Keidanren
K
id
G
Growthth St
Strategy
t
2011
2011:
Accelerating Growth throughP i t S t Dynamism
Private-SectorDi

September 16
16, 2011
Keidanren

I. Introduction

1

1 Current
1.
C
t St
State
t off ththe J
Japanese E
Economy Disruption to supply chains resulting from the March earthquake dealt a severe
blow to business activity worldwide, but thanks to strenuous efforts by Japan’s
people and companies, initial disorder has been resolved and the Japanese
economy is rebounding at a faster pace than expected.
 However, the current recoveryy is merelyy restoringg the economyy to pre-disasterplevels. Issues the country faced before the earthquake, including deflation, afalling birth rate, an aging society, and vast government debt, are not being
resolved, and Japan’s prospects remain markedly unclear.
2. Prevention of Hollowing Out and the Importance of Economic Growth Japan faces unprecedented danger of hollowing-out of its industry following
th earthquake
the
th
k in
i March.
M h
 As well as reducing employment and technological expertise, the hollowing out
of industry saps mid- to long-term growth capacity and has severely negativei
impacts
t on people’sl ’ liflifestyles.
t l In order to avert such economic contraction and ensure prosperity, thegovernment should urgently implement the growth strategy that energizes the
dynamism off the private sector.

II. Growth Strategy Built on Japanese Corporate Dynamism andInternational Links2

1. The Path to Growth
Government removes factors that hinder growth by obstructing freedom of corporate action
StabilizeStbili electricity
l t i itsupplyCombatCb td
deflation
fl ti
and the high yen
by spurring
domestic demandthroughderegulation

ReduceRdththe ttax
burden oncompanies,
including corporate
tax and social
security

PromotePt economicipartnershipagreements

ReviewRiclimateli tchangecountermeasures

I t dIntroduce
llaborb
market reforms

3

Government and private sector work together on disaster recovery initiatives,
use suchh efforts
ff t tot triggerti
economici growth,
th encourage industrial
i d t i l clusters,
l tcreatet employment,
l
t and
d
foster the seeds of new technologies

Companies
pplay
p y a keyy role in economic g
growth byy exercisingg their strengths
gin world-leadingg energy
gy andenvironmental technologies, leveraging “bottom-up” manufacturing techniques that strive for higher
productivity and efficiency, forging alliances with related firms, and fully utilizing their human resources toensure domestic and international demandA
Acceleratel t "F"Future
t
City
Cit M
Model
d l
Projects" and other innovation
efforts

Boost competitiveness byforming industrial clusters

Energize regions bypromoting tourism andagriculture

Integrate economies withgrowing Asia

Ensure prosperity by achieving economic growth exceeding 2% in real terms and 3% in nominal terms
Improve national income

Create employment

8

Lay the foundations for national prosperity122. Enhancing Japan's International Competitive Advantage as A Business
Location

3( ) Fundamentally Revising Energy and Environmental Policies(1)• Given the impact of the earthquake and nuclear accident, Japan’s energy and environmental
policies need to be revised to shift emphasisppfrom climate change
g pprevention to stable andeconomic energy supply, with safety as a prerequisite.
• The immediate challenge is to formulate concrete measures aimed at stable electricity
supplies over the next five years or so, to ensure that power shortages do not hamper
people’sl ’ lilives or b
businessi
activity.
i i• Japan needs to further enhance the competitiveness of its strong industries by developing
innovative technologies for conserving, generating, and storing energy.
Estimated Demand-Supply Gap in Case Nuclear
Plants would not be reactivatedDoes Power Shortage or High Electricity Cost May Cause the Relocation ofYour Business Place?

As of July 2011.

2011 Winter
East
Japan

▲１.１％
(Ratio of estimated power
shortageso tage to pea
peak dedemand)a d)▲１０.４％

29

AugustMiddleand West
Japan
Source: Cabinet Office

▲０.４％

39

25

July

Impossible

No

Yes

2012 Summer

I don't know

10

38

22

12

25

▲８.３％
0%
Source: Reuter

20%

40%

60%

80%

100%

4

(2) Combating Deflation and Stabilizing Exchange Rates• Since deflation and a strong yen have severely negative impacts on corporate businessand employment, where necessary the Bank of Japan needs to further ease monetary
policy and the government needs to intervene in foreign exchange markets.
• However, yen appreciation is fundamentally driven by the disparity between domestic andoverseas inflation rates, and deflation is caused by the gap between demand and supply.
• Thus in order to combat deflation and rectifyy the yen's
yappreciation,pp, it is crucial to bridgeg
this gap by stimulating domestic demand through measures such as deregulation andgaining overseas demand through new economic partnership agreements, etc.

