Sad news. Japan...
27 Dec 2010, 15:41Japan has been overtaken by China as the world's No. 2 economy. Its flagship company, Toyota, recalled more than 10 million vehicles in an embarrassing safety crisis. Its fourth prime minister resigned in three years, and the government remains unable to jolt an economy entering its third decade of stagnation.
As Japanese drink up at year-end parties known as "bonen-kai," or "forget-the-year gatherings," this is one (2010) many will be happy to forget.
Problem is, there's little to look forward to. With a rapidly aging population, bulging national debt, political gridlock and a risk-averse culture slow to embrace change, Japan's prospects aren't promising. And a tense, high-seas spat with China has intensified fears of its neighbor as a military as well as economic threat.
Many in Japan worry about finding steady jobs and whether they can support families — concerns that have contributed to Japan's low fertility rate of 1.3 children per woman. Average household income has fallen 9 percent since 1993.
Millions have given up the goal of lifetime employment at a major corporation and become "freeters," flitting among temporary jobs with few if any benefits. As companies cut costs, temporary workers have grown to a third (33%) of the work force, up from 16 percent in the mid-1980s.
Further, the population is projected to fall from 127 million to 90 million by 2055 — 40 percent of them over the age of 65. That's going to place a heavy tax burden on workers.
Economic difficulty is a chief reason more than 30,000 Japanese have committed suicide every year for the past 12 years. (harsh reality)
Prime Minister Naoto Kan has acknowledged Japan's declining status.
His prescription: "Open up the country." He advocates reducing trade barriers, loosening regulations and making the country a more attractive place to invest.
His Cabinet recently approved cutting the corporate tax rate by 5 percentage points to 35 percent and is weighing whether Japan should join a U.S.-led free trade zone, the Trans-Pacific Partnership, that would slash tariffs on everything from electronics to food.
Business leaders say doing so is vital, but farmers fear a flood of cheaper imports would ruin them. Analysts say it could be a vehicle for economic revival but also lead to job losses and social dislocation, especially in rural areas.
"Merely unleashing the forces of competition and the free market isn't going to do the trick because people who feel vulnerable will crawl back into whatever they have (Roland Corp. has crawled back into its cave)," said Koichi Nakano, a political science professor at Sophia University in Tokyo.
Nakano and others say sweeping changes are needed in both policy and mindset, from expanding the social safety net to overcoming a deep fear of failure that has constrained entrepreneurship and risk-taking — and Japan's economic potential.
About 77 percent of Japan's jobless aren't getting unemployment benefits, according to International Labor Organization data, in part because temporary workers don't qualify.
Japan can be innovative: It is the world leader in hybrid vehicles and industrial robots. Nintendo's "Wii" gaming console is a hit in living rooms around the world. Entrepreneur Tadashi Yanai, Japan's richest person, built Fast Retailing Co. and its low-cost Uniqlo brand into one of Asia's biggest clothing retailers.
But Japan sometimes undermines itself by being insular. Its sophisticated mobile phone industry, for example, has failed to grow overseas because it operates on a network hardly used anywhere else — earning it the nickname "Galapagos Syndrome."
One optimist is Michael Alfant, an American who has worked in Japan for 20 years. He sees the country becoming more entrepreneurial and focusing on opportunities in service industries. "Japan is reinventing itself," said Alfant, CEO of Fusion Systems, a start-up software company, and the incoming president of the American Chamber of Commerce in Japan. "I'm very confident Japan will get there."
Any change is likely to come gradually.
A conformist, consensus-based culture means Japan is generally slow to make changes or respond to crises — as seen in Toyota Motor Corp.'s handling of its safety woes.
"One would think there would be more of a sense of urgency here," said Jeff Kingston, director of Asian Studies at Temple University's Tokyo campus. "At best, Japan will muddle through, meaning it will avert catastrophe, but it is hard to see anything but bleak prospects in a country that should be doing better given its enormous strengths."
"If you manage the decline reasonably well and turn things around in a different direction," he said, "it's possible to retain some influence and reinvent oneself as a soft power, a relevant player on the world stage."
>> With Japanese businesses overwhelming "fear of failure" mindset is it any wonder Japan is headed on a "bridge to nowhere" fast? Japan desperately needs to relinquish its "insular" mentality and start taking "risks" again or risk becoming inconsequential in the eyes of the world and as nondescript upon the world stage. Japanese are intelligent and congenial people when talking with them face to face and they have so much going for them as a country too. It would be a shame if they should "lose" their once prominent position in the world and as a powerhouse in the world's economy. Time will tell. But Roland Corporation's sudden withdraw from Roland Clan is just one example that doesn't bode well for Japan making a comeback anytime soon in my opinion. Instead, it's withdrawal, hunker down, remain "insulated" and consequently stuck in a deep rut as a result. Roland's loss, Yamaha and Korg's gain unfortunately. What a pity..
So you may say... how does this affect me? With Japan's economy in a tailspin and with Japan shrinking in prowess upon the world stage God only knows what Japan's keyboard prospects will look like over the next several years. Indeed, Roland may become extinct as a company during that same time frame perhaps too. God forbid of course. But until Roland "opens up" (like Prime Minister Naoto Kan encourages Japan to do) things will continue to look very "iffy" at the halls of Roland Japan and in the minds of their customers who may be hesitant to continue buying their products in the future, in my humble opinion. Roland's distancing of themselves from their customers is a move in the wrong direction if you ask me. But what do I know. I'm just one of Roland's customers.
