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Japanese Government proposes ‘Digital New Deal’ to upgrade its infrastructure

The Government proposed a comprehensive policy to digitise its services which came under pressure during the COVID-19 pandemic.

A country with obsolete government infrastructure: Despite being considered as an advanced country in its technological progress, Japan is characterised by an obsolete Government infrastructure, still largely relying on physical documents and offline procedures. The COVID-19 pandemic has exposed this problem as the country’s administrative services have gone under severe strain. On 8 July 2020, the Government proposed a ‘Digital New Deal’ as part of an annual set of strategic plans, in order to improve the country’s eGovernment infrastructure.

A sloppy response to the emergency: Japan has reportedly lagged behind other countries in Asia in delivering virus-response aid such as universal cash handouts. As of 3 July 2020, only 81% of the funds budgeted for cash handouts to households had reached people despite their approval in late April 2020, according to Japan’s internal affairs ministry. South Korea, which approved a similar plan on the same day as Japan, reached the 90% mark in May 2020. The delays are particularly acute in highly populated areas, such as Tokyo’s Setagaya ward where only 42% of applications had been processed as of 6 July 2020. Many of those applications were sent physically by mail, and some local governments reportedly gave up trying to accept online applications because of technical issues.

What is the New Deal about? The Government’s deal looks to enhance data sharing among ministries, while improving its social security number system and online administrative services, such as tax filings and benefit payments. The Government will also look to stop practices such as the use of physical stamps on documents, which have been in use for centuries. No indication has been given as to how much the Government is looking to invest in the plan.