Distributing Cures To The Developing World: Japan's Barrier Breaking Global Health Coalition

You won’t hear of a Walk for Chagas Disease. There is no Leprosy Awareness Month. Malaria is the distant scourge of adventurers and jungle explorers.

While almost relics of a bygone time to many in the first world, these diseases nonetheless continue to wreak havoc in impoverished communities throughout the world. Back in April, the Japanese government took a giant step toward addressing this issue by establishing the Global Health Innovative Technology Fund (GHIT) in conjunction with various domestic pharmaceutical companies and the Bill and Melinda Gates Foundation.

Global health coalitions are nothing new. What sets the GHIT apart is its merging of the public and private sectors in an effort to bring the theoretical realm of drugs and technologies together with the more practical world of implementation and deployment. In doing so, it aims, in part, to provide a model for pharmaceutical companies seeking to expand their business abroad.

As Kiyoshi Kurokawa, one of the speakers at today’s Japan Society event, GHIT Fund: Unlocking the Secret of Global Health Victories, explains, “Japanese pharmaceutical companies… now see R&D partnerships for global health as another way for them to become more engaged with the world.”

We covered global-minded Japanese entrepreneurs in a previous post. Just as companies like LIXIL and UNIQLO view overseas markets as being necessary not just for growth, but, indeed, for survival in the current economic climate, pharmaceutical companies must see the value in cooperating with organizations like the GHIT in order to remain viable.

Using funding from the government and other sources, including about $60 million dollars over the past five years from the Japanese Ministry of Foreign Affairs and the Japanese Ministry of Health, Labor and Welfare, the GHIT stands in a prime position to not only develop new technologies to combat disease, but also to successfully bring these technologies to the people who need them. It is this latter stage of the battle, implementation and deployment, rather than the development of drugs themselves that often poses the greatest challenge.

Take the fight against malaria as an example. Given the changing nature of the disease, efforts toward prevention and treatment have taken a multi-pronged approach, including the development of anti-malarial drugs, insecticidal sprays, and even a mosquito-zapping laser. However, it has been the simple mosquito net more than any other tool that has become the spokesperson for the global health campaign.

First-world nations can be guilty of touting simplistic solutions to complex problems in the developing world. Just a year ago, the long battle to bring Ugandan war criminal Joseph Kony to justice became tantalizingly winnable by dint of merely watching and re-posting/blogging/tweeting a video. 3.7 million people suddenly became crusaders against Kony. In the case of malaria, the tagline became Send a Net. Save a Life, as seen on the page of Nothing But Nets, an offshoot of the United Nations Foundation aimed at “ending malaria deaths in this generation.”

While organizations such as Nothing But Nets could be said to be engaging the first world the only way they can, the results of these efforts have proven mixed. The nets themselves are susceptible to wear and tear, and, being treated with the same class of insecticide, they have a limited shelf life as mosquitoes develop resistance. And that’s only the nets that do get used. Many do not, or at least, not for their intended purpose; several news outlets have documented cases of nets being used to catch fish or as wedding veils.

As such, the eradication of diseases, especially those affecting the poor throughout the world, will require more than research funding. Ann M. Veneman, a GHIT Fund Board Member and one of the speakers at today’s event, will discuss what she sees as an opportunity for pharmaceutical companies to partner with organizations that might have a better understanding of regional issues with deployment, be they logistics or education.

Global health cannot and should not work in a vacuum wherein drugs developed in one country never leave its shores, or where a promising new drug is developed without regard to its distribution and affordability. Kurokawa himself of the GHIT credits America for providing Japan with the means to combat tuberculosis, which he contracted as a child. With the Bill and Melinda Gates Foundation, one of the founders of the GHIT, introducing companies in the private sector to a model for product development, one that calls for action on the basis of simple business sense, those diseases that we see as myth could one day become just that.

--Andres Oliver

From LIXIL To LINE: Japanese Companies Look Outward Despite Uncertainty

LINE's Brown and Cony take on the world. Via. 

Japan's economic uncertainty seems to be provoking a domestic response not unlike that seen in the U.S of late. Just as the war-weary, financially ailing American public recently made clear its unwillingness to take on another international conflict, many Japanese are responding to the current climate by turning inward.

Earlier this year, several thousand rallied in Tokyo to protest Japan’s entry into negotiations surrounding the planned Trans-Pacific Partnership, which would bring the country into "one of the largest free trade areas in the world." In addition, Japanese companies have come under fire for insular vision, with the trade ministry’s Global Human Resource Development Committee dubbing management’s reluctance to hire foreign talent, among other shortcomings, paramount to "waiting to die."

Is Japan sounding the retreat, closing in on itself to return to the isolationist policy of centuries past?

Hardly.

The success of several Japanese companies in bringing their business, and, more importantly, their vision abroad, speaks to a continued understanding of the importance of international involvement. Most recently, LIXIL, Japan’s biggest housing material maker, with products including plumbing fixtures and toilets, secured its place in the German housing equipment market with a $4.13 billion buyout of Grohe, Europe’s premier shower and faucet maker. The move signals LIXIL’s final overseas acquisition for the time being, said LIXIL CEO Yoshiaki Fujimori at a news conference in September, and comes on the heels of two other significant acquisitions: ASD Americas Holding Corp., parent company of American toilet maker American Standard, and Italian architectural contractor Permasteelisa SpA, for a total price of over $1 billion. Fujiomori clearly intends to establish LIXIL as a household name outside of his home country, with a goal of $10.2 billion in overseas sales.

Fujimori's talk at Japan Society on October 2nd comes at a critical time in Japanese history. Already suffering from a sluggish economy that has persisted for the past two decades, Japan continues to work toward recovery from the 2011 earthquake and tsunami. Now, the country waits to see whether Prime Minister Shinzo Abe’s aggressive plan to combat deflation will reestablish Japan’s place on the global stage—how long since the days of Made in Japan!—or whether it will prove to be nothing more than "voodoo" economics.

Any discussion of current expansion into the foreign market by Japanese business leaders must include Akira Morikawa, chief executive of popular messaging service LINE. Allowing users to send messages to each other on their smartphones with the addition of stickers like Brown the bear and Cony the rabbit, LINE is currently installed on 71% of iPhones in Japan. The bulk of the company’s revenue comes from its games, which are free to download but provide the option of in-game purchases. However, a 92 % rise in sales in the first quarter of 2013 and booming business in Japan are not enough for Morikawa, who seeks nothing less than to establish NHN Japan Corp., the company behind LINE, as the top Asian SNS (social networking service) provider.

