Malcolm Gladwell Test Has Japan Turning Chinese: William Pesek – Bloomberg

English: Roadside billboard of Deng Xiaoping a...

If you want to silence a room filled with Japanese politicians, suggest they should learn from China.

The conventional wisdom favors the flip side of this dynamic: China should be studying Japan’s playbook. Japan, after all, is an example of both what China needs to do create a vibrant domestic economy and high living standards and what it mustn’t slide into bad-loan crises and deflation.

Yet I have one word for Japanese policy makers who dismiss the idea they should heed China’s example: Shenzhen.

For two decades now, economists have been urging Tokyo to create a special-enterprise zone or two. The idea is to have a laboratory where officials could try drastic alternatives to Japan’s rigid, bureaucratic and change-resistant model — a controlled environment in which the nationwide laws and norms that thwart economic energy could be repealed.

Southern China features such a place. In 1980, Deng Xiaoping started China’s first special-economic zone in a coastal village that was nothing to look at. Today, Shenzhen is a teeming collage of huge skyscrapers, thriving industrial parks, 10 million people, one of the world’s busiest ports, and some of the biggest manufacturing and outsourcing industries anywhere.

China’s Example

It’s the center of Chinese experimentation. There, officials can test what works and what doesn’t: which corporate tax rates offer the best balance of attracting foreign investment while filling government coffers in Beijing, which labor standards make the most sense, which corporate-governance standards are most advantageous, which immigration procedures are optimal, which regulations stay or go.

via Malcolm Gladwell Test Has Japan Turning Chinese: William Pesek – Bloomberg.

Strange Random Japan Quote:

Self-deception ultimately explains Japan’s plight. The Japanese have never accepted that change is in their interest – and not merely a response to U.S. criticism.” – Paul A. Samuelson



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Posted on January 4, 2012, in Article and tagged , , , , , , , , . Bookmark the permalink. Leave a comment.

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