Unlocking
the Mystery of Japanﾕs Long-Term Economic Slump
To those who find it strange that Japan cannot seem to emerge from its
economic slump:
Shinya Okamoto
Shin
Nihonjin / Old Guard Comparison
http://www.ne.jp/asahi/shin/ya/ex/model01.htm
Why is the Japanese economy, with all the human resources and capital
available to it, languishing in recession, seemingly unable to perform
to its full potential? The most significant reason is not the failure
of policies, but values commonly held among Japanese and fundamentally
different from those of Europeans or Americans. This Japanese mindset
is characterized by fear of change, acute risk aversion, and rejection
of all things new.
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Kyu Nihonjin (The ﾒOld Guardﾓ) Kyu Nihonjin, or the ﾒOld Guard,ﾓ are hangers-on at their companies, lack a sense of purpose and have ceased to think. They put the preservation of internal order at their companies ahead of customers and focus on protecting their own personal interests. They have no interest in strategy, productivity or cost consciousness. And they prefer to have their worlds defined by connections and a traditional sense of obligation; they despise market competition. |
It may seem unbelievable, but this attitude is common among most Japanese
businessmen. It is, therefore, very difficult for Japanese companies to
generate profits, and returns on equity are, consequently, weak. Left
to the private sector, capital has failed to circulate adequately, so
the government has come to play a huge role as guarantor and rescuer.
The Old Guard reject free economies and their tendency to be organizationally
dependent is the cause of Japanﾕs prolonged recession.
There is, however, hope.
I am convinced that a transformation in the thinking of Japanese businessmen
ﾐ so significant that it could be called a renaissance -- is currently
underway. This transformation amounts to a change in values that, in terms
of degree, far exceeds that which led to the collapse of socialism in
the former Soviet Union.
People whose values are completely different from that of the Old Guard,
and they can be found in most every organization in Japan. These are the
Shin Nihonjin (literally, new Japanese) and they possess both the willingness
to change and the rational and strategic thinking that are lacking in
the Old Guard.
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Shin Nihonjin As professionals, Shin Nihonjin are self-reliant. They understand that their jobs connect them with society at large. They feel that work is meaningless if it is unprofitable; they act rationally. They respect free markets, where exchanges are based on value, and are constantly working to improve themselves in order to compete successfully. |
I want to highlight the fact that there are now two types of Japanese. The table summarizes differences in their attitudes and values.
Image
of the composition ratio of Shin Nihonjin and Old Guard
Japan
is currently undergoing a significant change. This change, however, is
being stymied by the Old Guard, the same people who are responsible for
bringing the country to its current unhappy circumstances. The efforts
of Shin Nihonjin to bring about internal organizational reform are being
thoroughly repressed by the Old Guard, who hold positions of authority.
For them, changing the established order is tantamount to a rejection
of their existence. And as the opposition force, they are engaged in their
final, fiercest bout of resistance.
Presently, an intense, yet invisible, struggle between the Old Guard and
Shin Nihonjin is taking place in company organizations throughout Japan.
I count myself among the Shin Nihonjin who have participated in that struggle.
Having lost in their struggle, not a few Shin Nihonjin have left their
companies. But the end is clear and Shin Nihonjin will prevail over the
Old Guard. This is inevitable as the vast majority of ambitious young
adults are Shin Nihonjin. The critical issue is the speed of change.
I ask that those who want to build mutually beneficial relationships with
Japanese government agencies, companies and other organizations and those
who would like to see an economic recovery in Japan support the efforts
of Shin Nihonjin.
Gai-atsu, or pressure from outside, will not change the attitudes of the
Old Guard. I am asking people who deal with Japanese to scrutinize them
and determine whether they are Shin Nihonjin. I want non-Japanese to study
their Japanese counterparts, ask whether they are self-reliant, capable
of rational thought, considerate of the needs of society, and supporters
of free markets, and if they are, to support them. Identifying Shin Nihonjin
is not easy. Age is not a determinant as many in their 30s are members
of the Old Guard. However, noting whether Japanese counterparts ever mention
that they want to leave their companies because they are poorly managed
may yield a clue as to which side of the line they fall on. The Old Guard
cannot exist outside of their companies and would not make such a comment.
The greater the influence of Shin Nihonjin, the faster will be Japanﾕs
emergence as a new country and the stronger will be the beneficial relationships
in which it is a participant. Nothing less is dependent on the change
that is underway and the speed with which it occurs.
I perform a detailed structural analysis of the Old Guard and Shin Nihonjin
in a Japanese-language book due to be published in November 2002.
My hope is that communicating this idea to these people will help to strengthen
support for Shin Nihonjin and accelerate the pace of change they will
bring. If you find the model I have constructed to be interesting, I would
deeply appreciate your passing this message on to others.
Profile: Shinya Okamoto
Born in 1965. Worked as an editor for the monthly business magazine President,
published by President Inc., a Japanese subsidiary of TIME Inc. After
leaving this position in 1999, began examining the behavior of Japanese
businessmen, the subject of a book to be published in fall 2002. Other
works include books on IT venture companies, customer orientation, and
policy studies.
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Nihon no Kaisha, Ikaganamonoka! (What in the World is Wrong With Japanese Companies?) copyright(c) by Shinya Okamoto, all rights reserved. |
