[an error occurred while processing this directive] [an error occurred while processing this directive]


SIGNUPABOUTBW_CONTENTSBW_+!DAILY_BRIEFINGSEARCHCONTACT_US


The Pillars Are Crumbling

KEIRETSU
They used to provide cheap capital, steady management, reliable partners, and friendly shareholders for the big Japanese companies. But the system has dulled Japan Inc.'s competitiveness and created unsustainable levels of debt.

JOBS FOR LIFE
This doctrine produced a steady, hardworking, and passive labor force. Now, it's strangling the companies that need to restructure and locking in layers of management that block innovation.

THE MINISTRIES
In Japan's statist capitalism, bureaucrats channeled resources into export industries that boomed. Now, they have to deregulate the consumer economy to prevent a slide into depression. None of the bureaucrats is trained for the task.

RURAL VOTERS
The ruling party lavished public works on the countryside to sustain Japanese construction companies, preserve a way of life, and lock in political support. But now, urban Japanese need public funds for retraining and high-technology infrastructure.


DATA: BUSINESS WEEK



RELATED ITEMS

COVER STORY: JAPAN WANTED: A NEW ECONOMIC MODEL
ASIAN COVER IMAGE: Japan: Wanted: A New Economic Model

CHART: Japanophobia: The Bad News about the Economy

TABLE: The Pillars Are Crumbling

TECHNOLOGY: GIANTS ON THE ROPES (int'l edition)

TABLE: Japan's High-Tech Balance Sheet

UNIVERSITIES: ANXIOUS ALUMNI (int'l edition)

CHART: Unemployed Grads

ENTREPRENEURS: ENTER THE RISK-TAKER (int'l edition)

COMMENTARY: A MAJOR ROADBLOCK FOR REFORM: THE U.S. (int'l edition)


Return to main story


Updated Nov. 19, 1998 by bwwebmaster
Copyright 1998, Bloomberg L.P.
Terms of Use