The Research Institute of Economy, Trade and Industry (RIETI) reports on the innovative policy planning project PIVOT led by young public and private sector volunteers, analyzing their Smart Regulation proposals.
Key Points
1. Background and Objectives of PIVOT Project Launch
- Launched by young volunteers (20s-30s) from ministries, private sector, and academia concerned about Japan's policy-making
- Aims to break from traditional bureaucratic vertical segmentation and create cross-cutting policy proposals
- Emphasizes evidence-based flexible regulatory design responding to rapid technological innovation
- Voluntary initiative creating new policy formation model through public-private collaboration
2. Core Concept of Smart Regulation
- Proposes outcome-based flexible regulation replacing traditional uniform prior regulations
- Utilizes digital technology for real-time monitoring and dynamic regulatory adjustments
- Introduces sandbox systems enabling trial implementation while ensuring safety
- Risk-based approach concentrating regulatory resources on high-risk areas
3. Specific Reform Proposals by Sector
- Financial services: Shift from activity-based to risk-based regulation, API standardization promotion
- Healthcare: Flexible operation of online medical care regulations, data utilization platform construction
- Mobility: Introduction of autonomous vehicle operation standards, MaaS promotion framework
- Energy: Establishment of distributed energy resource trading markets, smart grid advancement
4. Implementation Process and Governance Structure
- Multi-stakeholder governance including government, private sector, academia, and civil society
- Introduction of regulatory impact assessment (RIA) and establishment of PDCA cycles
- Capacity building programs and regulator retraining
- International harmonization and cooperation framework construction
5. Expected Outcomes and Challenges
- 10-20% productivity improvement through regulatory compliance cost reduction
- New business creation through innovation promotion and market activation
- Enhanced social trust through improved transparency and accountability
- Addressing implementation challenges including cultural change and technical infrastructure
The article concludes that PIVOT's Smart Regulation proposals represent a paradigm shift in Japanese policy-making, offering a new model balancing economic growth with social equity through technology-enabled flexible governance.