Kiyoshi Kurokawa's blog （en）

‘Japan as Developing Country in Environment Business’; The Truth Revealed at Last?

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Have you read ‘The special’ in March 1st issue of Nikkei Business Magazine?  (Why is it that you are charged fee to read this on Internet and how long?)

The opening article of this issue is ‘This week’s focus’ featuring President Masamitsu Sakurai of Rikoh and Chairman of Keizai Doyukai (Japan Association of Corporate Executives).  He has been sending out keen critical messages on a insular mind-set of business sector. Thus, I sense the editor’s will in combining this article with ‘The Special’ of this issue.  It’s a good choice.

‘The Special’ features from page 22 to 39, with a title, exactly - ‘Japan As Developing Country In Environment’.  Japan’s business sector has been for long, too inwardly and technology focused, thus trapped in ‘excessive belief in its technologies’ that it has not  effectively captured the market in the world flying with global clean energy movements..  Especially mega corporations are too much obsessed with the logic of itself that they are neglecting the world trend - does not have ‘first hand experience’ of how the global world is moving ahead to siege the opportunities.  When they discuss issues, what they mention is only ‘reasons for difficulties; why things cannot be done’.

For a long time, Japan was regarded as the leader in Environment Technology.  Energy efficiency, water treatment, battery etc…. But how are they performing in global marketplace?
 

Although we may have many advanced technologies, we can’t think in a  'global, vertical, way' nor do we have ‘know-hows’ to develop vertically to capture growing global market.  Japanese manufacturing sectors, particularly electronics industry, have been ironically called as ‘Galapago-nized’ (Ref.1) thus, developing most advanced manufacruting precision and technology, but failed to lead the global marketplace effectively with profit-making business models.  Most Japanese have poor connections to people of the world, and many executives do not have reasonable command of spoken English.  Large number of big corporations are led by executives and leaders who are rising within their own hierarchial organization structure with ‘Sakoku (national isolation)’ mind-set, clinging to the memory of past ‘success’.  All these are the result of being content with domestic business, and being aversive of taking any (even calculated) risks going abroad I would say.  What lies in 10-20 years ahead of young people who strive to be hired by those companies?  Maybe it is reflected in the middle manger level ‘human resource’ of these companies.

Many examples exist of not being able to see ‘things’ in a big picture, cannot conceive and  tell ‘stories’  (in Japanese). Technologies are of little use if not used as a part of attractive stories.

It is obvious that it was not just electrics industry that had these problems, but the problems strangely seem to be prevailing in many established large companies, often hanged on to the business as usual, missing the chance of big change.

We do see some good signs though, but they are too small and lack speed, the fact pointed out repeatedly in my blog postings.  The traditional career path in Japan of ‘single track’ is the barrier of change.

What is important is to send messages to Japanese citizens firmly and repeatedly. This is the mission of media so that the necessary policies’ could be implemented with wider public support.  We must realize that ‘Kurofune’ (blackships led by Commodore Perry to open up Japan some 150 years ago) will not come any more’ (Ref.1).

I have posted several reports on nuclear power plant project won by Korea. Further, rapid growth of Korean companies such as Sumsung, LG, Hyundai, Posco, as well as more recent outstanding performance of Korean athletes in Vancouver Olympic are also impressive.  At this timing, came the Toyota problem.

Oh, Japan, cheer up and do your best! Japanese business leaders, buckle up!  The same goes for university leaders, too.

The basis of a nation is nurturing/education of human resource and human capital.  What kind of education?  This is another story for preparation of ever flattening global world..

Recently, there are reports and some sense among many Japanese establishments to learn lessons from Korea as well as China which I am happy to see.  “Always to be a humble learner’ is a wisdom from ancient time.

From Botswana to the Center of French Wine

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Romanee Conti

After spending 5 full days in Botswana, I said farewell to this charming nation to the next destination in the evening of February 28th.  By the next morning, March 1st, I was at Paris CDG airport via Johannesburg.  Took TGV to Dijon（photo 1） then from here to the center of Burgundy wine.   Then got on a car to run throughRoute des Grands Cru stopping by at ‘Romanee-Conti’ （only about 1.8 hectare…）（photo top and 2）, everybody’s dream, and finally arrived at Savigny les Beaune, the heart of Burgundy wine .  Here the vineyard spread for more than 40km!

In the afternoon, relaxed at one of the local wineries ‘Simon Bize et Fils‘ (Ref.1) (Photos). Time passes slowly here.  We enjoyed various good tasting wines.

