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Recommendations for the New Cabinet


July 30, 1998

(Japan Federation of Economic Organizations)

The new cabinet should exercise strong leadership to eliminate a sense of occlusion and anxiety prevalent among the Japanese people and overcome the current economic crisis of unprecedented scale. It is essential that the Japanese economy should be structurally reformed in order to achieve a full recovery driven by domestic demand. This is vital for the stable development of not only the Japanese economy but the Asian and global economies as well. We, in the business community, must also exert our utmost efforts to surmount these economic difficulties.
In accordance with this perspective, we urge that the following key policies should be promptly implemented.

  1. Stabilization and strengthening of the financial system and quick disposal of non-performing loans

  2. Promotion of fundamental tax reform

  3. Effective mobilization of fiscal resources

  4. Deregulation and the realization of a small government

  5. Rebuilding of the pension system

  6. Introduction of a mutual exchange system for cross-held shares

  7. Formulation of strategic policy for industrial technology

  8. Creation of new employment opportunities

  9. Response to the Asian economic crisis

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