May 25, 2009

Where does Japan fit in a rapidly changing world and how should it relate to the United States and China?

Analysis of this question can be read in Japan’s Open Future, a new book co-authored by IMD Professor of International Political Economy Jean-Pierre Lehmann, John Haffner and Tomas Casas i Klett. The three provide a unique perspective as foreigners who have worked and lived in Japan.

“When the emperor Hirohito died in 1989 after a very long and eventful reign (begun in 1925), Japan was the seemingly unbeatable global economic colossus,” explained Professor Lehmann, who is also the Founder of the Evian Group at IMD. “Pundits estimated that by the first decade of the 21st century, Japan would overtake the United States’ economy. How distant and quaint that appears 20 years later.”

Lehmann notes that Japan’s failure to open up along with its failure to reform, with the two very inter-related, account for the country’s doldrums and consequent lost decades.

“By any criterion – share of imports to GDP, inward investments, foreign acquisitions, top management positions, foreign languages (especially English) capability, university professors, etc – Japan is the most closed among the OECD countries,” said Professor Lehmann.

The authors of Japan’s Open Future make a provocative and persuasive argument that the time has come for Japan to help build a stronger Asian community and to become an engaged and conscientious global citizen.

“Ultimately to try to ensure a peaceful and prosperous 21st century, the world needs Japan as an active and engaged citizen and Japan needs the world,” concluded Professor Lehmann.

Learn more about the book.