Thanks to the consorted efforts of the governments of all major countries to cope with the global financial crisis, the global economy barely avoided catastrophe last year. It was truly a blessing that people did not forget the nightmare caused by the Smoot-Hawley Tariff Act of 1930.

     The year 2010, however, has ushered in a new decade of POLITICS, with the mixed feelings of anxiety and hope for the recovery of the global economy. The global economy is now facing significant challenges resulting from the trend of increasing political conflict throughout the world. In the U.S., President Obama is challenging China, for example, on his recent decision to permit an arms sale to Taiwan. Brussels is now agonizing over increasing sovereign risks of EU member countries. Currency battles may develop at any time. These are only a few examples among many.

     Japan is not an exception. The new DPJ government is now conducting a shift in its economic policy, with more weight given to consideration of the demand side than the supply side. Despite the recent political scandals surrounding the party’s leadership, the DPJ’s new policies themselves are currently receiving reasonable support from the Japanese public. People are recognizing that they essentially value the Japan-U.S. relationship based on the security treaty it affords, as well as the theory of classical capitalism, to the extent that they hold a firm stance toward reform of the stubborn bureaucratic system and prefer slightly more care for those who suffered severely as a result of the recent global financial crisis.

     However, we believe that the current political uncertainties should undergo a positive convergence in due course in pursuit of a new dynamism in Japan, possibly through a large reshuffling of power led by a new conservative coalition comprised of politicians from the DPJ now in power and the old LDP. This move should offer renewed investment opportunities in Japan under the new global economic environment.

     In this context, we at IRI will continue in our efforts to introduce you to the most up-to-date activities of quality Japanese companies with excellent technologies. We are pleased to present the next volume of ZIPANGU, which features the deployment of state-of-the-art technologies related to fields such as the environment, medicine and molecular biochemistry. We ask you for your continued support.