Labor Pains Toward the Twenty-first Century

-- Nurturing a Strong Japan --

Shigeji Ueshima Vice Chairmen, Keidanren Chairman, Mitsui & Co., Ltd.

This is the last month of the twentieth century, the last ten years of which are regarded as a "lost decade", a period of agonizing hardship following the economic bubble's collapse. During this painful period, deregulation and structural reform have emerged at long last to signify a tectonic movement of growing momentum.

I think we should regard the hardship as a "useful experience" in revitalizing Japan as it enters the twenty-first century. We also should hold a "grounded optimism" on the basis of a good understanding of the cold facts.

At the beginning of the twentieth century, Japan was but a minor country with a population of forty million. It had no modern industry except that in the field of textiles. In the one hundred years since then, Japan has steadily attained economic growth, while its population has expanded to 120 million. Despite its regretful involvement in war, Japan has proved to be the leader in industrialization among Asian countries.

In describing the successful path of Japan in the twentieth century, we may use the expression "a model state of international trade." Indeed, while continuously bringing in technologies and raw materials from abroad, Japan has formed efficient systems to have its diligent and skilled workforce process them into superior products for marketing all over the world. In developing and maintaining this setup, Japan owes a great deal to the zeal and expertise of leaders in all industrial sectors.

Today, Japan is called upon to embrace the Information Technology (IT) Revolution, the importance of which is comparable to that of the Industrial Revolution. We actually do sense that information-network technology is causing changes in our economic activities and social structure as a whole. It seems that, by adjusting ourselves to these changes, we should strive to create a new model for our statehood as well as respective industries.

Furthermore, we should look upon the "lost decade" as a negative asset of the twentieth century that must be depreciated in order to make way for new orders. It is most important for us to, amid the progress of globalization, come out with a grand design to be pursued by Japan and to make every effort for its realization from the standpoint of national interest.

Finally, it is my hope that, as we succeed in realizing our flexible programs on global investment, technology, software, human resources, etc., we can expand the scope of domestic demand and find a new horizon.