Start the Revolution

The New York Times, along with every other major media outlet in the world, has been following the resignation of Japan's prime minister, Shinzo Abe, with great interest. "In Japan, Stagnation Wins Again" discusses the country's outdated politic and economical practices. Joichi Ito claims that the current political system's adaptation towards globalization is too little, too late.

"The heart of the problem is that true multiparty politics should have started in Japan decades ago. Soon the members of our own postwar baby boom will be retiring. The looming crisis of a bankrupt Japan, an overburdened pension system and a corporate ecology of pumped-up old-economy companies will be upon us." - Joicihi Ito, The New York Times

While Japan has traditionally been very proud of their political stability, at some point it must be questioned whether necessary change is occurring under a government that is built upon maintaining past standards. Japan is centering too much of their economy on industries such as steel and oil. While this is ideal for larger countries with a greater amount of natural resources, Japan needs to focus on what it has in spades: human capital. Industries such as high tech, where Japan is blazing past the US, with internet speeds 8 to 30 times faster than we get stateside, and considerably cheaper rates. Applying this unique technology to engineer cutting edge software, along with using Japan's other technological strengths, would break new ground for the Japanese economy and establish fresh markets that are not reliant on exports to China. Japan needs to establish a unique identity in the global market, and instead of producing resources, they should focus their efforts on utilizing the substantial intellectual resources of a well-educated population to advance in the realm of science and innovation.

Related articles:

• Japan's Recovery Lies Through China
• Is the Japanese Recovery For Real?

Obviously, there is more than one side to every good story. Will China continue to support the Japanese economy? Similar to the dot com burst, I think that a popular old cliché holds particular weight- "What goes up must inevitably come back down."