Korea summit meeting as soon as possible. I would also like to welcome Premier Li Keqiang to Japan, following which I wish to visit China and hope to invite President Xi to Japan as well.
 
Next year marks the 40^th anniversary of the Treaty of Peace and Friendship between Japan and the People’s Republic of China. The economy, culture, and tourism. I hope to bolster cooperation at all levels, and deepen exchanges between our two countries through high-level visits and other means, thereby raising Japan-China relations to a new level.
 
With the support of Russia and China, strict sanction measures were approved unanimously by the UNSC. This was the result of close coordination between Japan and the United States, including my efforts to seek cooperation from Russia and President Trump’s efforts to seek cooperation from China.
　
I was the first world leader to meet with President Trump after he succeeded President Obama earlier this year, and, at quite an early stage, we have developed a relationship that allows us to talk openly with one another.
　
As you might expect, it is not possible to discuss my relationship with President Trump without mentioning golf. In February, in Florida, we played golf until we were thoroughly exhausted and through that experience our personal relationship has grown even closer. Ordinarily it is only possible to spend about an hour in talks with U.S. presidents but playing golf afforded me a special opportunity to spend many long hours and even half days engaging in in-depth and otherwise impossible discussions on a wide range of global issues including economic matters, security, and regional affairs, while also admiring the play of professional golfer Mr. Hideki Matsuyama and talking about Mr. Isao Aoki, another golfer.
 
My grandfather, former Prime Minister Nobusuke Kishi, also visited Washington D.C. in the late 1950s and played golf with President Eisenhower at a course called Burning Tree, marking the first time that a Japanese prime minister and a U.S. president played golf together. My grandfather was not all that proficient at golf. Even so, when he stood at the tee, he was surrounded by a large number of media personnel. Only 12 years had passed since Japan lost the war and everyone was eager to see the first shot by this Prime Minister from Japan. When my grandfather was readying himself for his shot at the tee, he heard someone let out a chuckle. He glanced back to see all of the U.S. press personnel grinning while watching him. Apparently there was mood of skepticism about whether this Prime Minister from Japan could really play golf. This rubbed my grandfather the wrong way and he felt that Japan’s honor depended on how well his first shot went. Thinking about this made his shoulders stiffen up and he took the most nervous shot of his life, but it also turned out to be one of the best shots of his life. My grandfather was very proud of this story.
 
My opening shot in Florida was also one of the best five shots of my life. Unfortunately all those present were Americans, and, at the time, I wished I had allowed access to Japanese media outlets as well. During our game of golf in Japan, however, as host there were a lot of things I had to pay attention to, and, as a result, my first shot was unfortunately somewhat underwhelming.
 
That latest round of golf diplomacy drew the attention of people from around the world. One of the memorable things about it was Mr. Matsuyama’s many magnificent bullet-like shots. Another memorable moment, which was broadcast all over the world, was perhaps when I tumbled over in a bunker. I had no idea I was being filmed from the air. After making the bunker shot I knew that according to proper golfing etiquette I should have exited from the shallower part at the rear of the bunker but at that point I was trailing President Trump by two strokes and I was feeling somewhat flustered so I tried to exit from a deep part of the bunker. I would like to add, however, that after subsequently falling backwards and tumbling head over heels, I immediately got back on my feet and continued to play as if nothing had happened.
 
 
President Trump praised me saying that I was not only a wonderful golf player but also a great gymnast. Please take note, ladies and gentlemen, that flexibility really is the key to diplomacy.
　
When you play golf with someone you really gain good insight into their character. President Trump is really quite a friendly person and he struck up cordial conversations with people around him. He also tells me his thoughts in an extremely frank and candid manner, and listens enthusiastically to what I have to say right to the end. I strongly believe that he is a man I can trust. I also take pride in my belief that ours is the closest and deepest of all the relationships between the leaders of our respective countries over the more than half a century of the Japan-U.S. Alliance.
 
I reaffirmed with President Trump that the United States is with Japan 100% in relation to the issue of North Korea and that the U.S. commitment to the defense of Japan is unwavering.
 
