Message from Mr. Yukio Edano, Chief Cabinet Secretary of the Government of Japan, to the World Economic Forum Global Risks Workshop

JAPANESE

1. Opening Remarks

I welcome the holding of the World Economic Forum Global Risks Workshop in Japan. I also welcome most sincerely the visit to Japan by Professor Klaus Schwab, Executive Chairman of the World Economic Forum, who is a true friend of Japan.

On the occasion of the Global Risks Meeting that the World Economic Forum convened in April in New York, I delivered a video message explaining Japan's state of affairs at that time with regard to the issues of the nuclear power plant and impacts upon the supply chain, among other matters.

 

2. The Impacts of the Large-scale Earthquake Disaster on Japan and the Japanese Economy

Two months have passed since the Great East Japan Earthquake wreaked upon Japan the most severe damage since the end of the Second World War.

This great quake has imparted three major shocks to Japan and to the Japanese economy. Those three shocks have been, first, the enormous damages in both human and material terms and also the supply shock due to disruptions of economic circulation, resulting from the complex disaster of the earthquake, tsunamis, and nuclear accident; second, serious electricity constraints caused by damages to electrical generating facilities; and third, the emergence of controversy regarding the safety of nuclear power generation and a wavering of trust in Japanese products and Japanese brands, due to the effects of radiation.

Japan is now overcoming such difficulties and is currently engaged in all-out efforts for recovery and reconstruction, as well as for the restoration of trust in Japanese brands.

 

3. An In-depth Verification regarding of Nuclear Power Plant and the Swift Provision of Information

With regard to the issue of the Fukushima Daiichi Nuclear Power Station, the government and the plant operator are working in full coordination, doing everything in their power to bring the situation under control. Yesterday we released a revised version of the Roadmap towards Restoration from the Accident at the Fukushima Dai-ichi Nuclear Power Station that was initially released on April 17. The government will be making its utmost efforts towards bringing the situation under control at the earliest possible date based on this Roadmap.

Moreover, by conducting a thorough investigation into the cause of the recent nuclear accident and by sharing the information and the lessons learned with the world unfailingly, Japan will contribute actively to international discussions aimed at enhancing the safety of nuclear power generation, so as to eliminate this kind of accident from the world.

In order to conduct an investigation of the nuclear accident, we are currently moving forward with final preparations to inaugurate the Committee for the Investigation of the Nuclear Accident. In launching this Committee, we place emphasis on (i) independence, (ii) openness, and (iii) comprehensiveness as the three principles comprising its fundamental approach. To be more specific, these three principles are:

(i) complete independence from the existing nuclear energy administration;

(ii) openness in fully disclosing facts both domestically and abroad; and

(iii) comprehensiveness in examining various areas that may have affected this accident, including technical aspects as well as the way systems and organizations operated.

The government has thus far been working to disclose information it holds in a timely manner. In the future as well, we will be engaged in still more active provision of information from the government and relevant institutions as well, in a format that ensures transparency.

In the course of providing information, the government considers risk communication to be a critical issue.

Needless to say, the government needs to provide accurate information concerning the risks surrounding the nuclear power station. At the same time, within the linked risks arising since the nuclear accident occurred, one of the serious risks has been that of reputational damage resulting from rumors that are contrary to facts.

Japan's agricultural and fishery products and industrial products are all subject to stringent quality controls and we are taking all possible measures to ensure safety with regard to distribution in the market. We of course conduct these very same types of quality controls for exports as well, ensuring the safety of Japanese-made products.

The government will continue to provide information with the greatest possible degree of transparency and we intend to undertake risk communication in a smooth manner.

I very much hope that, taking advantage of this meeting, Japan can receive support from the World Economic Forum community towards the promotion of visits to Japan from abroad, the promotion of correct understanding regarding the safety of exports from Japan and the state of affairs in Japanese society, and so on.

 

4. Energy Policy

In light of the possibility of an earthquake striking in the near future, the government recently requested the suspension of operations of the Hamaoka Nuclear Power Station. This request resulted from the view that medium- to long-term countermeasures such as the establishment of seawalls are necessary in order to reduce dramatically the risk of a nuclear accident and to secure the safety and the peace of mind of the public.

Japan will rectify its energy system vulnerabilities and examine innovative energy and environmental strategies that will meet demands for safety, stability of supply, efficiency, and the environment from short-, medium- and long-term perspectives.

