Issue Overview

The world’s third largest economy, Japan, is currently facing its worst crises since World War II. In addition to unprecedented challenges brought by the 2011 Great East Japan Earthquake, including reconstruction efforts, the nuclear power plant accident and energy shortages, the nation also has to deal with what has been termed the "lost two decades". Japan is one of the world’s largest mature economies. During the last two decades, however, it delayed the transformation of its industrial and governmental structures to address other challenges. Now, the country needs to restore its economic base by implementing policies aimed at achieving growth, improving fiscal balance and providing stable government for a rapidly ageing society. 

Japan needs to solve a range of problems and urgently transform its social structures if it is to maintain its competitive position and continue to be one of the world’s leading economies. Japan is not alone in this, many of these challenges, including ageing populations, energy shortages, a focus on the domestic situation, fiscal deficits, unstable government and disaster preparedness, are also found in other parts of the world in one form or another. If Japan can successfully solve its problems using new and innovative thinking rather than conventional methods, the rest of the world could learn and benefit significantly.

Japan plays a crucial role in the global and regional economy. Its relations with its neighbours have a direct impact on the stability and welfare of the whole region. It is therefore vital that the country forge solid and trusted economic, social, cultural and political relations with other Asian countries to build a sustainable and prosperous future. 

Did You Know?

• At the moment of the Great East Japan Earthquake, 27 Shinkansen (bullet trains) were in operation in north-eastern Japan, all were able to stop without derailing. This positive outcome was the result of Japanese disaster prevention technology. Japan Railways has installed seismographs along Shinkansen tracks to enable trains to stop before major earthquakes strike.
• Tokyo hosts more Global Fortune 500 Companies than any other city, with 47 companies.
• Japan slipped from 80th position in the World Economic Forum Gender Gap Report rankings in 2006 to 96th position in 2011. Japan is one of the lowest-ranking OECD countries. Closing the gap between male and female employment could boost Japanese GDP by as much as 16%.

Quotes

“Its [the Fukushima disaster] fundamental causes are to be found in the ingrained conventions of Japanese culture: our reflexive obedience; our reluctance to question authority; our devotion to 'sticking with the programme'; our groupism; and our insularity. What must be admitted – very painfully – is that this was a disaster 'Made in Japan'. Had other Japanese been in the shoes of those who bear responsibility for this accident, the result may well have been the same.”
Kiyoshi Kurokawa, Professor, National Graduate Institute for Policy Studies, Japan

“The Great East Japan Earthquake helped us understand that international aid is about interdependence. Until then, aid had just travelled one way from Japan, but the idea sprouted in developing countries that Japan is also a country in need of assistance, and this caused them to try and lend a hand this time.”
Sadako Ogata, Chairperson, World Economic Forum Japan

Further resources

Global Agenda Council on Japan, Annual Report 2011-2012
Complexity and Crisis: The Case of Japan – Session Summary

Calendar

Meet with the Leaders Global Agenda Council Breakfast
10 October 2012
Tokyo, Japan

Japan Global Advisory Meeting
13 October 2012
Tokyo, Japan

Japan Gender Parity Taskforce
20-21 November 2012
Tokyo, Japan

Council Insights

The Global Agenda Council on Japan seeks to effect the country’s national transformation. It acts as a focal point connecting Japan to the activities and networks of the World Economic Forum. During the 2011-12 term, Council Members acted as catalysts for Japan’s review and reform agendas. Council Members were appointed to and served as core members of Japan’s key strategic review and implementation processes – such as the National Strategy Council of the Government of Japan – and commissions on post-earthquake disaster reviews. Using the World Economic Forum as a platform to transform Japan into a global problem-solving nation will enable the country to take a lead in solving important global issues, for the benefit of Japan and the world.

During the new term the Council will:

• Continue to set up global advisory boards for Japanese leaders, with the help of the World Economic Forum and other parties
• Set up clusters of networks among parties with an interest in Japan throughout the world
• Map gaps in Japan’s contribution to the global agenda to better match needs
• Set clear milestones for important policy execution, reviews of policy by third parties, and actively use the Internet and social media to exercise healthy pressure on Japan and its governing entities
• Examine key milestones and achievements of the Council itself to monitor progress
• Continue to promote and invite key Japanese leaders to join global platforms like the World Economic Forum to better integrate Japan in global problem-solving processes
• Establish a regional dialogue series 

Contact Information

Research analyst: Karen Wong, Research Analyst, Global Agenda Councils, karen.wong@weforum.org
Forum Lead and Council Manager: Akira Tsuchiya, Director, Head of Japan, akira.tsuchiya@weforum.org