Courtesy Reuters

CONTRARY to the common assumption, the real difficulties which Japan faces are to be found not in the physical sphere so much as in the failure to comprehend economic realities. Though Japan's physical problems cannot be totally denied, it has gradually become clear that her basic and most pressing difficulties are intellectual and psychological. To understand this is one of the keys to a clearer comprehension of the Japan of the present and future.

In the opinion of her own people, Japan's material difficulties are that the country is overpopulated, land is very limited and natural resources are scarce. To

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