Overview Japan
may at last be emerging from more than a decade of economic stagnation. Key economic
indicators for the last quarter of 2003 showed that the economy grew 1.7 percent
in real terms, the highest since the late 1980s. On an annualised basis, the economy
grew 7.0 percent. Growth has been driven by strong exports, a modest recovery
in private consumption and stronger industrial sector investment following a period
of tough corporate reforms. Private consumption increased by 0.8 percent and,
according to government sources quoted when the new data were released, this increase
was based on sales of flat panel televisions, DVD players and other new IT products.
Annualised private sector consumption increased by 2.1 percent. Many economists
agree that a full-scale recovery towards long-term growth is not yet certain,
but the indicators are better than they have been for many years. Consumer
confidence seemed to have steadily increased throughout 2003. Dentsu Inc., Japan’s
largest advertising agency, conducts an annual survey of Japan’s most popular
products. The results of the survey, "2003 Hit Products in Japan", released
in December 2003, show that five of the ten top products were IT- or Internet-related.
Dentsu’s main finding was that during 2003 Japanese consumers were gaining confidence
that the economy was recovering and consequently were making bolder purchases,
mainly IT, digital as well as entertainment and leisure products. Dentsu considered
that this trend might continue more energetically the following year and "herald
a full-scale recovery in individual consumption". This consumer trend is
very apparent when visiting any large Tokyo electronics store. Flat panel televisions,
many times more expensive than traditional cathode ray tube models, are selling
well. DVD players and recorders, digital video recorders and digital media servers
have pushed VCRs to the back shelves. The great increase in floor space and prominence
given over to these products is one of the most noticeable changes in consumer
IT retailing of the past year. Enabling
policies and regulatory environment Japan’s
national ICT policy is directed by the e-Japan Strategy, which is led by the Prime
Minister’s Office. The strategy was created as a response to concerns that, after
decades of leadership in the global IT sector, Japan was beginning to lag behind.
The new strategy established the general framework and goals for a raft of "e-policies",
with relevant ministries required to devise specific legislation and policy guidelines.
During 2003, legislation and guidelines were introduced on a wide range of issues
aimed at creating an enabling environment for e-commerce and a networked society.
Legislation included new laws on digital signatures and on privacy and data protection,
as well as revision of the commercial transactions law to make it compatible with
the requirements of e-commerce. In
2001, the Local Government Wide Area Network (LGWAN) began operation as one of
the first projects of the e-Japan programme. The objective of LGWAN was to connect
all the local governments on a secured network by March 2004. According to a survey
by IDG Japan, 2,836 local governments were connected to LGWAN as of 8 January
2004. LGWAN provides a common information exchange system for all local, regional
and national government departments so that they are able to share databases and
a certified document exchange system. The system is making government work at
all levels more efficient, but it is best known for having introduced the notorious
Juki Net, the Basic Residential Registers Network System. Juki Net is essentially
a national identification system that links all municipalities and prefectures
so that central and local governments can share basic information on all residents:
name, address, sex and date of birth. Juki Net has raised concerns over its impact
on the right to privacy and the security of personal information, and the spectre
of government as Big Brother scares many. A number of local. . . . . . the complete
text of this chapter is available for purchase and immediate download as a PDF
file, please click here for more information. |