[talk] The 2nd Conference of the Genron NPO Advisory Board - What is questioned on "the Reform of Japan"?

(Chairman)Masakazu Yamazaki: Commentator

Born in 1934. Graduated in 1956 from Kyoto University, where he studied Philosophy at the Department of Literature. Finished Ph. D at Kyoto University’s Post-Graduate School, majoring in esthetics and history of arts. After assuming professorships at Kansai University and Osaka University, he is currently President of Toa University. His activities range widely from play-writing, literary criticism to social criticism. His main works are "Birth of soft individualism" ,"Era of big schism", "Truth of History and Justice of Politics" etc.

Yotaro Kobayashi: Representative Director of the Industrial Leaders Association

Born in London in 1933. Graduated from Keio University, Economics. After finishing Wharton School at Pennsylvania University, he joined Fuji Film Corp. After assuming the position of Director & General Manager of the Sales Department and President & Director at Fuji Xerox, he was appointed as Chairman & Representative Director in 1992. Since then he has been held this position. He also holds posts as a member of the Economic Advisory Board of the Economic Planning Agency, the University Advisory Board of the Ministry of Culture and Education, and is Representative Director of Industrial Leaders Association, etc.

Tsuyoshi Sasaki: President of Tokyo University

Born in 1942.Graduated from the Department of Law, Tokyo University in 1965. After assuming Associate Professorship at Tokyo University, he has been a Professor since 1978. He was appointed as the 27th President of Tokyo University. He is Doctor of Law, majoring in the History of Political Thought. His main works are " Restraints by Plato" , " What can politics do?" etc.

Yoshihiko Miyauchi: Chairman of Orix Corporation

Profile Born in 1935. He graduated from the Department of Commerce at Kansai Gakuin University in 1958. In 1960 he graduated from a Postgraduate Course at the Management Department, Washington University. In 1960 he joined Nichimen Jitugyo Corp (currently Nichimen Corporation). In 1964, he joined Orient Lease Co.(currently Orix Corp). After assuming the position of Director, Representative Senior Managing Director, Executive Vice President, President, he has been Representative Director and Group CEO since 2000.

Masayasu Kitagawa: Governer of Mie prefecture

Born in 1944. Graduated from Commerce Department of Waseda University in 1967. After being a member of the Mie Prefecture Congress, he was elected his first time as a member of the House of Representatives in 1983. In 1990, he worked as Deputy Secretary of the Ministry of Culture and Education. He has been Governor of Mie Prefecture since 1995. He introduced “an office work evaluation system” to proceed reforms by means of zero-base evaluation of the projects. He also draw up and promoted "The Declaration of Mie Development", an all-around plan targeting 2010. He actively tackles reforms of the prefecture politics through these activities, using Start from average lives as a key concept and Information open to public as a key word.

The round-table talk chaired by Mr. Yamazaki begins with a report by Mr. Kobayashi who attended the Dabos Conference (Annual Meeting of World Economic Forum) held in New York in early February. At the Dabos Conference this year, many criticisms were voiced against globalization centering around America or against a market economy where stock prices are most important. On the other hand there were very severe requests against Japan. In a situation where cabinet support rate is significantly dropping, how can Prime Minister Koizumi show leadership and proceed with Reform? Also, in order to calm serious anxiety on the monetary system, can he deal with the disposal of bad loans with firm decisions and speed? There is a common understanding among Europe and America that the speed of reform in Japan is too slow.

Then, why can speedy reform not be achieved? Mr. Miyauchi points out as that A socialistic economic system still remains in Japan. Public economies are represented by the three postal enterprises, or the convoy method to guard inefficient companies against competition. As long as we keep doing this, reforms will not be born. An economic circulation that does not produce added value has been maintained by a large amount of borrowing exceeding 600 trillion yen, but we are almost at the limit. If the situation does not change, the economy will inevitably shrink, Miyauchi fears.

Kitagawa explains this system lead by the Administration as Complementation among systems. A structure where a system designed for Administration has compensated other systems and has been continuing for 50 years since the War. This catch-up environment is still maintained even now in a matured nation, and as a result, political and economic regimes remain immature. In order to break free of this situation, the followings factors will be the critical: to stand at the consumer's view point, and to operate the administration by thoroughly opening-up information.

Koizumi began to send messages to destruct the mutual compensating mechanism through a top-down method. This is the starting point of the Koizumi Reform and this itself has significant meaning, Sasaki responds. He also points out, however, that nobody can clearly speak what kind of concrete results does the reform produce as far as the immediate economic problems are concerned.