Yuri Okina: Appointed as Chair 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 Chair, who oversees these discussions, carries a heavy responsibility, and I feel a sense of gravity in taking it on.

Exactly. While the ruling party's tax commission basically decides on annual tax reforms, the Government Tax Commission is tasked with examining the nature of the tax system over the medium to long term. Long-term planning is difficult, but it is necessary to have discussions 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 a diverse group of wonderful experts. We have people from various specialties, such as scholars, medical professionals, and corporate managers, so I hope to enrich the discussions with their expertise and think about 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 challenging 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 commission stated the goal of aiming for a "fair and vibrant society." I also believe that 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 for taxes to play effectively there. What kind of incentives lead to vitality? There are special tax measures for corporate taxes and such, but I think it is important to discuss and verify whether they are truly effective.

Regarding communication, all discussions of the commission are made public every time. In addition, I am scheduled to hold a press conference myself after each meeting of the Tax Commission. 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 on government committees, 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, my junior from Keio, Teiko Kudo, became the Deputy President of Sumitomo Mitsui Banking Corporation, and the head of the bar association also became a woman. I feel happy that the world is gradually changing.

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 Mr. Masataka Honke from the Personnel Department, who was a graduate of Keio. We are still in touch, and every time I went for an interview, he told me 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 decided on the BOJ because I wanted a workplace where I could look at the economy broadly.

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

At that time, they had just started hiring women for career-track positions for about three years. I also worked at the Kyoto branch, and even there I was told, "That's unusual," and appeared on the radio. Back then, it was still perceived as something truly rare.

The Bank of Japan was very educational and fun. I monitored the daily cash flow of financial institutions and conducted hearings; in the Operations Department, I was in the middle of market operations watching the daily markets; and in the Research and Statistics Department, I researched Western economies and financial systems. 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 my papers or reports appeared in the "Monthly Bulletin," the credit went to the Bank of Japan, but at the Japan Research Institute, I had to put out reports under my own name, "Yuri Okina."

At that time, the bad debt problem was at its peak, and I wrote a report stating that the lack of solid safety nets, such as the Deposit Insurance Corporation, and methods for handling the failure of financial institutions were major issues. Since I was in charge of the US, 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 own responsibility grew, and I woke up to 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, I was interested in and studying pensions, which are close to finance within social security, and I joined the Pension Subcommittee of the Ministry of Health, Labour and Welfare to participate in discussions on introducing the macroeconomic slide. Also, I joined the Council for Regulatory Reform. Initially, in the Financial Task Force, since banks and securities were in conflict at the time, we were having discussions to break down those barriers a bit. I started to become interested in the fields of medical care, nursing care, and childcare in the 2010s, when I became the chair of the Health and Medical Working Group of the Council for Regulatory Reform under the second Abe administration.

Being given the opportunity to participate in such discussions was a 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). For 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 started studying.

About 10 years. I had discussions with people from medical associations and the Ministry of Health, Labour and Welfare about whether it would be better to change certain regulations. 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 US, I thought it was unreasonable for all previous medical and examination costs to become a full self-pay burden. We accumulated discussions on how to fulfill the patient's wishes while ensuring safety, and the Patient-Requested Medical Care System was created.

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

Recently, people have started saying, "Oh, Ms. Okina, you used to do finance?" I continue to have an interest in finance and am still involved in discussions on central bank digital currencies at the Ministry of Finance and continuing my research, but 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, but I tackle the work I am given thinking it is for the sake of the children's generation.

I think 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 think active labor market policies are important.

Furthermore, through discussions in "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 drops continuously after that. 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, so I chose the Faculty of Economics, though it was a vague feeling.

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.

Professor Ohyama was the teacher for macro-economic theory in my second year, and I found his explanations easy to understand 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, there was Professor Hiroshi Kato, who later became the Chair of the Tax Commission. Professor Kato's classes were very interesting and popular. At that time, he was on the Rice Price Advisory Council, and his classes would start like a stand-up comedy routine, where he'd talk 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 took exams using copies of the female students' notes, and when my notes were returned after being lent out, they had things like orange pulp stuck in them (laughs).

Yes. Since it was a tough employment environment at the time, 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 a career as an economist. I thought I might not be very suited to 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. While theory is important, the feeling of the front lines is also important; I think being able to see both sides is my characteristic. When I worked for the Industrial Revitalization Corporation of Japan, I also realized that market failures definitely happen, and I learned 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 lens through which I view things is economics. Learning that was very significant, so I think current students should also acquire a perspective through seminars and such, and then after becoming members of society, they can add new learning based on that foundation. I think learning how to view society and gaining 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 Keio, with its School of Medicine and Faculty of Pharmacy, is a leader that pulls Japan forward as a private comprehensive university. Also, when you step outside, 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 well to carve out a new era. I hope that Keio will continue to try new things in education and produce talented individuals.