Next day, we spent half day at Beaune ‘The Center of the Burgundy Wine’ （Photos）  This town had good soothing atmosphere, good food, sweets, chocolates…  We had lunch at ‘Caves Madeleine’.  As you can imagine from her name Mrs. Rika is Japanese.

 Photo１To Dijon by TGV

 Photo ２ Romanee-Conti

 

Caves Madeleine、Madame Rika and her husband Monsieur Rawland.

Food is all nice and fresh here and wine is of course local product..  Here, life is so nice.  I saw several Japanese youths in apprenticeship of wine making and other jobs.  There were some who even plan to stay here for living.  It is encouraging to see those focused and determined young people.

‘Hospices les Beaune’ (Photos)  a hospice known throughout the world, was established in 15th century in this town.

And of course this place is famous for Dijon Mustard.

I will stay here for two nights before leaving for Paris, my next destination.

 

From Botswana -4

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Photos from Botswana are at; http://www.flickr.com/photos/whsaito/sets/72157623508216878/

I spent 5 full days giving advices in sessions with Botswana government on policy development and implementation..  It was a hard and exhausting task but rewarding at the same time as seen in local media.  However, follow-ups are equally important.  Botswana expects a lot from Japan so we - Japanese government, business sector, and universities - should all work harder together.  From here, the private sector, in part with our government, is expected to take leadership in developing partnership with Botswana government. Akita University has also begun collaboration with Botswana.  This is wonderful!

The advantages of Botswana is its huge land (1.5 times of Japan), rich variety of natural resource, highest level of maintenance of natural reserve and potential for wonderful tourism, existence of largest number of lions and elephants and other wild life, compulsive education being provided to all citizens, English as an official language, stable government, society in good order/security, GDP of USD$6,000/person, etc.  Its weak points are; population of only 2 million, diamond being the highest percentage (40%) of government revenue, about 20-30% of the population in poverty, HIV/AIDS still dominant though reducing, etc.  However, I think that the highest potential lies in the fact that this nation is located in the center of southern half of Sub-Sahara.

In this global age, how can Botswana take their advantages while managing their disadvantages?  This viewpoint is the basis of recommendations for policy making of Botswana.

From Botswana －3

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Photos from Botswana are at: http://www.flickr.com/photos/whsaito/sets/72157623508216878/

In the evening of 25th, the second day at Botswana, I was invited to a reception at Phakalane Golf Estate and Hotel Resort with Dr. William Saito of GRIPS and Mr. Tada of Sojitz Corporation who traveled with me, as well as Minister Kosaka of Japan Embassy in Botswana and Mr. Nakai of local NHK office.

On 26th and 27th, we had discussion sessions on science, technology and innovation policy of this nation.with the 6 ministries of Botswana government, University of Botswana, 4 national research centers  Everybody was very passionate but on the other hand, had, understandably, tendency to see things from their own points of view.  For instance, university was obviously focused on the importance of research asking for more government funding, but was not too prepared to answer questions such as what kind of jobs are available to students after graduation.  I do understand well, though, of faculty’s concern.
Interestingly enough, after having a joint meeting with 3 ministries due to their (and our) limited time, they said that they learned much from this style, ie, cross pollination, a critical issue for innovation or out-of-box thinking.  Looks like this kind of joint meetings are rare here, too..  I felt that government officials are alike anywhere.

On 26th, we went to'Mokolodi Nature Reserve' nearby using spare time in the afternoon.  Seeing beautiful wild life is a pleasure – always gives us some moving experience.  However, this place is not a full open nature reserve.  So we cannot complain if the views are not as impressive as Masai Mara of Kenya or Serengeti of Tanzania.  I look forward to coming back with enough free time to visit real nature in this beautiful country, like Okavango Delta, Kalahari Desert, Zanbezi River, variety and richness of wild life such as lions and elephants – they are the treasures of Botswana.

In the afternoon of 27th, we went to Lobatse （I found Western Union (Ref.1) here, too） to visit JOGMEC  (Japanese websites are in many cases not visitor friendly.  I wonder why, and wish to see more improvements). They are helping in searching natural resource using satellite and met Director Suzuki and Mr. Numata - I respect their hard work.  This day, we traveled more than 200 kilometers by car the route along the great ‘Mokolodi Nature Reserve’.

Anywhere I went, a hot and heated discussion took place which was well worth the time.  There are lots of issues and challenges – from bilateral ones between Botswana and Japan to those that must be considered in larger frameworks. How can we cooperate and collaborate? This is the question.