In times of emergency, we can count on the Japan-U.S. Alliance. Although it may be called “an alliance,” it is very much the same as relationships between people. There were some who were opposed to the Legislation for Peace and Security, but if it were not for this legislation we surely would not have been able to respond so firmly to the heightening tensions surrounding North Korea.
 
Japan and the United States are now able to help each other in order to protect Japan. An alliance that allows two nations to provide mutual aid will, without a doubt, further deepen their ties. This is obviously as true of relations between people as it is with relations between countries. As democratic states, the power of the Alliance cannot be fully exercised without the support of the people of each country. Without a relationship based on trust and strong mutual bonds, the Alliance would be nothing more than a scrap of paper. To ensure that the Alliance does not become a mere scrap of paper but rather functions properly to protect our country, it is essential to have a relationship based on mutual trust and strong bonds. We must also ensure that the information that is shared by each partner in the Alliance will be held in confidence. Under such circumstances, the Japan Self-Defense Forces, in response to the current North Korean threat, conducted joint exercises with three U.S. aircraft carriers for the first time in history, taking on the role of defending U.S. vessels for the very first time.
 
While maintaining our exclusively defense-oriented policy as a given, I intend to address head on the harsh realities surrounding our country, such as advances in North Korea’s nuclear and missile technologies, and identify what defense capabilities we truly need to protect the people, rather than simply extending existing capabilities. We will continue to maintain a high level of vigilance and work to protect the lives and peaceful livelihoods of the people of Japan under any circumstances, based on a robust Japan-U.S. Alliance.
 
Three months have now passed since the latest UNSC resolution. With imports of petroleum-related products being cut by as many as 30%, North Korea’s economy simply cannot remain viable. The sanctions are surely having an effect.
　
North Korea has in the past carried out a wide range of acts of provocation, and some argue that putting too much pressure on North Korea may have explosive results. Making people think that this is the case, however, is one of North Korea’s strongest bargaining chips. We need to rigorously analyze information and respond in a calm manner. Moreover, it is crucial that we do not yield to North Korean threats.
 
With Japan holding the Presidency of the UNSC this month, we convened a ministerial meeting concerning North Korea last week. We intend to continue to lead the initiatives of the international community. The international community will continue to work together to place pressure on North Korea until North Korea itself seeks dialogue. I aim to resolve North Korea’s nuclear and missile issues, as well as the abduction issue, which is a top priority of the Abe administration.
　
In response to North Korea’s launch of a ballistic missile while a special session of the Diet was underway, a resolution protesting the launch was passed and a question and answer session was held amidst a tense atmosphere.
　
During the recent special Diet session there were a variety of discussions concerning the allocation of time for questions between the ruling and opposition parties. Some media outlets criticized the ruling parties saying that even if they were given more time, they would only ask flattering questions.
　
With the media recently reporting every day on the wooden North Korean boats that are currently washing ashore, it was a member of the ruling party, Mr. Shigeharu Aoyama, who, at a meeting of the Budget Committee, asked questions about the boats from a wide range of perspectives, including potential connections with bioterrorism or espionage.
 
In light of my position, I leave Diet-related matters up to the Diet, but I believe that members of the ruling and opposition parties asking questions from their own unique perspectives helps facilitate more multifaceted policy debate and also helps bring depth to discussions.
　
During the latest Diet session there were also opposition party Diet members who engaged in vigorous policy debate. My speeches are often rendered inaudible due to heckling, but during my policy speech I called for us all to engage in debate on policy. I intend to continue to appeal for constructive debate.
　
The other day I visited an art exhibition featuring works by contemporary artists as well as artists with disabilities. I was astonished by the highly distinctive animals that artist Ryunosuke had created from fallen leaves. Although he is still only a teenager I experienced a mysterious sense of nostalgia listening to his explanations of his works. I also found the works of artist Shingo Katori at the exhibition to be invigorating while also giving one an impression of deep warmth.
　
The following words appear in one of the works of Ms. Misuzu Kaneko, a poet from my hometown.
　
Everyone is different, everyone is wonderful.
　
We will create a society in which all citizens are dynamically engaged and in which each individual, whether they are young or old, are rearing children or providing nursing for family members, or have disabilities or intractable diseases, feels that their lifestyle is respected, finds meaning in their life, and is able to demonstrate their capabilities to the fullest. By doing so, Japan will be able to enjoy growth despite the declining birthrate and aging population. To this end, next year I hope to submit a bill to fundamentally reform the labor system for the first time in 70 years.
　
When I was in my 30s there was a popular television commercial that asked: “Can you keep going for 24 hours?” That catchphrase has been altered over time and recently it has apparently been changed to “It’s really tough to keep going for 24 hours.” I will amend the Labor Standards Act and prohibit long work hours. If that legislation is enacted the catchphrase might end up being “You mustn’t keep going for 24 hours.” I hope Mr. Mimura of the Japan Chamber of Commerce and Industry will also nod in agreement to that.
 
