CENTER ON JAPANESE ECONOMY AND BUSINESS AND ECONOMY JAPANESE ON CENTER

Center on ANNUAL REPORT 2019–2020 REPORT ANNUAL Japanese Economy and

475 Riverside Drive Room 312F New York, NY 10115 Email: [email protected] Business Phone: 646-745-8569 Web: www.gsb.columbia.edu/cjeb ANNUAL REPORT 2019–2020 (JULY 2019–JUNE 2020) CJEB Representative Office in Japan c/o Terumi Ota 1-19-18-1003 Shibuya Shibuya-ku, Tokyo 150-0002 Fax: 03-5467-6012

Table of Contents

Letter from the Director and the Chairman 2 Special Webinars in Response to COVID-19 38 COVID-19: Economic Implications for Japan and the United States 38 CJEB Team 4 The Role of Central Banks in the COVID-19 Pandemic: Leadership and Staff 4 The U.S., Japan, and Beyond 38 Core Faculty 7 Developing Your Career and Designing Your Future during a Period of Crisis 39 Research and Faculty Engagement 10 What Japan Should Do Now in Preparation for Japan’s Design/Production: “My Career as an Economist on Japan and the Asia-Pacific” New Normal 39 by Hugh Patrick 10 Events Postponed or Canceled Due to COVID-19 40 Columbia Creative Current Research Highlights 20 Corporate Governance and Regional Banking Reform: Office of Communications and Public Affairs The Key to Japan’s Future Success 40 Faculty Engagement 22 Is Korea Following in Japan’s Footsteps? An OECD Research Paper Series 24 Perspective on the Two Economies 40 Editors: A Wave of Shareholder Activism Hits Japan’s Shores 40 Ryoko Ogino CJEB Programs 26 Multilateral Development Banks (MDBs) and the Sarah Santana Program on Public Pension and Sovereign Funds 26 Role of Japan 40 Corporate Governance and Stewardship Program 26 550 Years in Bloom: Revitalizing a Traditional Flower Arranging Family Business in Modern Era Japan 41 Assistant Editors: Program on Japan’s Role in the Evolving Global Economic System 27 The Frontier of Driving Innovation through Design Thinking 41 Emiko Mizumura The Future of Global Interdependence: Environment, Japanese Management Leadership Program 28 Shoko Nakamoto Trade, and Politics 41 The New Global Financial Architecture 29 The Japan Project Meeting with Joint ESRI International Julio “JP” Perez Conference 41 CJEB Contributions to Columbia Business School Courses 30 Photography: Resources 42 Eileen Barroso Events 31 Faculty Advisory Committee 42 Michael DiVito Conferences 31 2019–2020 Visiting Fellows 43 Anastasia Gracheva Conference on Public Pension and Sovereign Funds 31 2019–2020 Visiting Fellow Activities 44 Symposia 32 2020 Visiting Fellow Reunion Reception and Annual Shoko Nakamoto U.S.-Japan Relations in a Turbulent World 32 Visiting Fellow Business Field Trips 45 Julio “JP” Perez Research Associates 46 Knocking Down Walls: Making Japanese Companies Sarah Santana Responsive to Their Shareholders 32 Professional Fellows 47 ESG Investing: A Local, Not a Global, Issue 33 International Advisory Board 48 Lectures 33

Special Luncheon with Minister Shinjiro Koizumi 33 Promoting Exchange of Ideas 49 The Seventh Year Stretch: Structural Reform Still Needs a Hit 34 CJEB in the News 49 Lunchtime Seminars 34 Enhancing the MBA Experience 50 Turning Japanese? Lessons from Japan‘s Lost Decades and Enhancing the Columbia Experience 52 Challenges for the World 34 Visits from Japan to Columbia 53 Making Cross-Border M&A Work: A Success Story 34 Fellowship and Scholarship Programs 54 Banking in a New Age: Responding to Future Paradigm Shifts 35 Library and Data Resources 55 The New Role of Board Director in Japan: A Global Context 35 Discussion Groups 56 Servant Leadership 35 Japan Economic Seminar 56 The Invisible Minority: Are Asians Under-Represented in Leadership Positions in the United States? 36 U.S.-Japan Discussion Group 56 Workshops 36 Effective Knowledge Transfer Workshop 36 Financial Support 57 Japan-Focused Design Thinking Workshop 37 Sponsorship Program 58 Speechwriting and Speech Delivery Workshop 37 Center on Japanese Economy and Business The preeminent academic center in the United States on Japanese business and economics

Established at Columbia Business School in 1986 under the direction of its chairman, Professor Hugh Patrick, and led currently by its director, Professor David Weinstein, the Center on Japanese Economy and Business (CJEB) promotes knowledge and under- standing of Japanese business and economics in an international context. CJEB is a research organization widely recognized for its vigorous research activities, international symposia, conferences, and lectures, held in New York City and Tokyo, which provide prominent speakers from the public and private sectors a forum for collaboration and reflection on Japan, the United States, and the global economy.

