Shoichiro TOYODA
Chairman, Keidanren
The world today is in the midst of great transformation. In Japan, the existing institutions, political and economic alike, have run up against a wall, challenging the nation to develop a new, workable socio-economic system. Without any exaggeration, Japan's rise and fall in the 21st century will be decided by whether or not a fundamental structural reform will be brought off in the next few years.
Keidanren in January 1996 announced a long-term vision for Japan's economy, drafted through participation by all its members and titled "An Attractive Japan: Keidanren Vision for 2020." This blueprint for change aims for the creation of a "Vibrant Global Nation" by the year 2020, when the aging of Japan's population will reach its peak. Being envisioned there is a society where both individual citizens and private businesses find plenty of room to demonstrate their vital energy under the principle of self-help and behave with a global perspective and an awareness of their share of the international responsibilities. If such a vision is to be made a reality, it is essential that the nation carry out three structural reforms--first, the so-called administrative reform, deregulation, above all, second, budget reform and, third, reform of the tax system. All this will have to be completed by the year 2010 when the population increase of this country is expected to reach its uppermost limit. Further, the relocation of some functions of the Tokyo metropolis, a project Keidanren has been focusing upon for some time, should be taken up and accomplished as a fitting project to symbolize the multiple structural reform for national rejuvenation.
Inevitably, a structural reform of the kind and scale now under consideration will bring pain on businesses. Yet, it is of the utmost importance that we in the business community look to the future and lead the reform. Having been a vocal advocate of deregulation, we must not contradict ourselves by opposing specific measures that hurt while supporting deregulation as a general proposition.
Businesses are economic entities that pursue profit through fair competition; at the same time, they have the obligation to serve the people by helping enrich their lives and make themselves a useful being to society as a whole. As such, it is not enough for them merely to obey the letter of the law; rather, they must behave conscientiously as members of society. With that in mind, Keidanren late last year a revised Charter for Good Corporate Behavior in view of the changing social environment in which businesses operate. We strongly urge all member corporations to abide by it.
Meanwhile, there is the widespread recognition today that the present mode of policymaking led by the bureaucracy (the administrative branch of government) must change to the one characterized by political leadership (the legislative branch of government). Also, the existing relationship between private industry and the politicians needs an extensive review. It was from this viewpoint that in July 1996 we established the Business People Political Forum. Our objective is, starting with business people, to help keep the public better aware of the importance of political participation. Political leaders have since been invited to informal discussions and public symposia held frequently by the Forum with the hope of enhancing mutual understanding. In the short time since the Forum was established, we have already signed up more than 3000 members (primarily executive and supervisory officers of member corporations). The Forum's activities also have attracted strong interest from the political community. Our goal for this year is to expand membership to 10000.
Going beyond improved dialogue with the political world, we hope to see the voice of the business community better reflected, with the broad support of the people, in public policy. For this to happen, we need to present persuasive proposals based on factual surveys and theoretical research. A decision has been taken for this reason to establish the 21st Century Policy Analysis Institute (tentative) in an effort to enhance Keidanren's think tank capabilities. With the cooperation of member corporations, we will focus the studies by the institute on the real economy and will maintain a global perspective and an orientation to the future as we conduct surveys and research.
Last October, I visited France, Spain and Italy. In each country, I was deeply impressed to witness evidence of strong leadership with which government leaders addressed the structural reform of public finance and implemented even unpopular policies such as a review of the social security system. In Japan, too, Prime Minister Ryutaro Hashimoto, with a strong determination, personally leads the drive for administrative reform. We in the business community are ready to give him our fullest possible support.
When I assumed the chairmanship of Keidanren, I called for a basic posture of "Bold Concepts, Steady Implementation" and also emphasized such values as "Change, Creativity and Credibility" as this federation went ahead with its operations. The role of Keidanren today is to lead the way for a bold restructuring of our present socio-economic system and to help create an attractive Japan which at the same time deserves both trust and respect in the world community. Keidanren marked its 50th anniversary last year. Building on the fine history and traditions of the last half century, this year we hope to take a big, first step into the next.