If LINE’s success in expanding into areas ranging from the Middle East to Spain are any indication, the company could possibly pose a challenge to Facebook, which has long since lost its appeal as youth-only hangout. Then again, LINE’s 240 million users in 230 countries as of September is less than a quarter of Facebook’s whopping 1.15 billion, and the service may find its toughest rival not in the American behemoth, but in the South Korean SNS KakaoTalk. Providing users with a similar array of cute stickers, KakaoTalk even features its own bunny emoticon, the plump Molang.

Another company that is seeking to make further inroads into the global market is Japanese retailer UNIQLO (full disclosure: I am currently employed by the company). Founded by Tadashi Yanai, who has emerged as Japan’s richest man after transforming his father’s tailor shops into Asia’s biggest clothing retailer, UNIQLO has certainly found success abroad. The company currently boasts stores in fourteen countries, including over two hundred in China alone and a prominent location on New York’s Fifth Avenue. Perhaps even more surprising than Yanai’s personal success story is the fact that a Japanese retailer has emerged as such a challenger to ailing giant Gap, which has traditionally been known for basic, functional clothing. Yet, maybe it is precisely UNIQLO’s focus on high-quality constants, such as sweaters and shirts in basic colors and designs, along with its affordability that have so appealed to global consumers. The company seems to have learned this lesson for good after attempts at branching out into more fashion-oriented items in 2010 resulted in plunging sales. Since then UNIQLO has bounced back with plans to open ten new American stores this fall.

Back in 2008, the Japan Times wrote of Japan’s "recent trends toward isolationism—even xenophobia," citing an environment hostile to foreign investment. The nation’s minister of economic and fiscal policy, Hiroko Ota, worried that Japan was no longer a "first class" economy; sure enough, China surpassed it as the world’s second largest only two years later. This was followed, of course, by the devastation of the 2011 Tohoku earthquake and tsunami, with costs of up to $235 billion.

Five years later amid echoes of those "recent trends", companies like LIXIL, LINE, and UNIQLO stand as evidence of the persistence of a globally minded cohort, one that sees participation in the international market as a path to growth rather than an obstacle to it. What people must ask now is whether the next few months, during which Prime Minister Abe continues to press his economic reforms, will prove these companies to be the exceptions to, or the leaders of, Japan’s fortunes.

--Andres Oliver

[UPDATED 10/3/13]

Japan’s Hunt For Former Glory: Recommendations From A Leading East Asia Expert

Via.

It is hard to imagine that Japan, the nation many look to for cutting edge technology and pop culture coolness, may be waning as a world power. The revolving door of a government saw six different Prime Ministers in five years led to what some view as unstable domestic politics, and the recent natural disasters devastated the northeast coast of the country and caused a major meltdown at the Fukushima nuclear power plant that is still affecting the city. Japan held the distinction of being an economic powerhouse second only to the U.S. for decades until China surpassed them this year, and the country now faces its third “lost decade” its bubble popped. While tensions surrounding the U.S. base in Okinawa eased a bit this year as a result of Operation Tomodachi, some believe South Korea is becoming a more viable strategic ally for the U.S.

In Losing Its Edge? Evans Revere on How Japan Can Remain a Leader & America’s Closest Partner in East Asia, former diplomat and revered East Asia expert Evans Revere tackle these issues. Sitting down with ForeignAffairs.com editor Andrew Bast on December 1 at Japan Society, Revere draws on his experience to offer insights on how Japan can return to its former glory.

Evans J.R. Revere is a Princeton University graduate, a U.S. Air Force veteran and has gone on to become a top foreign affairs specialist, with 35 years of government service under his belt and being fluent in Chinese, Korean, and Japanese. He is currently the Senior Director at the global strategy firm Albright Stonebridge Group and specializes in advising clients concerning Korea, Japan, and China. From 2007 to 2010, he served as the President and CEO of the Korea Society in New York and notably was part of the “New Beginnings” policy study panel that came up with recommendations for improving Korean relations with the U.S. before President Obama met with South Korea President Lee Myung-bak. He has negotiated between the U.S. and North Korea and was responsible for the State Department’s effective response to the tsunami disaster that hit Indonesia and other parts of South Asia in December 2004.

--Sean Tomizawa

Nissan's Carlos Ghosn: Steering Through Crisis, Driving Into The Future

Nissan CEO Carlos Ghosn. Via.

Carlos Ghosn has a laundry list of crises that he has faced as the President and CEO of Nissan. Recent events including the post-Lehman collapse, the March 11 earthquake and tsunami in Japan, the Thai floods and European economic turmoil have all presented huge challenges for the automaker. However, according to Ghosn, the yen’s rise is exacerbating the impact of all the other crises and is forcing even profitable companies to stop investing in Japan. Endaka--or strong yen--is affecting the long-term future of Japan and it needs fixing immediately.

“The yen is appreciating at the worst moment for the Japanese economy,” Ghosn told a packed auditorium at the Japan Society recently [full video here]. “The problem is we are making money, everywhere except Japan,” he said.

Ghosn said that the appreciation of the yen means that Japan cannot compete on cost, despite the “indisputable” quality of goods, skilled workforce and wealth of talent. “We are surrounded by countries who are making sure the exchange rate is competitive, how can we face a tsunami, a flood, a financial system collapse and on top of this have to have a re-evaluation of the currency of 35 or 50 per cent? We can’t.”

Ghosn has taken his concerns about the yen right to the top. When the Japanese Prime Minister Yoshihiko Noda visited the Nissan plant in Yokohama recently, Ghosn said he decided not to overwhelm him with a long list of problems.

“When the Prime Minister said, “What can I do for you?” I said, “One thing, fix the exchange rate.”

But Ghosn clearly subscribes to the school of what doesn’t kill you makes you stronger. Carlos Ghosn was brought in to Nissan in 1999 to save the company. And he did. He quickly implemented the Nissan Revival Plan and the carmaker returned to growth and profitability--it now ranks third behind Toyota and Honda in the U.S. car market. In 2005, he was also named CEO of Renault and the combined companies have 350,000 employees and global sales of 7.2 million units in 2010. Nissan’s latest innovation is the Leaf electric car, the market leader in 100 per cent gas free cars with about 15,000 units sold worldwide.

His prescription for crisis management starts with a clear assessment of the scale of the problem. The next step is to make a plan that selects a few priorities to get through the crisis but also maintains some longer-term projects. In Nissan’s case, after the collapse of Lehman Brothers in 2008, everything except electric car production and expansion in China was put on hold while the company concentrated on maintaining cash flow.