Under the leadership of Professors David Weinstein and Takatoshi Ito, CJEB’s associate director of research, CJEB supports research projects and library and computer-based resource initiatives. Other core faculty members are Japan specialists drawn from Columbia’s Business School, School of International and Public Affairs, Department of Economics, and Department of Political Science. While CJEB is an independent and non- partisan research center that takes an objective stance on political or economic policies, we encourage our researchers and scholars to hold their own individual perspectives. Funding and resources are provided by corporate sponsors, foundations, individuals, Columbia Business School, and the University.

For more than 34 years, CJEB has developed, grown, and evolved in order to carry out its mission effectively in a changing Japan and a changing world. In this way, CJEB has been able to build and maintain its status as the preeminent academic center on Japanese business and economics anywhere outside Japan.

Further information about CJEB can be found on the Center’s website: www.gsb.columbia.edu/cjeb.

CJEB Annual Report 2019–2020 | 1 LETTER FROM THE DIRECTOR AND THE CHAIRMAN

Letter from the Director and the Chairman

Dear Friends, all business travel, both domestic and foreign (p. 41). We had another excellent program planned this year, includ- The 2019–2020 academic year was a momentous year for ing our keynote by Gerald L. Curtis, Burgess Professor Columbia Business School’s Center on Japanese Economy Emeritus of Political Science at Columbia University, and and Business. For more than 34 years, CJEB has continued panels titled “ESGs and SDGs in 2020 and Beyond” and to promote an understanding and appreciation of Japanese “Bilateralism Resurgent: The Changing Nature of Trade business and economics in domestic, U.S., Asian, and Relations.” Along with Columbia Business School, CJEB has David E. Weinstein, international contexts. We have used our resources and aimed to provide resources to help the school’s students Director networks to provide engaging programs and support inno- and CJEB’s wider network better understand how the situ- vative research. And we will continue to do so. ation affects the United States, Japan, and the world.

Unfortunately, this year, the Center, Columbia Business In response to government shutdowns in New York and School, Columbia University, Japan, the U.S., and indeed the rest of the world, CJEB held two timely, successful the whole world have been facing an unimaginable and webinar events in conjunction with the APEC Study Center all-encompassing crisis in the form of COVID-19. While of Columbia University and Japan Society, in addition to information regarding the virus, its origins, and its long- a special webinar for Columbia students as part of our term effects is still emerging, this is undoubtedly one of the Japanese Management Leadership Program and a webinar

Hugh Patrick, most horrific tragedies of the modern era. With over 180 for “The Japanese Economy in the COVID-19 Era” series Chairman countries affected by the virus to date, the coronavirus initiated by Professor Takatoshi Ito. The first webinar, pandemic has forced us to face our humanity and recon- titled “COVID-19: Economic Implications for Japan and sider personal, economic, and societal morals and values. the United States,” was held on April 29 and drew over The future remains uncertain as countries around the world 540 registrants (p. 38). The second webinar, “The Role of continue to grapple with the virus. Central Banks in the COVID-19 Pandemic: The U.S., Japan, and Beyond,” was held on May 1 and drew over 430 regis- The United States has been particularly hard hit with a trants (p. 38). The third webinar, “Developing Your Career significant percentage of world infections and deaths. and Designing Your Future during a Period of Crisis,” was Emergency workers—including doctors, researchers, police also held on May 1; this special seminar connected a group officers, farmers, grocery store workers, and delivery peo- of Columbia students with an expert panel of Japanese ple, among others—have been working tirelessly to keep us professionals from government, academia, the media, and all safe and healthy, and to maintain basic functioning while the private sector, in order to give the students access to much of the population follows shelter-in-place orders. pertinent, useful advice on how to navigate the crisis (p. Though the situation is still far from over, we thank those at 39). The fourth webinar, “What Japan Should Do Now in Columbia, in New York, and around the world who continue Preparation for Japan’s New Normal,” was held on June 17 to work to support us all. (p. 39). Only time will tell when and how we will emerge from the In addition to these webinar events, CJEB held many current situation and what shape our new normal will take. well-attended, impactful seminars, symposia, and lec- CJEB faculty and staff continue to work remotely, essen- tures in the 2019–2020 academic year. For example, tially at home, after a University-wide policy was instituted on September 25, CJEB was honored to hold a special in mid-March. Columbia University has switched all teach- luncheon at Columbia with His Excellency Shinjiro Koizumi, ing to remote learning, moved the students out of the dor- minister of the environment of the Cabinet Office of the mitories, closed libraries, changed all grading to pass/fail, Government of Japan (p. 33). At the luncheon, Columbia and postponed in-person commencement ceremonies. University students had the opportunity to have an infor- CJEB had planned to hold more events on campus in March mal discussion with Minister Koizumi on topics ranging and April; however, they had to be postponed. In addition, from student life in New York to Japan’s efforts and chal- we had to cancel our 2020 Tokyo conference, “The Future lenges related to climate change. CJEB also hosted Kanji of Global Interdependence: Environment, Trade, and Yamanouchi, ambassador and consul general of Japan in Politics,” on May 18 as Columbia University has suspended New York, for a talk on U.S.-Japan relations (p. 32), and