We will bring about equal pay for equal work and ensure that compensation is determined not by one’s employment status but by their actual performance. We will also ensure that those who work in highly specialized areas are evaluated not on how many hours they work but on the results they produce.
　
If this kind of work style reform is carried out, each individual will be able to choose careers that match their own lifestyles, instead of everyone being forced into a single track, whereby they enter companies straight out of university and work until they retire at retirement age.
 
“Are we to keep working even when we grow old?”
 
I imagine that some may ask this question. Aiko Sato wrote a best-selling essay this year called “What is there to celebrate about turning 90 years old?” about frustration with one’s body growing weak with age. It is a beautiful and moving essay that makes readers laugh and cry. Ms. Sato is now 94 years old. She wrote novels until she was 88 and after she subsequently decided to takes things easy she began to suffer from geriatric depression. Writing the essay, however, brought stimulation to her life and her depression receded. She says that it was not until she was over 90 years old that she understood that it was no use to think about taking things easy.
 
Taking up writing might be an option for me as well after I have retired. Sometimes I think that I would one day like to write candidly about what actually happened in certain situations in my life.
　
I think that remaining active for your entire life may become a social norm when the average life expectancy reaches 100. In such an era, getting people to learn new skills will be essential if they are to continue to make the most of their abilities as they age.
 
Ms. Masako Wakamiya is a game-app developer. She is now 82 years old. After graduating from high school she worked at a bank until retirement. She started learning programming after turning 80 and now develops iPhone apps for senior citizens. Her apps have been downloaded more than 50,000 times. She appeared at an Apple event as a secret guest and found herself in the international limelight. Ms. Wakamiya is currently studying how to make versions of her apps in other languages. She stated categorically that, in an era when the average life expectancy is 100, it will not be possible to continue to rely solely on the education one received during one’s school years.
 
We will ensure that everyone, no matter their age, will have opportunities to reeducate themselves and to take on new challenges.
　
In the lead-up to next summer, we will engage in deliberation on policies to boldly expand recurrent education, while also utilizing the employment insurance scheme.
　
We will overcome the challenges of the declining birthrate and aging population by creating a society in which everyone has a wealth of opportunity.
　
Looking ahead to 2020, with support also from the business community, we will undertake a major shift to a social security system oriented to all generations and allocate a budget of two trillion yen for the future of our children. It would certainly not be possible to put in place this kind of long-lasting policy involving the allocation of such a large amount of revenue without first having gained a popular mandate through an election. It is because we have gained the confidence of the public that we are able to go through with such major reforms.
 
During the recent election campaign, the fact that high school students, young people, and those of child-rearing age stopped to listen earnestly to our speeches left a strong impression on me. People in their 20s and 30s who would like to have more children are hesitant to do so because of the future costs of their children’s education, as well as kindergarten and childcare facility expenses. From April 2020, education for children aged 3 to 5 will be made free of charge.
 
Resolving the issue of childcare waiting lists is, of course, a top priority. To solve this issue as soon as possible, we will bring forward the schedule for the Plan for Raising Children with Peace of Mind, using the supplementary budget and other means, and expand the capacity of childcare facilities by 320,000 places by FY2020. We have secured the budget for this.
　
With regard to higher education, there are undeniable gaps in income between people depending on their educational background. There is a 75 million yen gap between the lifetime earnings of high school graduates and that of university/graduate school graduates. Moreover, the university entrance rate among people from households earning 4 million yen or less per year is 28%, while for households earning 10.5 million yen or more it is 63%. It is a fact that the poorer a child’s family is, the less likely they are to go to university.
　
We will break the cycle of poverty to prevent further entrenchment of these disparities. No matter how financially disadvantaged their family may be, as long as they have the ambition, anyone will be able to go to technical junior college, vocational college, or university. We will make higher education free for those who truly require support.
 
