Japan braces for Brexit disruption


Japanese people are skilled at collaborating and the prime minister and business leaders are working together closely to face a serious problem in the UK at the moment: the Brexit.

Japanese companies which have invested in Britain – including Hitachi, Honda, Toyota and Nissan – expected to use the UK as a gateway to Europe’s single market.

They are therefore distraught by Britain’s plan to leave the EU and are especially concerned about the prospect of a so-called “no deal Brexit” which could cause massive disruption to their international operations.

Abe’s visit

Prime Minister Shinzo Abe lobbied on behalf of Japanese companies when he met his British counterpart Theresa May in London. He said he was was “in total support of the draft withdrawal agreement” which Mrs May reached with the EU and which was put to a vote in Parliament on January 15th.

It was rejected by a huge majority of MPs.

That leaves everyone – including Japanese businesses – wondering what happens next. If no agreement is in place by the time Brexit happens on March 29, then there will be severe restrictions on the movement of goods between the UK and EU.

Mr Abe said: “We truly hope that a no-deal Brexit will be avoided. And in fact, that is the whole wish of the whole world.”

Honda’s shutdown

The Japanese carmaker Honda has announced it will halt production in the UK for six days in April due to Brexit.

The company said in a statement: “Honda has been assessing how best to prepare for any disruption caused by logistics and border issues following the UK leaving the EU. To ensure Honda is well paced to adjust to all possible outcomes, we are planing six non-production days in April 2019.”

Hitachi’s nuclear problem

Meanwhile, the Nikkei Asian Review reports that Hitachi is about to suspend plans to for a new power station in North Wales.

Hitachi has strived to win foreign contracts since the Fukushima disaster, which has led to a suspension of new reactors within Japan.

According to the BBC, it has spent two billion pounds to develop the Welsh site but the investment will now have to be written off as a loss.

Hitachi is worried about the price the British government will pay for the electricity generated by the plant upon its completion.

Nick Butler from King’s College, London told the BBC: “Hitachi are exhausted that they can’t get a decision from the UK government and this is one of the secondary consequences of Brexit. The government is entirely tied up with one issue and unable to cope with others.”

Free trade hope

The nuclear power project is by no means Hitachi’s only investment in the UK. It is also involved in many other businesses related to transport and science.

Prime Minister Theresa May told Hitachi’s chairman Hiroaki Nakanishi last year that Britain would seek a free trade agreement with Japan following Brexit, although the time scale is unclear.

Handcuffed business hero protests his innocence from the dock

There’s been massive media coverage around the world this week of the court appearance by the former Nissan chairman Carlos Ghosn in Tokyo.

More than 1,100 people – some of them Nissan shareholders – queued for 14 seats in the public gallery.

Places for reporters were assigned by a lottery and no filming or photographs were allowed in court. However, artists were allowed to draw pictures of the accused and they provided the press with sketches of Mr Ghosn looking gaunt and stressed.

Detention without trial

Those images were beamed around the world, with a reminder that Mr Ghosn has been held in detention for fifty days without trial. He was led into the court in handcuffs and with a restraint around his waist.

Mr Ghosn was arrested out of the blue in November and accused of not disclosing his full compensation and of using company money for personal gain.

The court appearance itself was short – only ten minutes – during which he read from a prepared statement protesting his innocence.

He challenged allegations made by his former colleague, Nissan CEO Hiroto Saikawa, who has suggested that his former boss had “remained in charge too long and had come to treat Nissan as his personal fiefdom and was driven increasing by greed,” according to the Financial Times.

In response, Mr Ghosn said that he had dedicated two decades of his life to reviving Nissan and building its alliance with Renault. “I worked towards these goals day and night on earth and in the air, standing shoulder to shoulder with hard-working Nissan employees around the globe to create value,” he said.

Defence tactics

The BBC turned to an old friend, Seijiro Takeshita of Shizuoka University for analysis. He said: “Mr Ghosn wanted his voice heard. His tactic is to say that the top management of Nissan were aware of all his actions, so if Nissan knew about this, the focus will be on Nissan’s approach to corporate governance, rather than just Mr Ghosn personally,” said Professor Takeshita.

The FT’s Tokyo correspondent Leo Lewis discussed the case with Jesper Koll of Wisdom Tree Japan, a robust critic of Japanese business and government, who loves the media limelight. Mr Koll suggests that the arrest of Mr Ghosn is a national embarrassment which shows corporate reform in Japan has been an illusion.

