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TM, ®, Copyright © 2007 Piero Scaruffi All rights reserved.

Articles on Japan after 2010
The source of Japanese wealth
How to build a society of engineers
Give me ambiguity or give me something else
Japanese traditionalism versus Chinese westernization
The ultimate service society
How to build a peaceful society
An industrial revolution without a scientific revolution
Articles on Japan before 2009

  • (october 2010) How to build a peaceful society
    (Report from a trip to the Pacific region)
    Japanese society is amazingly crime-free. Japan is also one of the most pacific countries in the world. If one exclused domestic abuse (which is still widespread) society is free of the kind of verbal and physical violence that is common in the West. In particular, there is none of the extreme violence that is pervasive in the USA (make one mistake while driving and someone will show you his middle finger, hit someone in the supermarket and he might threaten to beat you up).
    Japan used to be a land of continuous warfare: many states fighting each other. After unification, it became a militaristic power. After beating Russia in a war, it became an imperialistic power that tried to conquer all of Asia. Even after the USA defeated it, Japanese soldiers continued to fight heroically, refusing to surrender. Therefore its history is far from peaceful. For a long time the prevailing myth was the myth of the samurai, not the myth of the Buddhist monk.
    If one could pinpoint what caused Japanese society to change from being so violent to being so peaceful, one could try and apply the same medicine to the rest of the world. Unfortunately, the answer might be horrible; two atomic bombs.
    TM, ®, Copyright © 2009 Piero Scaruffi All rights reserved.
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  • (october 2010) The ultimate service society
    (Report from a trip to the Pacific region)
    Customer care reaches quasi-religious levels in Japan. From the restaurant waitress to the train conductor everybody is trained to help the customer in every possible way.
    This is the ultimate service society. You can see it from many little details. For example, the train ticket bears both the departure time AND the arrival time. In the West the ticket seller is only interested in telling you at what time you have to show up. The ticket seller is only interested in selling you the product. Once you are on the train/plane/bus it is your business to find out how long the trip is. In Japan the ticket tells you what time you have to show up AND the one thing you really want to know: at what time do we arrive?
    The difference between the Japanese service society and other western societies is that te Japanese seem to truly care for your well-being. Ultimately, they are all customers: when they get off work, the waitress and the conductor become ordinary commuters and consumers, and they benefit from the same service society for which they work. This infinite loop seems to be more than just a capitalistic device to win repeated customers: it seems more like a religion. Ordinary people rarely talk to the foreigner, but they are very helpful whenever the foreigner asks for help. They worship the customer the same way they worship their ancestors.
    In the USA your job is to pretend to care for the customer (a marketing device). In Japan your job is to care (a cultural device).
  • (october 2010) An industrial revolution without a scientific revolution
    (Report from a trip to the Pacific region)
    Thanks to the scientific revolution (and the innovations in transportation and warfare that followed), Europe conquered the world.
    The first European colony to win independence, the United States of America, became the largest economic power and the most powerful military power in the world. Since the USA was a former colony, it initially despised the old European order based on colonialism. It is thanks to the emergence of the USA as a world power after World War II that Britain and France had to let their colonies go.
    A few decades later the USA empire had another traumatic effect on the world order: progressively, all of the newly independent countries adopted the free-market capitalistic model of the USA. When the last enemy of this model (the Soviet Union) collapsed, this process of conversion to the free-market ideology accelerated leading to a global economy. The global economy, in turn, led to a world-wide economic boom that mostly benefited emerging countries (many of which used to be former European colonies, and China was de facto too a European protectorate).
    Therefore the USA empire has caused a three-staged revolution in world order: 1. decolonization, 2. globalization, 3. world-wide economic boom.
    After the financial crisis of 2008 (that has mainly hurt the Western countries) it appears that the fourth stage will be a pre-colonization order, with the Chinese and Indian economies dwarfing the European economies, and threatening USA dominance.
    However, something is missing. These former colonies are undergoing the process of massive industrialization that Western Europe underwent after the scientific revolution, but these former colonies never had a scientific revolution, nor did they contribute to it in any form or fashion. Europe had Galileo, Newton, Maxwell and Einstein, just to mention Physics. It boasted countless discoveries, inventions and theories. The industrial boom was a consequence of that intellectual boom, that eventually migrated to the USA. The USA became the world's main producer of scientific theories, technological inventions and Nobel prizes.
    Today the USA is still the main (almost the sole) producer of ideas. Because the former colonies have rapidly industrialized, it has also become the main consumer of foreign products built around those ideas. The industrialization of Europe's former colonies consists in building products out of Western scientific inventions and technological innovations.
