In an excellent piece fot The Observer, in which he outlines lessons he learned from his week with Japan’s power-brokers, the columnist Will Hutton outlines the “toll two decades of deflation had levied on Japanese society”
Hiromasa Yonekura, the president of the Keidanren, Japan’s all-powerful employers’ association, told me that this lack of confidence, in his view unjustified, had become hard-wired into Japan’s culture by falling prices. It affected even the birth rate and was the chief cause of Japan’s rapidly ageing society. Nor is the birth rate the only sign of a society in stress. Young women’s role in Japanese society is being knocked back by the fashion for coquettishness and cartoon-style prettiness, complete with singsong voices and contrived ways of walking. It is a return to suffocating traditionalism masked as fashionable faddishness. A society worried about its future becomes socially regressive.
However, he does observe that Japan’s capacity to pick itself up and go about the business of recovery is “very much greater than our own.” And why is this?
Time after time, as I questioned company leaders about their capacity to do this, I was referred to Japan’s “public interest” or “stakeholder” capitalism – committed long-term ownership, partnership with the state to drive research forward and corporate leaderships keen to find commercial responses to the giant economic and social problems of our time. It is a world foreign to our own of shareholder value maximisation and gigantic personal bonuses, where interest in social problems is seen as “anti-business”.
It certainly is.