Our nation's economy faces its greatest crisis in the postwar period, and we stand now at a crossroads at which our ability to build an "attractive Japan" for the 21st century is at stake. At a time when the world is moving into an age of mega-competition which requires innovative approaches and a spirit of bold endeavor, this nation, as the Administrative Reform Council has pointed out, is enveloped by a variety of state regulations, conventions, and customs, which have molded a society of striking uniformity and rigidity. To prevail over this dead-end situation, structural reform of the economy and society is essential, and ridding the nation of the barriers of regulation is particularly important.
While we recognize that a significant amount of progress has been made under the previous 3-year Deregulation Acthion Programs (DAP) , the fact the present Keidanren questionnaire survey elicited a total of 1800 demands for deregulation from 264 enterprises and organizations demonstrates precisely how stubborn the barriers of regulation are. There is a need to review individual regulations and eliminate or relax them, and, in conjunction with the reform of the central government ministries etc. being undertaken in preparation for the shift to the new system on January 1, 2001, to implement greater systemic transparency in governmental management.
In the following, we would like to express once again the business and industrial community's thinking with regard to measures to promote deregulation.
A number of reasons can be cited for the disappointingly slow results that have emerged to date despite the considerable deregulation that has taken place. For example, these include:
To expedite the process, powerful political leadership is essential. In addition, based on the final opinion of the Administrative Reform Council issued last December, there is a need to reorganize the current Committee on Deregulation into a more significant third-party body with statutory responsibility for drafting plans and monitoring the process of deregulation and of reviews of related systems. This third-party agency should be granted the right to demand material from government ministries and the right to make recommendations to the cabinet. In Addition, a secretariat of substantial size, capable of conducting its own surveys of the status of deregulation and of quantitatively assessing deregulatory measures before and after implementation, should be placed under this agency.
The Basic Law on Reform of Central Government Ministries Etc., dealt as much with the principles of regulation as with the strengthening of Cabinet functions and the simplification and enhancement of government efficiency. With regard to regulation, the act provided that the emphasis be shifted from ex-ante regulation to activities based on the free will of the private sector. Indeed, what is required now, in addition to the relaxation of individual regulations, is the establishment of a transparent system of governmental management. While working steadily toward the concretization of the basic law, there is a need to develop a system which will supplement these efforts.
Specifically, there is a need first of all to place so-called administrative legislation - the government and ministry ordinances, announcements, official notices, etc. that are set by administrative agencies - under democratic control. Beginning in areas where it would be feasible, a system of public comments should be introduced, and after know-how is accumulated, a Law on Procedures for Administrative Legislation (tentative name) should be promptly established.
Secondly, regarding the Government Ministries Organization Law, which is frequently cited as the basis for administrative guidance, steps should be taken to prescribe, in precise and concrete terms, where agencies have jurisdiction and to eliminate the authority-granting provision.
Thirdly, the Administrative Procedures Law provides with respect to administrative guidance that "when issuance in writing is requested, the government must issue such written guidance, so long as no extraordinary administrative obstacles prevent it from doing so." However, in view of the superior position of the governing agencies, the law should be amended so that administrative guidance is executed in writing as a rule.
Fourthly, when citizens' rights and interests are jeopardized by illegal and unfair regulations, establishing a proper system that allows for easy and rapid lodging of objections, and for prompt remedies becomes a deterrent to such illegal and unfair regulations. The present system for evaluating complaints against the government is defective because the system is complex and offers little prospect of relief. Hence there is a need to amend the Law on Suits Relating to Governmental Incidents and the Law on Evaluation of Complaints about Government in order to make the system easy to use by citizens. In addition, examinations of the concept of an Administrative Ruling Agency should be expedited.
Fifthly, the release of government information is important for increasing the transparency of governmental operations, and we urge the prompt passage of the Bill to Release Government Information, which the government has introduced to the Diet.
The criticism exists that, in the face of calls for deregulation, it is industry that is seeking regulation. Eliminating or relaxing economic regulations and leaving things to be settled through fair competition in the market is the global trend, and business concerns that remain content with regulations and fail to innovate will eventually be forced out of the market. The business and industrial community must endeavor to refine and strengthen its capabilities on the basis of the principles of autonomy, self-reliance and individual responsibility so as to avoid being criticized for agreeing in principle but refusing to act on specifics.
We firmly believe that displaying an entrepreneurial spirit in a deregulated environment, and aggressively developing new businesses and industries are duties of the business and industrial community, and that such actions constitute the means of contributing to economic revival.
The basic thinking and specific demands for deregulation in each area are as spelled out in Parts 2 and 3. Important issues that we believe would have a particularly large impact on the economy and employment creation, and that should be given priority in implementation are as follows.