（Yen/Dollar）
75

USD/JPY Chart

Comsumer Price Index and GDP Gap

（％）

6

80

4

85

2

90
95

0

100

‐2

105

‐4
110

Core CPI (changes to previous year)

‐6

115

GDP Gap（% of GDP）

Source: OECD“Economic Outlook Database”（No.89, June 2011）
Ministry of Internal Affairs and Communications

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

07/09
07/10
07/11
07/12
08/01
08/02
08/03
08/04
08/05
08/06
08/07
08/08
08/09
08/10
08/11
08/12
09/01
09/02
09/03
09/04
09/05
09/06
09/07
09/08
09/09
09/10
09/11
09/12
10/01
10/02
10/03
10/04
10/05
10/06
10/07
10/08
10/09
10/10
10/11
10/12
11/01
11/02
11/03
11/04
11/05
11/06
11/07
11/08

（Y/M）

1990

‐8

120

（Year）

(3) Reducing the Tax Burden on Companies, Including Corporate
Tax and Social Securityy5• Japan’s effective corporate tax rates are very high in comparison with international standards.
• Raising social security premiums for people of working age to cover increasing social security benefits
associated with an aging population would sap economic vitality and hamper job creation.
• The government should bring forward the 5% reduction in effective corporate tax rates included in the
FY2011 tax reform proposal, rapidly cut corporate tax to 30% to align it with other major countries, andy reduce it to the level of Asian neighborsg((i.e.,, around 25%).
)
then swiftly• The government should also revise the current mechanism of the social security system which is relying
on public insurance premiums, through revenue reform, new sources of funding that will enable thetreasury to shoulder a larger share of social security costs.
Effective Corporate Tax Rate

（％）
16.0

（％）
55.00
52.3
50 00
50.00

51.6

Germany

14.0

48

Burden on Companies Including Corporate Tax and Social Security Premium(% of GDP)
Social Security Premium
Corpotate Tax

14.0

13.5

Japan
12.0

45.00

42

China

30.00

42

42

42

39.58

40.00

35.00

42

38.36 38.36

38.29

40.69

40.69

40.69

38.31

38.34

38.36

40.69

40.69

40.69

10.0

9.5
8.5

8.0

4.7
33

33

33

31

30.8

30.8

30.8

30

30

33

33

33

33

33

33

30

30

30

30

30

30

29.7

29.7

27.5

UK

25.00

6.0
29.51 29.44
28

29.7
27.5

27.5

27.5
25

Korea

6.4

29.41

28
25

28
25

24.2

24.2

2009

2010
（年）

3.3

3.7

9.7
6.4

6.3

2.4

4.0
2.0

20.00

11.0

7.1

4.8
31
3.1

34
3.4

U.S.

U.K.

2.2

30
3.0

3.8

4.0

Sweden

Korea

0.0
1999

2000

Source: ＫＰＭＧ

2001

2002

2003

2004

2005

2006

2007

2008

(Year)

Japan

Source: Japan Government Tax Commission

Germany

France(4) Participating in TPP and Other High-Level Economic
Partnershipsp6• As economic activity becomes increasingly globalized, it is imperative for companies
based in Japan to ensure business conditions no less competitive than in other countries.
• With a view to the eventual formation of FTAAP, the government should participate in TPP
negotiations at the earliest possible date, pursue a Japan-China-Korea FTA and
ASEAN+6, and swiftly start EIA negotiations with the EU.
• It iis vitalit l thatth t theth governmentt gains
i public
bli understandingd t di off th
the needd tto promotet suchheconomic partnerships by actively and consistently showing off their benefits.

