GISPRI's purpose is to study various issues related to global industrial and social changes from a global perspective. There are two global issues that have received increased attentions recently: the progress of economic globalization and the realization of sustainable development. In the past, economic globalization advanced gradually backed-up by GATT and other international systems, but, with the end of the Cold War upon the collapse of former Soviet Union and the progress of IT revolution symbolized by Internet, its progress has been accelerated explosively. In today's world, all the products, people, capitals, and information ceaselessly change places beyond national borders, and system-to-system competition is ongoing with the efficiency-emphasized American System dominating. The American System may be preferable in terms of realizing the most appropriate distribution of limited resources, but, when overly undertaken, it may bring the side effects of abandoning the weak. What is asked now is how to balance the efficiency and the "social equity," a concept that compliments the system. United Kingdom's shift from the Satcharism that emphasized efficiency to the Labor Party, and the Labor Party's sweeping victory at the recent election may provide some implication of new political moves to attain such a balance. The Japanese style system that successfully accomplished the post-war economic recovery, which was called "miracle," used to function efficiently and contributed to the realization of social equity. After 50 post-war years, the system itself has undergone systematic fatigue, necessitating overall revision. For Japan, a country without the endowment of natural resources, the key infrastructure is its educational system. Considering its long lead-time and the time span of its effects, the importance of educational system can never be over-emphasized. 

To achieve sustainable development is another global issue GISPRI addresses, and to realize it requires the efficient use of resources and the restriction of environmental burdens. Today's economic activities cannot function without addressing environmental concerns, and this fact also provides a positive aspect of creating a new environmental business for economic growth, especially in developed countries. The real situation in developing countries, however, is quite severe. I strongly felt that environmental issue and economic problem are two sides of the same coin, while observing the actual situation of waste water treatment at a Hanoi's plating factory during my visit to Vietnam for the policy dialogue for Japan's Green Aid Plan. Environmental improvement found in China and Thailand is a result of their economic development. This may sound far-fetched, but the proverb of "manners come with sufficient livelihood" may apply to environmental problems also. Derived from carbon dioxide accumulated in the atmosphere mainly as the by-products of normal economic activities and daily life, global warming is a new type of environmental problems because of its effects being not only local but also global. Developing countries are emitters as well and will be likely to become major emitters as their economies grow, with their emissions exceeding those of developed countries in the future. In this sense, global warming is the issue where the interests of developing countries conflict with those of developed countries. To address this issue, international community has prepared the Framework Convention on Climate Change and the Kyoto Protocol as immediate measures. The Kyoto Protocol merely stipulates the targets of emission reduction, while leaving the implementation details such as the modalities and rules of the Kyoto Mechanisms to future international negotiation. Despite an unexpected good turn of progress achieved at COP-bis, the negotiation still faces many obstacles because of varied intentions of Parties and the enormity of works involved. As Bush administration proclaims the departure from the Kyoto Protocol, future course of events will be unpredictable. However, there is no denying that the Kyoto Protocol contains, still in an abstract form, buds for the future resolution of global warming issue, such as emissions trading, joint implementation, and clean development mechanism.

In this situation, our Institute's mission to provide policy recommendation based on collective wisdom will increase its significance further. I would truly appreciate your continued and increased cooperation and support to our Institute's activities.

Kotaro Kimura Executive Director