On the 18th, at the Davos Conference, a session titled "The Road to Revitalizing the Japanese Economy" was held.
We asked Takeshi Niinami, president of Suntory Holdings, who participated as a panelist, about the issues facing the Japanese economy and what is needed to revitalize the economy.
“Now is the time to make a big change in Japan.”
[Q. How do you evaluate the current state of the Japanese economy?
]
In the last 30 years, the economy, centered on companies, has lost the power to take in new things and change them.
Wages have not risen and vitality has disappeared, and the country has lost its international competitiveness.
Avoiding painful reforms has led to a disease that can be called the "status quo disease", and this disease has recurred due to the corona crisis, and a mood of resignation is spreading.
[Q. What should Japan do?
】
Japan is not without funds, it has the ability to execute, and above all, the field is strong.
In that sense, we need an opportunity to restore the confidence that we have lost, and the situation that triggers it is happening right now.
With prices rising by about 4%, we have entered an era in which world peace is no longer taken for granted.
“It is necessary to create interesting companies.”
[Q. What is required of Japanese companies and the Japanese economy?
]
It is necessary for new companies, including startups, to be born.
To that end, it will be necessary to promote the metabolism of companies and increase the mobility of human resources and employment.
Of course, it will also be essential for the government to enhance reskilling, which is a place for re-learning and training programs to improve skills.
In addition, it is important to create a system that will allow “household income” to continue to rise. In particular, the working style of women should shift from non-regular to regular employment.
If household income increases, it will lead to countermeasures against the declining birthrate.
“Recognize that America has problems, too.”
[Q. During the Davos session, America's policy of putting its country first was also a big topic.
How should we face America, which has been pointed out to be inward-looking?
】
Certainly, it is important for Japan to send out a message that it will cooperate with the United States and promote decoupling (separation) from China when it comes to cutting-edge technology.
On the other hand, the United States is divided domestically, and in order to manage the division, it is strongly conscious of China and is trying to overcome it, but I feel that it is a mistake.
Japan should not always rely solely on the United States, but should recognize that the United States also has its problems and deal with them.
As a leader of free trade in Asia, Japan has various economic ties such as RCEP (Regional Comprehensive Economic Partnership) and IPEF (Indo-Pacific Economic Framework).
I hope that Japan will play a central role in free trade as the chair of the G7 this year.