Reforms, cornerstone for Japan's economic recovery
16 Jun '06
4 min read
But old attitudes die hard, and panellists said that while many young Japanese have adopted a new global mindset, much of Japan is still afflicted with hidebound notions of the relationship between the employee and the corporation and the role of Japan in the world.
There is an insular mentality in Japan and a complacency that still need to be overcome, said Hellmut Schutte, Dean, Asia Campus, INSEAD, Singapore. Many companies still believe in a bottom-up approach to management that hinders them from responding quickly to the changing global marketplace. "People's mentalities haven't changed that much," said Masao Hirano, Director, McKinsey & Company, Japan.
Market-based reforms are facing new resistance from those who espouse these traditional notions. In particular, many Japanese fear that reforms are undermining the cherished egalitarianism of Japan's post-war economic success – a nation of middle-class people.
"Many Japanese managers feel reform will destroy the Japanese business regime," said Hirano. Others lament that breaking the lifetime employment once enjoyed by employees at big Japanese corporations is creating a nation of winners and losers, challenging the sense of shared purpose and community that has been instrumental in Japan's post-war miracle and social stability.
"We can't always have a winners versus losers situation. People won't accept this," said Yoshihiko Miyauchi, Chairman and Chief Executive Officer, OrixCorporation, Japan.
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