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Japan
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Japan moves to fix its low-tech computer systems as coronavirus forces digital shift

  • Economists say old-school systems are affecting competitiveness in a nation where faxes and handwritten forms are still the norm
  • While the government wants to promote digital services, physical stamps required for most official documents are still preventing people from going paperless

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Japan trails behind many nations in digital competitiveness. Photo: Kyodo
Bloomberg
The coronavirus crisis may have finally forced Japan’s government to get serious about fixing its computer systems. Before the pandemic, the problems might have been merely annoying, but now they are impeding an economic recovery.

Despite its hi-tech image, much of Japan’s administrative system has relied on the use of fax machines and paper documents with a physical stamp of approval.

The low-tech systems have delayed aid money getting to where it’s needed during the pandemic.

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To fix that, the government last month included a “digital new deal” in its annual policy goals, calling for a year of focused investment to boost data-sharing between ministries and update websites, although no price tag has been given yet.

The country needs to escape its system of using paper and physical stamps as soon as it can
Yukio Noguchi, economist

Economists say the shoddy state of the government’s digital services has damped the benefits from fiscal stimulus and is hurting the country’s broader competitiveness by holding back technological progress in the private sector.

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