According to that way of thinking, writes Leo Lewis, “Whether Mr Ghosn has been felled by a corporate coup or some other design, he has fallen victim to an insiders’ club he could never hope to join. These are the rules of Japan Inc – love them or leave them.”

Back to prison

Mr Ghosn has now returned to his cell. The next step is for the court to decide whether to release him. However, prosecutors could arrest him for a fourth time if they have fresh allegations against him – meaning he’ll be locked up for even longer.

The media’s appetite for information about the case is far from satisfied and the story’s likely to stay in the headlines for many months to come.

 

Whale hunters ride another wave of criticism

I have been writing about Japan for many years but I always try to avoid the subject of whales.

Whaling generates a great deal of emotion and leads to criticism of Japan in the media, with the strong implication that other countries treat animals much better than the Japanese.

I can remember taking a few phone calls on this topic when I was working at the BBC’s office in Tokyo. When asked by colleagues in London to write about whales, I am afraid that I made an excuse that I was “busy on other topics”.

I am not a person who spends much time thinking about animal welfare or hunting. Perhaps I should.

Headline news

The international press keeps the issue high on the agenda.

Last week, Japan withdrew from the International Whaling Commission and said it would restart commercial hunting.

This issue became the lead story for the BBC on both its domestic and international outlets. “It means Japan will be able to freely hunt species currently protected by the IWC, like minke whales. Conservation groups warn the move will have serious consequences,” said the BBC website.

Shock reaction

The Times newspaper picked up on the issue in an editorial on December 27th. It said: “Japan’s decision further undermines the principle of a rules- based system of international conservation. In a free for all of hunting, it is entirely feasible that, like the great auk in the 19th century, the whale could eventually vanish. No one knows the wide effect that would have on the ecosystems. The disaster must be prevented.”

The New York Times struck a similar tone: “There is no commercial, cultural or scientific justification for killing these magnificent creatures. Japan: Stop Slaughtering Whales!”

So, it is abundantly clear that Japan’s position on whaling brings a torrent of bad publicity with some unpleasant diplomatic implications.

And yet very few people actually eat whales. According to Japan’s Asahi newspaper, whale meat makes up only 0.1% of all meat sold in Japan.

Why do it?

The Financial Times reporter Robin Harding explained that most whale meat ends up in government stockpiles. But he says “the issue is totemic for nationalists and crucial to certain fishing villages represented by members of the ruling Liberal Democratic Party.”

I gained further insight into the rationale behind whaling by watching a documentary on Netflix which aims to present the issue from a Japanese perspective.

The film is called Behind The Cove: The Quiet Japanese Speak Out!

It claims that the traditional approach to whaling ensures the preservation of species and brings great social benefits to some coastal communities.

The film also shows the “quiet Japanese” loudly shouting at foreign eco-warriors from a group called Sea Shepherd, which stages protests against whaling in the fishing villages, without understanding much about Japanese culture.

The film also raises a question which was absent from this week’s media reports on whales.

Why do people in other countries – including Australia, the EU and the US – make such a distinction between the precious lives of whales and the lives other animals, such as cows, sheep and pigs – or even fish?

My new year’s resolution is to keep an open mind on this topic as I am sure whales are going to hit the headlines again soon.

Are driverless trains the future of transport?

How would you feel if you caught a train in Japan and it had no driver?

Train travel is one of my favourite activities and I’m a particular fan of the transportation systems in Osaka and Tokyo.

So I was intrigued to learn that human-operated trains may be on the way out. Tests for a new driverless trains are scheduled to begin soon on one of Japan’s busiest and most important urban routes – Tokyo’s Yamanote Line.

Ghost trains

The scheme’s still at a test stage, according to Japan Kyo. It says that next week, after the ordinary trains stop running, the automatic driverless train will start operating on the track in the early hours of the morning.

“The Automatic Train Operation (ATO) system will be implemented into the Yamanote Line E235 trains. When engaged the system controls every aspect of the train’s movement, including its acceleration, cruising speed, and brakes,” says the piece.

Railway Gazette adds the significant fact that the Yamanote Line in Tokyo does not share tracks with other services, and this makes the trial appear viable. It says there’s also a plan to test driverless trains on the Tohoku shinkansen, or bullet train, which runs from Tokyo to Eastern Japan.

Several websites suggest that one of the goals of the railway company JR is to combat future shortages of personnel that will inevitably arise due to Japan’s ageing and shrinking population.

