# Introduction

The theme of this white paper is “Building a ‘New, Japan-Inspired IT Society’.” The objective is to study the direction of the new IT society that Japan should aim for by analyzing the current status of information and communications in Japan based on data. The new image of an IT society will not only be a goal for Japan, but the image of an IT society that Japan will introduce to the world.

Japan presently faces major problems both in economic and social aspects. In terms of the economy, Japan is suffering from a prolonged economic slump and marks the lowest-level economic growth rate among major developed countries. Japan’s international competitiveness ranking also dropped to 11th place in 2003 despite holding the top position for five consecutive years from 1989 in the ranking released by the International Institute for Management Development (IMD). In terms of society, the population is rapidly aging, and Japan is expected to become the country with the most aged population in the world by 2005.

On the other hand, Japan maintains high potential in educational standards and technological capabilities, and has fine culture and art. According to the OECD’s Program for International Student Assessment (PISA), Japanese students’ performance for mathematical and scientific literacy belongs to the highest-ranking group. Furthermore, over 80% of citizens hold the recognition that Japan has excellent culture and art (“Public Opinion Poll on Social Awareness 2000,” Cabinet Office).

In order for Japan to resolve the present problems by making use of these potentials, it is indispensable to reform the conventional social and economic structures, and information and communications can play a significant role in bringing about such structural reform.

In the past, the world of the Internet and other information and communications had been led by the United States. However, some areas of the conventional IT industry and the PC-centered IT infrastructure are showing their limits and presenting problems as represented by the collapse of the IT bubble economy and the digital divide issue.

In the meantime, Japan set up a goal to “become the world’s most advanced IT nation” by 2005 in the e-Japan Strategy formulated in January 2001, and strategic efforts have been made both by the public and private sectors. As a result, Japan has not only caught up with other IT-advanced countries in terms of developing the broadband user environment, but it has achieved providing low broadband rates and optical fiber services, while it has succeeded in leading the world in the mobile communications field, such as the mobile Internet. In this manner, Japan is in the process of shifting from a catch-up phase to a frontrunner phase.

In light of these circumstances, it would be necessary for Japan to realize a “New, Japan-Inspired IT Society” under the joint effort of the public and private sectors by making the most of Japan’s strengths, and overcome the economic and social problems the country faces.

Based on the above problem consciousness, this year’s white paper features analyses of the direction of a “New, Japan-Inspired IT Society” from the following aspects: the infrastructure aspect in Section 1; the economic/business aspects in Section 2; the lifestyle/social/administrative aspects in Section 3; the cultural/Internet content aspects in Section 4; and the information security aspect in Section 5. In particular, selective analysis is conducted through international comparison and quantitative analysis with regard to the characteristics of the information and communications field in Japan (advantages and problems), the role information and communications could play in developing the Japanese economy and society, and the problems impeding the actual use while the information and communications infrastructure is being developed.