61184    This year marks the third anniversary of the beginning of the united calls for deregulation.

61185    It was November of the year before last when under the Hosokawa administration the Hiraiwa Report made a recommendation that "economic regulation should be based on the free market in principle."

61186    The call gradually spread to two and three, getting louder.

61187    Unfortunately, however, this movement slowed down when the new coalition government was inaugurated.

61188    Some have a view where the cautious approach to deregulation is unavoidable now that both the LDP and Social Party, the leading players of the 1955 System on stage and behind the scenes, have come into the picture.

61189    In that case, however, re-energizing Japan's economy would be beyond hope.

61190    While Japan is finally on the road to recovery, it is inevitable to see uncertainty down the road for Japan's economy.

61191    Capital investments in private sectors still remain dormant.

61192    After the bubble burst, businesses and banks have yet to work up the energy to confront new risks.

61193    However, this is a cyclical problem with economy.

61194    What we are watching is the globalization of the market economy brought by the reconciliation between the East and the West.

61195    Specifically, with the strengthening of the yen that is in progress and a sudden rise of the East Asia economy, Japan's economy is being forced to reorganize its system of division of labor on a global scale.

61196    This is the major reason the Japanese economy needs structural reform.

61197    During this process of reorganization, some manufacturers will go ahead and relocate abroad.

61198    Let's say it is unavoidable, however, the question of whether or not new industries to replace those leaving Japan will spring up.