Kawari: How Japan's Economic and Cultural Transformation Will Alter the Balance of Power Among Nations; The Logic of Japanese Politics: Leaders, Institutions, and the Limits of Change
The Japanese economy that was once the envy of the world has been in deep trouble for a decade, but no Japanese consensus on necessary reforms has yet emerged. Ezrati argues that Japan's rapidly aging population will undermine the industrial exporting economy that has served it so well since World War II. As a result, it faces a transformation as massive as the Meiji Restoration and the American-led postwar occupation. This time, the author believes, Japan will have to move its industrial investments to the rest of Asia and become a "headquarters nation." The imperatives of supporting such a new structure will force Japan to become an aggressive leader of Asia, with greatly expanded military capability.
Curtis also sees changes ahead -- but mainly those that retain the status quo. Building on his intimate knowledge of Japanese politics, Curtis stresses with empathy the context and opportunities that shape and restrict Japanese political behavior. For him, new developments in Japan include a realignment of interest groups, a decline in bureaucrats' status, and a more demanding electorate -- all of which make consensus more difficult. And unlike Ezrati, Curtis finds Japanese politicians too constrained by their immediate realities to redesign a totally new system.
In essence, Ezrati describes the forest without depicting the trees, whereas Curtis focuses on the trees -- indeed the leaves -- so his forest is a bit vague. Curtis is closer to reality, but Ezrati is bolder and more speculative, expecting that the logic of necessity will be enough to change the basic character of the Japanese people.
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Conventional wisdom claims that Japan's "economic miracle" stemmed from its unique model of government guidance and its revolutionary corporate management techniques. An in-depth study proves this seriously wrong. Rampant government intervention has caused more business failures than successes, and a fundamental cautiousness has led Japanese companies to ignore strategic thinking and shun risk. To pull out of its current slump, Japan must embrace competition, innovation, and bold leadership.
In less than five years Japan will have a population profile like Florida's. Indeed, Japan's population is aging faster than that of any other country. A future with only two workers for each retiree will force radical change. It will shrink savings, turn the trade surplus to deficit, and drive more industry overseas. These demographic and economic factors will push Japan toward an increasingly independent foreign policy, causing friction with America. Tokyo and Washington must seek new arrangements cognizant of a maturing Japan.
Forecasts the emergence of an international order based on 'civilian powers', defined as states dependent on economic co-operation, supra-national structures, and primarily economic (rather than military) means of defending the national interest. A discussion of the potential of the FRG and Japan as such powers.

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