2 | CJEB Annual Report 2019–2020 Professor Takatoshi Ito gave his annual lecture on the government sectors (p. 43). CJEB Visiting Fellows are Japanese economy (p. 34). given access to the wealth of resources Columbia has to offer, including unique CJEB enrichment opportunities such During the year, CJEB held a wide array of zadankai fea- as workshops, speech training, and individual coaching turing eminent speakers, including Masato Miyachi, deputy sessions. In light of the COVID-19 pandemic, CJEB offered president and chief executive of the Global Corporate & a special custom-made session to our Visiting Fellows, Investment Banking Business Unit at MUFG Bank, Ltd. (p. titled “Virtual Presentation: Best Practices,” to provide them 35); and Timothy E. Sander, executive vice president, chief timely and necessary skills for best presenting themselves administrative officer, and general manager of the Legal during the crisis (p. 44). CJEB also provided our Visiting & Compliance Group and the Human Resources Group at Fellows with opportunities to give public lectures and Sumitomo Corporation of Americas (p. 35). More informa- in-class lectures to Columbia University undergraduate tion regarding our zadankai and other events can be found students and Columbia Business School students, as on pp. 31–41. well as the chance to mentor students taking Business For 2019–2020, CJEB continued research initiatives Japanese courses (p. 53). CJEB is extremely proud to have through our four programs: (1) the Program on Public hosted more than 270 Visiting Fellows since our estab- Pension and Sovereign Funds (PPPSF), directed by lishment in 1986, and we continue to improve our Visiting Professor Takatoshi Ito; (2) the Corporate Governance Fellows Program every year to enhance their experiences and Stewardship Program, directed by Adjunct Associate at Columbia. Professor Alicia Ogawa; (3) the Program on Japan’s Role We thank CJEB’s five-member administrative team, led by in the Evolving Global Economic System; and (4) the Ryoko Ogino, managing director. They are an instrumental Japanese Management Leadership Program. To further part of the Center, making our programming possible with enrich each program, directors of each program held their capable hard work and dedication. various public events. For the PPPSF, the fourth annual Conference on Public Pension and Sovereign Funds was While much uncertainty remains during these unprece- held on November 21, featuring keynotes from Keiko dented times, we are confident that the Center, Columbia Honda, former executive vice president and former University, and the world will emerge from this pandemic chief executive officer of the Multilateral Investment stronger and even more united. We understand how many Guarantee Agency (MIGA), and John Lipsky, the Peter G. lives have been affected by the coronavirus pandemic Peterson Distinguished Scholar at the Henry A. Kissinger and are forever grateful for your continued support of the Center for Global Affairs at Johns Hopkins University Center during these challenging times. We at the Center (p. 31). On February 5, a symposium titled “Knocking will continue to think about ways in which we can sup- Down Walls: Making Japanese Companies Responsive to port our constituents, especially our Columbia students, Their Shareholders” was held in conjunction with CJEB’s and look forward to welcoming you back on campus in Corporate Governance and Stewardship Program (p. 32). the future. We are grateful, as always, for the continued The Center hosted several lunchtime seminars in coop- support of the Center from the Business School and the eration with our Program on Japan’s Role in the Evolving University, and especially, for the funding provided to CJEB Global Economic System, including, “Turning Japanese? by corporate sponsors, foundations, and individuals. We Lessons from Japan’s Lost Decades and Challenges for the wish you well and hope that you all stay safe and healthy in World,” featuring Masazumi Wakatabe, deputy governor of these challenging times. the Bank of Japan (p. 34). Several workshops and seminars were held as part of the Japanese Management Leadership With warm regards, Program, including a workshop on design thinking (p. 41). More information on these programs can be found on pp. 26–29. David E. Weinstein Hugh Patrick Director Chairman The Visiting Fellows Program at CJEB continues to thrive, with fellows selected from an array of different back- July 15, 2020 grounds within the Japanese corporate, academic, and