No complaints

There’s no sign of anger or resentment among the JR staff about the tests of automatic trains. They are certainly not going to provoke a strike by drivers or train crews.

That’s a big contrast to the situation in the UK, where plans to reduce the number of staff on trains have led to a series of strikes which have been going on since 2016, according to the BBC.

I am annoyed because the RMT union has arranged a strike over Christmas on the route I use to visit my family for the holiday.

The railway company South West Trains says that: “By announcing further strike dates, the RMT has shown it has no intention of finding a solution and is only interested in inflicting more misery on passengers as they try to enjoy the festive season.”

The union says that removing guards from trains threatens the safety of passengers although personally, I have never felt unsafe on a train with doors which are operated by the driver, rather than a guard.

Strikes are extinct

I’ve never been affected by a strike at any stage during the many years I’ve been going to Japan. I learn from the Japan Times that the strike has virtually become extinct.
University teacher Hifumi Okunuki writes that students in his class have never seen or heard of strikes.

In the article he explains: “I teach labour law to teenagers and 20-somethings at university but the most challenging lectures focus on strikes. The questions I field: “What is a strike?”, “Why would anyone do something like that?” and “What is the point?””

I suppose of course that the teacher could explain the political theory behind strikes, in that they empower workers to influence managers to make decisions in favour of the staff.

However, personally I don’t feel very positive about the liberating power of strikes at the moment, so I’ll leave it to Professor Okunuki to explain their value to people who’ve never had their life disrupted by one.

What’s your view? Have you experienced a strike in Japan? Do you think the workers should be more assertive and threaten to withdraw their labour if conditions are bad? Share your thoughts below.

 

Angry Asian Girls target nude photo exhibition

Women have thrown down a challenge to one of Japan’s most famous and successful artists – the photographer, Nobuyoshi Araki.

Araki’s work is well known around the world: he’s staged major exhibitions at the Barbican in London, the Guimet Museum in Paris and his work is currently on display at a gallery called CO in Berlin.

As usual, alongside pictures of flowers and Tokyo streetlife, the exhibition includes images of naked women, including some who are restrained by ropes, in S&M style poses.

Angry Asian Girls

A group who call themselves the Angry Asian Girls Association staged a protest in Berlin this week. They held up signs reading “Are you sure your knowledge is correct?” and on Facebook alleged that Araki “has gained fame and reputation by exploiting female models.”

They say: “Women do not exist to be the mere tools to build the reputation of male artists. We demand changes in the art industry’s structure, which only wants to limit women to be the muse to inspire male artists. We demand changes. Be angry with us, and let’s take an action together.”

Kaori’s claims

The website Frieze Art explains that Araki was accused by his long-time model Kaori in April of several instances of exploitation and mistreatment during their working relationship. The website says that Kaori did not accuse the photographer of sexual assault but did allege emotional bullying, saying that “he treated me like an object.”

This is a point which the Angry Asian Girls Association highlight in their Facebook post, linking the allegations of exploitation to the Me Two movement through which women have highlighted occasions when females have been exploited or abused by men, including many powerful public figures.

Erotic tradition

The Japanese also have a long tradition of erotic art – some with a tendency towards extremism – and this might affect they way they regard Araki’s pictures.

I have visited his exhibitions several times and have often wondered what impact they have on non-Japanese audiences. Do they reinforce stereotypes in which Asian women are seen as the compliant playthings of men?

The Korean link

It’s hard to get much information about the Angry Asian Girls Association although I note that their webpost appears in English, German and Korean – but not in Japanese.

And that reminds me of a conversation I had with some South Korean professors earlier this year, who explained to me that the resentment in their country against Japan is based on the exploitation of women.

In particular, it’s widely felt that Japanese soldiers who invaded Korea about eighty years ago forced local women into sex.

The professors explained that the rise of the Me Too movement and a heightened awareness of feminist issues has encouraged Korean women to try to shame the Japanese into apologising.

Within Japan, there are mixed feelings on that issue but I think many people would sympathise with the stated aim of the Angry Asian Girls who say that they “dream of a world where the dignity of every individual is respected.”

Japan pleads with Britain to avoid a “no deal” Brexit

Japan’s prime minister and representatives from its biggest companies have been unusually vocal on the topic of British politics this week.

They are worried that a so called “no deal” Brexit could severely disrupt the business of Japanese companies based in the UK, especially car manufacturers.

