Japan: Economy Still Stalled

By Author: Annamaria Waldmueller
Total Articles: 62
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The latest statistics indicate a worsening situation in the Japanese economy. In particular, in January, the diffusion index calculated by subtracting the number of firms reporting a good performance on the number of those who complain to the contrary, worsened by 9 points compared to October. In 2010 this is expected to close 8 stores, including Isetan in the historic district of Shinjuku in Tokyo. Crisis even in the catering and nightlife.
"Japan was in a comfortable position, was entitled to wear the 'cloak luxury" of the second world economy - said in an interview with the Nikkei newspaper, the former governor of the Bank of Japan, Toshihiko Fukui - but global competition is is intensifying and I do not think there is awareness of this. The country was stripped of his "cloak" that is about to go to China. A historical phase in which I diminish fighting spirit of the country. "
It is a severe criticism, but the former governor makes some suggestions. In the context of Asian economies have high growth potential, and Japan could be in a position, if considered as a single market. The year 2010 should mark the beginning ...
... to implement new strategies. Businesses have the task of returning to the basic principles of the market that is creating products that meet the needs of new buyers and make every effort to sell them even at the cost of sacrifices. This is exactly what has been done at the end of World War II and led the country to economic success, but the global context has changed dramatically and it seems difficult to adapt to rapidly rising sun. A first step in a transformation of the whole economic policy is the failure of Japan Airlines. Could signal the end of the "triangle of steel," the dominant feature for half a century, represented by the collusion between business, politicians and bureaucracy.
JAL has been on the brink of bankruptcy three times in the last decade. In 2001 after the attack on the Twin Towers in 2003 for avian influenza and in the spring of 2009 for the global economic crisis. She had managed to survive without taking the necessary restructuring measures, only thanks to the generosity of the government which had made available loans unconditionally to save the flag carrier and keep the dense network of connections. An example? Landing rights in Japan are about twice that of other countries and no airline has ever complained, at the high number of passengers were transported. The government has always used these funds for the construction of new airports entrusted to companies like the bureaucracy and supporters of the electoral campaigns of politicians who, once assicuratisi the seats in Parliament, ensured their protection. In recent days, the JAL presented the books to court and liabilities amounted to about 25 billion francs and a half, the fourth failure in Japan since the Second World War. This marks a new era? The question remains without an immediate response. It is certain that the fate of JAL depends on the change of policy at the summit, with the defeat in the last election of the LDP who had been the manager of power for over 50 years. The winner, the Democratic Party, has based his campaign on greater transparency and a commitment to promote key reforms. "It was very easy for the Democratic Party to take drastic measures against JAL - says Professor Koichi Nakano - why is not responsible for the policy of the past in aviation." Even the Japanese state itself is in a situation similar to that of JAL and continues to rely on public debt to work: the main task of the new government has restored order to avoid even more serious problems.
Annamaria Waldmueller