CJEB Annual Report 2019–2020 | 3 CJEB TEAM

Leadership and Staff

David E. Weinstein Hugh Patrick is the Takatoshi Ito is is the Carl S. Shoup founder and chairman the director of Professor of the of CJEB and R. D. the Program on Japanese Economy at Calkins Professor of Public Pension and Columbia University. International Business Sovereign Funds He is also the director Emeritus at Columbia and associate of the Center on Business School, as director of research Japanese Economy well as co-director at CJEB. He is also and Business of Columbia’s APEC a professor at the (CJEB), co-director of the Japan Project at Study Center. He joined the Columbia faculty School of International and Public Affairs the National Bureau of Economic Research in 1984 after some years as professor of (SIPA) at Columbia University. He has (NBER), and a member of the Federal economics and director of the Economic taught extensively both in the United Economic Statistics Advisory Committee. Growth Center at Yale University. He completed States and Japan since finishing his PhD in Previously, Professor Weinstein was chair his BA at Yale University (1951), obtained economics at Harvard University in 1979. of the Department of Economics and a MA degrees in Japanese studies (1955) He was an assistant and tenured associate senior economist as well as a consultant at and economics (1957), and earned a PhD professor (1979–1988) at the University of the Federal Reserve Bank of New York, the in economics at the University of Michigan Minnesota, an associate and full professor Federal Reserve Bank of San Francisco, and (1960). He has been a visiting professor at at Hitotsubashi University (1988–2002), the Federal Reserve Board of Governors. Hitotsubashi University, the University of a professor at the Graduate School of Prior to joining the Columbia faculty, Tokyo, and the University of Bombay. Professor Economics at the University of Tokyo (2004– Professor Weinstein held professorships Patrick has been awarded Guggenheim and 2014), and dean of the Graduate School at the University of Michigan and Harvard Fulbright fellowships and the Ohira Prize. of Public Policy at the University of Tokyo University. He also served on the Council His professional writings include 18 books (2012–2014) before assuming his current of Economic Advisors from 1989 to and some 60 articles and essays. His most position in 2015. In spring 2016, he received 1990. His teaching and research interests recent books are How Finance Is Shaping a courtesy appointment in the Finance and include international economics, corporate the Economies of China, Japan, and Korea Economics Department at Columbia Business finance, and the Japanese economy. (Columbia University Press, 2013), coedited School. He held visiting professor positions Professor Weinstein earned his PhD and with Yung Chul Park; and Reviving Japan’s at Harvard University, Stanford University, MA in economics from the University of Economy: Problems and Prescriptions (MIT and Columbia Business School and was Tun Michigan and his BA at Yale University. He Press, 2005), coauthored and coedited with Ismail Ali Chair Professor at the University of is the recipient of many grants and awards, Takatoshi Ito and David E. Weinstein. Professor Malaya. including five National Science Foundation Patrick served as one of four American He has held distinguished academic and grants, an Institute for New Economic members of the binational Japan–United research appointments such as president Thinking grant, a Bank of International States Economic Relations Group appointed of the Japanese Economic Association in Settlements Fellowship, and a Google by President Carter and Prime Minister Ohira 2004–2005, fellow of the Econometric Research Award. Professor Weinstein is the from 1979 to 1981. He has been a member of Society since 1992, research associate at author of numerous publications and articles. the Council on Foreign Relations since 1974. the National Bureau of Economic Research He was a member of the Board of Directors of since 1985, faculty fellow at the Centre for the Japan Society for seven three-year terms. Economic Policy Research in London since In November 1994, the Japanese Government 2006, research associate of the Tokyo awarded him the Order of the Sacred Treasure, Center for Economic Research since 1990, Gold and Silver Star (Kunnitō Zuihōshō). He and faculty fellow of the Research Institute was awarded an honorary doctorate of Social of Economy, Trade and Industry since 2004. Sciences by Hong Kong’s Lingnan University in He was editor-in-chief of the Journal of the 2000 and the Eagle on the World award by the Japanese and International Economies and Japanese Chamber of Commerce and Industry is coeditor of the Asian Economic Policy of New York in 2010.