Ghosn also emphasized the importance of empowering the workforce to deal with adversity. “There is no way, you’re going to get through a crisis alone,” he said. “The one key which explains why we recovered faster than our competitors after the tsunami and the Thai flood is because we empower people.” Naturally for empowerment to work, top management also needs to be committed to and engaged in the plan.

Ghosn does however believe that Nissan has an “anti-crisis” weapon in the form of the electric car. Some predict that electric cars will be 10 per cent of the market by 2020. “Everybody knows I am the most optimistic,” he joked. “Which is obvious because we’re the only one with the car.”

Joichi Ito: Open Networks And Hacker Spaces Can Save The World

Icono clash. Via Fast Company.

Juliet Hindell reports form Japan Society's November 10 event Innovation in an Open Network with MIT Media Lab director Joichi Ito. Watch the full video here.

Joichi Ito is the ultimate iconoclast – a college dropout who now heads an academic institution, the MIT Media Lab. He is also the Chair of Creative Commons, the open network organization, and founder of Tokyo-based Digital Garage.

And he recently became involved in Geiger counter production. Six months after partial nuclear meltdowns at three Tokyo Electric Power reactors, skeptical Japanese took nuclear measurement literally into their own hands. And Ito was there, doing what he does best – finding opportunity in chance.

Home-monitoring of radiation is just the latest venture of one of Japan’s foremost entrepreneurs. Ito is most famous for helping usher Japan into the Internet age by cultivating and connecting a generation of angel investors and hungry young Internet entrepreneurs eager to replicate the energy and success of Silicon Valley.

Ito didn’t plan much of this; in fact planning is something he thinks is overrated.

His own Internet career began when he realized that nobody really achieved anything in Japan before the age of 45. In the new virtual world, he discovered it was better to be young. There were no rules and things moved fast and fluidly.

“If you plan everything you can’t be lucky and you need a lot of luck,” he said at a recent talk at the Japan Society. Ito was describing how many great Internet ideas started through chance connexions.

“Nearly every internet company starts out as what sounds like a stupid idea,” Ito said. But a willingness to try things out has resulted in companies like YouTube, which began as a dating site and morphed to become the biggest video site on the Internet. Chance over planning is a foreign concept in Japan. He recalled proposing an idea to a Japanese company, which he estimated would have cost about $100,000 to implement. But the company embarked on a feasibility study at a cost of $3million. “So they spent $3miillion dollars trying to decide to eventually not do something that would have cost $100,000.”

Today with the Internet’s Open Software protocols, anyone can start a company quickly and easily, a process he sums up with the word “agile”. But it’s not a process that lends itself to too much planning. While he thinks the Japanese talent for such business strategies as just in time delivery should sit well with this open architecture, he also warns that when the process is institutionalized, it gets bogged down in over-planning. “You have what I would call a compass, but how exactly you get there you figure out as you go,” Ito said.

Figuring things out is where open networks and hacker spaces have a crucial role to play according to Ito. He believes they are at the forefront of the democratization of knowledge.

United We Stand As Friends: U.S. Aid To Japan's Earthquake And Tsunami Victims

Via.

In the wake of the March 11 earthquake and tsunami disasters in Japan, the U.S. armed forces mobilized immediately to assist the Japanese Self-Defense Forces to provide relief for victims. The mission, Operation Tomodachi (tomodachi means “friend” in Japanese), not only saved lives during devastating times, but helped cement good relations between the U.S. and Japan, where tensions have flared due to base relocation issues in Okinawa.

Vice President Joe Biden called Operation Tomodachi the “largest humanitarian relief effort in U.S. history”, when he stopped at the Yokota military base to thank the thousands of personnel who participated. In her talk at the U.S.-Japan Council Annual Conference in October, Hillary Clinton recalled seeing firefighters sent from Japan to aid Americans during the 9/11 attacks, and said she was proud that America could return the favor.

This mission’s leader Admiral Patrick M. Walsh, commander of the U.S. Pacific Fleet who most recently was active in leading the Combined Maritime Forces in Operations Enduring Freedom, Iraqi Freedom, and various maritime security operations, believes Operation Tomodachi demonstrated “forward presence in the region to support humanitarian crises and deter aggression.”

Walsh appears at Japan Society on November 15 in Operation Tomodachi: Support, Compassion, Commitment. He discusses his experience leading the large joint relief operation, and shares what he personally witnessed during the monumental collaboration. Japan Society Chairman Wilbur Ross moderates.

--Sean Tomizawa

Wilbur Ross: Ups From The Market’s Downs?

Wilbur Ross. Via.

Yesterday Wilbur Ross, chairman and CEO of WL Ross & Co. and chairman of Japan Society, sat down with Council on Foreign Relations’ Benn Steil to talk Greed vs. Fear: Making Sense of the Market Crash (watch the full video). The discussion used the August 2011 crash as a springboard to look at the economic situations of the U.S., Europe, China, and Japan, and how they can improve and fix their respective problems.

Reporting from the event, The Wall Street Journal noted that "Ross has to squint to see the bright side":

Wilbur Ross isn’t optimistic. He says he’s not totally pessimistic, but the financier is short on happy thoughts.

Over the course of an hour-long talk Wednesday afternoon at the Japan Society in New York, Mr. Ross voiced just about only one view that was in the not-totally-depressing camp. Stock markets, he says, “have priced in a very bearish scenario. Unless things get truly bad, the worst is probably over for the markets,” he said. 

While WSJ goes in-depth about the more pessimistic points, there were several observations and key takeaways for overall improvement from the discussion:

● The U.S. has gone two years with practically no budget. The lack of Democrat and Republican consensus on what needs to be cut is due to both sides aiming at each other’s "sacred cows". The resulting political inertia is the U.S. economy’s worst enemy. It prevents strong leadership and a lack of bold responses to various crises. The preoccupation with presidential and congressional elections, along with the Tea Party phenomenon, further polarizes the political structure doing little to help the economy.

● Greece has been at the brink of default for some time. The European Union never had preparations if a member leaves voluntarily or is forced to leave, which belies that a single currency means a cohesive political and fiscal union. European nations need to stop applying small fixes to crises and instead apply big changes to the point of overkill as soon as they come up.

● China is doing fairly well for itself despite a major housing shortage. The nation’s recent high economic growth means housing demand can be supplied without too much worry of a crash. Ross said that because of the economic success China is having, he would rather bet on their banks than the European ones.

● The U.S. and Japan both have cash rich economies, but they are not as liquid as they could be. True liquidity should be attained to help stimulate their respective economies.

