The government's latest economic white paper has a strong message to the nation: Let us put the slump behind us as quickly as possible and get the economy back on a firm footing. The annual report, released last Friday by the Economic Planning Agency and subtitled "Challenge for economic revival," represents a step forward from last year's, which described 1998 as a period of laying the "groundwork for creative development."
This year's report consists of three sections. The first, under the heading "Japan's economy supported by policy effects," analyzes past economic trends and policy responses. Significantly, it reflects humbly on the way the government dealt with the protracted recession. "With hindsight," it admits that the government underestimated the gravity of the situation.
The second section, "Backgrounds and realities of restructuring," points out that corporate Japan is burdened with three "negative legacies" from the "bubble" period: overcapacity, high unemployment and heavy debt. It stresses that restructuring is an urgent priority if these excesses are to be cleaned up.