FORUM PERSON

FORUM PERSON Me and the Tokyo International Forum

HIROSHI OKUDA
Chairman of the Federation of Economic Organizations (Keidanren)

Hiroshi Okuda
Born in Mie Prefecture in 1932. After graduating from Hitotsubashi University in 1955, he joined the Toyota Motor Sales Company. Became the President of Toyota Motor Corp. in 1995, before being appointed Chairman of that company and Chairman of the Japan Federation of Employers' Associations (Nikkeiren) in 1999. Member of the Council on Economic and Fiscal Policy (CEFP) and the Social Security Council since 2001. Has also served as Chairman of the Federation of Economic Organizations (Keidanren) and Chairman of the Industrial Structure Council since 2002.

To revive the Japanese economy, we need to improve the social security system, strengthen economic ties with East Asia, and promote structural reform in Japan.

From June 1st to 5th, the 22nd World Gas Conference Tokyo 2003 was held under the theme of "Catalysing an Eco-Responsible Future". The Opening Ceremony for the event was held in Hall A of the Tokyo International Forum. The Conference attracted much interest as the largest of its kind in the energy industry sector and the first to be held in Asia. Before the event, we spoke to its Honorary Chairman and Keidanren Chairman Hiroshi Okuda about the significance and effects of holding the conference in Japan, as well as future Keidanren activities.

For the future of the planet and people's lives

In the 70-year history of the World Gas Conference, this 22nd Conference will be the first ever to be held in Asia. I am thrilled that Tokyo has been chosen as the venue for this epoch-making event.
Energy demand in Asia and China is forecast to expand dramatically in future, in line with economic growth. In 2020, this region is predicted to take up 30% of the entire world's energy demand. To provide a stable supply of energy, the foundation for human life, it is now more important than ever that we promote international cooperation. For this reason, I think this 22nd World Gas Conference Tokyo 2003 will be of very great significance.
It is also essential that we take action on a global scale to address environmental problems like global warming. Now, more than ever, countries need to collaborate together to devise measures such as technical innovation for energy conservation and new energies, making use of natural gas, and so on.
Fortunately, Japan has reached a level of energy efficiency that is extremely high in global terms. At the Conference, I expect significant information to be relayed from Japan to the world, especially on the pioneering technology Japan has accumulated to date. For the furtherance of the human race, moreover, I also look forward to a lively debate on the balance between energy, environment and economy.
From the point of view of Japanese industry, I hope every effort will be made to ensure the success of the Conference .

Future efforts by Keidanren

The Japanese economy today is in a state of impasse. The Council on Economic and Fiscal Policy (of which I am a member), the government and the ruling party have prepared and applied a variety of prescriptions to cure non-performing loans, property deflation, employment guarantees, and so on. But so far, there are no clearly visible effects. This is only to be expected, as structural reform takes time. To reap the effects expected of structural reform, I think there are at least two issues that need to be tackled.
The first of these is to develop a sustainable system of social security. The Japanese economy is inevitably going through a protracted period of low growth. One of the reasons for this is that people are anxious about the social infrastructure (pensions, health care, and nursing) in their old age, and are holding back on consumption and investments for this reason. To ensure that effective use is made of individual financial assets amounting to around 1,400 trillion yen, we first have to sweep away this anxiety over the future. With the declining birth rate and aging of the population advancing at a rate unprecedented in global and historical terms, this is not going to be easy. However, as indicated in the Keidanren Vision published in January, if consumption tax were deployed, people could feel greater reassurance about old age, and it might even be possible to design a system in which people of working age need not be excessively burdened.
The second task is to promote regional economic integration in East Asia, the growth center of the world. As China and other neighboring countries continue to grow explosively, more and more people are voicing concerns about a hollowing out of manufacturing industries and employment. On the other hand, the growth of these countries also means a rapid expansion in markets. To benefit mutually from the results of this growth, Japan needs to take leadership in promoting regional economic integration to facilitate the free flow of goods, services, people and money, as in the EU or NAFTA.
Of course, there are plenty of other things we need to do. But, at Keidanren, we are putting particular effort into these two issues with a view to bringing them to fruition.

Towards a more user-oriented facility through privatization

Incidentally, I understand that the Tokyo International Forum is to be privatized in July. With a reform of non-profit organizations now underway even at government level, I think this is of major significance.
Today, there are a lot of non-profit corporations designed to operate so-called "hakomono" (physical structures with excessive focus on infrastructure). The Tokyo Metropolitan Government has obviously decided that the operation of the "hakomono" of the TIF can be achieved by a public limited company, and is taking steps to realize this. The way in which this is done will be of great interest to future reforms of non-profit corporations.
There is no point in building facilities if they are not used. Unfortunately, however, facilities built by public offices tend to overlook profit-making opportunities, using their public-benefit nature as an excuse. The Tokyo International Forum, built at monumental public expense, will only fulfil the purpose of its construction if it raises its operating rate with conferences and other events. I think the aim of privatization is to raise the operating rate further and increase opportunities for the superb facilities of the Tokyo International Forum to be useful to society.
Facilities that are built by the public sector and run by non-profit corporations are also said to be difficult to use. I think this is because they are run in a way that prioritizes the convenience of their managers, public offices and officials. For the people who actually use the facilities, they lack flexibility and tend to be too rigid.
This can no longer be the case when they are privatized into public limited companies. Companies can only survive by constantly raising their operating rates and improving profitability. And to raise operating rates, a user-oriented attitude is more important than anything.

The Tokyo International Forum as a "Gateway to International Exchange"

We have held a "Labor-Management Forum" (an event for personnel management staff all over Japan) 4 times so far at the Tokyo International Forum, and plan to do so again next year.
I myself have visited the Tokyo International Forum on several occasions in the past, and have been particularly impressed by the ease of access to public transport. The buildings themselves are of an innovative design, but visitors can't easily get lost here. Inside, the ceilings are high and there are a lot of cut-through levels, giving an impression of openness and modernity.
As well as international conferences and seminars, it seems that a good many cultural events are also held here, including musicals, concerts, art exhibitions and film festivals.
The nearest station, Tokyo Station, acts as a "Gateway to Transport". Well, I hope that various events will continue to be held at the Tokyo International Forum as a "Gateway to International Exchange".

I hope that various events will continue to be held at the Tokyo International Forum, as a "Gateway to International Exchange"