2016 G7 Summit: Japan’S Time to Rise with the World’S Top Pan More Open and Outward Look- Ing Has Been the Rise of Tourism
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J APAN 2016 G7 Summit: Japan’s time to rise With the world’s top pan more open and outward look- ing has been the rise of tourism. leaders gathering in The government’s drive to increase Japan this month, the the number of foreign visitors 42nd G7 Summit will ahead of Tokyo’s staging of the shed new light on the Olympic Games in 2020 has seen country and show just the country consistently break its annual tourist arrivals record since how far it has come the Prime Minister assumed offi ce in December 2012. It is a success When leaders of seven of the story Japan will no doubt be keen world’s most industrialized coun- to show off to many of the world’s tries gather in Ise-Shima, Japan, most powerful people as host of the on May 26-27 their decisions on 2016 G7 proceedings – which not such weighty subjects as how to only includes the two-day leaders’ support a continuingly weak global summit, but a total of 10 high-level economy, the spread of terrorism, ministerial meetings held in some curbing North Korea’s nuclear am- of the country’s most impressive bitions and reining in Russia will destinations throughout the year. likely capture most of the headlines. However, while the G7 summit But the summit of the Presidents is a wonderful chance for Japan At this year’s G7, Japan will “Discussions at the sum- and Prime Ministers of the United to fl aunt its famous hospitality, want to reaffi rm this vital role as mit will be wide-ranging. States, Canada, Japan, France, Brit- most importantly, the high-profi le Asia’s “representative” by putting There are key issues that ain, Germany and Italy known as the event will be an occasion for the Asian issues fi rmly on the agenda. I will be emphasizing Group of Seven (G7) will also serve country to fl ex its leadership mus- With Japan having worked particu- as a golden opportunity for the host cles and demonstrate to its allies larly hard to improve relations with where I believe Japan nation to showcase its credentials that it can be counted on politi- countries such as Vietnam, the Phil- can play a central role.” as a global and regional leader. cally, as well as economically. ippines and Indonesia, Prime Minis- Over the past two decades, Ja- Perhaps the biggest trademark ter Abe is expected to further illus- Shinzo Abe, pan has been facing the challenge of Shinzo Abe’s reign, besides Abe- trate his and Japan’s regional and Prime Minister of Japan of economic stagnation and isola- nomics, has been his determined global leadership by pushing the tion, but now the country is keen to international relations. The prime challenges facing the Asia-Pacifi c In fact, there is plenty that the trumpet itself as a new, more open minister’s diplomatic relish has region into the spotlight, and par- other G7 nations can learn from and more globally-minded partner. become well-known and largely ticularly the ongoing issue of the Japan. Its women are amongst the Although the jury is still out on fuelled by his so-called “Abe Doc- South China Sea dispute. most highly educated in the world Prime Minister Shinzo Abe’s epony- trine” – one that promotes an As summit chair, Japan will lead and Japanese students score at the mous revitalization plan known ambitious, multi-vector foreign talks on a whole gamut of issues top of the global math, reading, and as ‘Abenomics’ – with his pledge policy that has made him the most affecting the world at large – both science rankings by the OECD. Also to shake up the highly regulated traveled Japanese leader in history. at the main summit and the various according to the OECD, Japan is economy having so far made slow In little over three years, Abe has ministerial meetings – including the healthier than America and most progress – the International Mone- visited more than 63 countries and state of the global economy, envi- European countries, ranking as the tary Fund last month backed Abe’s held more than 400 summits. ronment issues, health and educa- least obese developed country. efforts to open up Japan’s economy “One trend that has clearly tion. Japan, of course, will be eager On the topic of climate change, as well as his massive monetary emerged is that Abe has moved to demonstrate how it is setting an which will be particularly pertinent easing campaign, reiterating that away from Japan’s traditional example in these areas. at this year’s summit following the “structural reforms that raise pro- diplomatic role characterized as Economically speaking, for historic U.N. Climate Change Con- ductivity are vital” for the country. an internationalist middle power instance, despite decades of of- ference (COP21) that took