Structural Reforms to Enhance Initiatives of the Private Sector
Chairman's Address for the 1997 Annual Meeting

April 24, 1997

Jiro Ushio
Chairman, Keizai Doyukai

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1. Introduction

• Hostage Case in Peru
• Structural Reforms are Underway
  A Revitalized Japanese Economy
  Vitalization initiated by the Private Sector

2. Full-Scale Implementation of Structural Reform

<The Structural Reform of Public Finance - an Overhaul of the Erstwhile System>

• Inadequate Fiscal Reforms in the 1997 Budget
• Eradicating the Old System

<Reform of the Financial System -Dismantling the Convoy System>

• The Financial Big Bang
• Accomplishments will be the Responsibility of Business Leaders
• Retreat from the Convoy Fleet System
• Belated Reform of the Taxation System

<Active Management of Firms with an Emphasis on Rate of Return on Equity [ROE]>

• Deepening Bipolarization
• Sectors of Growth will Continue to Increase
• ROE

<Including Reform of the Taxation System>

• Reform of the Taxation System must not be Postponed
• "Revenue Neutral" is not True Reform
• The Highest Personal Tax Rate of 50%
• The Corporate Effective Tax Rate of 35%
• Tax Cuts to be Placed as the Target of "The Six Reforms"

3. Leadership of Business Executives to tackle New Problems

Global Environmental Issues
Employment Issues

4. Conclusion

"Manifesto for a Market-Oriented Economy"

• Self-Awareness of the Private Sector

Social Responsibilities of the Management

Japanese version