FURUKAWA Masahiko
Vice Chairman, Keidanren
Japan has "put the brakes" on the global economy, according to recent economic forecasts published by such international organizations as the United Nations and the Organization for Economic Cooperation and Development (OECD). What has caused Japan, considered back in the seventies to be the compelling force behind the global economy, to decline so drastically?
Since the start of the nineties, certain symptoms of the maturing of the Japanese economy have become apparent. These include: the rapid aging of society, the strong yen and aftereffects of the collapse of the bubble economy. Naturally, these factors are among the noticeable syndromes behind Japan's stagnation.
However, we must squarely confront the fundamental root cause of this stagnation-that is, the failure of Japan's socio-economic system to adjust to the new global environment. With our postwar economic success so firmly etched in our minds, it may be difficult for us to reshape our economic system. It is imperative, however, that we shift our own paradigm to meet the challenges in the age of globalization, quantum leaps in information technology and mega-competition. Examples of failures that followed success abound in Japan's modern history. The people of Japan are now required to make correct choices and decisions to avoid repeating the same mistakes.
As the pillar of his primary mid-term policy agenda toward 2001, Prime Minster Hashimoto set forth "Six Major Reforms", i. e. fundamental reforms in Japan's administrative, economic, financial, health and welfare, fiscal and educational systems. Likewise, Keidanren last year set forth its vision toward the year 2020 in a report entitled "An Attractive Japan". The issues identified and the actions called for in this report correspond with those of Prime Minister Hashimoto's Six Major Reforms. Moreover, these reforms are all closely interrelated and cannot be accomplished without close cooperation and responsibility-sharing among those in political, public and private sectors.
Reconstruction of Japan toward the next century requires shaking off the fetters of past successes and overcoming the pains of reforming existing systems. Then and only then, will Japan be able to restore the strength to shoulder her responsibilities in the global economy. There is no time to lose if we are to achieve this end.