Other Predictions and Next Steps for SIIF Reflecting on the past decade, Nanako Kudo and Mitsuaki Aoyagi offer several observations that will shape next steps for Japan’s Impact Economy. SIIF Faces Japan’s Wicked Problems The SIIF team recognizes that Japan will continue to face several megatrends and super wicked problems: ageism, population decline, the deterioration of regional economies, gender inequality, natural disasters and the increasing risks associated with climate change. Kudo explains, “There is a growing sense of urgency taking hold across Japan. Rather than attempting to reverse these megatrends, Japan is beginning to frame them as outcomes of a maturing and evolving society. In this light, deeper discussions and practical initiatives are emerging around new societal models that enable humanity to live in harmony with the Earth’s environment.” 16 In regional Japan, although the overall economic scale is shrinking, new models of “refined rural life” are being developed—leveraging natural capital, cultural heritage, and social capital. The SIIF team believes that models for regional development are emerging that exemplify a well-balanced, mature society between rural and urban areas, gaining international attention. These regions demonstrate a coexistence of cutting-edge technologies—supporting decentralization and labor efficiency—and deeply rooted local traditions and practices. Kudo points out that while the relative child poverty rate in Japan has decreased from approximately 14 percent in 2018 to 11.5 percent in 2023, there remain 3.5 million children living in poverty. Japan has the fourth-lowest relative poverty rate, and the poverty rate for households of the working generation with children and a single adult is the lowest among the thirty OECD member countries. 17 Japan is in eighth position among thirty-nine developed nations in the latest UNICEF report addressing child poverty and related issues. Yet, while improvements have been made, a long-term solution has not been found. 18 There are several reasons why there are so many poor children in Japan including homelessness, single-parent households, child abandonment, or a combination of them all, and other causes. In 2021, the poverty rate for single-parent households—most of which were headed by mothers—was 44.5 percent compared to only 8.6 percent for households with two or more adults. 19 The cause is tied to, among other things, a lack of child support from former partners—a 2022 survey found that only 28.1 percent of children living with their mothers received child support. 20 Poor children also lack access to education options. 207
Ten Years in the Making
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