Copyright 1998 Asahi News Service

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Asahi News Service

August 14, 1998, Friday

LENGTH: 602 words

HEADLINE: Y2K BUG STILL OUT THERE AND CLOCK IS STILL TICKING

BODY:

Asahi Shimbun said in an editorial:

In the United States, Y2K the millennium bug is the big buzzword in government and the private sector.

The Y stands for year, and 2K represents the year 2000. The federal government has taken the lead in encouraging Americans to work on measures to safeguard against computer malfunctions the Y2K bug could trigger.

Many old computer operating systems and software are based on a simple two-digit calendar. Without reprogramming computers could not distinguish between 1900 and 2000, and many will simply stop, or, worse, generate calculation mistakes or other malfunctions.

Aircraft, electric power generators, home appliances and an array of other equipment runs on microprocessor-driven control that depends on time. There is no way to anticipate what could happen when all those machines go haywire.

The U.S. government has introduced several measures to prevent such problems. The Justice Department issued a statement to companies assuring them that mutual discussion on resolving the Y2K problem would not be treated as a federal antitrust violation. The government has also begun drafting legislation that would exempt businesses from legal responsibility for errors made in information disclosure regarding the millennium bug caused by carelessness.

Japanese business, on the other hand, are not particularly concerned about Y2K. We are particularly concerned about the level of preparedness at banking institutions, which would suffer mightily from computer malfunctions.

From the end of this year until June 1999, an experiment led by the Bank of Japan and the Tokyo Stock Exchange will move the clock forward to 2000 to see what happens to the flow of information. The central bank is also encouraging banks to get to work on the Y2K bug by beginning a program of special inspections.

But a little more than 500 days remain until Jan. 1, 2000. Even if problems turn up, solving them is likely to be a real race against time.

Financial institutions are under pressure to resolve their bad loans now. Other businesses are reluctant to invest in something that will not enhance productivity.

But business and government are responsible for seeing to it that their computers do not generate trouble for others. They must upgrade their computer software and disclose now what problems can be anticipated, and take emergency measures to resolve them.

Government, as well as the private sector, has an obligation to practice crisis management for the whole society. This is a duty that falls to the government on a global scale.

The information network is global. A problem in any one country could lead to big trouble worldwide. This is something like the financial system. That is why most industrialized nations, at the Group of Eight key economies in May, attended by former Prime Minister Ryutaro Hashimoto, affirmed a pledge of closer cooperation to resolve the Y2K issue.

The Japanese government should state the measures its ministries and corporations have taken in a way the public can understand. If the problems are not eliminated in time, steps must be taken to prevent confusion. There is already an inter-ministerial liaison council working at the section-chief level. But a more closely unified approach must be taken.

Japan lost credibility because it could not sort out the mess left by the collapse of the asset-inflated bubble economy for more than eight years. Japan cannot be permitted to become a new source of trouble to the rest of the world for its computer errors as well. (Asahi Shimbun, Aug. 14)