More than one thousand Japanese companies operate in Britain and provide more than 140,000 jobs. Japan is the second largest investor in the UK, after the United States.

Abe meets May

When Prime Minister Shinzo Abe met his British counterpart Theresa May at the G20 summit in Buenos Aires at the weekend, he pressed her to avoid no deal, as well as to ensure transparency, predictability and legal stability in the Brexit process.

Mrs May assured him that her plan was a good deal for business, including Japanese companies, who she said would be able trade well with the European Union.

Political problems

ITV’s political editor Robert Peston wrote about the meeting in his blog. He said: “When the Japanese PM publicly calls on May for “support to avoid no deal” – as he did in Argentina – because of the damage trade friction at the border would do to important Japanese companies with big factories in the UK, it is very hard for the PM to plausibly argue that she would simply let chaotic events drive the UK to the cliff edge of an un-negotiated withdrawal from the EU.”

However, when Mrs May came back to London she was reminded of the enormous political difficulties in implementing her plan. The government was defeated in several votes in the House of Commons on Tuesday and it is unlikely that MPs will back the prime minister’s proposals next week.

Toyota’s view

The car maker Toyota usually avoids politics but it sent its representative

Tony Walker to the House of Commons this week. He told a business committee that a no deal would be “very, very challenging” and would have a big impact on Toyota’s factory at Burnaston in Derbyshire.

Toyota exports the majority of the cars it makes there to mainland Europe. It relies on parts imported into Britain through the Channel Tunnel from France.

However, Mr Walker said Toyota is a “pragmatic” company and he was careful not to say that the British factory would close as a result of Brexit.

Soon after the result of the referendum was announced in 2016, the Financial Times predicted a 75% chance that Toyota and Honda would cease manufacturing in the UK if the Brexit leads the EU to impose an import levy on cars manufactured in Britain.

Nissan

The Times newspaper also reported that Nissan, which employs 7,000 people in the North East of England, is under pressure from its partner Renault to move some operations to France. That was before the arrest of the Nissan chairman Carlos Ghosn in Tokyo last month. He still hasn’t been charged with any crime.

Takeda’s deal

Despite all the worries about Brexit, Japanese companies are still active in the UK and Ireland. This week, Takeda Pharmaceutical won shareholder approval for a £46bn ($59bn) takeover of UK-listed drugmaker Shire.

If it goes through this will be Japan’s largest ever corporate acquisition and the takeover is part of Takeda’s strategy to become a global pharmaceutical company.

 

Where is the Nissan chief Carlos Ghosn?

The huge story in Japan this month is the arrest of the former Nissan CEO and chairman Carlos Ghosn. But where is now? Why hasn’t he be photographed or filmed? And has he actually been charged with a crime?

Piecing together the news coverage makes it fairly easy to answer the first question about Mr Ghosn’s whereabouts.

According to Reuters, he is inside the Tokyo Detention House in Katsushika Ward. TV reporters have set up positions outside the building to do “pieces to camera” from there.

Reuters says: “The detention center, a tower-like structure in eastern Tokyo, is where the leader of the Aum Shinrikyo doomsday cult, which carried out the 1995 sarin gas attack on Tokyo subways, was executed by hanging this year.”

The death row part of the facility is separate to the one for people being investigated for crimes. But it does add another lurid detail to the sudden and dramatic change in circumstances, since Mr Ghosn flew into Tokyo on September 19th.

Asahi Television must have received a tip that something was happening at the airport. Somehow, it managed to obtain film of men in suits marching up the staircase into Mr Ghosn’s private jet. They quickly pulled down the shutters to prevent people seeing what was going on inside.

AFP agency suggests that Mr Ghosn spent several hours inside the plane with prosecutors – initially on a voluntary basis – and was later arrested.

AFP also says that at around 5pm, investigators raided Nissan’s plush Yokohama headquarters and another team stormed his luxurious apartment, in the affluent Tokyo neighbourhood of Motoazabu. By 5:30 pm, word was out and hoards of camera crews swarmed around the building.

So far as I can tell, the reason that nobody’s managed to get any film or pictures of Mr Ghosn since his arrest is that he’s only been in his cell in the detention centre and the press can’t find a way into the building. This, of course, has prevented him from taking the opportunity to answer the claims of his accusers.

So far, Mr Ghosn has been denounced by his company but he has not been charged. This is due to a strange fact about Japanese law of which I was previously unaware. The Japan Times says that: “Japanese law permits the detention of suspects for up to 23 days before they are charged.”

