Existing Policies

Initiative and
Strategies

Japan

e-Japan Strategy

On the threshold of the 21st century, Japan must take

revolutionary yet realistic actions promptly, without being
bound by existing systems, practices and interests, in order
to create a "knowledge-emergent society," where everyone
can actively utilize information technology (IT) and fully
enjoy its benefits. We will strive to establish an
environment where the private sector, based on market
forces, can exert its full potential and make Japan the
world's most advanced IT nation within five years by:

1) building an ultra high-speed Internet network and

providing constant Internet access at the earliest date
possible,
2) establishing rules on electronic commerce,
3) realizing an electronic government and
.
4)
nurturing high-quality human resources for
the new era.

Historical significance of the IT

revolution
(1)
IT revolution and transformation to a "knowledgeemergent society"
The IT revolution, now progressing on a global scale with the
rapid advancement of computer and communications technologies,
is beginning to bring about a historic transformation of society,
much like the Industrial Revolution did from the 18th century in
the United Kingdom. The Industrial Revolution transformed the
world from an agricultural society to an industrial society with the
advancement of power technologies starting from the invention of
the steam engine, and it revolutionized socio-economic activities
of individuals, businesses and governments.

Historical significance of the IT

revolution
(2) Necessity
for a new national infrastructure
Japan started transforming from an agricultural society to an
industrial society after the Meiji Restoration and succeeded in
rapidly developing an industrial society based on standardized
mass production after World War II. As a result, over about 100
years, our nation successfully caught up with Western industrial
nations to become the greatest economic power after the United
States. The benefits of economic development have spread
widely among the Japanese people, and the standard of living has
improved dramatically. Behind this success lies the fact that
Japan quickly and accurately established a new social
infrastructure suitable for the industrial society.

Actions of nations for IT revolution and

Japan's backwardness

(1) National IT strategies of other nations

Just as a nation's response to the Industrial Revolution
later determined its economic prosperity, the same will
hold true with the IT revolution. Europe and Asia, not to
mention the United States, are aggressively developing
their IT infrastructures as part of their national strategies
in recognition of the importance of creating a
"knowledge-emergent" environment to secure world
competitive leadership in the 21st century.

Actions of nations for IT revolution

and Japan's backwardness
(2) Japan's backwardness in embracing the IT revolution
Japan falls far behind other nations in embracing the IT
revolution. The Internet usage in Japan is at the lowest level
among major industrial nations and is by no means high even
compared with other nations in the Asia-Pacific region. Japan lags
behind others even in terms of how widely information
technology is used in businesses and public administration. In an
environment of rapid change, we must recognize that Japan's
current tardiness in embracing the IT revolution may result in an
irreparable gap in competitive advantages in the future.

Basic Strategy

1.The need for a national strategy

To make up for the delay until now, provide the world's most advanced IT
environment to the citizens who need it and make real contributions to the
world, Japan must quickly and steadfastly implement institutional reforms
and measures. To that end, we must establish a national strategy with a
concrete vision and steps for socio-economic structural reform and ensure its
common and shared understanding among the nation's citizens.
The government should eliminate vertically divided administrative
functions, cooperate with local governments, and promptly establish an
infrastructure that functions according to market forces, so that the private
sector can engage in various original and creative activities through free and
fair competition and become a driving force of the IT revolution.

2. Our vision of the ideal IT society

Through our national strategy, we hope to create a "knowledge-emergent
society" that fosters diverse creativity through the exchange of
knowledge among citizens. The first condition in creating such a society
is to have all people information literate and able to exchange a wealth of
knowledge and information freely and securely without being bound by
geographical, physical, or economic constraints. The second condition is
to have ongoing reform towards a diverse and efficient economic
structure based on free and disciplined competition. The third is to attract
knowledge and talents from around the world and accumulate and
transmit the world's most advanced information, technologies and
creativity to actively contribute to the progress and development of a
"knowledge-emergent society" on a global scale.

Japans vision of an ideal society would

have the following features;
* Education
* Environment
*Arts and science
* Medical and nursing care

* Industry
* Social participation

* Living
* Transportation and
traffic
*Public administration
* Work

Four priority policy areas

Establishment of the ultra high-speed network
infrastructure and competition policies
Facilitation of electronic commerce
Realization of electronic
government
Nurturing high-quality human resources