Proposal for Emergency Stimulative Economic Measures

October 12, 1998

(Japan Federation of Economic Organizations)

Japan's economy is in the midst of an unprecedented crisis, with the third consecutive year of negative growth a very real possibility. Continuation of this situation will impact heavily on the world economy. We in the business world have been doing our utmost to jumpstart an economic recovery by boosting management efficiency, restructuring operations, and developing new business. But the Japanese people are showing a deep sense of unease about the protracted instability in the financial system and other uncertainties, and the real economy has taken a serious hit.

To overcome the economic crisis now facing Japan, open the way to a dynamic economy and society in the twenty-first century, and expand employment through industrial revitalization, the government needs swiftly to put into effect uncompromising measures; it must also initiate sweeping structural reform with an eye to the future.

We believe the following emergency measures are needed urgently to stimulate the economy. Our recommendations for sweeping structural reform have been compiled separately in our Proposal for the Economic Strategy Council.

Immediate decisions and action will be of the essence.


  1. Further stabilization of the financial system

  2. Stimulation of the securities market

  3. Early construction of an international framework for stabilization of foreign exchange markets

  4. Tax system reform

  5. Public-sector investment

  6. Development of industrial infrastructure to open Japan's path to the future

  7. Reform of corporate pension systems

  8. Reform of the labor market

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