From Botswana-2: Domestic and International Money Transfer, Mobile, and Western Union

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Photos from Botswana are at; http://www.flickr.com/photos/whsaito/sets/72157623508216878/

Botswana is a very big country, covering 581730 square kilometers of land approximately equivalent to France.  So far, I learned that in Botswana mobile phones are used widely, official language is English, compulsory education is widely spread and most children go to school until 10th grade (equivalent to high school 1st grade in Japan).  Tuitions are free with government support.  Such policy for education indicates without doubt, this country has a great potential.  Such characteristics are the strength of this nation.

On February 19th, I posted a column on ‘Western Union’ pointing out how terribly closed Japan’s policies are.

I received several comments and feedbacks from frequent visitors of my blog site.  With the visionary leadership of Vodafone, a cross-border Mobile Money Transfer (MMT) service between the UK and Kenya will be piloted.

In Kenya, ‘Safaricom’, a leading mobile network operator, is offering a service of transferring small amount of money via mobile phone.  This is apparently quite useful in many countries in Africa, where social infrastructures such as transportation and communication are still developing.  Even ‘Western Union’ cannot be of much use if the areas do not have Western Union offices to remit money.  So this kind of money transfer service is an example of a new ‘Demand-driven innovation’.

Sending money via mobile domestically seemed to be quite simple in Botswana.  I saw immediately one Western Union office in town.

In countries that rely on foreign work force such as the United Arab Emirates, sending money to family at home can be an important business.  Remittance to abroad from UAE is estimated to amount up to one trillion yen (10 billion dollars), and it seems that more transparent service of remitting money via mobile phone is going to be available soon.

Are Japanese banks against offering services of sending small money easily via mobile phone or other devices?  If so, then why?  Could it be because they raise a good profit by charging a very high handling fee?  In this ‘Flattening World’ where big paradigm shifts are taking place, institution and corprate that try to fight against the trend of this majot CHANGE will certainly and inevitably decline and a sure loser.  Wake up and get on to the world!

From Botswana

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Photos from Botswana are at; http://www.flickr.com/photos/whsaito/sets/72157623508216878/

Here I am in Botswana at last. 

I arrived at Gabarone, the capital of Botswana, precisely after 24 hours' flight from Narita via Hong Kong and Johannesburg.  The weather is beautiful.  Hot but dry.  I directly checked in to Walmont.

In the afternoon, I visited people from BEDIA and Botswana Innovation Hub to discuss and exchange views on Botswana’s Science, Technology and Innovation policy.  Our discussion turned out to be very heated and enthusiastic.

The challenge is how to draft mid to long term strategic policies for the nation’s growth with recognition of strength, advantages, and weaknesses of Botswana taking into account today’s trend of shifting to a flattening and interconnected world.  What are the major strength and advantage of Botswana?  And what are its weak points?

On the other hand, hearings of Toyota are in progress at U.S. Congress today and on television broadcastings.  It is reported as a very big news in US and elsewhere.  I suppose it is so in Japan, too.

‘North Korea, Iran, Myanmar, Somalia, and Japan’; What Do They Have in Common? Is Japan a Closed Country After All?

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Have you heard of Western Union?  It is a financial services and communications company of the United States.  This company was founded in the 19th century.  Mr. Cornell, one of its founders, is probably more familiar to many people through Cornell University, a prestigious university which was named after him.

Western Union started primarily as a telegraph and communication service company but with the rapid progress of IT technologies has spread its area to online money transfer services etc.  Now, it has a global network which is so handy for sending money.  Anywhere in the world, your credit cared is accepted, you can send checks, so you will hardly feel need for sending cash.  You are able to send money to your family abroad or send money to your family or friends from overseas by using a big bank.  Payment via internet is also possible, particularly in developed countries, but I feel there are some limitations to it when it comes to a personal level. 

Many foreigners come to Japan to work.  Many of them are from poorer countries, i.e. ‘migrant workers’.  How they send money to their families, I wonder.  Can these people open an account at Japanese Banks without any difficulties?  What local banks offer services to them?  Are these local banks willing or capable to send money to overseas for these workers?

Quite a number of foreigners work in Japan.  Of course, people from high society or people working for big companies may not have such problems. Nurses from Indonesia or Philippines are allowed to work in Japan these days in the field of elderly care or nursing is permitted for up to 3 years. However, if they wish to stay longer, they are required to pass the national qualification exam IN JAPANESE during that initial 3 years.  I must say that this hurdle is very high – more of a kind of harassment, ‘a sign of closed country’.  Who is opposing to accept these people?  Please think hard.

