Leap into the Future

Fujio MITARAI Chairman, Nippon Keidanren

Allow me to take this opportunity to wish you and yours a Happy New Year and to outline Nippon Keidanren's vision for 2008.

Japan is currently undergoing extensive change. Ever-accelerating globalization has thrown the country into an age of intense competition. In addition, we also face challenges that are truly testing the limits of human ingenuity in areas like global warming and poverty. Add to this mix such domestic issues as the falling birthrate in an already ageing society, a serious national deficit, and doubts about the viability of the social security system, and it seems there is a shadow cast over the future of Japan.

In order to break out of this morass and take the leap into a hopeful future, we must remain firm in our approach to reform without letting ourselves be restricted by precedents. Last year, we published The Keidanren Vision 2007, "Land of Hope, Japan" with a menu of reforms designed to create the best for society as a whole. These reforms fall into three fundamental categories: a greater capacity for economic growth, ensuring fiscal stability and eliminating anxiety among the public about the future, and revitalizing regional economies. Not only must we promote innovation, conclude economic partnership agreements (EPA) and free trade agreements (FTA) with other countries, and dramatically reform corporate laws and tax structures; we must also reform Japan's social security system to ensure that it remains dependable, stable, and sustainable, and decentralize government authority through a regional system that promotes and revitalizes the autonomy and independence of local governments.

Over the past year alone, we have seen major changes in the business management environment. Internationally, the sudden increase in the cost of raw materials and the sub-prime mortgage crisis have shaken economies. Domestically, the change to a new government administration and the mishandling of pension records have created a sense of instability, as well. Japan cannot allow these issues to hold up or slow reform. Sticking with the status quo at this point would counteract all the hard work that those who came before us have done and, in effect, would be giving up on the future.

Gridlock in both the upper and lower houses of the Diet makes progress in domestic government extremely difficult. However, we can make breakthroughs if we pursue the national interest and what is best for the Japanese people. We must fulfill our responsibilities to future generations by facing head-on the realities of globalization, a declining population and a graying society.

As we move forward steadily in 2008, Nippon Keidanren will continue to solicit the opinion of all sectors regarding our visions and concepts. To help ensure that we take a positive leap into the future, we will remain committed to resolve the issues that we all currently face.