    It was Japan that invented this economic model: build better products based on USA inventions. Japan contributed no major scientific discovery, and no real invention. Its success has been due mainly to manic refinement of other nation's ideas. Initially it also relied on cheap labor. Now that its currency has become one of the strongest in the world, it simply relies on making better products. But it still does not rely on native inventions: the radio, the television set, the computer, the videogame and the cell phone were all invented abroad (all in the USA, by the way). The developing world is simply imitating the Japanese model: build products around USA inventions.
    The Japanese relies on a closed system: a number of large companies manufacture all sorts of products. Their research laboratories continuously improve consumer products. There are virtually no startups, only large multi-purpose corporations. By definition, large corporations tend to refine ideas, not create truly innovative ideas.
    The very motivation to go to work is different in Japan from the USA. Employees are faithful to their company and expect their company to take care of them. There is virtually no job mobility: employees are not looking for jobs elsewhere, and companies don't lay off employees. One is faithful to the other. The chief goal is not to create innovative products but to provide stability to both the individual and the company.
    It is not that the Japanese system stifles innovation: the system is a consequence of a society based on no real innovation, a society that never underwent a scientific revolution.
    The developing is following the same path: an industrial revolution without a scientific revolution, that will rely on building products based on USA scientific discoveries.
    Japan is now stuck in a chronic stagnation. One wonders if the lack of a scientific revolution, rather than an aging population or a rising currency, might have something to do with it. If so, one wonders if that is the common destiny of all emerging economies, the fifth stage: not the golden age of Asia but an age of chronic stagnation.
    TM, ®, Copyright © 2009 Piero Scaruffi All rights reserved.
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  • (october 2010) Japanese traditionalism versus Chinese westernization
    (Report from a trip to the Pacific region)
    The world always thought of Japan as a westernized country (it is in fact often included in the list of western countries) but now that the whole of Asia is becoming westernized Japan is beginning to look like the exception to the rule, not the model of the rule.
    It's amazing how Japan is still Japan, while China (at least the big cities) is becoming westernized so rapidly. In so many ways the Japanese have remained faithful to their traditions, whereas China is rapidly becoming a copy of the USA. For example, Chinese-style hotels (not to mention restrooms and toilets) are disappearing, replaced by USA-style hotels (and restrooms and toilets), whereas Japanese-style hotels are still commonplace, and they mostly have the old-fashioned Japanese restrooms.
    Japan never adopted Western food. There are few foreign restaurants. Bread is now common all over the world, except in Japan.
    Very soon all Chinese will speak English as the second language, something that Japan never managed to achieve in 60 years of tight USA alliance. And so forth.
    I guess the difference is that China is a dictatorship and people must do what their government tells them to do, whereas the Japanese government never ordered a total compulsory westernization of the country.
    The condition of women too is part of this picture. While more and more women work, almost none has an executive position in a large corporation, and none has any major political position in parliament. The vast majority are housewives. The 30% who work are mostly employed in part-time positions, and often in "kagyo" or household chores. The contrast with China (where many police officers, bus drivers and government officials are women) is stark. Japan is a nation that still has women-only cars in trains, and in which most business hotels do not accept women. Most women do not walk properly, as if their feet had been injured. Japan is quite amazing as the only developed society that wasted 50% of its potential.
    For decades the world thought that there was something fundamentally more "modern" about the Japanese people that allowed them to join the ranks of western countries, compete with them and even beat them. Recent history has shown that there was nothing special about Japan: once they became democratic and capitalistic, all the Asian countries followed suit: Singapore, Taiwan, South Korea, Thailand, India, China... If there is something different, it is exactly the opposite: Japan seems to be more jealous of its traditions. It just so happens that it lost the war and it was "colonized" by the USA, hence it was the first Asian country to become heavily westernized. But with every decade, as the other Asian countries become more and more westerized Japan reveals to be less westernized than it looked like.
    TM, ®, Copyright © 2009 Piero Scaruffi All rights reserved.
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  • (october 2010) Give me ambiguity or give me something else
    (Report from a trip to the Pacific region)
    One of the biggest contradictions of Japanese society, and perhaps the fundamental one, is the unlikely coexistence of precision and ambiguity. The tourist is exposed to Japanese precision mainly thanks to public transporation, which is notoriously super-humanly punctual. Tidiness at all costs (street cleaners even pick up cigarette butts, and everybody routinely uses different shoes for outside, inside and restrooms) is a direct consequence of the idea of precision. Honesty is an indirect consequence of the ideal of precision: a honest society has precise rules that nobody ever breaks.
