Now, Japanese Prime Minister, Keizo Obuchi is on his relationship-build trip to the United States. I encountered, in the New York Times online news page, his policy and economic explanation article toward the United States. I believe that this would be a good opportunity to read his article and to know what the Japanese leader thinks towards the United States. Needless to say, this article's copy right belongs to The New York Times.Visit The New York Times Online News Site which is listed in the Favorite Homepages page.
April 29, 1999
By KEIZO OBUCHIJapan is quietly becoming a different country from the one most Americans think they know. We are transforming ourselves into a nation much better prepared to contribute to peace and prosperity in the 21st century. This will be a central message of my visit to the United States this week.
Japan once felt the need to change because of pressure from its friend and ally, the United States. Today, the greatest pressure for change is coming from within Japan. The systems and processes that made us so successful in the past no longer work. They have become heavy shackles that hold us down. It is not easy to abandon the formula for previous success. Yet we realize the world has changed. We realize that unless we adopt a more flexible economy driven by the market, Japan is doomed to economic and technological decline.
We do not intend to let that happen. Painful structural changes are under way. Our country, which once prided itself on its "lifetime employment" practices -- once hired, a graduate was guaranteed work at the same company until retirement -- today has an unemployment rate higher than that of the United States. Japanese companies can no longer afford to make social stability a priority and keep workers on the payroll regardless of earnings. So unemployment is not just an indicator of our immediate economic problems, it is a byproduct of our transition to a new economy.
We are also reforming our banking system and financial structure, again a process that brings with it some disruption. Japanese corporations are selling off shares that they have traditionally held in one another, thus unraveling the corporate fabric from the past.
But this is opening up opportunities for foreign companies like GE Capital and Merrill Lynch to buy Japanese companies. We welcome the new ideas and energy this is bringing.
The Government's recent $225 billion stimulus package, including reductions in tax rates, is the largest in Japan's history. And Japan has also set aside $500 billion to help restore confidence in the financial sector. Part of our current economic weakness is psychological; I am hopeful that the stimulus package and structural changes will serve as catalysts to restoring public confidence.
While we have been struggling with economic change and renewal, Japan has been cooperating very closely on the critical issues that affect the peace, security and prosperity of the Asia-Pacific region. Japan is host to many American military bases and contributes more financial support than any other nation with American bases on its soil.
Our two countries closely coordinate policy toward North Korea, and Japan has committed approximately $1 billion to help North Korea develop atomic energy for peaceful uses and thus prevent North Korea's nuclear weapons development.
Since Japan's economy accounts for two-thirds of the entire East Asian economy, including that of China, we have felt a special obligation to assist those countries hard hit by the region's economic crisis. We have contributed $80 billion -- more than any other nation -- to aid the Asian economies. Our foreign aid budget is also the largest in the world -- and has been for seven years.
My point is that Japan seeks to carry its weight in the world. We are striving to promote peace and stability in the world, which is undoubtedly the overall goal we share with the United States.
When Japan overcomes its current economic difficulties, it will emerge a more vibrant and flexible society. We will be in an even stronger position to support the values that we share so deeply with the United States -- freedom, democracy and respect for human rights.
Keizo Obuchi is Prime Minister of Japan.