This is a contrast to the situation in the UK, whereby the police can hold a person for up to 24 hours before they have to charge them with a crime or release them – although there are some exceptions for cases involving murder and terrorism.

It suggests that the legal system in Japan seems to press arrested people into confessing to crimes before there is any action in a courtroom. In this context, I am sceptical about reports on NHK that Mr Ghosn has “denied the charges against him” as it seems there are no charges to deny – yet.

Mr Ghosn will need a good lawyer to explain to him what is happening. The Asahi Shimbun claims that Motonari Otsuru, a former public prosecutor, has been hired to defend him.

Mr Otsuru will soon have the arduous task of becoming the public representative of his client before the press. And there are hundreds of journalists in Tokyo and around the world who are keen to hear what Mr Ghosn has to say.

Luxury homes, lavish dinners and Carlos Ghosn’s shocking arrest

I was shocked when I heard that the boss of Nissan, Carlos Ghosn, had been arrested this week. The company says he’s being investigated for “numerous significant acts of misconduct.”

I have interviewed Mr Ghosn several times for the BBC but of course, I did not have any reason to ask him questions about his salary or his spending habits.

Luxury lifestyle

According to NHK, Mr Ghosn used company money to buy luxury homes in Rio de Janeiro, Beirut, Paris and Amsterdam. NHK says they cost tens of millions of dollars and there was no legitimate business reason for him to buy them.

NHK also says that Mr Ghosn used hundreds of thousands of dollars for family trips and dining. When he was arrested on Monday, it was on suspicion of under-reporting his income by about 44 million dollars over a five year period.

The Managing Director of Intelligence Automotive Asia, Ashvin Chotai, expressed his shock on the BBC.

“If these allegations are true, there are appears to be a serious breach of Japanese financial laws. We are not talking about tax fraud,” said Mr Chotai.

“I have to say though, this is not the first time that a CEO of a Japanese company has been brought up on such a charge and in previous cases there haven’t been arrests. But there is more media and public interest in this case because Carlos Ghosn is a foreigner and a very high profile CEO,” Mr Chotai told the BBC.

Coup rumours

There is a rumour that the actions again Mr Ghosn might be a coup by company insiders who were resentful of his big salary.

The Financial Times notes that in 2010 Mr Ghosn became the highest paying executive in a country where reminumeration tends to be much lower than global stands.

My Ghosn’s supporters could of course praise his special talents and insights – and the way he was able to turn the company around in the late Nineties.

He was also deeply involved in the running of the other companies in the automotive group, Renault and Mitsubishi.

Resentment lingers

Nevertheless, hard-working Japanese executives are often suspicious of rich foreigners working in their industries.

Does the money they receive really make them better at their job? Wouldn’t they understand the company better if they rose through the ranks, like ordinary Japanese managers?

Ashvin Chotai says: “It’s very different to imagine Nissan without Carlos Ghosn. I expect will see a new era going forward. From now on, it will probably be run more along the lines of other Japanese companies, such as Toyota.”

Japan would make the perfect ally if Trump wants to raise the stakes with China

Asia’s leaders, including Japan’s prime minister, Shinzo Abe, are still trying to work out how best to respond to the disruptive, America-first policies of President Donald Trump. The November Midterm elections in the United States did not provide any solutions to their dilemma. Indeed, the outcome of the polls suggest that Mr Trump is almost certain to run for re-election as president in 2020. The Japanese must therefore continue to try to maintain an alliance with Mr Trump, difficult though that will be.

The elections allow Mr Trump to continue as America’s leader, with considerable support from his Republican party, which retains control of the Senate, even though a swing to the Democrats has enabled his opponents to take control of the House. Yet when it comes to trade policy, Mr Trump enjoys considerable executive power which he can wield autonomously. That is especially significant when it comes to China.

Tariffs on China

Mr Trump has imposed tariffs of about $250 billion on Chinese imports into the United States and has threatened to increase that figure dramatically.

China is not backing down and nor is Mr Trump. His hawkish attitude delights the conservative wing of the Republican party but there is also backing for his approach among many Democrats.

“I think the outcome of the Midterm elections strengthens Trump’s hand on China,” Professor Linda Yueh from Oxford University told me. “He may well press a bit harder and he could gain some bipartisan support. He’s considering truly massive tariffs in China next year. But will he do that at a time when growth in the US economy is slowing?”