place in With Japan facing a shrinking and nowhere is this more evident fi cially slow macro growth the Paris last November, Japan’s energy domestic market due to its rapidly than in the case of global sum- real economic picture of Japan is consumption per unit of GDP is al- aging population, the Prime Min- mitry,” wrote Hugo Dobson in the rosier than one might anticipate. ready some 30% less than the aver- ister has put globalization at the Global Policy Journal recently. According to the Financial Times, age of other G7 nations, making it a forefront of his economic policy, “Japan has traditionally cherished in the decade from 2005 to 2014, top performer in the world. knowing that it is not only one of its seat at the top table, acted in real GDP per person grew more in “Discussions at the summit the country’s best hopes of secur- its self-appointed role as repre- Japan than in the United States, will be wide-ranging,” Prime Min- ing long-term growth, but also a sentative of Asia, mediated be- Great Britain and the Eurozone. ister Abe told CNN recently. “I way of increasing Japan’s pres- tween the US and Europe, and What’s more, Japan remains hope that by working closely with ence and infl uence internationally taken its great power responsi- a high-income country by Organi- other G7 leaders we can have – an essential requirement if the bilities seriously as evidenced by zation for Economic Cooperation fruitful discussions on address- nation is to maintain its position its high levels of compliance with and Development (OECD) stand- ing all of these important issues. as a global economic heavyweight. summit commitments and its ards, and according to the World There are key issues that I will be Another key pillar in the Abe hosting of relatively and consist- Bank, income inequality is lower emphasizing where I believe Ja- administration’s plan to make Ja- ently successful summits.” than in the U.S. pan can play a central role.” Japan-NW-Project8p V6.indd 1 27/04/16 18:34 Japanese fi rms’ eyes set on global markets A more international mindset, combined with falling domestic demand, is seeing an unprecedented globalization push Globalization would not seem to be But many Japanese executives leader in market share of PV in- a problem for Japanese companies have seen the writing on the wall verters used in solar power sys- which for decades have been major, and are now transforming their tems by increasing its production and in some cases, dominant players management practices to better lines from two to 18. in world market sectors such as for meet these challenges in order to Executives at another Japanese automobiles and consumer electron- make their companies truly global. giant, Asahi Holdings, came up with ics. However, a slew of new econom- One of Japan’s most widely-known a dual-track business model, one ic and business realities are proving and respected fi rms around the aimed at the domestic market and that for Japanese companies to world is Toshiba Mitsubishi-Elec- the other targeting overseas expan- avoid being left behind in globaliza- tric Industrial Systems Corpora- sion, according to President and tion’s new wave, they need to dra- tion (TMEIC), whose President CEO Mitsuharu Terayama. The com- matically boost overseas revenues and CEO Kiyotaka Machida says pany’s already extensive mining and to offset falling demand at home. he is well aware of the steps that metal refi ning operations will take With demographers forecast- Japanese companies must take. a further step toward globalization “Our revenues break down ing the Japanese population to “I think it’s diffi cult to imagine through a new model of processing with 30% from Japan, decrease by more than 20% by that the manufacturing sector will various materials to delivering the 30% from Asia and 30% 2050, fewer people means less augment its production capacity in fi nal product direct to the consumer. consumption, as well as lower tax Japan while the population is basi- “This will mean the whole chain is from U.S and Europe. We revenues. Also surprising to many cally expected to decrease in the involved – which no other refi ning have adopted local produc- familiar with the Japanese traits future. Many executives are already companies are doing – in expand- tion for local consumption.” of company loyalty and esprit de making decisions from a ‘global ing our operations, so that Asahi corps, the country has among the consolidated management’ stand- becomes the world’s top refi ning Takuya Shimarura, CEO & most anemic work productivity point with the emphasis placed company,” says Mr. Terayama. President of AGC Asahi Glass rates of the world’s most devel- on investments and mergers and Diversifying business lines along oped economies, while at the same acquisitions overseas,” he explains.