4 | CJEB Annual Report 2019–2020 Review. In an unusual move for a Japanese consultant to one of the largest U.S.-based She cocreated the Center’s new program, the academic, Professor Ito was appointed senior activist funds and an adjunct associate Japanese Management Leadership Program, adviser in the Research Department at the professor at SIPA. Formerly, she was a with Professor Yumiko Shimabukuro of SIPA International Monetary Fund (1994–1997) managing director at Lehman Brothers, to offer leadership research seminars, global and deputy vice minister for International where she was responsible for managing the communication in leadership training, and Affairs at the Ministry of Finance of Japan firm’s global equity research. Prior to joining an innovation and diversity workshop series. (1999–2001). He also served as a member of Lehman Brothers, she spent 15 years in Tokyo The program also addresses women’s career the Prime Minister’s Council on Economic and for Salomon Brothers/Citigroup, first as a advancement. Fiscal Policy (2006–2008). bank analyst and then as the head of equity research. She is a member of the board of In 2010, Professor Ito was a coauthor of a directors of the Maureen and Mike Mansfield Officers commissioned study of the Bank of Thailand’s Foundation, a member of the investment 10th-year review of its inflation targeting Emiko Mizumura committee of the Association for Asian regime. He frequently contributes op-ed Assistant Director for Programs Studies, and a member of the President’s columns and articles to the Financial Times BA, American and English Literature Circle of the All Stars Project, a development and Nihon Keizai Shinbun. He is the author Otsuma University program for inner city young people, which of many books, including The Japanese MS, Information and Knowledge Strategy recently launched a branch in Tokyo. She is Economy (MIT Press, 1992; and the Columbia University also a director at Misaki Engagement Funds second edition, in 2020, with Takeo Hoshi); and Nippon Active Value Funds, both of which Managing Currency Risk: How Japanese Shoko Nakamoto are corporate governance–related investment Firms Choose Invoicing Currency (2018, with Assistant Director funds in Japan. She graduated from Barnard Koibuchi Satoshi, Kiyotaka Sato, and Junko BA, Law College and earned a master’s degree in Shimizu); The Political Economy of Japanese Okayama University international affairs at SIPA. She is a member Monetary Policy (1997) and Financial Policy MA, Diplomacy and International Relations of the International Corporate Governance and Central Banking in Japan (both with Seton Hall University Network. T. Cargill and M. Hutchison, MIT Press, 2000); An Independent and Accountable Julio “JP” Perez IMF (with J. De Gregorio, B. Eichengreen, Program Manager Ryoko Ogino is the and C. Wyplosz, 1999); and more than 130 BA, East Asian Languages and Cultures managing director at academic (refereed) journal articles and Columbia University CJEB. She officially chapters in books on international finance, joined the Center as monetary policy, and the Japanese economy. Sarah Santana associate director His research interests include capital flows Program Manager for administration and currency crises, microstructures of BA, Linguistics and Japanese in September 2010 the foreign exchange rates, and inflation Georgetown University after successfully targeting. He was awarded the National managing the Medal with Purple Ribbon in June 2011 for Center’s Tokyo conference in spring 2010. Japan Representative, his excellent academic achievement. Prior to that, she held positions at Shiseido Tokyo Americas Corporation and Sony Corporation of America, bringing a wealth of experience Terumi Ota Alicia Ogawa is in product development, PR, international BA, Tsukuba University the director of marketing, and staff management. She the Project on graduated magna cum laude from the State Japanese Corporate University of New York, Buffalo, with a Governance and major in human relations in multinational Stewardship at organizational settings sponsored by the CJEB. She is also a Department of Psychology and Management.

CJEB Annual Report 2019–2020 | 5 Student Casuals Hao-Yun Hsu Riku Tabata MS Candidate, Management Science and BA, Economics and Computer Science Yotam Deree Engineering, and Medical Physics Columbia University BA, Political Science and Business Columbia University Management Haru Yamanaka Columbia University Mona Matsuda Brown BA Candidate BA Candidate, Economics Columbia University Anastasia Mikhailovna Gracheva Barnard College Dual BA Candidate, Political Science Columbia University Sciences Po

Back row: JP Perez, Hugh Patrick, Andy Wanning (Former Senior Program Officer), Emiko Mizumura, Ryoko Ogino, and Sarah Santana Front row: Shoko Nakamoto

6 | CJEB Annual Report 2019–2020 Core Faculty

CJEB’s seven core faculty members provide the Graduate Research Institute for Policy University of Central Florida, where he the Center’s intellectual foundation and Studies, and the International Institute for received the National Society of Professional are drawn from Columbia University’s Economic Studies. Engineers Award. He also holds AM and Business School, Department of Economics, PhD degrees in economics from Harvard In addition to his academic work, he has Department of Political Science, and School University. After graduating from Harvard, served as director of the U.S.-Japan of International and Public Affairs. In addition Professor Hubbard began his teaching Parliamentary Exchange Program, special to Hugh Patrick, David E. Weinstein, and career at Northwestern University, moving advisor to Newsweek for Newsweek Japan, Takatoshi Ito, CJEB’s core faculty members to Columbia in 1988. He has been a visiting columnist for the Tokyo/Chunichi Shimbun and are as follows: professor at Harvard’s Kennedy School of member of the International Advisory Board of Government and Harvard Business School the Asahi Shimbun and the Advisory Council as well as at the University of Chicago. Gerald L. Curtis is for the Japan Foundation Center for Global Professor Hubbard also held the John M. Burgess Professor Partnership. His articles and commentaries Olin Fellowship at the National Bureau of Emeritus of Political appear frequently in newspapers and Economic Research. Science at Columbia magazines in Europe, Japan, and the United University and States. Professor Curtis is a member of the In addition to writing more than 100 scholarly former director of the Board of Directors of the Japan Society, the articles in economics and finance, Professor Weatherhead East Japan Center for International Exchange, Hubbard is the author of three popular Asian Institute. He and the Mansfield Foundation and serves as textbooks, as well as coauthor of The Aid received his PhD from councilor to the U.S.-Japan Council. He has Trap: Hard Truths about Ending Poverty; Columbia University in 1969 and was on the served as consultant and adviser to numerous Balance: The Economics of Great Powers Columbia University faculty from 1969 until public and private organizations in the United from Ancient Rome to Modern America; December 2015. He is a professor emeritus, States and Japan. and Healthy, Wealthy, and Wise: Five a senior research scholar at the Weatherhead Steps to a Better Health Care System. His Professor Curtis is a recipient of numerous East Asian Institute, director of Columbia’s commentaries appear in Business Week, the prizes and honors, including the Masayoshi Toyota Research Program, and Chairman of Wall Street Journal, the New York Times, the Ohira Memorial Prize, the Chunichi Shimbun the Maureen and Mike Mansfield Foundation. Financial Times, the Washington Post, Nikkei, Special Achievement Award, the Japan and the Daily Yomiuri, as well as on television He is the author of numerous books and Foundation Award, the Marshal Green Award and radio. articles published in both English and of the Japan-America Society of Washington, Japanese on Japanese politics, government, and the Eagle on the World Award from the In government, Professor Hubbard served foreign policy, and United States–Japan Japanese Chamber of Commerce in New York. as deputy assistant secretary for tax policy relations. In May 2019, just as Japan ushered He is a recipient of the Order of the Rising Sun, at the U.S. Treasury Department from 1991 in its new Reiwa era, he published a major Gold and Silver Star, one of the highest honors to 1993. From February 2001 until March work in Japanese about the political history awarded by the Japanese government. 2003, he was chairman of the U.S. Council of he has observed close-up over the past half Economic Advisers under President George century. The title of the book, rendered into W. Bush. While serving as CEA chairman, he Glenn Hubbard English, is A Personal Chronicle of Politics in also chaired the economic policy committee is dean emeritus, Showa and the Heisei Era. The book draws of the OECD. In the corporate sector, he director of the Jerome heavily on the extensive interactions he has is chairman of the board of MetLife and a A. Chazen Institute had with Japan’s prime ministers and other director of ADP and BlackRock Fixed Income for Global Business, political leaders since the late 1960s. Funds. Professor Hubbard is cochair of the and Russell L. Carson Committee on Capital Markets Regulation; he Professor Curtis has held appointments at Professor of Finance is a past chair of the Economic Club of New the Royal Institute of International Affairs, and Economics at York and a past cochair of the Study Group on Chatham House, London; the College de Columbia Business Corporate Boards. France, Paris; the Lee Kwan Yew School of School. A Columbia faculty member since Public Policy, Singapore; and in Tokyo at Keio, 1988, he served as dean from 2004 to 2019. Professor Hubbard and his family live in New Tokyo, and Waseda Universities, the Research York. Professor Hubbard received his BA and Institute for Economy, Trade and Industry, BS degrees summa cum laude from the

