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© 2011 AFPJapan economy faces 'severe situation,' warns BOJ chief
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© 2011 AFP
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gogogo
Last time I checked the nuclear crisis wasn't over.
nath
With Olympus' case still warmly settled in the headlines, I wonder how BoJ plans to encourage investments.
thepro
Japan's economy has been in a severe situation since 1990.
The_True
no there is no problems!
kurisupisu
Japan is still not thinking outside the box. I know of graduates here from top class universities going into temporary jobs as the economy is so bad. Japans's spending on education on the public system is ranked third among OECD countries, Japan's manufacturing is downsizing yet the knowledge based economy is not keeping up.
How is it that Singapore can be a vibrant and growing state yet Japan not?
Answer:education
Cricky
The refusal to even countenance "change" at any level, be it education (few counties teach by rote) manufacturing, inclusion of women at management level, food testing, suicide prevention, low birth rate, free time, overwork, farming practices, corporate governance...Sumo, there is too much maybe that's why nothing changes.
tranel
Oh, japanbashing... Actually if the europeans could just get their overpaid behinds together and resolve the problems that are unnecessarily weighing on Japan, Japan would be in a different situations. Not all of Japan's woes are created by Japan - far from it.
The other day, a German bank/finance/somesuchsort minister appeared on the BBC saying that the fate of the eurozone - and hence the little global financial stability we have - now rests in the hands of the Italian (cough, smirk) "government." Facepalm.
Again, not all of Japan's problems are created by Japan.
Samantha Zoe Aso
@ tranei. No Japan bashing going on here. Japan's economy has been on the decline for quite a while. External worldwide factors are of course, deepening any problems!
CrazyJoe
”Japan economy faces 'severe situation,' warns BOJ chief”
He talks likes a commentator as though the people don't know the severity of the situation. Everyone knows that you idiot. Get rid of him.
ExportExpert
Do the same things and get the same result, do nothing and get no result is the mantra here.
Unless those in power take decisive steps and action the situation will remain dim.
Blame yourselves no one else.
Meanwhile ................................................................................................
FernandoUchiyama
The japanese must invest in countries outside US and Europe.
The question is: are the japanese able to offer services to the underdeveloped countries? My opinion is that japanese services are so expensive to be sold in the third world. The european and the US are capable of offering much cheaper products and services with quality that is not that bad.
Their products are cost-effective compared to the japanese counterparts.
Elbuda Mexicano
Japan must save its own ass first!
mountainpear
@kurisupisi Take a look at Singapore's low tax rates and you'll see why Singapore is booming.
herefornow
Wishful thinking. Hasn't happened in 20 years, so not likely to magically happen now. Especially since there is no strategy in place other than raising about every tax possible.
And, tranel, if you allow your economy to continue to be too dependent on exports for growth, then the problem is really created by Japan. You have to assume at some point conditions will change, and be prepared for that. Never happened.
globalwatcher
I have been telling you so on JT.
avenger
The same old rhetoric. "Facing severe situation" and "monitoring closely". It's always the safe thing to say. Giving the inpression as if they are on top of it all and working on many out of the box plans in the meantime.
nigelboy
Because Singapore land size is barely over 700 square KM roughly a third of Tokyo. Of course, one could take the figures of Tokyo and divide by three (GDP, population, etc.) and you will see that Tokyo is a more vibrant and growing compared to Singapore.
I guess the point here is that not all cities in Japan can be Tokyo and not all states have the size of Singapore.
sfjp330
Japan desperately needs to close many of its sickly companies. Its financial system needs to deal with its exposure to increase in bad debts, before it can commit with conviction to new lending. Whether such reduction will bring significant economic benefits to Japan, the increase in bankruptcies has been far exceeded by a surge in debt forgiveness, or have done just enough to allow the desperate companies to stay out of the bankruptcy a little longer.
globalwatcher
BOJ cannot go less than 0.1% and BOJ is running out of tools while the fiscal policy is still in yo-yo.without solid leaders in the past decades.
Japanese version of QE. So many QE have been introduced in the past and they all failed. The reason is that Japanese bankers are not willing to lend. They are not risk takers, but I do not blame them either as there are no exciting innovations in Japanese industry.
Not from overseas, I assure you. Japan has been listed on the bottom for foreign investors.
There are several reasons; no corporate transparency (Olympus is a good example), high yen, no solid leaders and no revolutionary innovations and inventions in Japan..
The job market is over supplied with non skilled labors (heitai-san) with a high wage (contract). That's a killer. Japan needs a foundamental educational reform to produce more skilled labors in global economy, but noboday are talking about it. Sad.
sfjp330
Japan’s future prosperity depends in large part on transforming education. The system produces too many graduates who are not especially useful to Japanese companies struggling to compete globally. The scale of the challenge requires mobilizing the country’s political and business leaders. Incremental efforts will stunt Japan’s long-term competitiveness. Japan needs to Develop more independent minded students. A reformed education system should seek to develop graduates who are mature, independent thinkers willing to lead. Japan should reduce the emphasis on rote learning in favor of a curriculum that encourages students to think critically, express their views, challenge conventional beliefs, and talk openly.
Comparatively few Japanese study abroad and the number is falling. There are more overseas students than ever from China, India, and South Korea. Japan should seek to reverse this troubling trend by, for example, making it compulsory for university students to spend a year outside Japan. Educators should also encourage more exchanges between Japanese high school students and their counterparts in other countries.
Another bold but challenging move would be to make English a second national language, with schools teaching it from a young age. Taking drastic action to promote a wider role for English could be transforming. If Japan were to do so, in 20 years, millions of young Japanese would have the language skills to work abroad. Japanese companies would be better equipped to sustain their global presence. And more tourists might be attracted to Japan if they could communicate more readily. Japan must produce more students with skills that match the needs of its companies. University students should have more work experience before graduating. The internships should be a compulsory part of the curriculum. Getting more business leaders to sit on the boards of Japanese universities would also help; executives could help to make academic programs more business friendly. Making leading Japanese universities regional academic centers. Universities could merge their best research assets, human and physical, to turn themselves into regional research centers that attract the best students and teachers from around Asia and the world. English should be the language of instruction.
MaboDofuIsSpicy
The Yen rate is the most messed up thing I have seen. Poor economy should equal weak currency.
globalwatcher
You hit the nail, Mabo, however most do not understand the strong yen has nothing to do with economic health of Japan. This is the most misunderstood issue.
globalwatcher
@sfjp330,
I could not agree with you more. Well said and a GREAT POST!
Yes, yes, yes to everything you have said.
globalwatcher
The next 2 weeks and half, the euro has to come up with positive solutions. Hope they will. The stake are too high. Otherwise, we (each country) may goes to a " financial stress test".
globalwatcher
Just learned IMF COULD (not WILL) bail out Italy, I sure hope so.
bajhista65
Everyone thought, having one currency in Europe will bring good results. What happened?
bajhista65
Japan was able to survived and progressed after WW2 with the Emperors constant communications with his people. Japanese are well known for their discipline, hard work and unity. Set aside politicking and You can do it again. Banzai Japan.