Mobilizing All Policy Tools to Revive the Economy

Fujio MITARAI Chairman, Nippon Keidanren

The world is now facing an unprecedented crisis. There is no end in sight to the uncertainty in the international financial system, and the impact on the real economy is becoming serious. By implementing large-scale economic measures and strengthening international ties, nations are beginning to put in place measures designed to strengthen the functions of the financial system and revitalize the economy. A path to recovery, however, has yet to emerge. In addition, Japan has a birthrate declining and a population aging at a pace unmatched in the rest of the world, as well as a serious budget deficit and public distrust in the social security system, all of which has left the citizens of the country losing hope in the future.

We cannot, however, falter in the face of this difficult situation. At a time like this, we must not allow ourselves to be held captive by what has come before. We must swiftly implement bold economic policy that focuses sharply on the future, and at the same time take a decisive and determined approach to socioeconomic restructuring. We must fortify the foundation upon which a future of hope can be built. It will be a steep climb, but it is by drawing forth Japan's potential and building a nation of hope that we will fulfill the responsibilities to future generations with which we are entrusted.

There are measures we must put in place quickly in order to overcome the difficulties we currently face. These are the promotion of a Japanese version of the New Deal; substantial strengthening of the socioeconomic safety net alongside the creation of employment opportunities and job stability; bolstering and stabilizing the functioning of the international financial markets, while revitalizing Tokyo's financial market; broad based revitalization of the private sector; and implementing political reforms.

In addition, we must implement initiatives that contribute to strengthening competitiveness for future growth and to maintaining a solid foundation that feeds this growth. These initiatives include introducing measures to counter the declining birthrate; establishing a model for growth; implementing fundamental reform of the tax, public finance and social security systems; maintaining and developing business infrastructure; promoting innovation; and working to deepen and broaden international relations.

Moreover, in order to transform Japan into a country of hope, the current form of governance must be revised in dramatic ways. Reorganization of the local administrative system (doshusei), the development of electronic government administration, the realization of an electronic society, and other changes that are directly connected to civil life must not focus solely on creating lifestyles of abundance and convenience for the citizens of Japan. They should incorporate an approach designed to ensure an ideal society, which is also well regulated and ordered.

At Nippon Keidanren, we continue to be committed to engaging all of our resources to address the various issues that must be resolved to ensure continued steady progress and a definitive return to dynamic growth in Japan.