Abstract
The Council on Economic and Fiscal Policy, which was introduced to strengthen the coordinating function of the cabinet, began to play an important role when Prime Minister Koizumi showed his intention to decide policy directions at the Council on Economic and Fiscal Policy in effect. Especially members of the Council from private sector and academic sector played important roles for agenda setting. The role of members from private and academic sector can be characterized as advocacy from inside rather than as expert advice provision. Substantive function of the Council on Economic and Fiscal Policy is the materialization of the effective operation of the cabinet. Using the members of the Council on Economic and Fiscal Policy from private and academic sector as catalyst, it is made possible to have substantive discussion among cabinet members. This function of the Council on Economic and Fiscal Policy in Japan is unique from comparative perspective. The Council on Economic and Fiscal Policy is similar to the PSX (Public Service and Public Expenditure) cabinet meeting in the UK in that it contributes to the effectiveness of the cabinet. but is different from the PSX in that the Council on Economic and Fiscal Policy relies on outsiders. On the other hand, the Council on Economic and Fiscal Policy is similar to the CEA (Council of Economic Advisers) in the US in that it relies on outsiders, but is different from the CEA in that the Council on Economic and Fiscal Policy performs advocacy function from inside in addition to the expert advice provision as economists. The Council on Economic and Fiscal Policy has an important role even from democratic aspect in that it contributes to making policy tensions and conflicts transparent. But issues such as the coordination between the cabinet and the ruling party, the relationship between the process of the Council on Economic and Fiscal Policy and the annual budgeting process managed mainly by the Ministry of Finance, and the establishment of effective knowledge base for the interventions by the Council on Economic and Fiscal Policy need to be solved before the Council on Economic and Fiscal Policy has stable function.
