The biggest challenge for Japan as it greets the new millennium is implementing drastic political, economic and educational reforms, comparable to those carried out in the Meiji Restoration and after the end of World War II. Plans must include major fiscal reform, restructuring of the banking system, overhaul of the education system and the establishment of social morals.
The government faces de facto bankruptcy after issuing a series of deficit-covering bonds as part of economic stimulus packages. Without establishing realistic budget-balancing policies early, the government will have a hard time restoring fiscal health in the 21st century.
A banking crisis has been averted, and the reorganization of the banking industry is making progress. However, there are moves in the political world to delay banking reform. Some lawmakers have suggested, for example, that the implementation of a plan to limit bank-deposit protection to 10 million yen per depositor, beginning in 2001, be delayed.