Now that the output gap is almost balanced in Japan, the next issue is whether this condition will impose a constraint on economic growth by creating a shortage in labor and capital stock across nearly all sectors and firms. I would first like to touch on this issue from the short- and medium-term point of view.
As part of BIS Review 66/1997  -4-  this policy, the remaining exchange controls still applicable to certain outward investments of capital by South African residents will be phased out gradually; a programme of reducing excessive tariff protection is now being implemented to liberalise international trade relations; new international trade treaties are being negotiated, for example with the European Union and countries in the Southern Africa Development Community; and a privatisation programme has recently been launched with the sale of a large share of Telkom, the South African telecommunication organisation, to a foreign consortium.