The Cabinet last week approved a new set of guidelines for structural reform, dubbed the "big-boned" program. It is the third of its kind since Prime Minister Junichiro Koizumi took office in April 2001. In a nutshell, the latest program gives the impression that his reform drive is running out of steam.
The centerpiece of the latest blueprint is the so-called trinity reform, which is designed to streamline the convoluted financial relationship that exists between the central and local governments. The plan calls for giving more tax-levying authority to local governments in exchange for cuts in state subsidies and restraints on revenue transfers. It is called trinity because three key reforms would be carried out simultaneously in an integrated manner.
The 2003 program also calls for shoring up the financially ailing public pension system. A range of regulatory reforms are also planned, including easing the restrictions on temporary staff services to permit the hiring of doctors and nurses, and selling selected nonprescription drugs at outlets other than pharmacies, such as convenience stores.