    At the same time, though, Japanese businessmen are maddeningly vague when they negotiate a contract. The conclusions are invariably vague, as if they didn't understand or were not interested, whereas they perfectly understood and were interested. They rarely say yes or no, preferring to let some consensus arise spontaneously. Eventually, the negotiation will end with all details hammered out.
    Japan is a nation that does not believe in street signs (nobody uses addresses here, and it's rare to see the name of the street at an intersection) but then it posts detailed instructions everywhere, and restaurants even display pictures of the dishes.
    There is uncertainty in where you are but not in what you do.
    There are recycling bins everywhere but rarely a garbage cans (it is clear what to do with materials that can be recycled but not clear at all what to do with the rest).
    The Japanese are supposed to worship their ancestors but kids don't surrender their train or bus seats to elderly people (like they do, for example, in Taiwan).
    One can see another form of ambiguity in the way high-tech is pervasive but then Japan is still a cash-only country (credit cards are rarely accepted) and ATM machines don't accept foreign cards. Japan has the fastest trains in the world, but traffic lights have no sensors.
    More ambituity: Japan might be the cleanest country in the world, but it is also the biggest waster of plastic in the world. It is staggering how many layers of plastic are used to wrap any object, especially food. Ditto for paper: employees of both private and government offices love to hand out maps of their neighborhood when giving even the simplest of directions.
    Japan is very much this balance of ambiguity and precision.
    TM, ®, Copyright © 2009 Piero Scaruffi All rights reserved.
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  • (october 2010) How to build a society of engineers
    (Report from a trip to the Pacific region)
    Reading the history of Japan, that for centuries was a land of warriors (samurais), farmers and fishermen that couldn't even build ships, it is a mystery how it transformed (almost overnight) into a nation of engineers. Until the Meiji revolution of the 19th century Japan had virtually no experience in engineering. Once they decided to westernize the country they rapidly learned how to build things (and very often the founder of a manufacturing company would be the descendant of a samurai). After World War II that process accelerated. Unlike China, though, that has thousands of years of tradition in manufacturing, Japan had to start from scratch. Nonetheless Japan came to be the world's role model for engineering.
    To achieve such a feat a nation needs the skills and the motivation. The skills to build an engine, a watch or a radio were just not there. The state of mind was not the one in Britain, where the industrial revolution had produced over the centuries a mindset biased towards engineering advances. In Japan that motivation could not naturally evolve. But it did.
    TM, ®, Copyright © 2009 Piero Scaruffi All rights reserved.
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  • (october 2010) The source of Japanese wealth
    (Report from a trip to the Pacific region)
    When it comes to security, the contrast between Japan and the USA couldn't be stronger: the USA feels like a police state compared with Japan. In Japan you can leave luggage unattended and go buy something (it also helps that thieves don't exist). There is no metal detector when you enter a skyscraper and nobody asks you why you are there. There are still lockers in all train and bus stations where you can store your luggage, and nobody checks their content. Police officers are never suspicious of you: they mostly want to help you find your way around. You can take pictures of any government building. All of this is rapidly disappearing in the USA, that will soon be just a memory of the free country that it used to be. The reason why the Japanese feel so secure is that there is no terrorist group targeting Japan. The reason why no terrorist hates Japan is that Japan is not involved in any conflict in the world. The reason why Japan is at peace with everybody is that someone else is doing the dirty job for it: the USA. Japan does not need to protect itself against North Korea and China: the USA does it. Japan does not need to protect the mercantile routes to the Middle East, Latin America and Europe: the USA does it. Note that those routes are more vital to Japan than the USA: the USA produces about half of the oil it consumes, and imports most of the rest from the Americas (Canada, Mexico, Venezuela), whereas Japan has no oil at all of its own; and the USA economy does not rely on exports to the rest of the world as much as the Japanese economy does. There are no domestic or foreign threats to Japan because the USA absorbs all the risks and all the blame. The spectacular cities of the future that Japan has built since the 1980s would immediately become targets for terrorists if they were located in the USA. Ditto for the monumental railways and government buildings. From the viewpoint of foreign affairs, Japan is largely a worry-free society: someone else is doing all the worrying.
    To make things even better, the USA is the very country that buys most of what Japan produces. Simplifying a bit, the USA has been patrolling the world so that Japan can build competitive products that it then sells to the USA. The USA pays the bill twice: first with its defense budget (which is essential to protecting Japan's mercantile routes and to maintain peace in the region) and then with all the money that USA consumers spend to buy Japanese goods.
    TM, ®, Copyright © 2009 Piero Scaruffi All rights reserved.
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    Articles on Japan before 2009
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