Japan's main banks appear to be getting a grip on disposing of nonperforming loans, which was the big issue 3 1/2 years ago when Prime Minister Junichiro Koizumi took power. Corporate earnings have improved a lot, and the economy is seeing its most robust growth since the collapse of the bubble. At one point Japan looked ready to be crushed by the information technology revolution in the United States, but its pride as a manufacturing power has been restored by good performances in the digital, household electrical appliance and automobile industries. Japan as a whole now appears to be emerging from a period of declining confidence.
And yet, many people continue to harbor strong feelings of uncertainty about the future. Although Mr. Koizumi has been tackling issues such as the privatization of the Japan Highway Public Corp., deregulation and the establishment of special zones for structural reform, much of the public still cannot imagine a bright future. Recently the government launched Japan 21st Century Vision, a special panel comprising learned people, business leaders and government officials, which aims to work out a future vision of Japanese society after structural reform. With its sights set toward the year 2030, the panel is to submit a report sometime after March.
Our hope is that the panel will come up with a concept resembling the "income-doubling plan" that was announced by then-Prime Minister Hayato Ikeda in 1960 -- a plan that would enable the nation to live securely and to boldly challenge the future. When the plan was announced, many people were surprised and dubious about whether it could really be achieved. But the target was realized a decade later, ahead of deadline. As a result, the Japanese standard of living was dramatically enhanced, and that gave much confidence and courage to those who had worked hard to attain the goal of the national slogan.