Yuri Okina: Appointed Chairperson of the Government Tax Commission

Thank you. Tax issues are extremely important matters that are very closely related to people's lives, and I believe that the meetings where these are discussed within the government are vital venues. Therefore, the position of Chairperson, who coordinates these discussions, carries a heavy responsibility, and I feel a sense of sobriety.

As you say, while the ruling party's tax commission basically decides on annual tax reforms, the Government Tax Commission's role is to examine the nature of the tax system over the medium to long term. 'Long-term' is difficult to define, but it is necessary to discuss things while looking at Japan's future through population projections and other data. I believe that considering the society of the next generation of children, along with the taxes of the current generation, is a very important perspective.

This time, 40% of the members are women, making it rich in diversity, and each is a wonderful expert. There are people from various specialties, such as scholars, medical professionals, and corporate managers, so I hope to enrich the discussions with their expertise and consider the long-term nature of taxes.

No one wants their tax burden to increase. That is why it becomes a very difficult discussion. I believe it is a difficult field politically as well. On the other hand, I think many people are interested in whether our taxes are being used fairly for society and whether the tax burden is equitable.

Including such matters, since I am an economist, I would like to incorporate EBPM (Evidence Based Policy Making) and think by firmly grasping the data.

Currently, working styles are diversifying greatly, such as the increase in freelancers and side jobs. As a result, I think various unfair parts have emerged in the conventional tax system, so I believe we must start by inspecting those points.

Last year's report from the Tax Commission stated that we aim for a 'fair and vibrant society.' I believe a vibrant society is very important.

Now, the tide of 30 years of stagnation in the Japanese economy is finally changing and improving, and I believe there is a role that taxes can play effectively there. What kind of incentives lead to vitality? There are special tax measures for corporate taxes and the like, but I think it is important to discuss and verify whether they are truly effective.

Regarding communication, all discussions of the Tax Commission are made public every time. In addition, I am scheduled to hold a press conference myself after each Tax Commission meeting. I hope to use such opportunities to communicate as clearly as possible.

When I was young, I specialized in research on financial systems, so even as a government committee member, I was often the only woman, but I didn't really think much about being a woman.

However, while I am an employee of the Japan Research Institute, I have also experienced going shopping and the fact that raising children takes both money and time in my family life. So, when discussing taxes now, I feel that those experiences might be of some use.

I have to work hard to be suitable (laughs). Recently, I've been happy to see the world gradually changing, with my Keio junior Teiko Kudo becoming Deputy President of Sumitomo Mitsui Banking Corporation, and the head of the bar association also becoming a woman.

At that time, it was just before the enforcement of the Equal Employment Opportunity Act, and there weren't many workplaces where women could work to their full potential. While looking for such a workplace, I heard about the Bank of Japan and thought the work sounded very interesting and attractive. The first person I met was Masataka Honke from the Personnel Department, who was a Keio graduate. We are still in contact today, and every time I went for an interview, he spoke in detail about the work at the BOJ.

Being able to look at the macroeconomy was also a big draw. In the Faculty of Economics, I studied international finance in Professor Michihiro Ohyama's seminar, and I wanted a workplace where I could look at the economy broadly, so I decided on the BOJ.

I was asked with a straight face, "What will you do if you get married?" (laughs). I thought, "Of course I'll keep working," but they were like, "What? You'll continue even if you get married?" Even entering through the career-track (sogo-shoku) framework, that was the vibe.

At the time, it was only about the third year since they started hiring women for career-track positions. I also worked at the Kyoto branch, and people there said, "That's unusual," and I appeared on the radio. Back then, it was still perceived as something truly rare.

The Bank of Japan was very educational and fun. Monitoring the daily cash flow of financial institutions, conducting hearings, being in the middle of market operations in the Operations Department looking at daily markets, and researching Western economies and financial systems in the Research and Statistics Department. Also, at the Institute for Monetary and Economic Studies, scholars from overseas would visit, and those interactions continue today.

At the Bank of Japan, when a paper or report I wrote appeared in the "Monthly Bulletin," the credit went to the Bank of Japan. At the Japan Research Institute, however, I had to put out reports under my own name, "Yuri Okina."

At the time, the bad debt problem was a major issue, and I wrote a report stating that the lack of solid safety nets like the Deposit Insurance Corporation and methods for handling the failure of financial institutions were major challenges. Since I was in charge of the U.S., I also introduced American experiences and research in this field.

When I did that, it was picked up by newspapers, and I compiled reports into books. My responsibility grew, and I became aware of the significance of analyzing and communicating as an individual. Since it is a private think tank, my mindset changed toward taking a firm approach to having a sense of the issues from a free standpoint, analyzing objectively, and connecting research to policy recommendations.

Yes. Initially, within social security, I was interested in and studied pensions, which are close to finance. I joined the Pension Subcommittee of the Ministry of Health, Labour and Welfare and participated in discussions on the introduction of the macroeconomic slide. I also joined the Council for Regulatory Reform. Initially, in the Financial Task Force, since banks and securities firms were in conflict at the time, we had discussions to break down those barriers a bit. I began to take an interest in the fields of medical care, nursing care, and childcare in the 2010s, when I became the chairperson of the Health and Medical Working Group of the Council for Regulatory Reform under the second Abe administration.

