JAPAN - Reforms are needed to re-energize her economy and well being

JAPAN - Reforms are needed to re-energize her economy and well being

Japan is going through a very "rocky" period and this applies to monetary issues, demographics, politics, and her role in the world. Therefore, major reforms are needed and systems and thinking needs to be transformed. However, are the politicians prepared to change the current system and are the Japanese people prepared to be challenged?

Since World War Two many changes have taken place within Japanese society when related to modernization, major changes within the culture, and enormous development in the field of high technology. However, if you scratch under the surface and ignore the Westernization looks of most people, then you witness another Japan. Sadly, it is this Japan which appears to have a "stranglehold" over society.

If we look how America responds to major economic downturns then it is apparent that they make radical changes and this nation can rebound. Yet the same does not apply to Japan because since 1990 the economy remains sluggish and the Nikkei is well below what it was in the early 1990s. The entire economy appears to be stuck in one collective "zaibatsu" or under the spell of the "old daimyo system." Because change isn`t happening and cross sharing remains strong in this uncompetitive nation.

Yet if we look at history then we see a different picture because Japan could respond to changes during times of crisis or modernization periods. From Oda Nobunaga to the Meiji Restoration in 1868 we see dynamism in patches, but this is always swallowed up by conservatism or traditionalism. Not that all forms of conservatism and traditionalism are wrong but it is when it infringes on the free market and innovation.

Therefore, Japan needs to return to her past positives and these past positives are not always so long ago in history. After all, Yoshida Shigeru and the period 1960-1972 under Ikeda and Sato, respectively, were periods of high growh or innovation in order to restructure the economy. So can Japan re-energize herself in a time of great change and need?

I remain slightly optimistic that "a third way" can be found from the current impasse and a new vigorous Japan can re-awaken. However, this can only happen once Japan stops looking up to other nations and focuses on her own strengths. If this happens, then the enormous reserves of Japan can be utilized to galvanize the economy.

At the same time the government must focus on genuine cost effective measures and focus on the needs of the people. For example greater tax perks for families with children, freeing women from the home, and increasing a genuine support network whereby people are encouraged to increase their family size. These measures can be supported by reducing government wastage and allocating resources where they are needed.

De-centralization measures must also become a priority and central government funding must reward innovative prefectures and penalties must be implemented on prefectures who abuse their resources. Remember, from Oda Nobunaga to the Meiji Restoration in 1868 to Yoshida Shigeru; you had people who could go against the grain and transform society. All these leaders understood the need for critical thinking so now it is up to Japanese people and the government to face up to the 21st century with confidence and not defeatism!

Lee Jay Walker Dip BA MA