As Japanese drink up at year-end parties known as "bonen-kai," or "forget-the-year gatherings," this is one (2010) many will be happy to forget.
Problem is, there's little to look forward to. With a rapidly aging population, bulging national debt, political gridlock and a risk-averse culture slow to embrace change, Japan's prospects aren't promising. And a tense, high-seas spat with China has intensified fears of its neighbor as a military as well as economic threat.
Many in Japan worry about finding steady jobs and whether they can support families — concerns that have contributed to Japan's low fertility rate of 1.3 children per woman. Average household income has fallen 9 percent since 1993.
Millions have given up the goal of lifetime employment at a major corporation and become "freeters," flitting among temporary jobs with few if any benefits. As companies cut costs, temporary workers have grown to a third (33%) of the work force, up from 16 percent in the mid-1980s.
Further, the population is projected to fall from 127 million to 90 million by 2055 — 40 percent of them over the age of 65. That's going to place a heavy tax burden on workers.
Economic difficulty is a chief reason more than 30,000 Japanese have committed suicide every year for the past 12 years. (harsh reality)
Prime Minister Naoto Kan has acknowledged Japan's declining status.
His prescription: "Open up the country." He advocates reducing trade barriers, loosening regulations and making the country a more attractive place to invest.
His Cabinet recently approved cutting the corporate tax rate by 5 percentage points to 35 percent and is weighing whether Japan should join a U.S.-led free trade zone, the Trans-Pacific Partnership, that would slash tariffs on everything from electronics to food.
Business leaders say doing so is vital, but farmers fear a flood of cheaper imports would ruin them. Analysts say it could be a vehicle for economic revival but also lead to job losses and social dislocation, especially in rural areas.
"Merely unleashing the forces of competition and the free market isn't going to do the trick because people who feel vulnerable will crawl back into whatever they have (Roland Corp. has crawled back into its cave)," said Koichi Nakano, a political science professor at Sophia University in Tokyo.
Nakano and others say sweeping changes are needed in both policy and mindset, from expanding the social safety net to overcoming a deep fear of failure that has constrained entrepreneurship and risk-taking — and Japan's economic potential.
About 77 percent of Japan's jobless aren't getting unemployment benefits, according to International Labor Organization data, in part because temporary workers don't qualify.
Japan can be innovative: It is the world leader in hybrid vehicles and industrial robots. Nintendo's "Wii" gaming console is a hit in living rooms around the world. Entrepreneur Tadashi Yanai, Japan's richest person, built Fast Retailing Co. and its low-cost Uniqlo brand into one of Asia's biggest clothing retailers.
But Japan sometimes undermines itself by being insular. Its sophisticated mobile phone industry, for example, has failed to grow overseas because it operates on a network hardly used anywhere else — earning it the nickname "Galapagos Syndrome."
One optimist is Michael Alfant, an American who has worked in Japan for 20 years. He sees the country becoming more entrepreneurial and focusing on opportunities in service industries. "Japan is reinventing itself," said Alfant, CEO of Fusion Systems, a start-up software company, and the incoming president of the American Chamber of Commerce in Japan. "I'm very confident Japan will get there."
Any change is likely to come gradually.
A conformist, consensus-based culture means Japan is generally slow to make changes or respond to crises — as seen in Toyota Motor Corp.'s handling of its safety woes.
"One would think there would be more of a sense of urgency here," said Jeff Kingston, director of Asian Studies at Temple University's Tokyo campus. "At best, Japan will muddle through, meaning it will avert catastrophe, but it is hard to see anything but bleak prospects in a country that should be doing better given its enormous strengths."
"If you manage the decline reasonably well and turn things around in a different direction," he said, "it's possible to retain some influence and reinvent oneself as a soft power, a relevant player on the world stage."
>> With Japanese businesses overwhelming "fear of failure" mindset is it any wonder Japan is headed on a "bridge to nowhere" fast? Japan desperately needs to relinquish its "insular" mentality and start taking "risks" again or risk becoming inconsequential in the eyes of the world and as nondescript upon the world stage. Japanese are intelligent and congenial people when talking with them face to face and they have so much going for them as a country too. It would be a shame if they should "lose" their once prominent position in the world and as a powerhouse in the world's economy. Time will tell. But Roland Corporation's sudden withdraw from Roland Clan is just one example that doesn't bode well for Japan making a comeback anytime soon in my opinion. Instead, it's withdrawal, hunker down, remain "insulated" and consequently stuck in a deep rut as a result. Roland's loss, Yamaha and Korg's gain unfortunately. What a pity..
So you may say... how does this affect me? With Japan's economy in a tailspin and with Japan shrinking in prowess upon the world stage God only knows what Japan's keyboard prospects will look like over the next several years. Indeed, Roland may become extinct as a company during that same time frame perhaps too. God forbid of course. But until Roland "opens up" (like Prime Minister Naoto Kan encourages Japan to do) things will continue to look very "iffy" at the halls of Roland Japan and in the minds of their customers who may be hesitant to continue buying their products in the future, in my humble opinion. Roland's distancing of themselves from their customers is a move in the wrong direction if you ask me. But what do I know. I'm just one of Roland's customers.