The COVID-19 pandemic and the Russian invasion of Ukraine look set to bring an end to the global order established after the Cold War. This order has already been shaken by the rise of China and the widening of social divisions exacerbated by increased inequality. Today, "sustainability" does not just mean addressing climate change. It has evolved to cover a wide range of aims to reshape the world in terms of society, economy and national security.

Japan must take on these challenges. At the same time, the foundation of its nation and society is being eroded by long-term stagnation following the end of the bubble economy and ongoing population decline. While the world around Japan changes dramatically, Japan itself has continued to stick to the systems and structures that were established during its period of fast economic growth, which has resulted in today's inconvenient reality. It is our duty to future generations to look at this situation with a cool head, overcome the challenges and rebuild a sustainable socio-economic system.

It is obvious what we in the private sector should do given that the main reason for Japan's long-term stagnation is insufficient investment in value-creating capital and the lack of a strong will to transform businesses. The private sector must have a strong appetite for investment in innovation by cooperating with start-ups, particularly on "green transformation" and "digitalization" — the drivers of growth. In addition, the private sector should also invest in people through education, engagement and improved remuneration. This will likely not only to create new businesses and a dynamic society, but also encourage a shift in labour to fields with greater potential.

Meanwhile, the government should provide a vision for a sustainable nation and society by taking the following three steps. First, it should unleash the potential of the private sector by reforming regulations, and increase public investment to encourage the private sector to take greater risks related to future-oriented initiatives. Second, in terms of social security, the government should focus on moving from a cash benefit approach to one of promoting social participation, and should shift its emphasis from the elderly to future generations. It should also focus on family policies that address the declining birth rate. Finally, steps should be taken to eliminate fiscal inefficiencies and to optimise the overall allocation of resources with a complete overhaul.

This will require strong leadership to push for change and a complete transformation of people's lives, industrial structures and local communities. However, we do not have much time left. Now, with the world having just undergone a paradigm shift, we must dare to conceive a sustainable society and economy that allows both growth and fairness, and to bring it to fruition. The election for the House of Councillors has ended and the stage has been set for discussions based on long-term interests and shared values. I believe the time has come for us in the business community to wield the power of the private sector to create new values.