Cover Ratio of Economic Partnership(% of its amount of trade)Japan
Others17.9%

Korea
Effectuation
14.4%

Others18.4%

Effectuation
17.6%

EU27
11.5%
EU27
11.6%

Signed21.4％

Under Negotiation
12.8%

China
20.6%
(Korea)
6.1%
U.S.
13.5%

U.S.
9.7%
Under Negotiation
14.9%(Japan)
10 4%
10.4%

China
20.5%

Effectuation ：17.6%

Effectuation ：35.6%(+ under negotiation(+ under negotiation：36.5%)：60.9%)

(5) Developing Employment Policies Based on a Diverse Labor
Market7• To achieve sustainable job creation and up-skilling, current moves to strengthen labor
regulations need to be reconsidered with a view to creating an environment that enables useof diverse employment arrangements, which are capable of responding to changes incorporate activity.
• As well as building
g a strong
g base for the labor market throughg measures includingg publicp
vocational training to raise skill levels, efforts to enhance the match between labor supply
and demand by fostering outstanding private businesspeople to encourage labor mobility,
and the establishment of safety nets, the government needs to implement neutral tax
systems that do not hamper employment
employment.
Unemployment
Rate (classified by age)
完全失業率の推移（年齢階級別）（％）

Which type of job would you like to get?

12.0

3 4%
3.4%
10.0

15 to 24
15～24歳Current type

9.4

25 to 34
25～34歳Overall
全体

8.0

62
6.2

6.0

Full‐time

25.7%

5.1
4.0

69.8%
2.0

（出所）厚生労働省「労働力調査」

Source: Ministry of Health, Labor and Wealfare

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

0.0

（年）
year

Any type but full‐time
Note: Full‐time workers are
excluded in this sample.
Souce: Ministry of Health, Laborand Welfare3. Corporate Action to Accelerate Growth(1)Accelerating innovation, especially by carrying "Future City Model Projects" into
effect8Innovation generates new sources of growth. Keidanren encourages the pursuit and commercialization ofsolution-oriented innovation initiatives such as future city model projects. It also urges the transformation ofJapan’s economy and society to make them highly conducive to creating innovation that can help resolve
issues both within and outside the country
country.
Specific Initiatives
Keidanren/private sector:
Steadily implement future city model projects to pursue and commercialize solution-oriented innovation through the use andintegration of cutting
cutting-edge
edge technologies in fields such as world
world-leading
leading energy and environmental technologies,
technologies ICT
ICT, medicine
medicine,
and transport, etc.
Enhance efforts to make all of society highly conducive to innovation.
Government:Encourage energy
energy-related
related technology development
development, including promotion of green innovation
innovation, commercialization ofrenewable energy, and enhanced safety for nuclear power generation.
Provide incentives continuously for capital expenditure and substantially expand and make permanent R&D tax incentives.
Invest 1% of GDP in government R&D and enhance "Science and Technology Innovation Policy."
R&D Expenditure (% of GDP)

Outline of "Future City Model Projects"
4.0%

3.8%

3.5%
Private

2.4%

2.5%
2.0%

Government

2.8%

3.0%

1.9%

3.5%

1.6%

2.0%
1.7%

1.5%

1.1%
1.0%

1.0%
0.5%

0.8%

0.7%

0.8%

U.S.

Germany

France

0.6%

0.3%

0.0%
Japan

Source: Keidanren

Source: Ministry of Internal Affairs and Communications, OECD

U.K.

(2) Making Our Country More Competitive by Forming Industrial Clusters
To make industry more competitive while also enriching lifestyles by improving living environments, it isimportant to form industrial clusters that promote higher levels of industrial consolidation, and todevelop more efficient and advanced urban functions in association with such areas. Keidanren will
use the special zone system to help businesses form industrial clusters and generate innovation.
Specific Initiatives
Keidanren/private sector:
Utilize mechanisms such as the comprehensive special zone system and the environmentally friendly future cityg
, form industrial pparks that will support
pp the formation of industrial clusters usingginitiative to revitalize industries/regions,the special zone system for reconstruction, and boost the growth potential of agriculture, forestry and fisheries.
Develop domestic and overseas markets for advanced technologies, services and expertise—especially in the energy
and environmental sectors—and provide them to meet the needs of disaster-affected areas.
Government:Offer capital investment tax credit and property tax exemptions in special zones, facilitate access to the intellectual
resources of universities and other research institutions, construct high-quality living environments, develop transport
infrastructure to organically and efficiently link industrial clusters, etc.

