Reinventing Japan

Abstract

To remain a wealthy, peaceful, high-tech advanced society, business as usual in Japan will not do. Japan needs reinventing. A shrinking and ageing population has made priorities of two issues—maximising the potential of women in the workforce, and the need to have a serious debate about immigration. After a period of political uncertainty, the Abe government has brought political stability, but in the absence of an effective opposition, the health of the political system is under question. Japanese companies need new dynamism and innovation to re-establish themselves as global corporate leaders. Japan needs a serious China policy that contributes to regional security and prosperity. This issue of the East Asia Forum Quarterly explores these questions about Japan’s future direction. Japan’s Northeast Asian neighbours will be watching Japan closely to learn how to deal with a demographic super crunch. Other advanced economies will be watching to see how successful Japan is in escaping deflation. And everyone will be watching to see whether Japan can introduce its reinvented self to the world at the Olympics in 2020. Japan’s lost decades since the bubble burst in 1990 have not been a disaster. But a couple more lost decades would mean living standards that fell well behind the richest countries. That will bring bigger challenges. In this EAFQ, prominent Japan specialists and scholars propose ways forward. To effect the changes that are needed will require Super Mario strength and determination (see cover). How East Asia should respond to the collapse of global trade, how to think about happiness and wellbeing, China’s ability to influence its neighbours and the flow of people across Asian borders are the subjects of our Asian Review section.