Japan today needs what the economist Joseph A. Schumpeter once called "creative destruction." The immediate need is to shake up the political and economic systems from the ground up. Without such drastic changes Japan will not be able to regain vitality.
In a policy speech to the Diet on Monday, Prime Minister Junichiro Koizumi stressed the need for "reform with no sanctuary," saying that without sweeping changes "it will be impossible to achieve Japan's rejuvenation." From that standpoint, he laid out plans for reform in a wide range of areas.
The highlights: