Does Japan realise that it has a population problem? On paper it does. But in terms of concrete measures to cope with the problem it has some light years to go.

The problem has several dimensions. One is the economic damage from population decline, the downsizing of demand in an economy already suffering from chronic lack of demand. Then there is the burden of maintaining health and pension payments in a rapidly aging population. Finally there is the unpleasant fact that declining population, combined with continued economic weakness, guarantees a further decline in Japan's Asian and global status just as China's power and status are on the rise.