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Important Economic Issues Affecting Japan and its Pan-Asian Relationships
Hatakeyama, Noboru Center for International Studies, Inha University 2004 Pacific Focus Vol.19 No.1
Restructuring within big companies other than banks is almost over. In most cases, large manufacturers are finished with layoffs, reduction of debts, and curtailment of excessive capacities. However, SMEs, service industries, banks and the agricultural sector are still in need of new methodologies and structures to enhance growth and productivity. Structural reform pursued by GOJ has done a good job in reducing public works. Money and resources, including workers, previously allocated to the public works has been shifted to more constructive areas after necessary arrangements. However, deregulation or regulatory reform, an important part of structural reform, has not been properly prioritized. Time and resources for structural reform is limited. Top priority should be given to deregulatory practices that will lead to increased effective demands in Japan's marketplace, and within Asian and international markets.