(a translation)

Business Community Committed to Reform
In the First Year of Structural Change

Keidanren's 1997 New Year's Message from the Chairman

Shoichiro Toyoda

Chairman
Keidanren

January 1, 1997


Inaction Spells Danger

Japan stands at a crossroads. The aging of population proceeds at an extraordinary speed, bringing the arrival of a super-aged society ever closer. Meanwhile, the so-called hollowing of the industrial base and the growth of budget deficit go on. If we took no action and let these problems linger on, the Japanese economy would be heading for catastrophe, being left out of world prosperity in the 21st century.
It is most important for not only the business circles but the entire Japanese people to face up to the present crisis and, with renewed resolve, meet the challenge of restructuring the existing institutions which show every sign of being worn out.

Act Now on Reform

In the general election of last October, most of the political parties pledged various schemes for administrative reform. The second Hashimoto Cabinet, indeed, has started tackling reform in five priority areas, such as the reorganization of bureaucracy, public finance and deregulation of the financial industry. In other countries, including the United States and those of Western Europe, bold reforms of government finance have been pushed forward under strong political leadership with good results.
For our part, we in the business community will extend full, united support to the reforms as they are initiated by the Administrative Reform Conference and some other advisory units. Wholly committing ourselves to the cause of reform, we will refrain from resisting specific measures even where they are seen affecting one's own interests.

Making Most of Deregulation

Deregulation is one of the most pressing items on the agenda of reform. It is a fight against time. This is the decisive year for the realization of a "regulation-free society." For deregulation to produce tangible effects in invigorating the economy, we will be ready to make the most of increased business opportunities it brings and use them to develop new areas of industry and enterprise. Only such business initiatives could sustain a firm recovery in economic activity, help revitalize the national economy and eventually bring enhanced international confidence in this country.

Keep Up High Standards of Conduct

As deregulation advances, corporations are more than ever required to behave with a stronger awareness of business ethics and the principle of accountability. In this connection, a succession of business scandals breaking out in the recent past provided an occasion for serious soul-searching. In view of the changed social climate, the Keidanren Charter for Good Corporate Behavior of 1991 has been totally revised this time. Keidanren will disseminate information about the revised charter and seek to secure a faithful compliance by its member companies with the standards of conduct as set down there.

Participate in Policy Planning

With economic society undergoing major changes ahead, the central role of policy planning is expected to shift from the administrative to the legislative branches of government. The business community seeks to participate actively in policy planning in the future. This is the reason why Keidanren is preparing to establish an Institute for Policy Research for 21st Century (tentative). The immediate purpose is to strengthen the think tank functions of Keidanren itself and intensify cooperation with research organizations at home and abroad. Our hope is that it will ultimately grow into one of the intellectual centers of Japan. With the cooperation of member companies of Keidanren, this institute will pursue future-oriented surveys and researches with global perspectives, while keeping closely in touch with actual developments of the economy.

First Year of Structural Change

In the half-century following the end of World War II, Keidanren has devoted all its strength to opening the course of the Japanese economy as the leader of that economy. Based on the history and traditions so far built, we are strongly determined to make an aggressive forward step, based on the recognition that this year is the "First Year of Structural Change."


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