● Japan, while the response to the recent earthquake was incredibly quick, needs to continue focusing on rebuilding the Tohoku region in order to help revitalize the economy. The cultural avoidance of change is also not helping progress, leading to further depression and low growth. Due to the labor shortage, Japan needs to incorporate more women and immigrants into the workforce.

● It would be most logical for Japanese companies to make more foreign investments especially while the yen is so strong. However, there is seemingly no push for that move, unlike in China where natural resources are in small numbers so they have dipped into Africa, South America, and even the U.S.

● Finally, there is a self-correcting mechanism in the economy that will only activate when governments decide to be more decisive with their actions, be more willing to invest, and generally be much bolder.

--Sean Tomizawa

What The Fukushima Nuclear Crisis Means for Japan, U.S. And The World

The triple disasters that hit north-eastern Japan on March 11—a magnitude 9.0 earthquake, followed by devastating tsunami and nuclear crisis following the failure of cooling systems at Fukushima Daiichi nuclear plant—have given unprecedented spotlight and momentum to debates surrounding the safety and the very use of nuclear power in Japan, the U.S. and the rest of the world.

Nuclear energy accounts for close to 14% of electricity generation globally. While nuclear power has very high start-up costs, once up and running, it can provide relatively cheap power without producing carbon emissions (The Economic Intelligence Unit). According to Economic Intelligence Unit, Japan had 54 operable nuclear reactors before the March 11th disaster and nuclear power generated approximately 27% of electricity in Japan in 2010. In France, which has the second highest number of nuclear reactors (58) after United States (104), electricity generation through nuclear power accounts for a much higher 77%. In the U.S., the 104 operating nuclear reactors account for 20.2% of electricity production. (An overview of number of nuclear power plants in operation throughout the world and electricity generated is available via an interactive map at Npr.org)

As Japan continues the battle to bring the damaged reactors at the Fukushima Daiichi nuclear plant to a stable state within six to nine months, Prime Minister Naoto Kan on May 6th called for a temporary closure of Hamaoka nuclear plant, “an ageing facility on a tectonic fault line that would pose a tremendous risk for Tokyo if it suffered the same fate as the Fukushima Daiichi plant.” As additional details trickle in regarding the series of events that unfolded at the Fukushima nuclear plant, efforts are underway to assess Japan’s handling of the nuclear accident. According to The New York Times, the nuclear oversight body of the United Nations, International Atomic Energy Agency (IAEA) with its 18 member international team, has started its investigation into the accident. Furthermore, the Japanese Government itself is undertaking an independent inquiry into its response to the disaster.

Announcements of evacuation in Japan more than 10 weeks into the disaster, this time around a greater radius surrounding the crippled Fukushima nuclear plant only add to the gravity of the crisis surrounding Fukushima Daiichi nuclear plant. The BBC that the no-go zone around the Fukushima nuclear plant had been extended and that the residents of towns of Kawamata and Iitate were being sent to evacuation centers.

The disaster at Fukushima Daiichi nuclear plant and its far-reaching aftermath have significantly altered the landscape in which nuclear power plants operated. The Economist notes that in an opinion poll conducted by Asahi Shimbun, the percentage of those opposed to nuclear energy in Japan had risen to 41% from 28% in 2007, with women being the strongest opponents. As more details are made available regarding the contributing factors towards the disaster at Fukushima Daiichi nuclear plant, Japan and the rest of the world will learn lessons far too costly to ignore. As Japan’s own efforts towards reviewing energy use, Prime Minister Naoto Kan announced on May 10th “his intention to rewrite from scratch a blueprint, scarcely a year old, that planned roughly to double nuclear power’s contribution, accounting for half of Japan’s energy mix by 2030.”

In the U.S., the U.S. Nuclear Regulatory Commission (NRC), an independent body created by Congress in 1974, implemented a 24-hour monitoring of the nuclear crisis in Japan until as recently as mid-May. NRC is the primary body responsible for regulating nuclear power plants and other uses of nuclear materials. Following the disaster in Japan, the NRC launched a two-step reiew of U.S. reactor safety: a 90-day review to be completed in July and an in-depth evaluation of emergency operations and procedures to be completed by the end of the year. A summary of findings from inspections conducted at U.S. nuclear power plants and individual Inspection Reports have been made available at NRC website. An article published in The New York Times highlights some of the key findings included in the NRC inspection report and notes that “something under one-third of the 104 U.S. reactors were found to have some vulnerabilities to extreme emergencies, according to the NRC” but that “all issues have been fixed or put on schedule for correction, and that the safety of the reactors was not compromised.”

Today, Executive Director of Operations of U.S. Nuclear Regulatory Commission, Bill Borchardt speaks at Japan Society on the various approaches being taken by NRC for a systematic review of nuclear power plant safety in the U.S. The discussion is moderated by Gal Luft, Executive Director of Institute for the Analysis of Global Security.

--Anu Tulachan

Optimism And Hope Glimmer Behind Gloomy Realities Of Post-Quake Japan

Detail from Nikmak's "Japan is Arising". Via.

Two months after the devastating earthquake and tsunami, which unleashed a nuclear crisis in the Tohoku region of Japan, the enormity and complexity of the problems the country now faces are daunting. More than 14,000 people lost their lives and nearly 200,000 have been evacuated from the region and remain in emergency shelters. The Japanese government now estimates that the cost of the damage could reach $310 billion.

In a discussion on Japan’s prospects after the Tohoku earthquake entitled Why Japan May Surprise the World: Rebirth after the Tohoku Quake?, a panel of leading economists at Japan Society did not sugar coat the challenges the country must now overcome. “It will have a pretty darn big effect on GDP,” said Bruce Kasman, Chief Economist at JP Morgan. The panel however, said the economic outlook for Japan, like the people, shows signs of resilience.

The immediate impact of the disaster was serious said Bruce Kasman, with a 15% drop in production in March. Retail sales fell 8% and car sales were down 40% for March and April. Overall he estimated a drop of 4% of GDP on an annualized basis over the second and third quarters of this year. But he predicted that after all the “sound and fury” had died down, Japan would be back at 90% of production capacity by the end of the summer and back on a growth path by the end of the year in part because of fiscal stimulus programs launched in response to the quake.

Paul Sheard, Global Chief Economist with Nomura said the quake had been a huge blow to Japan’s national confidence. Many had been waiting for the next “big one” to strike Tokyo or Tokai not Tohoku. The result was that many now feel another earthquake could still hit elsewhere. However, he suggested the negative impact of the crisis could also have a positive outcome. While the supply chain disruption caused by the earthquake, could lead companies to shift production offshore, it also reminded the rest of the world just how crucial Japan’s technology sector is to the global economy. Reconstruction not just by the government but also by the private sector looking to protect its own infrastructure from future disasters, could create a major economic boost for Japan. He estimated that while GDP would shrink by 0.5% this year, next year Japan’s economy would grow by 3.1%.

