e-Japan Strategy

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e-Japan Strategy On the threshold of the 21st century, Japan must take revolutionary yet realistic actions丂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.

I. Philosophy 1. Historical significance of the IT revolution (1) IT revolution and transformation to a "knowledge-emergent 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. Correspondingly, the advancement in information technologies, primarily the Internet, will enhance the quality of information exchanges and revolutionize relationships between individuals, between individuals and organizations, and between individuals and society, by drastically reducing the costs and time for information distribution. It is believed that this will result in the rapid transformation to a "knowledge-emergent society," where the interaction of knowledge will evolve to create high added value.

(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. In order for Japan to continue its economic prosperity and raise the quality of life for all people, it is vital to promptly establish a national infrastructure, including legal frameworks and information infrastructures, suitable for a new society where information and knowledge are the sources of added value. However, as is always the case with a revolution, transformation from an industrial society to a "knowledge-emergent society" will be discontinuous and we must prepare ourselves for the hardships that will accompany the process of realizing further prosperity. In the absence of a historical event that would trigger an end to a past era, such as the Meiji Restoration and the end of World War II, each Japanese person is urged to promptly carry out a drastic reform of the social structure on his or her own.

2. 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.

(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. The fact that Japan lags behind other nations in the use of the Internet can primarily be attributed to high telecommunications fees and restrictions on the use of communications networks, stemming from what is in reality a monopoly of the local telecommunications market. Other reasons for high fees are that the Internet is built on low-speed, inefficient voice telephony networks and fees are based on linear pricing. The telecommunications market was liberalized in 1985, and restrictions on the market entry of foreign companies have recently been eased. However, there still remain many restrictions and cumbersome procedures that prevent fair and active competition among telecommunications carriers. Moreover, obsolete laws that require procedures in writing and in person are hindering the use of the Internet. All in all, it can be concluded that institutional problems have been the main cause for the delay in the popularization of the Internet.