Form industrial
clusters based around
cutting-edge
technologies in sectors
such as energy andenvironment

Forge stronger links
among people anddifferent industries

Boost competitiveness,accelerate economic
growthGenerate
innovation througheasy
communication ofknowledge andinformation9

(3) Energizing Regional Economies through Tourism andAgriculture

10

Tourism and agriculture are crucial industries for energizing regions, and promoting them is the key to economic
revitalization. In addition to tourism promotion initiatives, Keidanren will support efforts to publicize Japan as a tourist
destination through overseas dissemination of tourist attraction. It will also do its utmost to cooperate in promoting
agriculture forestry,
agriculture,
forestry and fisheries in disaster-affecteddisaster affected areas and boosting the competitiveness of Japanese agriculture.
agriculture
Specific Initiatives
Keidanren/private sector:
Support development of the tourist industry and undertake private-sector tourist promotion initiatives, enhanceoverseas publicity by proactively disseminating information.
Continue dialogue with related parties in government and agriculture, linking accumulated expertise in the agricultural,commercial, and industrial sectors to support recovery of agriculture, forestry, and fisheries in disaster-affected areas
and enhancement of Japan’s agricultural competitiveness, etc.
Government:Enhance the utility of transport infrastructure, develop foundations to boost demand in the tourism sector by using ICT
to improve services, and attract meeting, incentive travel, convention and exhibition (MICE) business.
Promote agriculture as a “sixth industry” (by integrating production [primary industry], processing [secondary industry],and distribution [tertiary industry]), links between agriculture, commerce, and industry, export of agricultural goods, andutilizationtili ti off special
i l zones ffor reconstruction,
t ti
etc.
t
(000)
10,000
9,000
8 000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0

Number of Overseas Visitors to Japan
8,347
6,138

6,728

7 334
7,334

Image of Agriculture as "Sixth Industry"
8,611

8,351

Farmer

6,790

Retailer

5,212

Manufacturer

Sixth
Industry
Designer
2003

2004

Source: JNTO

2005

2006

2007

2008

2009

2010

Year

Planner
Consumer

Source: Ministry of Agriculture, Forestry and Fisheries(4) Integrating Economies with Growing Asia

11

As a major economy, Japan has a responsibility to create a positive cycle that links its own growth with that of other Asian
countries. Keidanren will strive to build stronger relations between Japan and the rest of Asia and create platforms forpartnership through its private-sector diplomacy.
Specificp
Initiatives
Keidanren/private sector:
Proactively develop overseas business that meets local market needs, backed by collaboration with public and private
financial institutions.
Resolve issues hamperingpg Asian g
growth throughg p
package-stylegy infrastructure exportspand development
pof business
infrastructure such as basic civil law, etc.
Government:
Conduct high-level diplomacy relating to infrastructure export projects, use Nippon Export and Investment Insurance (NEXI)
guarantees and Japan Bank for International Cooperation (JBIC) investment and loan schemes to back risk-taking by privatefifinanciali l iinstitutions,i iandd utilize
ili JJapan IInternationalilC
Cooperationi A
Agency (JICA) overseas iinvestment andd fifinancingi schemes.
hIncorporate strong demand in Asia by developing key domestic infrastructure including air and sea ports and roads,
reinforcing financial market capabilities, and promoting economic integration across the Asia-Pacific region.

Plan to develop regional infrastructure in Asia
Delhi Mumbai Industrial
Corridor・ DelhiComprehensive
development of the
Mekong Sub region

・ Mumbai(in 2008, $ million)

BIMP wide‐area
development
Philippines

・ Chennai
Mekong India Industrial
Corridor

Asia's Total Infrastructure Investment Needs by Sector in 2010-2020

・ Ho Chi Minh
BruneiMalaysia

Indonesia
IMT Growth Triangle

Source: Ministry of Economy, Trade and Industry

Source: Asian Development BankIII. Foundations Essential to Sustainable Growth12

1. Comprehensive Reform of Social Security, Tax and Finance Systems
Comprehensive reform of social security, tax, and public finance is essential to achieving sustainable economic growth.
Moreover, growth will lead to benefits from such integrated reforms. Through initiatives aimed at private-sector-led growth,
Keidanren will reinforce the private sector’s capability to create jobs and support public finances and social security systems.
Specific Initiatives
Keidanren/private sector:
Reinforce private-sector capability to support social security systems by achieving sustainable growth and creating
employment.
Government:
Take an integrated approach to completely reviewing the efficiency and prioritization of social security benefits andimplementing drastic reform of tax systems, including consumption tax.
Incrementally raise consumption tax rates at national and regional levels (to 10% by 2015 at the latest and high teens by
the mid-2020s).
I t dIntroduce
single-numberi lb systemt
ffor social
i l security
it andd ttax systems,tetc.
t
Estimated amount of long-term government debt (% of GDP)
- Keidanren's Fiscal Simulation-

