A Policy Package for New Economic Development toward the Rebirth of Japan(Main Points)

Part 1: Basic Approach (spoken by Minister)

1. Assessment of Business Conditions

2. Leap to a Knowledge-Based Society

3. Basic Policy Direction

Part 2: Policy Measures
I. Measures for the Realization of the Japan Rebirth Plan, etc.

1. Measures to Promote Rapidly the IT Revolution

(1) Promotion of the E-Japan Initiative

- IT Basic Law, IT National Strategy (E-Japan Initiative)

(2) Upgrading Systems and Facilities that will Constitute the Foundation of the IT Society; Promotion of Technological Development

(i) Systems Reform

-Appropriate competition policy for telecommunications carriers; investigations of one-stop licensing procedures for the laying of cables; etc.

(ii) Upgrading of Facilities

- Connection of schools through optic fiber high-speed broadband circuits; installation of LANs within schools; installation of public-access Internet bases; etc.

(iii) Promotion of Technological Development

(3) Measures to Boost IT Usage Skills through Development of the "People's Movement for the Spread of IT"

- Lectures on basic IT skills using schools, public halls, libraries, etc.; expansion of public IT vocational training; etc.

(4) Measures to Advance the Convenience and Pleasure of IT Usage

(i) Early Achievement of High-level Electronic Government

- Complete on-line application and reporting procedures by FY 2003; moving forward the implementation dates, etc.

(ii) Upgrading the Environment for Electronic Commerce

- "Documentation Law"; establishment of new rules in accordance with the characteristics of electronic commerce; protection of personal information; Internet usage for notification of general shareholders' meetings and for exercising voting rights; etc.

(iii) Enjoying the convenience of IT in people's lives and industrial activities

- Facilitation of Internet usage for the employment agency business; IC cards; etc.

(iv) Promotion of Internet Fair 2001Japan

2. Measures to Respond to Environmental Issues, Including the Construction of a"Recycling Society"

(1) Upgrading of Waste Treatment and Recycling Facilities

- Promoting remodeling and construction of new incineration facilities that meet the dioxin concentration standards; strengthening the police enforcement system; etc.

(2) Technological Development for Construction of a "Recycling Society", etc.

(3) Promoting the Environmental Industry and the Spread of Environmental Products

- Promoting the adoption of residential photovoltaic generation systems, etc.

(4) Others

3. Measures to Respond to the Aging of Society Toward Creating an Energetic and Pleasant Future Society

(1) Creation of Living Space where the Elderly Can Enjoy their Lives

- Public space, barrier-free housing, etc.

(2) A Society in which People Can Choose to Work Until They Reach Age 70

- Promotion of measures to rectify the mismatch between labor supply and demand, such as trial employment of middle-aged and elderly workers, etc.

(3) Research and Development for the Health and Social Participation of the Elderly, etc.

- Genome research; compilation of an elderly IT usage characteristics database, etc.

(4) Upgrading the Foundations for Nursing Care Services

- Upgrading special residential institutions for the elderly, etc.

(5) Establishment of Systems for the Peace of Mind of the Elderly

- Defined contribution pension plan bill; advancing the adoption of IT in medical fields; etc.

4. Measures to Upgrade the Urban Infrastructure to Create Convenient, Hospitable Towns and Cities

(1) Radical Measures to Resolve Traffic Congestion

- Promoting prioritized resolution of traffic bottlenecks; promoting prioritized construction of loop expressways in the three major metropolitan areas, etc.

(2) Promotion of Comfortable and Energetic Towns and Cities

- Promoting the burial of utility lines and the creation of a pedestrian-friendly urban environment; reduction of commuting times in major cities; revitalization of urban industries; etc.

(3) Others

- Promoting the securitization of real estate; promoting the appropriate utilization of real estate; etc.

5. Measures to Promote Education and the Healthy Upbringing of Youth

- Upgrading school facilities, etc.; enhancing scholarship programs; upgrading childcare facilities; measures to prevent drug abuse; measures for fostering and rehabilitating youth

6. Measures to Enhance the Living Infrastructure and to prevent for Disaster

(1) Upgrading the Living Infrastructure

- Upgrading sewerage, community waste-water systems, high-grade regional roads, etc.

(2) Measures for Disaster Prevention and Disaster Recovery

- Recovery measures for the Usuzan volcanic eruption; for the Miyakejima volcanic activity and Niijima-Kozushima off-coast earthquake; for the Tokai flooding; for the southwestern Tottori Prefecture earthquake; etc.

(3) Mortgage Financing Measures

- Expansion of the Housing Loan Corporation Funding Mechanism

II.Improvement of the Business Environment for the Revitalization of Industry

1. Upgrading the Corporate Legal System and other Measures to Support Dynamic Corporate Activities

(1) Review of the Corporate Legal System

- Review of the stock options system; fundamental revision of the Commercial Code

(2) Revision of Employment Systems to Respond to Structural Changes

- Establishment of a comprehensive job offers and job seekers information network in conjunction with the private sector; revision of employment promotion laws; etc.

2. Upgrading the Foundation for Creative Technological Innovations

(1) Strengthening the International Competitiveness of Japanese Universities; Wider Adoption of Competitive Systems for Awarding Research Grants; Etc.

- Greater flexibility in the composition of national university instructors, etc.

(2) Greater Labour Mobility to Promote Stronger Ties Among Industry, Academia, and Government

3. Measures for Small and Medium Enterprises

(1) Financing Measures

(i) Expansion of the General Credit Guarantee System

- Raising the upper limit on uncollateralized credit guarantees

(ii) Measures to Enhance the Safety Net

- Expanding the range of application of special credit guarantees to protect small and medium sized enterprises from obstacles to stable management arising from the bankruptcies of trading partners, or of trading partners' financial institutions; etc.

(2) Support for Response to the IT Revolution by Small and Medium Sized Enterprises

- Development of seminars, training programs, standardized software, etc.; support for securing management resources to promote the smooth introduction of IT, etc.

4. Stabilization of the Financial System, and Vitalization of Financial Markets

(1) Reinforcing Auditing and Supervision Systems

(2) Stabilization of the Financial System

(3) Advance of Paperless CP, Etc.

5. Promoting the Securitization of Debts

III. Others

1. Tax System

2. Appropriate and Flexible Management of Monetary Policy by the Bank of Japan


Reference3 Revised Estimates of Ecomic Outlook for FY2000