Table Speech

Initiation Speech

December 7, 2011

Mr. Kichisaburo Nomura (does not appear)
Mr. Yoshiaki Kawai

Initiation Speech

Mr. Yoshiaki Kawai
Chairman, Capital Advisers Group

“Prospects for the Next Five Years”

1. Comprehensive Security • Diplomacy
【Based on fundamental values of liberalism • democracy • market economy and constitutionalism】

 ・Reassure our determination to “defend our country by ourselves,” while forming alliances with countries that share the same “fundamental values.”

 ・Reinforce our intelligence and defence capacity for deterrence.

 ・Reinforce the high-tech industry through national policy to enable Japan to maintain its economic and industrial “presence” between two superpowers: the US and China.
 ・Foster “strategic partnership of mutual benefit” with China, while diversifying various risks (India and Indonesia are less dependent on China economically).

 ・Seek for the permanent UN Security Council seat (the first nonnuclear state).

2. National Governance (Revise the Constitution if necessary)
 ・Rectify voting inequalities that are detrimental to indirect democracy.

 ・Establish the “large-scale national strategy headquarter” under direct control of the prime minister.

 ・Establish the “administrative control agency” under the Diet.
 ・Utilize information and communications technology to enhance collaboration and coordination among government agencies.

3. Finances • Social Security
 ・Raise the consumption tax to 15% in steps.

 ・Achieve a surplus in the primary balance by 2020.

 ・Support the unemployed through “re-employment assistance,” which will also enhance structural adjustment.

4. Growth Strategy
(Regulatory reform, Support for innovation and high-technology, Open nation)
 ・Live together with growing Asian countries, propelled by high-technological capacity.

 ・Expand export of environmental, infrastructural and industrial goods through collaboration among the political, public and private sectors.
【Export is important. Japan is less dependent on exports in terms of GDP】

 ・Create domestic demand that addresses various issues, including aging society with fewer children, global warming and special economic zones. (Regulatory reform is the key)

【Electric power and nuclear energy】
 ・Nuclear accidents and radioactive wastes are grave issues. Commercialization of renewable energies is imperative to meet growing power needs due to world population growth. Research on such energies is essentially long term, thus making “nuclear energy a necessary evil” as a temporary bridge.

 ・While electric power in Japan is high-quality, its price is expensive by international comparisons. Principle of market mechanisms must be introduced to the power industry.

 ・Get committed to various meetings that formulate “international standards.”

 ・Stem appreciation of the yen and allow the weaker yen (against renminbi and won).

 ・Take advantage of the current strong yen to acquire overseas quality companies, oil and gas fields or mines.

5. Education • Society
 ・Understanding the history, basic philosophy and culture of one’s own country is indispensable in the era of globalization.

【Identity as a Japanese】
 ・Reassure the “principle of self-responsibility, individual responsibility to the society and sense of solidarity,” which were lacking in the post-war education.

 ・Base education on the development of one’s intellect, and not on excessive memorization and cramming of knowledge.

 ・Make “social service” a requirement in university.