[talk] Conference Challengeing Japanese Reform

Jesper Koll
Robert Alan Feldman
Kazuo Mizuno
Kazuo Nakamura
Paul Sheard
Yuji Shimanaka
Junichi Naito

1. The recent terrorist attacks, in addition to other similar problems, have increased the difficulty of Japan's situation. How has this affected the circumstances surrounding Koizumi's reforms, and is it possible to proceed if we cannot see the future economic situation trend?

2. How has been the Japanese government's scenario for economic policy thus far? Have they been able to follow that scenario? Given the current situation is it necessary to modify the policy?

3. There is a consensus that structural reforms should be completed. However, with the trade supported economy in decline, is it possible to proceed with reforms without putting the economy under controls? At the same time, how can we confront and get through these hardships?

4. The process by which reforms will be carried out, the government's plan, was announced. However, going through the details, there seem to be differences given the varying interpretations. Does is there a plan for the practical and quick disposal of unrecoverable debts? In addition, it doesn't seem to be clear who's authorized to execute the policy. What do you think about that?

5. What do you think about the financial issues? Do we need to increase expenditures, or we should keep within the 30 trillion cap?

6. What do you think about the idea of conducting the reform operation on finance and industry simultaneously, as if they were one body? Should they be made to be self-supporting as market-driven entities? If the conversion of preferred stock has the result of nationalizing banks, what framework should the Japanese government construct, and who would take leadership?