Through the human resources development revolution, we will enhance the capabilities of each and every individual and bolster productivity in a truly revolutionary fashion, with the aim of bringing about a productivity revolution by 2020. We will secure the momentum towards wage rises and link this to sustained economic growth.
　
Leveraging the brainpower of the Internet of Things, artificial intelligence, autonomous vehicles, robots, and drones, we will achieve dramatic leaps in productivity in a wide range of fields such as mobility, transport, nursing, and medical treatment. Entirely new industries, such as fin-tech, will also be born.
　
Take agriculture, for example. By working in alignment and communicating with each other, four autonomous tractors can plough the fields constantly, even through the night. If such tractors were connected to Japan’s GPS system their movements would apparently become even more precise.
　
The first step is to try. By eliminating a priori regulation, conducting repeated verification tests, and collecting and accumulating all manner of data, we will be able to create smarter artificial intelligence. Without having to worry about regulatory restrictions, developers will be able to come up with bold visions and create business models for new industries. We will establish a regulatory sandbox to facilitate this and support innovations aimed at ushering in “Society 5.0.”
 
We will support bold investment aimed at strongly boosting productivity. We have positioned the lead-up to 2020 as an intensive investment period for the productivity revolution, and will reduce the effective corporate tax rate to 25% for companies that actively raise wages and carry out capital investment. In addition, for companies that raise wages while also challenging themselves to enhance productivity using revolutionary new technologies, we will lower their corporate tax rate all the way down to 20%. Furthermore, we will revise Japan’s Corporate Governance Code, require companies to explain to investors how they intend to use internal reserves, and encourage companies that are hesitant to raise wages and invest to make bold management decisions.
　
SMEs and micro enterprises in particular are facing severe labor shortages and I imagine that productivity enhancement is a pressing issue for them. I intend to turn these challenging circumstances into an opportunity and rapidly boost the productivity levels of SMEs and micro enterprises through a productivity revolution.
 
Through the introduction of robots, an SME in Miyagi Prefecture that produces metallic molds reduced the number of workers it requires from two to one while more than doubling its productivity. Thanks to this, it became possible for the company’s veteran workers to focus on training their successors.
　
However, the hurdles for capital investment are very substantial for SMEs and micro enterprises. As a result, they tend to continue using their aging facilities. For the intensive investment period, we have created an unprecedented system that will boldly reduce the fixed asset tax to zero, while paying attention to the autonomy of local governments. We will also provide focused budgetary assistance, such as subsidies for manufacturing and service of SMEs and for the sustainable development of small businesses, and strongly support capital investment by SMEs and micro enterprises aimed at enhancing productivity.
 
In addition to investment to enhance productivity, SMEs and micro enterprises often mention the shortage of potential successors as a management issue. One survey shows that over the next decade 2.45 million managers of SMEs and micro enterprises will be aged 70 or above, and that half of them have yet to find a successor. In fact, more than half of the companies that go out of business are in the black at the time. What is more, their productivity is high. If we do nothing to address this, precious and entirely unique technologies and knowhow will be lost. We will position the next decade or so as an intensive period during which we will fundamentally enhance the business succession taxation scheme and put in place the bold and unprecedented measure of deferring the full payment of the inheritance tax.
 
The shortage of successors is particularly serious in the regions. Since it is SMEs and micro enterprises that underpin regional economies, I believe we must take firm measures to protect employment in the regions.
　
Over the three years leading up to 2020 we will dramatically enhance the productivity of the Japanese economy through productivity and human resources development revolutions, aimed at greatly encouraging investment in personnel and facilities. I would like to make 2020, when Japan will host the Olympic and Paralympic Games, a year in which our country undergoes a major rebirth.
　
Precisely because this is a time of growing momentum toward the start of a new era, we must deepen discussions about the Constitution and engage in a major debate about the nature and direction of our country.
 
