In June, a new prime minister, Junichiro Koizumi, came into the office, with a banner of "Reforms". Japan has been suffering a long depression since the 90's, yet the government and politicians had been unable to take the necessary policies to restructure the economy. This is due to vested interest groups and the fear of worsening the economy, even though temporally. Mr.Koizumi is the first prime minister who has openly stated that the temporal set-back of the economy is inevitable if Japan were to take on the restructuring of the economy seriously, and the long-term growth is not possible if we do not take a bold restructuring now. Since coming to power, Mr. Koizumi has suggested rather bold reforms in many areas, including social security. One of them is to turn the basic pension into a tax-based, flat-rate pension, while privatising the income-related portion of the public pension. Even though such a suggestion is sure to meet many obstacles from all sides, it is an eye-opening movement that such policies are even suggested. If his term in the prime minister's office continues, Japan might see some bold and wide-reaching reforms.