A dwindling birthrate and an aging population as an engine of social reform

Josei Itoh Vice Chairman of the Board of Councillors, Nippon Keidanren Chairman, Nippon Life Insurance Company

Japan is approaching a century of population decrease, along with an unparalleled declining birthrate and aging population. If we settle for the current social systems, Japan will be unable to avoid decay.

With this wave of change at hand, we cannot find promise for the future by remaining transfixed on gloomy scenarios. Japan now needs to switch to a positive mind-set that views the declining birthrate and aging population as an engine for social reform. Since time immemorial, mankind has dreamed of longevity. We should support the goal of building a society where the people have the world's highest level of fulfillment as well as the longest life expectancy.

To realize that goal, three reforms are necessary. First, we need drastic social security system reforms that help prepare the entire nation for the creation of a new society. While we have the second most personal financial assets in the world, apprehension about the future is shrinking our social economy. We should look to the vigorous elderly, who are healthy and wealthy, for help in building a new society. Furthermore, it is essential that we cultivate an environment that supports self-reliance.

Second, we need reform of employment practices to make it easier for women, elderly, and all people to work. This would not only simply serve the economic purpose of providing for future labor force shortages, but would also increase the possibility for young and old, men and women alike to be active in a greater variety of areas, which would support self-reliance and reenergize our economic society.

Third, we need reforms to overcome the American lifestyle of mass production, mass consumption, and mass waste disposal. In order to resolve the shortages of resources and food, and environmental deterioration brought about by the expanding economy of the twentieth century, we need to reexamine "what happiness is" and create a diversified lifestyle based on a new set of values.

Businesses also need to be active in building a new society by creating various forms of employment and social action programs. To realize that, it is essential that we nurture NPO's, which can deal with the wide array of needs of individuals and local communities. Japan boasts the longest living human resources in the world and an abundance of nature left untouched. I firmly believe that if each citizen prepares to play an active role in reform, Japan will be the forerunner in realizing an energetic society of long living people.