The panel saw the crisis as an opportunity for Japan to address some hard questions. Mr Sheard said now was the time for Japan to grapple aggressively with its deflation perhaps by issuing bonds. He also recommended that Japan look at its immigration policy in the face of its ageing society. He said opposition to immigration might diminish and the government should draw up a new structured, strategic immigration plan. It is also a time when strong leadership and continuity would be essential, he said.

The impact of the earthquake will have ramifications in all sectors of the economy but Kyohei Morita, Barclays Capital Chief Japan Economist, felt that problems the economy is facing were there long before the earthquake struck. He predicted that while Japan now enjoys a healthy current account surplus, the ageing society and an outdated tax policy which relies too heavily on corporate tax, will mean that the surplus disappears by 2018. "A current-account deficit would change completely the way the Japanese economy looks," he said. Companies facing expensive power supply and a weaker yen could take their business overseas resulting in what he described as “hollowing out” of the economy. Mr. Morita said that the nuclear crisis would spark a debate in the near term about electricity production in Japan. He said use could be made of thermal and hydroelectric power but in his opinion it would be “impossible” to shift way from nuclear power completely.

Much has been made of the reduced capacity for electricity production with predictions of a shortfall of 20% by the summer months. But the panel felt this was being overplayed and that Japan would rise to the challenge and find ways to make sure that power could stay switched on.

The panel agreed that there was much to overcome and that strong policy initiatives would be essential to Japan’s success. Jeffrey Shafer, a former Citigroup executive, who chaired the event, said the panel had pointed out some gloomy realities but that there was “optimism and hope glimmers”.

-Juliet Hindell

Hindell was BBC Tokyo bureau chief and Daily Telegraph Tokyo correspondent and is now based in New York.

Joseph Nye, The Power Guy

Joseph Nye. Image via.

"Power is one's ability to affect the behavior of others to get what one wants. There are three basic ways to do this: coercion, payment, and attraction. Hard power is the use of coercion and payment. Soft power is the ability to obtain preferred outcomes through attraction. If a state can set the agenda for others or shape their preferences, it can save a lot on carrots and sticks. But rarely can it totally replace either. Thus the need for smart strategies that combine the tools of both hard and soft power." --Joseph Nye, Foreign Affairs, Jul/Aug 2009

A survey conducted amongst international relations experts placed Joseph S. Nye Jr. amongst the top of the list of those who had most shaped U.S. foreign policy in the last 20 years. It was Nye, a leading theorist of power, Dean Emeritus of the Kennedy School of Government and Harvard University Distinguished Professor of International Relations who coined the term “soft power” in the late 1980s. He later also went on to develop the idea of “smart power”.

In an article in The Atlantic, Nye wrote: “In an information age, success is not merely the result of whose army wins, but also of whose story wins. Hard military power is not enough. We need the soft power of attraction as well. Their successful combination is smart power.” Similarly, in an op-ed article in Foreign Affairs, Nye referred to the many official instruments of soft power such as public diplomacy, broadcasting, exchange programs, development assistance, disaster relief, military-to-military contacts and wrote that they were scattered across the U.S. government with “no overarching policy that even tries to integrate them with hard power into a comprehensive national security strategy.”

In addition to holding academic positions, Nye’s experience combines several positions serving for the government. He has held numerous senior positions in the U.S. State Department, the Pentagon, and the National Security Council including serving as Assistant Secretary of Defense from 1994 to 1995. As an Assistant Secretary of Defense, Nye played an instrumental role in developing Pentagon’s East Asian Strategy Report issued in February 1995, officially called United States Security Strategy for the East Asia-Pacific Region. It was in the context of implementation of the strategy that Prime Minister Ryutaro Hashimoto of Japan and President Bill Clinton reaffirmed in 1996 that the “U.S.-Japan security treaty was no longer related to the cold war but was now a reassurance for stability in the region” (An Alliance Larger Than One Issue, op-ed, The New York Times, January 10, 2010). In 2010, Mr. Nye was conferred an honorary doctorate from Keio University, the oldest institute of higher education in Japan "in appreciation of his significant contributions to the advancement of Japan-U.S. relations, and his outstanding achievements in academics and education."

Putting power in context and shedding light on the complexity of the environment in which power operates today, Nye notes in Foreign Affairs:

The United States can influence, but not control, other parts of the world. World politics today is like a three-dimensional chess game. At the top level, military power among states is unipolar; but at the middle level, of interstate economic relations, the world is multipolar and has been so for more than a decade. At the bottom level, of transnational relations (involving such issues as climate change, illegal drugs, pandemics, and terrorism), power is chaotically distributed and diffuses to nonstate actors.

In his latest book, The Future of Power, Nye addresses fundamental questions including “what will it mean to wield power in the cyber world of the twenty-first century?” and “[w]hat resources will produce power?,” questions that have become ever more pertinent today in the context of evolving foreign policy challenges in an information age. ….In a note for the book, Nye says:

Most current projections of a shift in the global balance of power are based primarily on one factor- projections of growth in the gross national product of different countries. They ignore the other dimensions of power that are discussed in this book

Today Joseph Nye takes the stage at Japan Society to discuss world power dynamics emerging from changing relationship, innovation and global challenges and what this means for U.S.-Japan relations and the world at large. Joseph Nye on the Future of Power is moderated by Fred Katayama, Anchor, Thomson Reuters, and a member of Japan Society's Board of Directors.

Registration: 6:00 pm, lecture and Q&A; 6:30 pm, reception: 7:30-8:15 pm. General admission is $15. Half of Japan Society’s admission sales through June 30 go to the Japan Earthquake Relief Fund.  To register or for more information, please  visit www.japansociety.org/corporateevents.

The event is part of the Japan Society’s Corporate Program’s Yoko Makino Policy Series.

--Anu Tulachan

East Asia 2011: Measuring Perils, Managing Risk

Perils as persistent as time. Via.

A spotlight shone brightly on tensions in the East Asian region last year with the sinking of the South Korean warship, Cheonan, in March followed by collision of a Chinese trawler with Japanese coastguard vessels in the disputed waters of East China Sea in September, and shelling of South Korea controlled Yeonpyeong Island by North Korea in November. More recently, revelation of a new nuclear enrichment facility at Yongbyon, North Korea’s main nuclear plant, has only added fuel to the growing tension in the region and beyond.

