Decided by the Headquarters for Industrial Structural Reform and
Employment Measures on June 26, 2001

Embarking on the 21st century, Japan now stands at an important crossroad where it must decide whether to break away from the economic stagnation that has followed the bursting of the economic bubble and build a truly affluent nation or to allow the entire nation to decline in power.
The very step Japan is required to take now is to resolutely carry out structural reform from two approaches: "liquidating the past" including final disposals of bad loans and "challenging the future" in establishing a competitive economic system appropriate for the 21^st century. In this process, it is important to adequately deal with the changes in the economic situation that are likely to occur in the course of making the final dispositions of bad loans, and to resolutely implement the reform by overcoming the pains.

Therefore, under a philosophy to resolutely carry out structural reform while holding nothing sacred, the Headquarters for Industrial Structural Reform and Employment Measure gathered together the wisdom of all Cabinet members in order to vigorously discuss on the following matters toward the materialization of concrete measures, and recently drew up an interim report concerning the basic policy for such measures:
(1) Creation of employment by fostering new markets and industries;
(2) Promotion of personnel training and skill development;
(3) Establishment of work environments in which people can work with peace of mind; and
(4) Establishment of an employment safety net suitable for reforming the structure of the labor market.
Based on the policy indicated in this interim report, the Japanese government will lay the foundation for innovations that would bring about development, conduct research and development in key strategic fields, and encourage venture businesses, while also creating new markets and job opportunities by making regulatory and institutional reform in respective fields. Furthermore, it will drive forward the reform of employment systems and establishment of a safety net. These efforts include encouraging personnel development, creating diverse modes of employment, and promoting smooth job gaining.

At the same time, in order to materialize the content of this interim report into concrete measures, the Headquarters will continue its efforts to thoroughly identify items that require measures by also considering enhancing Japanese companies' international competitive strengths and creating new jobs. Furthermore, the Headquarters will commit itself to making the contents more specific and determining the schedule of the required measures. It will then summarize a comprehensive policy package and decide on the specific measures for creating new markets and jobs by around September of this year.