The Committee for the Investigation of the Nuclear Accident will thoroughly investigate this accident at the Fukushima Daiichi Nuclear Power Station and we will ensure the safety of nuclear plants. At the same time, from the perspective of energy policy, in addition to fossil fuels and nuclear power, the government considers the following two pillars also to be critical, in light of the global warming challenge. Those pillars are, first, that we will add renewable natural energies such as solar, wind, and biomass as one of our key energy sources, and second, that through various innovations and through choosing particular modalities for society, we will create an energy-conserving society which uses less energy than at present.

We will aim for an optimal mix of these energies, advance the introduction of smart grids, and work towards the creation of a new energy system.

 

5. The Reconstruction of East Japan

Taking this disaster as a key opportunity for the revitalization of Japan, the government will demonstrate to the world its ability to establish the most sophisticated reconstruction plans for East Japan, based on the three principles of first, creating a regional society that is highly resistant to natural disasters; second, establishing a social system that allows people to live in harmony with the global environment; and third, building a compassionate society that cares about people, in particular, the vulnerable. In April, we inaugurated the Reconstruction Design Council in Response to the Great East Japan Earthquake, a council with eminent persons, who are Japan's intellectual capital at its core in which the governors of the disaster-struck prefectures also participate. In June, this Reconstruction Design Council is scheduled to submit its first set of recommendations, which will serve as a blueprint for reconstruction.

 

6. The Revitalization of Japan

In addition, yesterday, the Cabinet took the decision to approve Guidelines for Policy Promotion. These Guidelines are a clear indication of Japan's determination to undertake a new start, aiming at the revitalization of Japan. Along with reconstruction from the earthquake disaster, they set forth, with a view to revitalizing Japan, the ensuring of sustainability of public finances and social security as well as for restarting, aiming at new growth.

Japan will embark upon a new start, working towards revitalization. In doing so, first of all, we will set as our first basic principle supporting the reconstruction of East Japan through the revitalization of Japan, with the reconstruction of East Japan spearheading further revitalization of Japan. In addition, we intend to set as basic principles such approaches as (ii) the creation of resilient economic and social structures that are prepared to deal with enormous risks; (iii) maintaining confidence in public finances and the social security system as well as in Japanese brands; (iv) bringing about economic recovery that is open, through strengthening of the kizuna-the bonds of friendship-with other countries; (v) fostering understanding both domestically and internationally concerning Japan's revitalization.

 

7. Japan's Determination

On the basis of the lessons learned from this earthquake disaster, Japan will build a society that is highly resistant to risks. Specifically, this will be a society that, by continually monitoring various risks and undertaking sufficient preparations that also assume worst-case scenarios, manages and reduces risks as a result.

Risks are not limited to simply the risks arising from natural disasters. Various risks exist in the world, whether they be financial risks, risks resulting from terrorist activities, risks from infectious diseases, risks concerning food safety, or others. Moreover, those risks do not stay confined within a single country, but instead propagate in a flash. In addition, risks become compounded. In the recent situation, Japan faced an enormous risk resulting from the entwining of various risks. The society highly resistant to risks that Japan aims to create is one that is capable of responding to all sorts of such risks.

Over the last twenty-plus years, Japan has been caught in an impasse. The great disasters and the nuclear accident that occurred within that context were a crunch in the middle of a crisis. In the future, Japan will dedicate itself to reconstruction and revitalization. We will overcome the weak points that became evident through the earthquake disaster, restore trust that has been damaged, and deepen our bonds of friendship with the world. I pledge that, in springing back from this experience which resulted in a great number of dear sacrifices, Japan will undergo a powerful revitalization, and, as a society highly resistant to risk, become a country which can lead the world concerning risk countermeasures.

 

8. Expectations towards Today's Workshop

In today's workshop, I understand that leaders and experts in fields related to risk from all around the world are participating in addition to Japan's leaders from a great diversity of fields, to discuss interlinked risks having their origin in the large-scale earthquake disasters.

At the previous Global Risks Meeting, I stated that never before has there been such a need for a group of experts in the area of risk that stretches across the lines separating the public and private sectors. Now, experts in the area of risk have gathered in Tokyo to engage in discussions that transcend sectoral boundaries. I very much hope that through this, your knowledge and your experiences will be shared globally and that ideas concerning modalities for new ways to handle risk at the global level are sent out from Tokyo, which is facing the disaster at this very moment. I also sincerely look forward to those ideas vigorously supporting, under a network of international cooperation, the society highly resistant to risk that Japan intends to create during the years to come.