Japan’s dilemma

For Japan, the US-China trade war creates a dilemma. Japanese businesses dislike the disruption it causes to their manufacturing processes. There is also resentment that the US maintains tariffs on Japanese steel exports to the United States, despite Mr Abe’s request to Mr Trump lift them.

These tensions come at a challenging time. The economy shrank in the third quarter of 2018 by an annualised rate of 1.2%. A Reuters poll of economists in Tokyo suggests they see the US-China trade war as the greatest threat to the Japanese economy next year.

The conservative perspective

Despite the risk, conservatives in Japan relish Mr Trump’s challenge to China’s enormous economic power and its increasing political influence. Mr Trump accused the Chinese of interfering in the election process in the United States by pressing voters to back his opponents.

“China was watching the race closely,” Professor Yueh told me. “The Chinese were putting pressure on them to stop the trade war, saying that there would be no winners,” said the professor.

One danger for Japan is that emboldened in his fight with China, Mr Trump becomes increasingly protectionist. The President has ordered an audit of all the countries which have a trade surplus with America, including Japan. “He believes that having a trade surplus means you’re not playing by the rules,” says Professor Yueh.

Free trade principle

Yet there is another option. Instead of allowing a narrow America-first approach to prevail, Mr Trump could recommit the Republican Party to its principle of free trade. In doing so he could reverse his decision to exclude the United States from the TPP international trade agreement, which is strongly supported by Japan. This would act as a counterbalance to Chinese influence.

Shinzo Abe can still claim TPP as a major political achievement, even if America remains outside it for the time being. When the partnership comes into force at the end of this year it will mark a rare victory for global trade liberalisation, with Japan very much as the driving force.

Am I too optimistic? Well, the Economist is upbeat, too!


This week, I was asked whether I’m too optimistic about Japan.

Podcast host Ziv Nakajima Magen has been reading through my recent blog posts on Japan Story and noticed that they are often upbeat.

Quite reasonably, he asked me: “Where do you get this optimism? Is it 100% authentic, or are you maybe just playing devil’s advocate a little bit to the sensationalist, over-dramatic tendency of international media, as far as it comes to Japan and some of the issues it faces?”

I told Ziv that I sometimes feel it’s my duty to highlight the positive aspects of Japan as the media, quite understandably, tends to concentrate on the bad news. But I also said that as a journalist, I try to keep an open mind. I reminded him that I’m entirely independent – I’m not paid by anyone in Japan to sing the country’s praises in a blog.

Sunrise in Tokyo

Apparently, I’m not alone in keeping an eye out for the good news.

This week, I read a very optimistic analysis of Japan in the Economist magazine. It was in the Finance and Economics section under the byline Buttonwood, which suggests it was written by Philip Coggan. The headline was “Sunrise in Tokyo.”

The piece praised Japan’s “healthy” economy and was positive in its view of the Abenomics programme of Prime Minister Shinzo Abe.

It said: “Deflation has ended. Nominal GDP has been growing steadily. And the job market is buoyant. Unemployment has fallen to 2.3%. The ratio of vacancies on job seekers is the highest since the early 1970s.”

Womenomics

It also looked at the policy of Womenomics, designed to bring more women into positions of senior responsibility. That usually provokes a sceptical response in the international press.

For example, the New York Times magazine recently asked “Why does Japan make it so hard for working women to succeed?” The author of that piece, Brook Larmer, said Japan “has remained stubbornly regressive”. He wrote: “Japanese women, to a degree that is striking even by the lamentable standards of the United States and much of the rest of the world, have been kept on the margins of business and politics.”

Yet the Economist article states that: “More women than ever are in the workforce. The female participation rate is higher than in America and above average for the OECD.”

Rising productivity

Japan is often said to have an inefficient working culture. For example, Reuters said this week that it has “the lowest productivity among Group of Seven countries.”

The article in the Economist does not challenge that claim directly but it counters that: “Output per hour has recently grown faster in Japan than in other G7 country, according to the Conference board, a research group.”

Challenges remain

The Economist does not ignore the challenges facing Japan, such as its shortage of labour and its ageing population. But it says that companies are responding to these issues by expanding into foreign markets and improving their productivity.

The Economist loves to hand out advice, telling governments and business leaders what to do. Yet on this occasion, it is quite restrained, apart from its implied praise for Abenomics. The piece suggests that Japan is quietly solving its problems by itself.

So, my optimistic view of Japan is not quite as esoteric as it sometimes seems. Others see it as a land of opportunity, too.