I would like to say a few words to Minister for Public Management, Home Affairs, Posts and Telecommunications, Minister of Education, Culture, Sports, Science and Technology, Minister of Health, Labour and Welfare, Minister of Agriculture, Forestry and Fisheries, Minister of Economy, Trade and Industry, Minister of Land, Infrastructure and Transport, and Minister of State for Science and Technology Policy.
The Koizumi Cabinet has entered a new phase of reform as we aim to realize "a small government of quality, worthy of the burden required." Following the direction for reform, identified in the "Basic Policies 2002," I call upon the aforementioned Ministers to exert their leadership in compiling proposals for the reform of systems and policies of their respective Ministries so that intensive discussions on these proposals can be undertaken by the Council on Economic and Fiscal Policy at the end of August.
Each proposal should outline modalities for those reforms on systems and policies to be implemented by each Ministry during FY2003, as well as the direction to be pursued over a longer term. In this I call upon each Minister to advance a top-down approach to implementing bold structural reform to ensure that our society can fully respond to the great changes that occurs in our social structure in the 21st century. Indeed, we will effect fundamental reform in the systems and policies that have until now been taken for granted. I call upon each of the relevant Ministers to go beyond merely stating his/her aspirations and come up with proposals specifying concrete measures for reform.
I would like the relevant Ministers to bear in mind the following points in compiling the reform proposals.
First, outline proposals for regulatory reform (including special zones for structural reform), privatization, outsourcing and private finance initiatives (PFI), from the perspective of transferring responsibilities from the government to the private sector.
Second, come up with specific proposals to promote regional independence while reducing central government involvement based on the desirable division of labour between the central and local governments.
Third, choose the optimal policy means through a results oriented approach while eliminating overlapping measures among government Ministries. In particular, I urge you to discuss reforms of systems towards creating employment opportunities in newly growing fields and facilitating the movement of labour; measures for promoting a transition from policy means based on public works projects to those that do not depend on public works projects; and reviews of involvement and inducement of the central government through subsidies and burdens.
Further specific items that I would like to have included in the reform proposals will be notified later through administrative channels.
My determination to advance structural reform does not move one inch. I expect that each and every one of the reform proposals to be presented by the Ministers concerned will be worthy of being considered as a core pillar sustaining the Koizumi Reform as we move forward to the next stage.
July 19, 2002
"The further specific items" that Prime Minister Junichiro Koizumi requested to have "included in the reform proposals" in accordance with the instructions he made regarding "Intensive Discussions on Reforms of Systems and Policies" are as follows.
- Minister for Public Management, Home Affairs, Posts and Telecommunications
With a view to establishing desirable relations between the central and local governments, I call upon you to outline proposals on system and policy reforms for the following:
- Review of the division of administrative duties between the central and local governments (based on the deliberations of the Council for Decentralization Reform, etc.)
- Review of local expenditures and reduction in the scale of the Local Fiscal Plan
- Review of the methods used in calculating the local allocation tax
- Reduction in total personnel costs
- Promotion of regulatory reform (for example: outsourcing of local administrative services, promotion of competition in telecommunication businesses), etc.
- Minister of Education, Culture, Sports, Science and Technology
With a view to reducing involvement by the central government and allowing each and every individual to realize their full potential by fostering individuality and competition among universities, schools and instructors, I call upon you to outline proposals on system and policy reforms for the following:
- Review of the state contribution system for compulsory education
- Review of research and development projects
- Prompt transition of national universities to non civil service type administrative corporations (enhancing a competitive environment, diffusing merit-based systems)
- Promotion of regulatory reform (for example: employing instructors for 20-hour per week, reviewing regulations on the establishment of universities and faculties), etc.
- Minister of Health, Labour and Welfare
In light of the rapid aging of the Japanese society, with a view to retaining as much as possible the rise in the national burden ratio while building sustainable and stable systems and to advancing fundamental reform of the labour market, I call upon you to outline reforms for comprehensive systems and policies for the following items, including those for FY2003. Furthermore, from a broader perspective, I would like you to outline proposals for system and policy reforms aiming to materialize a society in which people could be active throughout their lives.
- Higher efficiency in measures taken in response to the declining birth rate
- Reform of the pension system (bearing in mind the fundamental reform slated for FY2004)
- Reform of employment policies (eliminating mismatching throughout different age groups by revising labour laws)
- Review of modalities for unemployment insurance benefits and benefit levels
- Promotion of regulatory reforms (for example: creation of employment in new industries and service industries related to socially regulated sectors such as childcare, medical and nursing care, and labour), etc.
- Minister of Agriculture, Forestry and Fisheries
With a view to advancing the revitalization of the food industry and structural reform of agriculture that can fulfill the expectations of the people, I call upon you to outline proposals for reforms on systems and policies for the following:
- Review of the distribution system for agricultural products and foods (in particular, reform of agricultural cooperatives and the perspective of security and safety, etc.)
- Review of rice policy (in particular, production adjustments, etc.)
- Systemic reform to provide for a corporate approach to agricultural management (focusing policies on management entities that are highly motivated and capable)
- Promotion of regulatory reform (for example: review of laws for land use regulation), etc.
- Minister of Economy, Trade and Industry
With a view to advancing industrial structural reform and economic revitalization strategy, I call upon you to outline proposals for systems and policy reforms for the following:
- Review of measures for small and medium-sized enterprises (focusing on measures of a nationwide scale and perspective, modalities for the small and medium-sized enterprise finance and credit guarantee systems)
- Reform of systems related to business start-ups (promotion of business start-ups and business creation - a review of relevant corporate legislation, etc.)
- Modalities for energy policy
- Review of research and development projects
- Promotion of regulatory reform (for example: improving corporate union systems, expanding the range of liberalization in the electric and gas retail sectors), etc.
- Minister of Land, Infrastructure and Transport
Including prioritization and improvement in efficiency of public investment with the goal of returning to the level of public investment before large scale addition for economic stimulus measures were made, as well as a fundamental review of modalities for the long-term plans, I call upon you to outline proposals for system and policy reforms on public works for the following:
- Review of modalities for the long-term public works plans
- Improvement of tendering procedures and reduction of costs
- Review of large scale projects
- Promotion of regulatory reform (for example: proactive use of special zones for urban renaissance), etc.
- Minister of State for Science and Technology Policy
With a view to implementing a strategic focus on science and technology and a process of 'selection and concentration' in order to enhance Japan's technological base so that we can compete with Europe and the United States, I call upon you to outline proposals on system and policy reforms for the following:
- Review of research and development projects (selection of and concentration on four priority areas)
- Advancement of cooperation among government, industry and academia led by the private sector etc.
|