The collision of a Chinese trawler and two Japanese coastguard vessels in 2010 around uninhabited Senkaku islands disputed between Japan and China (called Diaoyu Islands in China) propelled actions such as Beijing banning exports to Japan of rare earth minerals that are crucial for electronics and auto parts manufacturing and others including suspension of high-level contacts, Chinese travel agencies canceling package tours to Japan and withdrawal of invitation from 1000 Japanese youngsters who were going to attend the World Expo in Shanghai. While tensions continue, further damage was halted with Japan’s release of the trawler captain amidst growing pressure from China.

Within Japan, recent developments hint toward a shift in focus with regards to defense in face of changing geopolitical risks. In December 2010, Japan’s cabinet approved new guidelines that refocus its defense strategy on the rise of China rather than the “cold war threat of Russia”. The guidelines “also call for a stronger alliance with the US – Japan's biggest ally – and expanded security networks with partners such as South Korea and Australia.” The news report also states that “Japan will acquire new submarines and fighter jets, upgrade its missile defence capabilities and make its ground forces more mobile so that they can quickly respond to emergencies in south-west Japan.”

Military might is also on the rise in China. The Economist notes that “China’s army is planning to add impressive new capabilities—an aircraft-carrier, a “carrier-killing” anti-ship ballistic missile, and a “stealth” jet fighter—without offering much clarity about its strategic intentions”. China reportedly tested the J-20 stealth plane during Defense Secretary Robert Gates’s visit to China earlier this year in January.

Gideon Rachman notes in Foreign Policy that Fortune's latest ranking of the world's largest companies has “only two American firms in the top 10 -- Walmart at No. 1 and ExxonMobil at No. 3 while there are already three Chinese firms in the top 10: Sinopec, State Grid, and China National”. With unfaltering economic prowess and resulting power, China’s stance in the matters of regional security and stability has become as critical as in the matters of economics and trade. As South Korea, U.S. and Japan condemned incidents thought to be provocations by North Korea, i.e., the sinking of Chonan and the shelling of Yonpyong Island, China held a much softer stance on North Korea. It was only during President Hu Jintao’s visit to the U.S. last month that he agreed to a joint statement that emphasized the importance of North-South dialogue and expressed concern for the first time regarding the Democratic People’s Republic of Korea’s (DPRK) uranium enrichment program.

In a report titled "China and Inter-Korean Clashes in the Yellow Sea", The Crisis Group notes the “growing power and foreign policy confidence” as being important factors influencing China’s stance and underscores one of the complexities as follows:

In the past, Beijing’s willingness to at least calibrate its responses to North Korean provocations was seen by the West as essential for moderating Pyongyang’s behaviour. Over the past year, however, Beijing has not only escalated its claims to disputed territories in the South China Sea and Diaoyu/Senkaku Islands, but also increasingly resisted external pressure over Iran as well as North Korea. It feels under less pressure to yield to external demands and increasingly expects quid pro quos from the West in return for cooperation on sensitive third-country issues.

In cooperation with the National Committee on United States-China Relations and in honor of the launch of a new book on China-Japan tensions, Japan Society presents Perils of Proximity: Managing Risk in East Asia, a panel of three regional experts featuring President, Eurasia Group Ian Bremmer, Center for Northeast Asian Policy Studies Director Richard C. Bush, III, and Johns Hopkins Center for East Asian Studies Director Kent Kaldor. Moderated by Jan Berris, Vice President, National Committee on U.S.-China Relations, the [sold out] panel takes place at Japan Society on Monday, Feb 14, at 5:30pm.

A.T.

Japan & Korea: Decades Of Geopolitical Musical Chairs

This is not the sound of silence. Via.

Up and down--one chair pulled and the music continues. The players are Japan and South Korea, playing for decades in an international arena with their neighbor who has had an amazing growth spurt, China, and their cantankerous cousin North Korea. The music is the never ending (and often dissonant) song of diplomacy.

If we chronicle Japan and Korea’s quandary from 1990s to the present, it has been a continuing game of musical chairs. 720 miles apart, Seoul and Tokyo have faced economic strife and regional security detriments. Although many of the crises were similar, the two countries chose different paths with different geopolitical and domestic consequences.  

South Korea, historical and regionally, has always been at the mercies of their neighbors and the international community. Currently they are rekindling their relationship with the U.S. and cooling to China since the sinking of the South Korean Cheonan. They faced many of the same economic, political and demographic problems Japan now faces. They made strong and bold reforms, created a robust economy, strengthened a vigorous and interactive democracy—all to enhance their geopolitical weight so they are no longer at the mercies of the world. Yet despite these accomplishments, they remain at an impasse with North Korea, where things have heated up of late.

Japan’s game change happened in 2009, when the Democratic Party of Japan defeated the more conservative Liberal Democratic Party, ending the latter's near unbroken rule since World War II. This was celebrated as a major step in Japan’s democratic system, but has so far created risks in every level of Japanese life: political, bureaucratic, economic and public. The situation now threatens the efforts of Japanese leaders and their allies to promote economic recovery and ensure stability in the region.

On December 8, Japan Society welcomes Harvard University Kennedy School of Government’s William Overholt to lead the hard-hitting discussion Japan & Korea: Domestic Reform & Geopolitical Shifts. Overholt is a one-time investment banker who has become a prominent Asian policy expert over the last few decades, planning studies at one time for the U.S. Department of Defense, Department of State, National Security Council, and Council on International Economic Policy, as well as penning six books (most recently Asia, America and the Transformation of Geopolitics).

In the discussion, Overholt poses the question: can Japan revive without crisis amidst unstable internal power structures and with such alarming international security issues unfolding in East Asia? He also addresses Japan's importance for Asia and South Korea’s management of a deteriorating North Korea.

The lively and timely discussion is presided by Robert Fallon, a professor at Columbia Business School, who also serves on the boards of Japan Society and Korea Society. Chairs will be provided, and the music has already begun to play.

S.H.

Diversity In East Asia: The Value Of Women And Foreign Workers

Chickens reframing diversity. Via.

At the just-concluded G20 Summit  in Seoul South Korea, 20 of the most powerful economic countries and unions discussed geo-economically issues. The news focused on the hot button "Currency Wars"   pushing aside other important issues deserving discussion. One of those issues important to many of the world leaders was urging global co-operation. President Obama stated, "no one country can achieve our joint objective of a strong, sustainable, and balance recovery on its own".  World leaders don't want to solely address import, exports and currency; they also want to reframe diversity in the global market.

