Mobilizing All Policy Tools to Revive the Economy

The world is faced with an unprecedented crisis. The turmoil in the global financial system is having a devastating impact on the real economy in every corner of the world, with no end to the crisis in sight. Governments around the world are rushing to embrace stimulus packages of unprecedented size, and efforts to strengthen and stabilize financial markets through concerted international action are ongoing, but the way to recovery remains elusive.

Japan, too, has been hit hard by the global recession. Here anxiety over rising unemployment is compounded by structural concerns, including the aging population and declining birthrate, the massive fiscal deficit, and a social security system that has lost the public's trust. With these concerns exacerbating one another, the nation is in danger of losing hope for the future.

In such trying times, we must not recoil from the task before us or be constrained by precedent but move quickly to implement bold, forward-looking economic policies, while pursuing with undaunted determination the structural reforms of our economy and society. However difficult the road ahead, we must tap Japan's true potential to create a land of hope.

We in the Japanese business community are determined to marshal all our resources to address the challenges below with the goal of building a sustainable and dynamic economy and society. While seeking cooperation from every sector of society, we are prepared to lead the way in implementing the reforms needed to revitalize this nation.

1. Overcome the current crisis

1. Promote a Japanese New Deal, moving quickly to implement national projects that can build the economy's growth capacity while stimulating demand.
2. Strengthen and expand social and economic safety nets as insurance against an economic free fall.
3. Stabilize employment and create jobs through the united, cooperative efforts of labor, business, and government.
4. Functionally enhance and stabilize international financial markets and revitalize Tokyo's financial market.
5. Commit to full-fledged regulatory reform and privatization.
6. Help catalyze political reform through policy-driven political endorsements.

2. Lay a firm foundation for future growth

1. Pursue practical policies to tackle Japan's declining birthrate while striving to create a new growth model for aging societies with low birthrates and declining populations.
2. Build a sustainable social security system and undertake a comprehensive plan to rehabilitate government finances and overhaul the tax system, including the consumption tax.
3. Review corporate taxes and economic statutes and implement international standardization policies in a strategic manner, and encourage direct investment in Japan through deregulation and other means.
4. Strengthen industry's competitiveness through enhanced human resource development and education, utilization of highly skilled personnel from abroad, and accelerated innovation by partnerships between business, academia, and government; and encourage new business development and entrepreneurship.
5. Make strategic and efficient investments in comprehensive transportation infrastructure and other social capital and link such investment to the revitalization of regional economies by actively promoting tourism.
6. Adopt intellectual property policies to strengthen global competitiveness.
7. Pursue strategic "resource diplomacy" to enhance energy security.
8. Take steps to revitalize and enhance the competitiveness of domestic farming to guarantee a stable food supply.
9. Promote science and technology development and their application in key high-tech fields, including information and communications technology (ICT), aerospace, marine science, and medical science.
10. Pursue flexible and responsive international cooperation through such programs as Official Development Assistance, expand and enhance economic partnership agreements, and work for a rapid conclusion to the WTO Doha Round to prevent any move toward protectionism.

3. Forge ahead to build a land of hope

1. Take measures to build autonomous regional economies and reverse the excessive economic concentration in Tokyo while moving toward the establishment of a regional government system (doshu-sei).
2. Develop an advanced e-Government and digital society and create an efficient administrative and fiscal system through the adoption of common codes and other measures.
3. Encourage development and diffusion of innovative environmental and energy technologies and build a fair and effective framework for halting climate change with a view to achieving a low-carbon society.
4. Pursue strategic international cooperation activities that contribute to the economic integration of East Asia and the creation of effective demand in the region.
5. Promote the creation of a full-participation, multicultural society, a comfortable living environment, diverse work-styles, and a balance between work and home life.
6. Work tirelessly to promote business ethics and socially responsible corporate behavior.