Rebecca is blogging from about the Japan sessions at the World Economic Forum meeting going on right now in Seoul. The theme seems to be about recovery. This year at Davos, I was in the audience and Rebecca was moderating a similar panel. Unfortunately, I'm not there this time to heckle. ;-)
I hope Takenaka is right. I'm still quite concerned that economic recovery will cause people to be complacent about reform, but as Rebecca points out, the drivers for the current recovery might be different from the past. I suppose that if Takenaka and Koizumi continue to focus on this aggressive reform at home, we might have a chance.World Economic Forum Blog... However he [Takenaka] also said that further agressive reforms are necessary if Japan is to pull itself fully and completely out of its decade-long economic slump. He said that Prime Minister Junichiro Koizumi is fully committed to such aggressive reform.
Takenaka concludes: "There is no excuse to postpone the reform, or to stop the reform at this moment." He says the greatest fundamental danger to economic expansion is a "kind of complacency." People who say that further reforms are unnecessary because the economy has improved are "totally wrong." Japan, he says, now has an opportunity to create a "virtuous cycle" of reform and growth.
At the Annual Meeting in Davos this past January, I moderated a panel titled Making Japan's Recovery Last . Panelists were generally optimistic that the recovery could be sustained, as long as the government continued with structural reforms. However some members of the audience including venture capitalist and WEF GLT Joi Ito expressed concern that the economic upturn would be used as an excuse not to forge ahead with tough reforms. It appears that Takenaka is determined not to let that happen. He says he has the Prime Minister's support. But what about the rest of the Japanese bureaucracy?