The Pillars Are Crumbling
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.
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.
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
- 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