The pace of deregulation and financial-market liberalization are not the only areas in which Japan lags behind Western countries; it appears that Japan's defense, too, is due for a thoroughgoing review.
Japan is not behind on financial-market-liberalization. 
mnli hypothesis: Japan is not behind on financial-market-liberalization.  premise: The pace of deregulation and financial-market liberalization are not the only areas in which Japan lags behind Western countries; it appears that Japan's defense, too, is due for a thoroughgoing review.