“Last Chance” for Japan Revitalization Interview with Keizai Doyukai Secretary-General Sakurada January 4, 15:07

With the new coronavirus, the Japanese economy was greatly affected by both manufacturing and non-manufacturing industries.

Many issues such as the delay in digitization of Japanese society have also been highlighted.

In 2021, the spread of the infection did not converge.

How does the business world look at the New Year?

"Let's make 2021 a year of redesigning society through innovation," says Kengo Sakurada, the representative secretary of the Keizai Doyukai.

We asked Mr. Sakurada, who says that the New Year is the last chance for Japan to grow seriously.

(Kentaro Yamada, Reporter, Ministry of Economic Affairs)

Discussion from the beginning of what capitalism should be

Mr. Kengo Sakurada, the president of SOMPO Holdings, a major non-life insurance company, and the representative secretary of the Keizai Doyukai since 2019.

Over the past year, when the Japanese economy was at the mercy of the new corona, we have provided suggestions and opinions on various issues such as the government's economic measures, consumption trends, and the US-China conflict.

Mr. Sakurada looks back on 2020.

Mr. Sakurada

2020 was a year in which all sorts of unimaginable things happened in the era of VUCA (booca, which means uncertainty and volatility of the world and the economic environment), which I often call.

Especially Corona, or the US-China issue, various geopolitical diplomatic issues.

And I think that the issues and problems that have been posed to Japan, including the new Corona, have not yet been solved at all.

Mr. Sakurada points out that the corona crisis has made the outlook for the future unstable and has highlighted the seriousness of widening inequality and social division, which are the challenges of "global capitalism."

What kind of year should 2021 be for companies?

Mr. Sakurada argues that it is necessary to fundamentally review the way companies have been and build a new economic society that is unique to Japan.

Mr. Sakurada's strengths in Japan are a population of over 100 million, the world's third largest economy in GDP, and a democratic society.

And, for example, the data obtained from medical and long-term care sites supported by universal insurance and the IoT efforts of manufacturing are said to be as valuable as the crude oil that supported the economy of the 20th century.

It is said that Japanese companies are being asked whether they can create new products and services by utilizing various data spread in the market of 100 million people.

Mr. Sakurada

The theme of 2021 of the World Economic Forum (Davos Conference) is "Great Reset".

As symbolized by this word, I would like to make it a year to discuss the issues of capitalism that have come up so far from the beginning.

2021 is the last chance for Japan to grow seriously.

Japan has great strengths.

Shouldn't we make use of it to create a new economic society that wants to be like Japan, or make it a year to start with the desire to redesign the society?

I think companies need to be seriously prepared to bring about social change through innovation.

Digitization, diversity

2020 is also a year of delays in the introduction of IT in society as a whole, as symbolized by the turmoil in government benefit procedures.

Mr. Sakurada points out that the development of digital infrastructure is indispensable for the evolution of innovation = technological innovation.

In order to realize innovation, we believe that new ideas will not be born unless we promote “diversity” that recognizes diversity such as gender, nationality, and age.

The public and private sectors should work toward solving organizational and social issues that attract more human resources from overseas.

Mr. Sakurada

The reason why DX (digital transformation) is done is that it is an indispensable tool to improve both the productivity of Japan, which remains at the lowest level among developed countries, and the quality of products and services at the same time. I think it's like "business blood."

It is impossible not to use this, and Japanese companies need a real sense of crisis.

It seems to be persistent, but I think this is the last chance.

We believe that innovation is synonymous with diversity.

Innovation does not occur when people with similar ideas gather together.

Human resources from all over the world such as China, India, and the Middle East are also gathered in Silicon Valley in the United States.

Some of them may want to go to Japan.

I think this is a great opportunity for Japan, which is originally tolerant of different cultures.

Various discussions at the "Future Choice Conference"

As one of the efforts to recognize diversity, the Keizai Doyukai will set up a new "Future Choice Conference" in 2020 to discuss social issues at the same table in the business world, labor world, research institutes, etc. with different positions and claims. raised.

From 2021, we will set up subcommittees on various themes such as politics, diplomacy, finance and energy, and will hold discussions to show policy options.

Mr. Sakurada In an

unstable era, it is difficult to put together discussions and make recommendations.

Problems such as politics and diplomacy cannot be answered by economic groups alone, and even if you make recommendations on energy issues, for example, you may think that the benefits of industry are prioritized.

Within the big themes of politics and diplomacy, economic organizations also want to become one of the stakeholders and participate in the discussions at the Future Choice Conference, presenting multiple options.

Business world in the with corona era

The Japanese economy continues to suffer due to the re-expansion of infection, especially in the service industry such as eating and drinking and tourism.

The business community is also required to send a message to the government to support the business continuity and employment maintenance of business owners while taking measures against infection.

Is it possible to show a presence for economic revitalization in the uncertain "with corona" era?

It will be a year that will be questioned by the business community.

Kentaro Yamada,

Reporter of the Ministry of Economic Affairs

Joined in 2002

After interviewing the automobile and electrical industries, he is

currently in charge of the business world such as three economic organizations.