CJEB Annual Report 2019–2020 | 7 Merit E. Janow is antitrust at the Department of Justice, is also the chief economist of the Roosevelt dean and professor Washington, DC. This was the first such Institute. In 2001, he was awarded the of practice in committee established by the Department Nobel Prize in economics for his analyses of international of Justice to consider international antitrust markets with asymmetric information, and he economic law matters. Before joining Columbia University, was a lead author of the 1995 Report of the and international from 1989 to 1993 Professor Janow Intergovernmental Panel on Climate Change, affairs at Columbia served as the deputy assistant United which shared the 2007 Nobel Peace Prize. University’s School States trade representative for Japan and In 2011, Time named Stiglitz one of the 100 of International China at the Office of the United States most influential people in the world. and Public Affairs (SIPA). As dean, she Trade Representative, Executive Office of Professor Stiglitz was a member of the has expanded the faculty in areas such the President, in Washington, DC. She was Council of Economic Advisers from 1993 as international finance, cybersecurity, responsible for developing, coordinating, and to 1995, during the Clinton administration, international security, quantitative analytics, implementing United States trade policies and served as CEA chairman from 1995 and American politics. She has also and negotiating strategies toward Japan and to 1997. He then became chief economist developed new research initiatives around China. Prior to her tenure in government, she and senior vice president of the World Bank, technology and policy, central banking, was an associate at Skadden, Arps, Slate, from 1997 to 2000. In 2008, he was asked and financial policy, among other areas. Meagher & Flom, specializing in corporate by the French president Nicolas Sarkozy to Under her leadership, SIPA has significantly mergers and acquisitions. She is a member chair the Commission on the Measurement of increased financial aid for students and is of several corporations and nonprofit Economic Performance and Social Progress, now close to completing its second capital organizations including Japan Society, the which released its final report in September campaign. Professor Janow has been co- National Committee on US-China Relations, 2009 (published as Mismeasuring Our director, with Professor Hugh Patrick, since Mastercard, Trimble Corp, and several board Lives). He now chairs a High Level Expert 1994, of Columbia’s APEC Study Center. clusters of the American Funds. Professor Group at the OECD that is attempting to Professor Janow teaches graduate courses Janow received a BA in Asian studies from advance these ideas further. In 2009, he in international economic and trade policy the University of Michigan and a JD from was appointed by the president of the United and China in the global economy at SIPA, Columbia Law School. She is the author of Nations General Assembly as chair of the and international trade law and comparative three books and numerous articles and is Commission of Experts on Reform of the and international antitrust at Columbia Law fluent in Japanese. International Financial and Monetary System, School. She serves on the faculty of Columbia Joseph E. Stiglitz which also released its report in September University’s Weatherhead East Asian was born in Gary, 2010 (published as The Stiglitz Report). Institute. Previously, she was director of the Indiana, in 1943. A Since the crisis, he has played an important Master’s Program in International Affairs graduate of Amherst role in the creation of the Institute for New and the International Finance and Economic College, he received Economic Thinking (INET), which seeks to Policy concentration at SIPA, as well as his PhD from MIT in reform the discipline so it is better equipped chair of Columbia University’s Advisory 1967, became a full to find solutions for the great challenges of Committee on Socially Responsible Investing. professor at Yale in the 21st century. In December 2007, Professor Janow finished 1970, and in 1979 up a four-year term as the North American Professor Stiglitz serves on numerous boards, was awarded the John Bates Clark Award, member of the Appellate Body of the World including the Acumen Fund and Resources for given biennially by the American Economic Trade Organization (WTO). The Appellate the Future. Association to the economist under 40 who Body hears final appeals on issues of law has made the most significant contribution He helped create a new branch of economics, and legal interpretation in international trade to the field. He has taught at Princeton, “The Economics of Information,” exploring the disputes between countries that are members Stanford, and MIT and was the Drummond consequences of information asymmetries of the WTO. For two years, ending in March Professor and a fellow of All Souls College, and pioneering such pivotal concepts as 2000, Professor Janow served as executive Oxford. He is now University Professor at adverse selection and moral hazard, which director of the International Competition Columbia University in New York, where he have now become standard tools not only of Policy Advisory Committee to the attorney is also the founder and copresident of the theorists but also of policy analysts. He has general and assistant attorney general for University’s Initiative for Policy Dialogue. He made major contributions to macroeconomics