By the way, do you know how these people are sending money to their family at home?  I imagine that many think of Western Union and many others wish they could.  All you have to do is go to a counter of Western Union, hand them cash (and a processing fee – about 10% or so), designate the recipient, and receive a Money Transfer Control Number (MTCN).  Then, you tell the intended recipient, using telephone or any other means this number and the amount you have sent to the recipient. That person will in return go to their local Western Union counter, show their ID and tell the number you gave him/her in order to receive the money.  This is truly convenient, especially for the people in developed countries.

So, how broad is the area covered by Western Union?  You will be surprised to know that its service is available almost every countries of the world.  Today, the nations not covered by Western Union are ‘Iran, North Korea, Somalia, and Myanmar’; probably because these countries do not have diplomatic relations with US.  And another country is ‘Japan’.  Yes, there are its branches in the US military bases in Japan but the service is not available to Japanese.  I suspect that the Japanese authorities are holding back permission to do business by crafting various reasons or logics, but I seriously question their attitudes.  Oh, give me a break!

How are those foreign workers in Japan sending money to their family back at home?  I hear that various underground money transactions are going on – most likely with illegally higher rebates; sadly  Japan is and want to remain really special?

Toyota Problems; Are They Unique to Toyota?

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Recalls of Toyota cars spread and accelerated its speed in late January.  This is such a regretfully serious problem not only for Toyota but Japan as a nation because the corporate ‘Toyota’  is an iconic company which represents Japanese technology and quality of manufacturing, a company which represents Japan to the world and is deeply trusted by the world.

To be frank with you, I would rather refrain from commenting further on the Toyota problems since I have brought them up in my web-site twice already (Ref.1).  I think the problem is deeply rooted and can be identified in any Japanese mega corporate; and in their background you will find characteristics such as ‘Tate Shakai (Hierarchical Society)’, ‘Male chauvinistic society’, ‘Seniority-based promotions’, ‘Difficulty in sliding sideways (difficulty in changing job)’, ‘Permanent employment and big severance package’, or ‘Monozukuri shinko (Faith in manufacturing)’ – elements which reflect traditional Japanese ‘Common Sense’.

The Economist magazine points this out in its most recent issue （Ref.1） .  It is the same as what I repeatedly point out – the wrong responses of Japan (which are commonly seen in many cases) to this flattening global society.

Not only Toyota but many other big companies embrace the same problems which you see as illustrated in this Economist article.

I urge people in business sector to buckle up, too.  Political leadership faces big issues, but business sector clearly needs a drastic reform as well.  It might be a beginning of 'The Third Lost Decade', I fear.  I don’t think we have much time left for CHANGE.

Toyota’s Problems and Sufferings: Eyes to See From Outside, Hearts to Sense Outside

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Although Toyota announced the recall of a huge number of its cars, problems are still likely to continue for a while.  The news coverage has been pretty in U.S. including the news of President Toyoda’s possible visit to the U.S. very soon.  Toyota hearings expected at the U.S. Congress, responses of the US legislators, reports and articles,…… there are plenty of overseas media coverage open to public in this internet age – news coverage in Japan are not the only source of information to us.  All you have to do is just ‘Google’ Toyota.  It is important to follow news from various aspects.  Especially, in this case, it is about the leading company of Japan and the problems were identified mainly at overseas, mainly US, the largest market of Toyota.  Relying only on Japanese media will be misleading.  Quite many good source of information is available via internet, the media of web age, including internet newspapers and magazines.

I would say that the newspaper most read by business persons of the world is Financial Times  (circulation of 420 thousands is pretty modest compared to that of major Japanese newspapers, but its impact to the world is incomparably huge compared to Japanese newspapers), and a weekly magazine most read by business persons of the world is The Economist. What do you think?  Articles in Financial Times and The Economist report news of the wide world, they do not particularly take U.S. side, is often critical to U.K, too, the reports they write are high quality, and their views are well balanced as well as objective.  These characters are what you might call ‘the British style’, but I feel that many articles are indeed the ‘works of professionals’, i.e. they grasp good timing, and has very good focus.  Personally I am a fan of these two and have them in my ‘Kindle’.

For Japanese readers who do not read much English, I recommend ‘JBPress’ , an On-line Press.  I read ‘Toyota Slips Up’ and ‘Toyota　Losing Its Shine’  in The Economist 2009 December 10 issue and was a bit concerned when I found President Akio Toyoda’s comment saying that he thought ‘Toyota is already at a dangerous point’ after he read ‘How the Mighty Falls’ by Jim Collins.  A large part of these articles in The Economist is available in Japanese at JBPress.