Social Security Benefits and Premium Income(billion yen)

100,000

94,08590,000Premium Income

Case1: Status Quo【基準ケース】

80,000Social Security Benefits【拡張ケース】
Case2: Raising VAT

70,000261.4

57,44860,000220.1

50,00040,00030,000182.3

10 00010,000
0
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008

Note1: Average nominal growth is assumed to be 1~2%.
Note2: In Case2, VAT rate rises by 2% pt year by year in 2013-2023.

2025年
年度

2024年
年度

2023年
年度

2022年
年度

2021年
年度

2020年
年度

2019年
年度

2018年
年度

2017年
年度

2016年
年度

2015年
年度

2014年
年度

2013年
年度

2012年
年度

20,000

2011年
年度

（ ％）
270.0
260 0
260.0
250.0
240.0
230.0
220.0
210.0
200.0
190.0
180.0
170.0

Source: National Institute of Population and Social Security Research（Fiscal Year）

2. Reforms to Establish a Regional Government System and Promote
Regional Autonomy

13

Even amid globalization, revitalizing regional economies and promoting regional autonomy are vital toachieving prosperity. Keidanren will rouse public opinion on establishing a regional government system(doshu-sei) and encourage the attainment of this goal.
Specific Initiatives
Keidanren/private sector:
Stimulate debate on establishing doshu-sei and promote public understanding of the issues through publicity activities andnationwide symposia.
Government:
Decisively delegate authority, finances, and personnel from national government to prefectures, and from prefectures tomunicipalities.
Expand scope of local governments’ autonomous decision-making and responsibility on policy matters.
Establish a doshu
doshu-sei
sei task force reporting to the cabinet, start examining a basic law to promote doshu
doshu-sei,sei, etc.

Concrete Merits of "doshu-sei" System
・Reinforce the disaster prevention and fire fighting system
・Improve public safety
・Fine measures of child raising and human resource training
・Fully-designed medical cure and care support system
・Promoting tourism
・Energize agriculture, forestry and fisheries
・Building original cities
・Effective environmental preservation
・Create employment through the promotion of domestic industry
・Solid economic interchange with neighboring foreign countries or regions
Source: Keidanren

14

3. Enhancing Cities’ Competitiveness

Cities play a key role as centers for boosting international competitiveness and energizing
regions. Making the most of corporate vitality, creativity, and ingenuity, Keidanren aims tohelp major cities and regional centers to develop together as engines for nationwide growth.
Specific Initiatives
Keidanren/private sector financial institutions:Use public-private partnerships (PPP) and private finance initiatives (PFI) to access private funding andcorporate knowledge and expertise for urban infrastructure development projects.
Government:Attract global companies’ R&D centers and Asian headquarters to major Japanese cities by easing
regulations and flexibly applying systems.
Promote compact cities for regional centers.
centers
Create wide-ranging infrastructure partnerships, fill in missing links, learn from the earthquake toconstruct disaster-resistant networks, etc.
Th numberTheb off PFI Projects
P j t andd O
Overallll Cost
C t

（Projects）（billion yen）

400
363

Cities' Competitiveness Ranking（2010）
Rank Total
1st New York
2nd London
3rd Paris
4th Tokyo
5th Singapore
gp
6th Berlin

EconomyNew York
Tokyo
LondonBeijingHongg Kongg
Singapore

Source: The Mori Memorial Foundation

R&D
New York
Tokyo
LondonBostonSeoul
Paris

Transport
Paris
London
New York
Singapore
Amsterdam
Tokyo

350

334

The number of projects

2,994

Cost（right scale）

300

375

299

3,037

3,500

3,000

2,796

2,500
256

2 243
2,243

250
218

200

2,000
1,741

178

1,500
150

132

1,249

1,000

100

87
693

0

520

40

50
3 0

1999

13
30

2000

Source: Cabinet Office

144

500

235

0
2001

2002

2003

2004

2005

2006

2007

2008

2009 2010.12

15

4. Reinforcing the Capabilities of Financial Markets
To provide households and companies with appropriate investment opportunities and diverse financing
methods, and to attract capital inflows from Asia, Keidanren will urge further reinforcement of financial
market capabilities.