When I talk about this, people claim that I am planning to amend the Constitution by 2020 or that rather than wanting to discuss the content of the Constitution I simply want to amend it. My statement in May helped to stir up debate on the Constitution, which had been stagnant until that point. However, it may have ended up causing too much of a stir, which was slightly problematic. Nonetheless, I believe it is certainly true that my statement helped to significantly invigorate debate within the Liberal Democratic Party. In the first place, there is not some set schedule that we must abide by. Moreover, whether or not the constitution is to be amended, and, if it is to be amended, what parts are to be amended, are all matters to be decided by the people via a national referendum. I hope that political parties, regardless of whether they are ruling or opposition parties, will be able to present their own opinions and concrete proposals, and deepen discussions in a calm manner at meetings of the Commissions on the Constitution.
 
　
If I may say so once again, any matter concerning the Constitution must be decided through a national referendum. The Constitution is determined by none other than the people themselves. General legislation can be approved through majority votes in the House of Representatives and the House of Councillors. In the case of the Constitution, however, the role of the Diet is to initiate the discussions. It is then up to the people to make the final decision. For that reason, it is vital that we significantly deepen discussions.
　
The key to regional revitalization is social media. Ever since Motonosumi Inari Shrine in my hometown appeared on CNN the number of overseas tourists visiting the site has increased considerably. Additionally, the nearby island of Omijima has also become a popular spot for taking photos since its photogenic scenery is highly social media friendly.
　
Being social media friendly or Instagrammable means that something lends itself well to being posted on Instagram, Facebook, and so on, and that the posted photos receive praise and “likes” from large numbers of people on those platforms. It is usually younger people who respond to phrases like “social media friendly,” and I think those who have no idea what it means are probably living in an entirely different world to them. I, too, only learned the phrase very recently, so I certainly should not speak with any air of authority on the subject.
 
　
This does not only apply to natural scenery. The needs of tourists are shifting from binge shopping trips and other trips focused on buying things to experience-focused trips where people seek experiences that are unique to their destination. Ladies and gentlemen, this presents an excellent opportunity to the regions. Motonosumi Inari Shrine, which I mentioned earlier, is located in Yuyacho in Nagato City, my hometown. It has a long series of red shrine gateways that lead all the way out toward the sea. This certainly makes for a wonderful view but it is not a place that locals have ever really given much thought to. It used to only attract a few thousand visitors a year, but that has now increased to between 400,000 and 500,000 visitors per year. After being shown on CNN, and then photographed and posted on Instagram by many people, Yuyacho, whose own population is only 20,000 people, now receives between 400,000 and 500,000 visitors a year. Every region has gems like this lying dormant and I hope that, if regions are able to get news about their local gems out into the world, they will experience similar rapid change.
 
Mr. Kazuo Ishiguro being awarded a Nobel Peace Prize was one of the positive news stories we heard this year. Mr. Ishiguro’s hometown of Nagasaki has bus stops shaped like strawberries, melons, watermelons, and other fruit, and they are becoming increasingly popular on social media. This was started more than 25 years ago, alongside the holding of the Journey Exposition Nagasaki event. Taking inspiration from Cinderella’s pumpkin coach, these decorations were set up around the city with the aim of putting visitors at ease. Instead of fruit picking, people are enjoying “bus stop picking” as it were. I have heard that the number of sightseers visiting on drives or for picnics, particularly young women, is on the rise.
 
I would like to increase the number of social media friendly scenic roads.
 
In June next year, we will launch a system to allow private residences to take lodgers. Iya Valley is located in Miyoshi City, Tokushima Prefecture. People are coming to Japan from all around the world to stay in old, traditional Japanese-style homes in the valley’s hamlets, which are half populated by senior citizens. The hamlets standing on the sides of the steep slopes of the valley are becoming known to people around the world through Facebook and Instagram as “Japan’s Machu Picchu.”
 
“We want to learn how to greet people in English.”
 
Meals made with local ingredients and walking tours. The elderly people in the community are taking on leading roles and have started studying English. The village, which was close to becoming a ghost town, now has a new lease on life.
 