The Financial Times also has some coverage on Toyota issue recently, and some of them are translated into Japanese, again at JBPress.  (These articles include ‘Toyota By Itself Invited The Fall Of Its Reputation’ , ‘Staggering Sons Of Toyota’, ‘Toyota Messes Up With Customer Service, Its Damage Control Is Not Working’, ‘Safety Crises Threatens Toyota; The Price It Has To Pay For Going Too Far in Spreading Its Market Share’ ）  I feel that these two newspaper and magazine are musts for business persons.

What happened to Toyota – a company known for its technological excellence?  Mr. Reizen who is sending out messages from U.S. gives us good insights into the brake and accelerator of electric car.  (this web-site is run by Mr. Ryu Murakami).  His information made several things clear to me.  In this new system of electric control, the mechanism of brakes and accelerators are very different from traditional ones.  However, this is no excuse to end users, i.e. the drivers.  Brakes and accelerators are particularly important components for drivers, and if anything goes wrong with them, it may directly cause accidents which will risk the lives of drivers or other persons in the car, or people involved in the accident. Automobile makers are responsible for being strategically prepared to provide cutting edge technologies, create market value of their products, and build good customer satisfaction/social relations.

In other words, the point is whether you are capable of telling customer-oriented ‘stories’ of cars, of driving.  It’s not just about developing great technologies.  Securing good control of parts that directly connect to safety of human life must be a top priority.

The press meeting of Toyota was, as I have written in my previous column, a big problem.  What kind of attitude/meeting is good to the eyes of the public?  To answer this question, a team of professionals is critically needed.  All Toyota members, I expect a lot from you.  Please keep on working hard.

‘Getting Health Reform Right; A Guide to Improving Performance and Equity‘： A monumental work.

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Health Reform is without doubt a great issue in any nation of the world.  In Japan and the United States, too, it is counted as one of the most pressing challenges in national political agendas.

In each country, there exist complicated elements – social, political, economical, cultural – unique  to each society and country, but on the other hand, medicine and health care technologies are developing faster in speed.  There is no such health system which fits to every society and country.  Developed nations are struggling on how to reform existing system, which is one of the greatest challenges for policy makers of today.   In the world where information spread with no time, the gap between expectation and perception of the society and actual reality of the health care as they see receive continues to widen.

Large numbers of books on health care system are available including those which illustrate the reform carried out in many countries.  Any universal model does not exist, so each ‘leaders/experts’ must learn as much as possible and speak from better perspective, not only from the value of one’s position.  As I often point out in this web-site and elsewhere (Ref.1, 2), it seems that too many leaders/experts in Japan speak only from their limited personal experiences or positions, thus tend to be less objective and not much perspectives, visions for a bigger picture or longer time frame.

This is one of weak points of ‘Tate shakai (Hierarchical society)’ of Japan where the great majority of people pursue their careers in a linear style (i.e. within the same organization and often seniority-based) within Japan.

Several days ago, ‘How to Realize Health Care Reform’was published from Nihon Keizai Shinbun sha.  This is the translation of ‘Getting Health Reform Right; A Guide to Improving Performance and Equity‘（2nd edition, 2008） by Professors of Harvard School of Public Health, Drs Marc Roberts, William Hsiao, Peter Berman, and Michael Reich.  Japanese students who were taught by the authors translated it.  Please search for this book at Amazon.

What makes this book unique from other books of the same theme is that the authors have rich experiences in many countries, understand the difference of social backgrounds of each country; they write not only about policies but also analyses of five ‘Controllers’, i.e. ‘Finance, Expense, Organization, Rules, Actions’, and discuss ethical, political aspects (of the policy) as well as the processes that explain how reform is possible.  The content is very rich and outstanding

The book also provides the analysis of issues and situations pertinent to Japan, how to make reform possible, how policies being developed and advanced on what basis…   Everything is so well thought-out; they encourage us to see the health policy from overall perspectives, stimulate our practical thinking.

I would sincerely like to express my deep appreciation and respect to the four Professors of Harvard University who had written such a wonderful book as well as those who planned and carried out the publication of its Japanese translation.  It was my pleasure and honor to be asked to write a ‘recommendation’（in Japanese ） in this book.

This is a book that I recommend strongly to anyone who cares about health policy.  The price seems a bit high (4,500 yen), but is well worth it.