The Japanese government is considering revising rules to allow state ownership of some defense production facilities as it seeks to secure a stable domestic supply of ammunition and other critical equipment needed in a prolonged contingency, according to a draft of its basic economic and fiscal policy guidelines.
The proposal, seen by The Japan Times, is expected to be reflected in the annual Basic Policy on Economic and Fiscal Management and Reform, which the Cabinet plans to approve this month.?
One key element of the defense plan is a possible shift toward a government-owned, contractor-operated (GOCO) model, under which the state would own certain production facilities while outsourcing day-to-day operations to private companies.
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