Welcoming the 21^st Century with Determination: Toward an Era of Secure Living

As we welcome the 21^st century, Japan is faced with important changes in times, such as economic globalization, an aging population with a declining birth rate, and global warming. Our mission is to lead the way forward towards solving these challenges and create a new century that is full of hope.

To realize this mission, a society must be created which places individuals and enterprises to play central roles in economic and social activities to fully utilize their abilities and resources. Reforms can no longer be delayed. In particular, a clear "grand design" should be devised and steadily realized that will carry out administrative and fiscal reforms in both the national and local governments, that will construct a sustainable social security system and that will bring about a drastic tax reform. As economy globalizes, Japan must aim to become a country that the rest of the world can trust and is able to demonstrate leadership.

When these goals are achieved, the Japanese economy will continue to steadily develop early into the new century, ensuring that people lead secure livings.

While people in various fields and at different positions in society are expected to act with a spirit of self-help, a strong political leadership is urgently needed. As far as Keidanren is concerned, it is ready to advance the merger with Nikkeiren (Japan Federation of Employers' Associations), and is determined to meet the needs of the times through further strengthening its capabilities to make policy recommendations and to realize them.

Priority Policies

Realize a sustainable and vigorous economy

1. Devise a growth strategy that incorporates measures for various fields, such as the workforce, capital and technology.
2. Work out a grand design for structural reform, including the structure of public expenditure in both the national and local governments, and the social security and taxation systems.
3. Conduct appropriate and transparent financial policy management to correct deflationary tendencies.
4. Compile reliable economic statistics.

Promote administrative and fiscal reforms in both the national and local governments

1. Promote administrative and fiscal reforms in both the national and local governments, and clearly distinguish the roles of the public and the private sectors.
2. Develop a new comprehensive regulatory reform action program and reinforce the machinery for promoting regulatory reform.

Realize a sustainable social security system

1. Conduct a comprehensive review of the social security system.
2. Reorganize the public pension system.
3. Expand and enlarge the options for corporate pension programs.
   (Early enactment of a defined-contribution pension plans bill, return of the substitutional benefit portion of employee pension funds to the government-run employee pension insurance system, etc.)
4. Fundamental reform of the medical insurance system
   (Reinforcement of the functions of the medical insurers and establishment of a new medical insurance system for the aged)

Promote fundamental tax reforms

1. Introduce a consolidated corporate taxation system in fiscal 2002.
2. Conduct an overall review of local taxes .
3. Reform the individual income tax.
4. Rectify the balance between the direct/indirect tax ratio.
5. Consolidate a pension-related tax system.

Activate the financial and capital markets, and maintain and reinforce the financial system

1. Study measures for activating the stock market to correct depressed stock prices.
2. Early development of the securities delivery and settlement system
3. Lay the groundwork to fortify corporate management and improve the financial standing of financial institutions (including cooperative organizations and insurance companies).
4. Conduct appropriate financial policy management to smoothly eliminate the freeze on the pay-off system.

Promote legal reforms

1. Promote reform of the judicial system and establish a flexible legislation system.
2. Promote fundamental reform of the Commercial Law.
3. Rationalize the shareholders' derivative suit system.

Improve conditions for the promotion of the IT revolution

1. Promote competition in the telecommunications sector.
2. Cope with the convergence of telecommunications and broadcasting services.
3. Realize a "unified" electronic government by linking the national and local governments together.
4. Prepare rules for electronic commerce (review of regulations requiring in-person explanation and establishment of offices, etc.).
5. Strengthen the foundation of human resources with IT knowledge and skills.

Formulate comprehensive and systematic policies for enhancing scientific and industrial technologies

1. a) Formulate a strategic and comprehensive scientific technology policy by the National Council for Science and Technology Policy.
   b) Devise and steadily implement the science and technology basic plan that is commensurate with the new century.
2. Promote national projects in cutting-edge technologies such as life science, information and telecommunications, the environment, nano-technology and materials, and IT-related infrastructure in space.
3. Promote reform of the universities with the goal of enhancing the foundation of human resources that will support scientific and industrial technologies in the 21^st century.
4. Promote strategic intellectual property policy (such as international harmonization of intellectual property systems).

Implement a strategic and efficient consolidation of social infrastructure

1. Concentrate on the development of transportation and distribution infrastructures (belt highways in major urban areas, hub airports, etc.).
2. Improve urban infrastructures, such as in residential areas and business and commercial areas, and at disaster prevention sites.
3. Correct high-cost structures.

Promote education reform

1. Create a multi-faceted and multi-track education system to foster creative and internationally-minded individuals (diversification of education, introduction of competition principles, promotion of deregulation, utilization of information technologies, etc.).
2. Create an education system and a society that cultivates high social morality.

Cope with the global environment issues and promote a recycling society

1. Promote active measures that are in harmony with economic activities to protect the environment against global warming.
2. Prepare and coordinate software (including deregulation) and hardware (like recycling facilities, final waste disposal sites, etc.) to build a recycling society.
3. Promote the "new resource industrial center" projects.

Expand and advance international business

1. Consolidate a grand design for Japanese trade policy.
2. Early launch of the WTO new round of comprehensive multilateral negotiations.
3. Engage more actively in WTO negotiations for liberalizing trade in services.
4. Promote FTA (Free Trade Agreements).
5. Construct a new comprehensive framework for closer Japan-U.S. economic relations.
6. Strengthen relations with other Asian countries.
7. Promote regulatory reform at home in accordance with the globalization of business activities.