(a translation)
Keidanren's 1998 New Year's Message from the Chairman
Shoichiro Toyoda
Chairman
Keidanren
January 1, 1998
As the 21st century draws near, Japan faces two central challenges--the globalization of economies and aging of society. The answer is to develop a free, transparent, fair and vibrant socio-economic system able to respond effectively to the forces of change. The Japanese business community must work closely together to do so.
The government last year took a firm first step in implementing Prime Minister Ryutaro Hashimoto's so-called six priority reforms which are directed, among other areas, at the structures of the economy, public finance and public administration. A major forward stride was also made recently toward meeting the problem of failed financial institutions. The government now is committed to a clear stance of policy in favor of introducing fiscal funds for protecting depositors and sustaining confidence in the nation's financial system.
With Japan's economic fundamentals remaining basically sound, I am convinced that, by accelerating the structural reforms and enduring the pain this will entail, we can blaze a new trail leading to a better future.
A vigorous private sector is the wellspring of economic dynamism in this country as elsewhere. They also provide basic underpinnings of the people's well-being and social stability. Being constantly driven to improve their business strength, private businesses make the most of what creativity and inventiveness they may have to open up new markets. The entire economy benefit from the revitalizing effects of their exertions.
Today, Japanese businesses are fully embroiled in globalized competition. The business community, therefore, will continue to press for more deregulation and a further reduction in the high corporate income taxes in this country to an equivalent level with those in the other major industrialized countries. This is necessary to release the competitive potential of Japanese companies to the greatest possible extent.
It is through these efforts that we can wipe out the economic uncertainties persisting after the collapse of the bubble economy and start on a new course of development.
Changing or recreating the socio-economic system would be only possible if the public have trust in business integrity. In recent months, cases of corporate misconduct came to light in rapid succession. It is feared that such misbehavior, if not eradicated, could erode the essential confidence in Japanese businesses not just at home but abroad. There is even the danger of its undermining the very ethical basis upon which the free economic society stands.
It is imperative that businesses reaffirm self-discipline, adhere strictly to the principle of self-accountability and reinforce procedures for internal supervision, thereby regaining the trust of shareholders and the other interested parties both in and outside the country.
Japan needs to reestablish a robust economic system of its own and, when it extends assistance overseas, to do it in collaboration with international institutions. In this way, it can best help the Asian countries' efforts to overcome their currency crisis and contribute as well to wider economic stability in the world.
At another level of international cooperation, the Japanese business community will move ahead with voluntary measures to combat the warming of the Earth and other environmental challenges.
As for overseas business activities, they will be carried on as vigorously as ever to contribute to the economies of other countries. Further, the Japanese business community is ready to participate actively in the work of formulating international rules through multilateral organizations such as the World Trade Organization (WTO), Organization for Economic Cooperation and Development (OECD) and Asia-Pacific Economic Cooperation (APEC) forum.
We in the Japanese private sector thus hope to play a central role in the restructuring of the Japanese economy with a view to the next century. Our goal is to create "an Attractive Japan--a Dynamic Global State," as outlined in a long-term vision statement announced by Keidanren a year ago.