Major European and American companies have realized that diversity in their markets and employments increase healthy competition. Within the Asian region "BBC Newshour reported that South Korea is a global success because although they honor their roots, they realized the need to diversify their workforce.

Today Japan Society and Asia Society co-host Reframing Diversity Management for a New Global Economy (taking place at Asia Society). The program is twofold, addressing gender equality as outlined by Commission on the Status of Women (sub-commission under the Commission on Human Rights, UN), and the use of using different cultures, languages and values to reforge a the global workforce.

The CSW succinctly states it goal:

to raise the status of women, irrespective of nationality, race, language or religion, to equality with men in all fields of human enterprise, and to eliminate all discrimination against women in the provisions of statutory law, in legal maxims or rules, or in interpretation of customary law

This underscores that women are one of the key agents of change in aspects of life, social, political and economical.  Reportedly there are 6 million more women than men in the world. In that standing we are a pretty affect of change, so global heavy hitters should find it invaluable to have women on the field with them.

The other fold of diversity addressed in the discussion is using the huge cache of knowledge and experience from foreign workers. In 2003 Japan Times stated “It is important for Japan to introduce talented foreign workers in the fields of management, research and technology”, and referenced the METI paper [PDF] that reinforced the notion that Japan needs to think like South Korea and make it easier for foreign workers to live and work in the country. The exchange of ideas would feed innovation and support a better collective standard of living.

Taking on these topics and offering insights, participants in the symposium include: Philip Berry, President of Philip Berry Associates, LLC and Co-Chair of the Corporate Diversity Council for the Asia Society ; Kathryn Komsa, Vice-President, Chief Diversity Officer of Marsh and,McLennan Companies, Inc ; John F. McNulty, Executive Director for People Focus Consulting and Ceo of PFC Asia Pacific; and Moderator  Natsuyo Nobumoto Lipschutz, Managing Principal of ASPIRE Intelligence LLC.



S.H.

Japan's Shifting Generations, The World's Shifting Wealth

Reuters: Japan expects over 1/4 of citizenry to be 65+ by 2015. Via and via.

From Japan's lost generation to their estimated 41,000 centenarians, age disparity profoundly affects Japanese society, culture and economy.

Traditionally, Japanese people who graduated from university would generally be hired by a company and stay there until they had to retire. Stability has always taken precedent over upward mobility. With current changing global economic and social trends, the individual is beginning to take more responsibility for his/her financial future by resorting to new online brokerage accounts and non-traditional investment vehicles. This is coupled with the rapid retirement of the baby boomer generation who are in need of asset management services to help them for their remaining years.

The old vs. new debate is as relevant as ever, especially for financial professionals and the general investing population when considering Japan, one of the world’s largest economies and consumer societies. In Japan Society's Wealth Managers Grapple with Japan's Shifting Generations, experts discuss major shifts in Japanese wealth management, how participants around the world are affected, and examine a host of financial planning implications for current and future Japanese retirees.

The panel includes  Monex Group President and CEO Oki Matsumoto; Alicia Ogawa from Columbia University's  School of International and Public Affairs; and Walter Altherr, executive director of equity research at Mizuho Securities USA. Moderated by Reuters' Anchor Fred Katayama, the discussion takes place Wednesday, November 10.

T.D.

Shifting Shades of Gray

Raise your hand if you think global cooperation is the future of int'l policy! Via.

Life is not black and white, and the international arena can be one of the biggest planes of shifting shades of gray imaginable. In an age of great interconnection and even greater competitiveness, foreign policy is in a constant state of re-correction to avoid massive global disaster.

Lately grumblings have risen in Northeast Asia (China, Japan, the Koreas), where relations have continued to rock and roll after World War II. There have been constant shifts in the region’s political parities, rising tides of economic stagnation, and lately aggression between the region and the allied U.S.

When thinking of Japan specifically, there have been territorial altercations with China in regards to jurisdiction over the disputed land and seaways, lack of consistent leadership, foreign policy that does not agree with the domestic situation, and the controversial presence of U.S. military and its unknown future .

All of these challenges have affected Japan’s attempts to re-establish its position in East Asia, and even upset the very core of the U.S.-Japan relationship. Only 50 years after the seminal security alliance brought our nations together, some wonder if the pact can stay in tact these days.

On November 8, Japan Society and Asia Society gather top Japan and East Asia experts for Twists & Turns in Japanese Politics: Implications for Japan, the U.S & the Region to discuss these issues and more.

Tobias Harris shares his sharp, inside acumen as seen on his site Observing Japan or his blog for Newsweek Japan. 

Jun Saito from Yale's Department of Political Science breaks down the impacts of Japan’s recent elections and the rise of Prime Minster Naoto Kan (hear him discuss Japan's domestic politics with us back in May).

Sheila Smith, senior fellow for Japan Studies at the Council of Foreign Relations, takes up the sensitive subject of the U.S.-Japan relations on security and defense, including the issues of military instillations on Futenma and the continuing dispute of Senkaku Island.

Yinan He from Seton Hall University's John C, Whitehead School of Diplomacy reveals the recent politic fluxes in the Asian perspective.

Finally, Edward Lincoln, director of the Center for Japan-U.S. Business and Economic Studies at New York University's Stern School of Business moderates  the discussion. (Lincoln was here in May to discuss 150 Years of U.S.-Japan relations and collaboration: full recap here.)

Expect a lively, illuminating and impacting discussion of the global ramifications of Japan's current politics and policies!

S.H.

In Defense Of Lasting Relationships

After the end of World War II and the signing of the Postdam Declaration, Japan was required to disarm, dismantle and discard their war potential. The Japanese government reformed their defense into the Self-Defense Forces to deal with any problems that may happen in the mainland, but they were strictly banned from deploying outside their homeland.

The original intentions of Japan’s defense troops have changed in recent years due to changes in the international world. The JSDF have deployed on non-combatant peacekeeping missions and their provocative deployment to Iraq to help out on the reconstructive efforts. Also the geo-political arena has changed. Japan and the U.S. are concerned with the various problems facing both nations. The nuclear aggression of North Korea, the rise of China’s political, economic and militaristic juggernaut, not to mention core contemporary challenges within the basic framework of U.S.-Japan relations.

How do we assuage old ghosts and confront new realities? From a unique insider perspective, William H. Swanson, CEO of Raytheon, one of the world's largest defense contractors, comes to Japan Society to discuss the relationship with Japan, challenges of the 21st century, and how to maintain our amiable long-lasting friendship. The luncheon takes place Wednesday, October 6 at 12:30 pm, with the discussion starting promptly at 1:00.