8 | CJEB Annual Report 2019–2020 and monetary theory, to development recent books are The Price of Inequality: economics and trade theory, to public and How Today’s Divided Society Endangers corporate finance, to the theories of industrial Our Future, published by W. W. Norton and organization and rural organization, and to Penguin/Allen Lane in 2012; Creating a the theories of welfare economics and of Learning Society: A New Approach to Growth, income and wealth distribution. In the 1980s, Development, and Social Progress, with he helped revive interest in the economics of Bruce Greenwald, published by Columbia R&D. University Press in 2014; The Great Divide: Unequal Societies and What We Can Do His work has helped explain the about Them, published by W. W. Norton and circumstances in which markets do not Penguin/Allen Lane in 2015; Rewriting the work well and how selective government Rules of the American Economy: An Agenda intervention can improve their performance. for Growth and Shared Prosperity published In the last decade and a half, he has written by W. W. Norton in 2015; The Euro: How a series of highly popular books that have a Common Currency Threatens the Future had an enormous influence in shaping global of Europe, published by W. W. Norton debates. His book Globalization and Its and Penguin/Allen Lane in 2016; and Discontents (2002) has been translated into Globalization and Its Discontents Revisited: 35 languages, besides at least two pirated Anti-Globalization in the Era of Trump, editions, and in the nonpirated editions have published by W. W. Norton and Penguin/Allen sold more than one million copies worldwide. Lane in 2017. In that book he laid bare the way globalization Professor Stiglitz’s work has been widely had been managed, especially by the recognized. Among his awards are more international financial institutions. In two than 40 honorary doctorates, including from later sequels, he presented alternatives: Fair Cambridge and Oxford Universities. In 2010, Trade for All (2005, with Andrew Charlton) he was awarded the prestigious Loeb Prize and Making Globalization Work (2006). In for his contributions to journalism. Among the The Roaring Nineties (2003), he explained prizes awarded to his books have been the how financial market deregulation and other European Literary Prize, the Bruno Kreisky actions of the 1990s were sowing the seeds Prize for Political Books, and the Robert F. of the next crisis. Concurrently, Towards Kennedy Book Award. He is a fellow of the a New Paradigm in Monetary Economics National Academy of Sciences, the American (2003, with Bruce Greenwald) explained Academy of Arts and Sciences, the American the fallacies of current monetary policies, Philosophical Society, and the Econometric identified the risk of excessive financial Society, and a corresponding fellow of the interdependence, and highlighted the central Royal Society and the British Academy. role of credit availability. Freefall: America, Free Markets, and the Sinking of the World He has been decorated by several Economy (2010) traced in more detail the governments, including Colombia, Ecuador, origins of the Great Recession, outlined a set and Korea, and most recently became a of policies that would lead to robust recovery, member of France’s Legion of Honor (rank of and correctly predicted that if these policies Officer). were not pursued, it was likely that we would enter an extended period of malaise. The Three Trillion Dollar War: The True Cost of the Iraq Conflict (2008, with Linda Bilmes of Harvard University) helped reshape the debate on those wars by highlighting the enormous costs of those conflicts. His most

