We are not alone in our position that 14 years is time enough and we, and others, have urged the Japanese government to get serious about reforming and correcting anticompetitive practices at Japanese ports. Specifically, agreement among all concerned parties to truly reform the prior consultations system is needed to end the monopoly control exercised by the Japan Harbor Transportation Association. To allow competition in Japanese ports, foreign companies should be able to own and operate harbor service companies. Finally, the financial services sector is a crucial link in today's global economy. In today's world you cannot hope to really compete globally unless you have access to a responsive, efficient financial system.
Financial services is one of the most heavily regulated sectors in Japan.
Prime Minister Hashimoto has recognized the financial sector reform will be crucial for future economic growth. In the U.S., the financial services sector experienced an estimated 4 percent average annual increase in productivity from 1980-1993. Innovation in this sector has been remarkable, easily keeping pace and sometimes even anticipating the continually changing needs of U.S. firms as they become more competitive. Innovations resulting in portable pension funds have added to increasing flexibility in the labor market, which in turn have allowed firms to better respond to the changing economic environment. An active and effective capital market, in particular for venture capital, is essential to ensure the vitality and strength of firms, especially small and medium-sized.