More about Swanson and Raytheon in this recent Barron's article.

S.H.

Japan's Key To The Future Of Industry

Aaaahhhhhhhhhhhhhhh!

The Ministry of Economy, Trade and Industry (METI) has some concerns. How does Japanese industry get out of the "severely deadlocked" position that has it lagging behind power players and moody market swings? Is it even possible for the country to be globally competitive anymore? Does Japan have a chance to rebound after years of stagnation and the continued aftershocks of the world economic crisis?

In May METI unveiled the "Industrial Structure Vision 2010" as a fresh address to the concerns. The aim is to rev Japan's revenues, drive employment and run circles around the globe with industry. The roadmap first calls for four shifts in the public and private sectors to spur growth: build a new industrial structure, replace stagnant business models, forgo that globalization and domestic employment are mutually exclusive, and realign the role of government.

Sounds simple enough. Sustainable industrial structures practically grow on trees! All sass aside, when digging for more detail, one of the most condensed PDF powerpoints ever contained a diamond of an idea in the packed data and dizzying mix of problems, solutions, and fonts. The four herculean shifts mentioned above would incorporate 5 life-enriching, globally expandable sectors:

● infrastructure-related/system export (nuclear energy, water, rail, etc.)
● environment and energy problem-solving industry (smart grid, next-generation vehicles, etc.)
● medical and nursing, health and childcare services
● cultural industries including fashion, content, food, tourism
● frontier fields like robotics, space, etc.

How it all fits together takes an expert explanation. Luckily, METI director Tadao Yanase is at Japan Society July 20 to speak at the roundtable discussion Industrial Structure Vision: The Way Forward for Japanese Industry, presided by the Carlyle Group's Jonathan Colby.

S.J.

Senator Inouye Speaks At Japan Society

"this is one of the most trying and challenging times experienced in the U.S. and Japan relationship during the past 65 years" -- Senator Daniel Inouye

Japan Society had the privilege of welcoming U.S. Senator Daniel Inouye on Monday, June 14. to deliver a rousing lecture on U.S.-Japan relations.

The lecture attracted 175 movers and shakers, including Ambassador Nishimiya, Consul-General of Japan in New York, Michihisa Shinagawa, the head of Sumitomo Corporation of America, and Yoshihisa Suzuki, the head of ITOCHU Int.. The lecture was presided by Douglas Petersen, COO of Citibank.

According to Chris Poston, director of Japan Society’s Corporate Program, Inouye “spoke at a time of political instability in Japan on an issue that has for 65 years relied on political stability, namely the state of the U.S.-Japan security alliance. He raised some interesting issues of the need for Japan to increase its defensive capability, so that the U.S. military can reduce its footprint in Japan."

This topic is especially prescient now because of the debate surrounding the Futenma military base in Okinawa – which was a factor leading to PM Hatoyama’s resignation. Senator Inoyue took the Democratic Party of Japan to task for having questioned the deal struck with the Liberal Democratic Party in 2006, thereby ruffling feathers in D.C. and causing some on the Hill to question the strength of the alliance. He noted in his speech "We must keep in mind that the supreme goal of our two nations is to strengthen our relationship, and in that process bring about stability and the absence of military violence in the Asia –Pacific region." (Full speech.)

Senator Inouye has served as a senator from Hawaii since 1963 - for 47 years. He was born in 1924 to Japanese parents, and raised in Honolulu. In World War II, he served with the U.S. Army, and lost his right arm in the Assault on Colle Musatello in Northern Italy. He received the Bronze Star, Purple Heart, and Medal of Honor, and returned to university after the war thanks to the GI Bill.

Over his almost 50-year congressional career, Senator Inouye has served as a moderate Democrat. Last year he was appointed chair of the Senate Committee on Appropriations, which manages the Senate’s discretionary spending.

Keep an eye on our Corporate Programs page for upcoming opportunities to listen to politically and socially topical lectures like these – not to mention hob-knob with decision-makers!

N.O.

APEC Japan 2010

The Asia-Pacific Economic Cooperation (or APEC), which turned twenty years old last November, is seeking a fresh way forward against the backdrop of the global economic crisis and the need to further boost open trade and investment in the Asia Pacific region. The coming two years offer Japan and the U.S. a golden opportunity to coordinate their efforts in support of the shared APEC goals, as Japan will host the 2010 summit in November in Yokohama while the U.S. will host the 2011 summit in Hawaii.

Unfortunately, the private sectors of both Japan and the United States tend to have at best a vague understanding of APEC's goals and accomplishments. Japan Society is here to help!

APEC 2010 SOM Chair Ambassador Shigeru Nakamura of Japan and his U.S. counterpart, U.S. Senior Official for APEC Kurt Tong, are going to join us on March 15th for a corporate luncheon to discuss the principal themes for APEC Japan 2010. These include regional economic integration; a strategy for promoting balanced, inclusive and sustainable economic growth; and further emphasis on human security issues to protect societies against a multitude of threats including natural disasters, terrorism, food security and pandemics.

The internet has been buzzing about Japan's new role as the APEC chair. The Japan Times discussed the busy year ahead and on East Asia Forum, Christopher Findlay of Adelaide University intelligently analyzed APEC's goals:

"Balanced, inclusive, sustainable and knowledge-based – these are the dimensions of growth which APEC is talking about. Put their first letters together and you get BISK.

This agenda comes out of a number of forces for change, including the response to the global financial crisis, the concerns which have been raised about the distribution of the benefits of growth within economies (and between them), the intersection of these developments with the climate change debate, and the twittering rate of technological change in the digital world.

So BISK wraps up these forces for change. There are at least two sets of issues. One is what it really means. Is there a core component or is this another list in the APEC list of lists?"

Make sure to read the rest of the article to learn more and then, armed with knowledge, come to Japan Society on March 15th to participate in what should be a fascinating discussion!

Recovery & Future Challenges in Asia & the Pacific

Tomorrow, Asian Development Bank President Haruhiko Kuroda is coming to Japan Society to discuss with us over lunch how to achieve a regionally integrated yet globally connected Asia.

However, Joel Rathus of Meiji and Adelaide Universities recently said on East Asia Forum:

"Much has been made of late about the possibility of Japan drawing closer to China. But on the major issues of historical record, trade, and security, Japan’s China policy is unchanged under the DPJ, and is unlikely to change in the near future."

It will be interesting to see what Kuroda predicts the future holds for Asia in light of Japan and China's continuing tensions.