Two of Japan's four largest business organizations, Keidanren (Federation of Economic Organizations) and Nikkeiren (Federation of Employers Associations), have decided to merge by May 2002. A task force will be working out details by the end of the year, including the proposed name and articles of association of the combined organization.

The planned merger is of great significance to the future of corporate activity in this country. The issue at stake is whether a consolidation of major business lobbies, which are known collectively as "zaikai," will help to streamline industry associations, sever cozy ties with government and bureaucracy, and encourage freer and more independent activity.

Zaikai now consists of four major groups -- Keidanren, Nikkeiren, Keizai Doyukai (Japanese Association of Corporate Executives) and Nissho (Japan Chamber of Commerce and Industry). Keidanren, the zaikai leader, is concerned mainly with administrative, economic and fiscal issues as well as questions involving the world economy. Nikkeiren, which speaks for big-business employers, deals with employment issues, such as those affecting wages and jobs. Doyukai is a free-wheeling forum of corporate executives, including small-business and foreign managers. Nissho works for small businesses through regional chambers of commerce.