Having the opportunity to participate in such discussions was a great learning experience. In the medical and nursing care field, I was told, "Ms. Okina has been with the Council for Regulatory Reform for a long time, so please take on the most difficult field" (laughs). Regarding childcare, I had a real-life sense that nurseries are necessary for working women, so I tackled it with a sense of mission. I thought medical and nursing care would also be important from now on, so although I hesitated, I eventually accepted and began studying.

About 10 years. I had discussions with members of the medical association and the Ministry of Health, Labour and Welfare about whether these regulations should be changed. I worked on things I thought were important for the public from a citizen's perspective, such as the system for combined use of services not covered by insurance and online medical consultations.

When someone becomes seriously ill and wants to try a certain drug, and the doctor agrees, but for example, it is only approved in the U.S., I thought it was unreasonable that all previous medical and examination costs would have to be paid entirely out of pocket. We accumulated discussions on how to fulfill the patient's wishes while ensuring safety, and the Patient-Requested Medical Care System was established.

After the Council for Regulatory Reform ended, I joined the Council on Investments for the Future's Meeting for Thorough Promotion of Structural Reform. There, we discussed medical reform, digitalization of medical and nursing care, linking My Number cards with health insurance cards, and online medical consultations. Continuing on to the Council on Social Security System Reform for All Generations and the "Choosing the Future 2.0" Roundtable, I was involved in issues such as the declining birthrate, the gender wage gap, and male childcare leave, which greatly expanded my perspective.

Recently, people have started saying, "Oh, Ms. Okina, you used to do finance?" I continue to be interested in finance and am still involved in discussions on central bank digital currencies at the Ministry of Finance and continuing my research. However, when I was introduced as a social security expert in the news this time, I realized that is how I am seen now.

No, I haven't done anything special, but I approach the work I am given with the next generation of children in mind.

I believe dynamism is also important for the economy. The labor market has finally started to change a bit recently. Lifetime employment has good aspects for social stability, but on the other hand, fluid employment allows people to walk their careers autonomously. Since industrial structures change due to environmental shifts, I believe active labor market policies are important.

Furthermore, through discussions at "Choosing the Future 2.0" and elsewhere, I have come to believe that working styles such as long working hours are greatly narrowing the possibilities for women.

It is referred to as the "L-shaped curve" (the ratio of regular employment for women by age group); for women, the peak for regular employees is in their late 20s, and the ratio declines thereafter. However, it is a waste for women to be adjusting their employment to keep their annual income around 1 million yen. I feel there is huge potential for utilizing women, so if we change systems and customs, Japan might have more possibilities.

My father was also at Keio, so I naturally took the entrance exam for Keio University and enrolled. Since I went to an all-girls school, I had a desire to go out into a wider world and work for a long time after becoming a member of society. It was a vague feeling, but I chose the Faculty of Economics.

For my seminar, I joined Professor Michihiro Ohyama's seminar on international economics. I met and studied with various people and had a fulfilling university life in many ways. During my university days, I also did things like tennis and music.

My macroeconomics theory teacher in my second year was Professor Ohyama, and I found his explanations clear and interesting. I was interested in international economics, and in the seminar, I joined the international finance section. I thought economics, which analyzes the real economy, was interesting. The seminar was fun.

Also, at that time, Professor Hiroshi Kato, who later became the Chairperson of the Tax Commission, was there. Professor Kato's classes were very interesting and popular. At the time, he was on the Rice Price Advisory Council, and his classes would start like a stand-up comedy routine, with him telling stories about how his suit got torn after being mobbed by reporters (laughs).

There were only four female students in my class in the Faculty of Economics. Everyone would take exams using copies of the female students' notes. When my notes were returned to me, they sometimes had bits of mandarin orange pith in them (laughs).

Yes. Since the employment environment was tough back then, I entered KBS thinking I would study for another two years.

I think my studies in international investment and finance are still useful today, and I think it was good that I could study corporate management broadly. Studying there made me decide to pursue work as an economist. I thought I might not be suited for being a scholar.

In fact, even at the Bank of Japan, for example, in the Market Division of the Operations Department, you can get a gut feeling for what the bond and stock markets are like. Theory is important, but the sense of the actual field is also important; being able to see both sides is my characteristic. When I worked for the Industrial Revitalization Corporation of Japan, I also learned that market failures definitely happen and that reality does not always go according to economic theory.

However, I still think it was good that I learned economic theory in Professor Ohyama's seminar as a foundation. I believe the angle from which I view things is economics. Learning that was very significant, so I think current students should also acquire a perspective through seminars and the like, and then after becoming members of society, they can add new learning based on that foundation. I believe learning a way of looking at society and a perspective during university days is extremely important.

I didn't set out to become a leader at all; I have just tried to do each job sincerely. I think there are various types of leadership depending on a person's unique qualities.

Currently, President Kohei Itoh is taking on various challenges, and with a School of Medicine and a Faculty of Pharmacy, Keio is a leader among private comprehensive universities in Japan. Also, when you go out into the world, Keio has great solidarity, and people help each other. The school spirit is probably stronger than at any other university.

I hope that Keio will use that solidarity and its progressive nature to carve out a new era. I hope that Keio will continue to make new attempts in education and produce talented individuals who can contribute to society.