Specific Initiatives
Keidanren/private sector financial institutions:Vitalize emerging markets that function to supply risk money to high-growth companies, and corporate bond markets thatdiversify financing methods.
Attract capital inflows from Asia by reinforcing financial market capabilities, etc.
Government:Create a more risk-tolerant environment for household investment by expanding scope for aggregation of profit and loss
through unified taxation of financial income.
Clarify the respective roles of public- and private-sector financial institutions, etc.
Amount of Financial Assets (Household Sector)
Number of Newly Listed Companies （2010）（The Number of Companies）（trillion yen）
1800.0（％）
100.0
Financial assets except cash and deposits

1600.0C h andCashd depositsdit1487.7

The ratio of cash and deposits to total financial assets（right scale）

90 0
90.0

321

333

300

80.0

1400.070.0

1200.055.2％ 60.0

1000.0

350

250

200

188
163

50.0
800.0
40.0

820.7

195

150

127
107

600.0

30.0

400.0

100

20.0
10.0

0.0

0.0
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010

200.0

Source: Bank of Japan（Year）

50

26

0
TSE
(Japan)

Korea
(〃)

NSE
(India)NYSE(U.S.)

London(U.K.)

NASDAQ(U.S.)

Shenzhen（China）

Tronto(Canada)(Exchange)
Source: World Federation of Exchanges

16

5. Fostering and Attracting Global-Standard Personnel

Fostering and attracting global-standard personnel is essential not only for corporate development, butalso for economic growth. Keidanren will collaborate with universities and other interested parties to train
and recruit global-standard personnel, and work to create systems for attracting people from overseas whopg
growth.
can contribute to JapaneseSpecific Initiatives
Keidanren/private sector/universities:
Promote personnel exchange between universities and the private sector.
Implement Keidanren program to foster global-standard
global standard personnel.
Universities actively participate in “Leading Graduate School Scheme,” “Global CEO Program,” etc.
Government:
Swiftly formulate global strategy for achieving the goals of the “300,000 International Students Plan.”Encourage highly skilled foreign personnel to come to Japan and make them settled here by quickly introducing a points
system, and foster public support for such a scheme.
Number of students in U.S. from Asian Countries（students）（％）

140,000
127,628

Ratio of Immigrants Who Have Attained at Least Tertiary Education to All Graduates

30.0

China

120,000

25.8
104,897

India

100,000
80,000

25.0

20.0

Korea

72,15315 9
15.9

60,00015.0

40,00046,497

24,84220,000

13.4

12.4

12.4

Japan

11.4

10.0

6.1
50
5.0

0

0.7
0.0

(year)
Source: IIE "Open Doors" 2010

CanadaU.K.

U.S.

FranceOECD Average

Germany

Italy

Japan
(Country)

Source: OECD"Factbook" (2007)

17

IV. Conclusion
 Japan’s presence on the international society has diminished significantly in recent years.
In particular, its internal business environment has consistently deteriorated. The
fundamental problem is that the government lacks a sense of crisis, a commitment tourgentt action,ti
andd a ffuturistict i ti vision.
i i
 Now is the time to shift to a new model based on private-sector's creativity and ingenuity
teamed with appropriate policy action by government agencies, so that people in Japanand overseas conclude that Japan’sJapan s economy
economy, society,society and policy processes is reborn
because of the earthquake shock.
 We need policies that will optimize all aspects of Japan, always bearing in mind themacroeconomic ggoals of sustainable g
growth, jjob creation, and fiscal consolidation.
 By making maximum use of its strengths in technology, human resources, and teamwork,
Japan can regain the trust of the international community and restore/enhance further its
international presence. Gaining global credibility will solidify our strength to reconstructandd grow.
 Rather than leaving responsibility for steering Japan’s economy toward growth entirely to
the government, Keidanren will encourage the business community to make its own
decisions and implement its own plans in areas where it should act independently
independently. With aview to steady implementation of its policy proposals, it will operate a plan-do-check-act
cycle to verify and assess achievements on an annual basis and check progress toward
goals.