Japan must be saved from itself

[Henry C.K. Liu]

For 40 years, conventional wisdom claimed that Japan's "economic
miracle" stemmed from its unique model of government guidance and its
revolutionary corporate management techniques.  A decade ago, economists
were hailing the Japanese formula as the wave to the future and the
American model was obsolete.  Now Porter and Takeuchi claim convention
wisdom is wrong.  They propose that Japan must stop being Japan in order
to survive.

This is generally the American gospel at this moment: that the world
must change to save globalization.
If it is only that simple!

Henry C.K. Liu

Foreign Affairs May/June 1999 (volume 78, number 3)

FIXING WHAT REALLY AILS JAPAN

Michael E. Porter
and
Hirotaka Takeuchi

(Summary)

                 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.