JAPAN AS-ANYTHING BUT- NUMBER ONE Also by Jon Woronoff WEST AFRICAN WAGER ORGANIZING AFRICAN UNITY HONG KONG: CAPITALIST PARADISE KOREA'S ECONOMY, MAN-MADE MIRACLE JAPAN: THE COMING SOCIAL CRISIS JAPAN: THE COMING ECONOMIC CRISIS JAPAN'S WASTED WORKERS INSIDE JAPAN, INC. WORLD TRADE WAR *JAPAN'S COMMERCIAL EMPIRE THE JAPAN SYNDROME ASIA'S "MIRACLE" ECONOMIES * POLITICS, THE JAPANESE WAY JAPAN'S MARKET: THE DISTRIBUTION SYSTEM * Also published by Macmillan Japan as -anything but Number One Jon Woronoff M MACMILLAN ©Jon Woronoff 1990 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 33-4 Alfred Place, London WClE 7DP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. First published in Japan by Yohan Publications 1990 First published in the United Kingdom by Macmillan 1991 Published by MACMILLAN ACADEMIC AND PROFESSIONAL LTD Houndmills, Basingstoke, Hampshire RG21 2XS and London Companies and representatives throughout the world British Library Cataloguing in Publication Data Woronoff, Jon Japan as-anything but-number one. 1. Japan I. Title 952.049 ISBN 978-0-333-54567-6 (hardcover) ISBN 978-0-333-54568-3 (paperback) ISBN 978-0-333-54568-3 ISBN 978-1-349-21353-5 (eBook) DOI 10.1007/978-1-349-21353-5 Contents Foreword 1. Introduction (Appearances Can Be Deceiving) Welcome To Wonderland .......................... 11 Distinguishing Honne From Tatemae .............. 19 PART ONE: SUPERIOR GRADES 2. Japanese-Style Management (Fact Or Fiction?) How It Really Works .............................. 29 Not Quite Lifetime Employment ................... 35 Harmony Or Else .................................. 39 Less Lovable Than Effective ....................... 46 3. Japanese Companies (The All-Mighty Kaisha) Company Families ................................. 51 The Seven Cs ...................................... 56 When Better Is Worse ............................. 59 4. Industrial Policy (Promoting And Meddling) Targeting Techniques .............................. 69 Industrial Overkill .................................. 74 PART TWO: SATISFACTORY GRADES 5. Economic Progress (Onward If Not Upward) No More Growth Hero ............................. 81 Good Sectors, Bad Sectors ......................... 87 Productive, Not Fruitful ............................ 92 6. Education (What Is Learning?) 4 World Champion Test-Takers ...................... 99 Lower Higher Education .......................... 105 Education Or Induction ........................... 112 (Almost) Time For Reform ....................... 116 7. Crime (Integrating The Criminal Element) Japanese Criminals As No. 1 ..................... 125 Crime? What Crime? .............................. 132 PART THREE: UNSATISFACTORY GRADES 8. Politics (The Japanese Way) Politicians: Fronting For The System ............. 141 Bureaucrats: Making Things Run ................. 149 Businessmen: Pulling The Strings ................. 156 People: Accepting But Not Approving ............ 163 9. Society (Discordant Harmonies) Solidarity Outward, Not Inward ................... 171 Gender, Generation And Other Gaps .............. 179 Meritocracy Or Schoolocracy? .................... 186 10. Internationalization (Time To Join The World) Leadership Or Followership ....................... 197 The Closed-Country Syndrome .................... 205 The U.S. Connection ............................. 210 PART FOUR: INFERIOR GRADES 11. Quality of Life (If You Can Call That Quality) The ''Rich'' Japanese ............................. 221 All Work And No Play ........................... 227 To Make Life Worth Living ...................... 234 12. Amenities (Be It Ever So Humble) Life In A Rabbit Hutch ........................... 243 Glorious Plans And Mirages ...................... 252 5 13. Welfare (What Is There To Be Entitled To?) Desperately Seeking Welfare ...................... 261 Letting The Future Take Care Of Itself ........... 266 14. Conclusion (Japan As No. 23, Or 57, Or Whatever) Learning From Japan ... Sometimes .............. 273 Friends-Or Enemies-Of Japan? ................ 279 Containing The Apologists ........................ 285 Bibliography ...................................... 291 Index .............................................. 295 Foreword The modem myth of Japan is assuredly the biggest hoax of the present age. Here is a country one can freely visit, where one can meet and talk to the people, hear their hopes and fears, ascertain their likes and dislikes, examine their strengths and weaknesses, and describe the result as anywhere else ... a mixture of good and bad. Instead, we have been inundated by books, best typified by Japan As No. 1, that present an incredible and miraculous Japan. This is a place which has achieved far more than any other ever and promises to astonish us more in the future. It is a place with countless successes and rare failures (assuming any are conceded). It is a place where things work out for the best, harmony prevails, and incipient problems are solved in advance by farsighted leaders. In short, it is a fabulous place without parallel. Yet, when you do visit Japan, and look around a bit, you keep on encountering flaws and failings. You stumble into all sorts of conflicts. You meet people who are anything but happy. And the media are full of complaints about nagging problems and warnings of imminent crises. What you see with your own eyes and hear with your own ears bears no resemblance to what you have read. It would be nice to think that one day the truth will out, the myth will be dispelled, Japan will be dealt with like any other place. But that is not the case at present and the trends 8 are very discouraging. When I wrote my first "crisis" book a decade ago, the favorable works outnumbered the critical two or three to one. By now it is easily four or five to one. There is an endless outpouring of views that mystify and mythologize. Yet, in this same decade, things have patently gotten worse in Japan. The economy has obviously slowed down, income distribution has become skewed, while landowners have be come rich ordinary families can no longer afford their own home. There are now poor people as well as many old people who are scared about what will become of them. Serious defects have appeared in the schools. Crime, drug addiction, AIDs, are also threats here. Pollution and environmental dam age continue. Socially, gaps between age, gender and race remain wide and dissatisfaction with the ruling elite has in tensified. Politics are sullied by corruption, sex scandals and, more generally, arrogance of leaders who ignore the concerns of the people. Thus, the gap between myth and reality, fiction and-fact, has only grown as ever more favorable books are written about a situation that is increasingly unfavorable. Yet, what happens when you point this out? You are told by the myth makers that it does not exist. Or that it is exaggerated. Or that it does not matter. You are called a Cassandra and a Jeremiah for looking at the darker side of things. You are informed that you may well be a crank or worse-a Japan basher-for making such a fuss. Maybe so. But I would rather be labeled a critic and a pessimist rather than behave like a Pollyanna who can only see the good or a Pinocchio with an ever longer nose. More over, if I am a critic and a pessimist, I am one with a dif ference. I have been right more often than not in my criticism. I have been right more often than not in my forecasts. In fact, if anything, many situations have turned out worse than I predicted. My track record is infinitely better than those of
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