It was Mr. Alex Kerr who oversaw the efforts of the village.
　
He says that working in cooperation with the locals is the best way to operate because it means they will be able to continue the work when he is gone. He also says he would like to see similar programs throughout the country.
　
Mr. Kerr is working with local residents and carpenters on similar initiatives to bring other villages back to life, with a focus on restoring traditional Japanese-style houses.
 
I have heard that there are also people going on study-focused trips. This year the Chibanian Age was a topic of much discussion. Although the decision on whether this will officially be adopted as a name for a geologic age will be made next year, the site that inspired the name is already busy with visiting children and their parents, as well as other sightseers. I understand that the geological strata has not yet received a designation such as a cultural property designation. The aim of designating cultural property up till now has been to protect natural monuments, historical ruins, shrines, and so on for future generations and to help familiarize people with them. At the next regular session of the Diet I will submit a bill to revise the Law for the Protection of Cultural Properties, so that cultural properties can be utilized for tourism, community-building and other such purposes.
 
People could hold musicals at temples, tea ceremonies at ancient Japanese pit dwellings, or yoga sessions at spiritual sites such as historical ruins. With the right ideas, a community’s culture or history can be transformed into so-called “killer content” that draws visitors from around the world.
　
Furthermore, it is not only communities’ unique traditions and culture, but also their agricultural, forestry and fishery products that present remarkable opportunities to compete on the world stage. Following five years of persistent negotiations, the Japan-EU Economic Partnership Agreement was concluded two weeks ago. That is excellent news. This will create a massive economic zone accounting for 30 percent of the world’s GDP and act as a new engine for Abenomics.
 
This does not only affect Japan’s long-established fortes, namely automobiles and consumer electronics. There are also Japanese saké and beef, which are proving popular in the United States. Furthermore, over 80% of Japanese amberjack exports also go to the United States. There is no reason why they would not become popular in Europe as well. Blue cheese from a farm in Chiba also won a gold medal at an international competition in France, a top cheese-producing nation.
　
To maintain the status quo means to accept decline. I want Japan to keep evolving.
　
Mr. Kenji Takahashi, who was brought up in a farming family, took up the challenge of dairy farming, despite having no prior experience. His 30 years of hard work are now paying dividends.
　
Taking on the world provides substantial opportunities for high-quality Japanese agricultural, forestry and fishery products that have been refined through much time and effort. Regional economies will continue to be the central players in Abenomics next year as well. I will do everything I can to support all those working hard in the regions.
 
“To take Japan back.”
　
It was with this goal in mind that I launched my administration, which in one week’s time will be marking its fifth year. I have given my all every day, taking on one issue after another.
　
This year, Japan’s GDP, which had been falling continuously since peaking at 536 trillion yen in 1997, reached a record high level of 549 trillion yen. Employment rose by 1.85 million and the ratio of active job openings to applicants for regular employees exceeded 1.0 for the first time. There are now one or more job openings for every person seeking regular employment. The employment rate among those who graduated from high school and university this spring also reached a new record.
　
Bankruptcies among SMEs have decreased by approximately 30% compared to the level prior to the change in government. For four consecutive years, we have seen the highest wage rises this century and Japan is no longer in a state of deflation. Based on this growth trajectory we will spread the momentum of wage increases to all corners of the country and secure Japan’s exit from deflation. We will grow Japan’s economy despite the declining birthrate and aging population.
 
　
“Buy my Abenomics.”
　
When I first said this in New York, the audience seemed to wonder if I was really up to the task. This year, however, an investor in New York commented that Japan has never advanced reforms with such a sense of urgency as it has over the last four and a half years and urged me to continue to implement reforms with an even greater sense of urgency.
 
Following far-reaching reforms concerning clinical trials in the fields of pharmaceutical development and medical treatment, where Japan was said to be furthest behind, U.S. companies have now begun opening offices here and Japan is becoming a leader in these areas.
 
If you put your mind to it, anything is possible.
　
Drawing on the confidence of the people as a great source of strength, we will execute policies single-mindedly and produce results. We will continue to push forward full steam ahead next year.
 
Thank you very much for your kind attention.