The important point to keep in mind is that the population of Japan will peak in 2007 and from 2008 onwards it will start to decline. A fall in the labor force is expected to be seen from around 2005.
As a result of the falling population, the latent growth capacity of the Japanese economy will decline. It is essential that policies that bring with them the pain of financial reconstruction are firmly established by then. If at least five years is required to rebuild the Japanese economy, then a start must be made in the four years until 2003.
The response to the growing IT revolution over the next few years is expected to determine the position of the Japanese economy at the beginning of the 21st century. With a high level of technology and manpower, and a simultaneous shift toward the field of digital household electronic appliances in which Japan excels, a strategic response is urgently required.
In other words, the second Mori government must deal with the two issues of building sound finance and establishing and implementing IT.
The dual structure of cabinet and party should be dissolved and a political system led by the Prime Minister established.
The problem is the means by which the Mori cabinet should implement "economic and social reforms based on an awareness of the times," namely building sound finance and establishing and implementing IT strategies. Under the parliamentary cabinet system, it is presumed that a responsible system for implementing policies is built with the top politician also holding the top position in the administration (in other words, the majority leader becomes the prime minister). However, under the dual structure of cabinet and party, the system today means that the party holds real power. Although the cabinet is responsible for policy, the party has the power to decide policy.
This trend has been evident since the second Obuchi cabinet, but it has spread recently. As a result, the second Mori cabinet needs to establish a strong prime minister-led political system as soon as possible without waiting for reorganization of the ministries and agencies in January 2001, and to push ahead with the two reforms of building sound finance and establishing and implementing IT strategies.
