Nipponica

In simplest terms, Japan’s problem is sclerosis. The country’s economic policymakers have opted for stability, halting the “creative destruction” that promotes innovation and delivers prosperity. “Among all rich countries, it is Japan where new companies find it hardest to get the external funding that is needed for growth. Consequently, the birth and death rate of companies has plunged and is now one of the lowest among 27 rich countries.”

A book review of The Contest for Japan’s Economic Future by Richard Katz. In my own personal experience in the country, this tendency towards risk-aversion and stability is very real.