In fiscal 2010, the current account will be roughly in balance. In the future, Japan will be the ordinary country in external balance. The characteristics of the existing Japanese-style market system are an emphasis on and utilization of the merits of cooperation over competition, based on stable relationships between and within the economic entities. Japan must now pursue efficiency and the principle of competition. Without spoiling the merits of the existing Japanese-style system, Japan is required to experiment in upgrading to a new system so as to be capable of demonstrating the results of the future reforms.
Various subsystems make up Japan's overall system through mutual complementation.
Individual structural reforms must be advanced simultaneously and strongly. It is essential to organize a safety net including social political consideration for the genuine poor sections of society. With the abolition of cross-shareholdings, the role of shareholders in corporate governance is expanding. With the functions of financial institutions diversifying and specializing, in the future corporations are expected to select their main banking relationship in accordance with the situation from among a range of financial institutions each with different functions. Where possible, provision of public services should be entrusted to the private sector, and the government should slim down its organization and administrative functions, making them more efficient and focused.