Japanization: What the World Can Learn from Japan's Lost Decades

by William Pesek

An in-depth look at Japan's economic malaise and the steps it must take to compete globally In Japanization, Bloomberg columnist William Pesek―based in Tokyo―presents a detailed look at Japan's continuing twenty-year economic slow-down, the political and economic reasons behind it, and the policies it could and should undertake to return to growth and influence. Despite new Prime Minister Shinzo Abe's promise of economic revitalization, investor optimism about the future, and plenty of potential, Japanization reveals why things are unlikely to change any time soon. Pesek argues that "Abenomics," as the new policies are popularly referred to, is nothing more than a dressed-up version of the same old fiscal and monetary policies that have left Japan with crippling debt, interest rates at zero, and constant deflation. He explores the ten forces that are stunting Japan's growth and offers prescriptions for fixing each one. For many investors, businesspeople, and economists, Japan's long economic struggle is difficult to comprehend, particularly given the economic advantages it appears to have over its neighbors. Japanization offers a ground-level look at why its problems continue and what it can do to change course.

Genres: Economics, Nonfiction, Japan, Politics

256 pages, Hardcover

First published January 1, 2014

Reviews

[David · Rating 5 out of 5]

great book finally to depict the problems with Japan: not willing to loose face, low pop growth, Galapagos Effect (good products but stay within the island), not willing to conduct corporate fiscal/behavioral restructure, severe lacking of innovative idea, poor English learning skill, not willing to work with the Asian neighbors to resolve the past war crime history, high corporate tax, low retirement benefit, imbalance of the female/male work ratio, and most importantly highest national debt (with unknown figure of permanent unemployment figure). The only thing that are keeping Japan alive is the low interest national Japan bond with Japanese are the only sole buyers. With everyone in the world are watching Abei's 3 arrows of reform; author has combined all the facts and forecasted that Abei's reforms are not really reform, but pure nationalism. QE+low interest rate will only bring Japan the abyss of death.

[Johann Lilly · Rating 2 out of 5]

25% economic analysis, 75% social commentary. This is an example of a book of which you read the first few chapters, then shelve (though I read the entirety). Useful in highlighting the range of congruity between Japan's 1990s economy and the 2010s economies of surrounding Asian nations and the United States.

["Cyril' (David · Rating 5 out of 5]

An interesting look at Japan and some of its problems that both led to the lost 2 decades, and will continue to hold her back until they are dealt with. It is particularly frightening to learn what led to Fukushima, and how little has changed. The banking system was positively medieval. But most striking has to be the place of women in society. In response to a gang rape, one government minister actually said, "Well boys will be boys... at least we know they are vigorous." And the minister for GENDER EQUALITY, commenting on the same gang rape actually blamed women for dressing provocatively. And finally a female judge actually dismissed a case on sexual harassment saying that though it occurred, if a woman is paid highly enough, it should just be something she puts up with!

[Shyames · Rating 4 out of 5]

It's a very good insight not only to Japanese economy but also Chinese, Korean and U.S.' influence on Japan. The language is simple, the author doesn't use too much complicated, specialistic language. It's a good position for anyone who is interested in Japanese economy or economy in general. Mistakes of Japanese officials from last three decades are described very thoroughly, in a way that refers to other biggest economies.
Definitely better than many academic textbooks!

[Hao Zhang · Rating 3 out of 5]

The book doesn't talk about the cause of the Lost Decades.

[Kevin Swift · Rating 3 out of 5]

I wanted to rate this one less than 3 stars - it was a struggle to get through. But in the end I think it deserves the 3 stars.

I was interested in reading it because I have been learning about the Japanese asset bubble and thought this would be a good work about the after effects and the "lost decade" and what not. Sadly, I was disappointed to find that economic analysis was lacking and this was mostly, as another reviewer noted, social commentary.

The social commentary was far too much for my liking. I didn't realize this book was going to be an all-out assault against Japan, China, the USA and basically all Asian countries. Nobody was spared! That was a bit off-putting to me and I would have preferred a more technical analysis or rather a more objective presentation of the facts without so much commentary. I seriously considered giving up reading but I hate doing that so I saw it through.

In a way, I'm glad I did. I think that in order to understand that Japanese asset bubble and Japan's failure to return to sustainable growth, you have to understand Japanese culture. And Mr. Pesek does a great job describing the problems with Japanese culture - mainly, an entrenched system ("Japan Inc.") that is rigid and unwilling or unable to adapt. He described this system and the problems with it very well, and I actually feel like I have a much better understanding of Japan and what went wrong with their economy after reading this.

Therefore, despite some issues with the book, I have decided to give it 3 stars. Mr. Pesek does a good job presenting his case even if it wasn't exactly my style. For casual readers with only a passing interest in Japan, I'd recommend passing on this one. For technical readers looking for something truly in-depth, I'd also recommend passing. But if anyone has a genuine curiosity about the Japanese asset bubble and particularly the aftermath, I think this look at and critique of Japanese culture provides some valuable insight. Just don't expect it to be the most interesting book in the world.

[Carlos · Rating 4 out of 5]

This book gives a great account of the challenges Japan is facing in regaining the dynamic economy that was the envy of the world in the 1980s. Pesek walks the reader through the economic policies that have left Japan’s economy stagnant as well as the lack of political will to tackle the problem more aggressively. I did find that Pesek treats the beginning of Japan’s problems almost as if all its details were common knowledge and doesn’t give as detailed an explanation of it as I would have liked. He does, however, contrast Japan’s predicaments, and its faltering responses to it, with the successes experienced by its rising Asian neighbors as well as outlining the lessons that Europe and US could learn about the failed solutions it attempted. All in all, the book was of great value to those curious to know how the assured Japanese takeover of the world in the 1980s gave way to “Japanization” becoming the term for a persistently stagnant economy.

[Andy Ahmed · Rating 4 out of 5]

A fascinating if troubling insight into the Japanese economy and the reasons for it's problems. Maybe a little too bleak - I'd like to have read about some chinks of light, and I also would liked to have read more about the future in terms of the consequences of the ageing population, guest-worker labour and automation. Nevertheless there are many salient lessons and warnings for developing nations that might be tempted to import Japanese business models too uncritically.

[Marshall Beaven · Rating 3 out of 5]

Most of the book was a fascinating look at what is wrong underneath the surface of the Japanese economy. Deducted a fourth star because of the jarring breaks to take shots at Japanese and American politicians that Pesek doesn’t approve of.

[Phil Eaton · Rating 3 out of 5]

Excellent introduction to the last 20 years in Japan and Asia generally -- with frequent useful comparisons to the U.S. But poorly edited and points were repeated too frequently verbatim.

[Eric · Rating 2 out of 5]

Very specific to 2013, doesn't really work now, skimmed lots.

[William Lu · Rating 2 out of 5]

I have only read the first chapter and decided to pass. There are many statements and beliefs, but few evidence and logic. There are no graphs or data tables at all.

[Ilze · Rating 3 out of 5]

Jā, arī Japānai nav viegli, kas to būtu domājis? Bet kopumā labs ieskats Japānas un Āzijas ekonomikās.

[Oliver · Rating 5 out of 5]

Very interesting book about economics and history in different periods of Japanese history