CJEB Annual Report 2019–2020 | 9 RESEARCH AND FACULTY ENGAGEMENT

My Career as an Economist on Japan and the Asia-Pacific

By Hugh Patrick

year I would have to update unprecedented, as is its severity. Policymakers my syllabus and prioritize. in each country have been responding with This helped me organize their own national policies. Japan so far has my understanding of Japan been considerably more successful than the and its economy. (When I U.S. The uncertainties over the nature and no longer taught regularly, duration of COVID-19 and its consequences these activities were taken are significant. The pandemic will impact over in part by writing the research of economists, public health my essays for the annual specialists, and many others for years to come. reports of Columbia’s Center on Japanese Economy and Becoming a Japanese Business—CJEB.) Specialist My career certainly has As an economist, I define myself as a specialist been significantly shaped on money and banking, which later segued into by the postwar development the broader topic of financial development. of a liberal, rules-based, My career as a specialist on the Japanese open-market-oriented economy is an accidental consequence international economic Hugh Patrick of the Korean War, which transformed my order, by the evolving life. When I first arrived in Tokyo in January international geopolitical n this essay I reminisce about my 1952 to work on a project inspecting Soviet system, Japan’s performance, and how the professional career as a specialist on the military equipment left in South Korea when United States has evolved. The Cold War IJapanese economy and on the Asia-Pacific North Korea had rapidly retreated from its dominated geopolitics until the Soviet Union’s economies. There are four major professional overextended assault, I had no real idea what collapse in 1991. China, initially a minor dimensions: teaching, doing my own research, to expect. I had majored in mathematics, player, opened to the world and grew rapidly organizing and managing multischolar economics, and philosophy at Yale. I had never to become the world’s largest economy in research projects, and institution-building. taken a course or otherwise learned much purchasing power parity terms, even though My focus here is on my research and about modern Japan, though I was somewhat its per capita income is only one-third of institution-building activities, which naturally aware of the U.S.-led Occupation and its America’s. Postwar Japan, with a strong, deep have always been intertwined.1 democratization programs. I did not know a alliance with the U.S., achieved rapid catch-up word of the Japanese language. I did not know I enjoyed teaching and took it seriously— economic growth that by the late 1980s had any Japanese people or even any Americans of preparing thoroughly, providing a lot of made it the world’s second-largest economy, Japanese heritage. substance in my classes, and doing a with a European-level standard of living. competent job, though I do not consider myself The Korean War began in June 1950, the As of this writing, we are in the fifth month of a great teacher. One of the useful pleasures summer between my junior and senior year the global coronavirus pandemic (COVID-19) of teaching was learning from my students: in college. I had never been out of the U.S., crisis, beginning in March 2020. COVID-19 each year there was a new crop of questions, other than a one-day visit to Montreal in my has generated major health, economic, and understandings, and misunderstandings to junior year. I had been planning to apply to social challenges. The most important need be addressed. Because Japan’s development, the master’s program at the London School is the adequate provision of healthcare. The and the study of Japan, were expanding, each of Economics and use it as a base to travel cause of the current economic downturn is

1 I mention by name only a few of my many colleagues. Happily, they are among many others who became my good personal friends. That has been one benefit of being engaged with others in projects and the resultant books. Except by way of context before my career began, I say little of my personal life. And, of course, I do not write about my family, other than to say that they have encouraged and supported me and my career.

10 | CJEB Annual Report 2019–2020 around Europe. I had no definite plans for my North Korea had abandoned in South Korea. short and that America is comparatively longer-run future. This was based on a project in World War heterogeneous and individualistic. II on German production. That project not One option was to join my father, who was My stay in Japan was extended several only estimated German tank production in managing our family-owned newspapers in times. Ultimately I was there 18 months. This 12 assembly plants but, through inspector the small towns of Goldsboro, North Carolina, included time spent monitoring the complete markings, proved that all the truck carburetors and Rock Hill, South Carolina. I was born in dismantling of a captured Soviet tank in a were produced in one factory—the obvious Goldsboro and raised there for my first 12 military facility in Tokyo. I lived in a low-cost bombing target. years. We moved to Washington, DC, in 1942, 10-story building near Tokyo Station for when my father had patriotically joined the The World War II project had been developed lower-ranked military officers and civilian newly created Office of War Information. by Richard Ruggles, an economics professor counterparts such as myself. I was able to at Yale. He was my undergraduate economics save most of my salary, as the dollar went a I could start working either at the Goldsboro or teacher and adviser. He was responsible for long way in Japan at the time. I became more the Rock Hill newspaper, which my father had setting up the Soviet project for the CIA in and more interested in Japan, and I arranged bought in 1947. Both were small, successful 1951. I assume he arranged for me to be hired for a tutor to begin learning spoken Japanese. dailies (Monday through Saturday), like many as the first staff member, and in June 1951 I local papers throughout the United States On leaving Japan in 1954, I decided to moved to Washington. at the time. However, as I neared the end of resign from my job and to go to graduate college, I recognized I probably did not want to In late December 1951, I was really surprised school to learn more about Japan. I was live in a small, parochial Southern town. when I was told I would immediately go to accepted into the MA program in Japanese Tokyo for three months. Tokyo would be studies at the University of Michigan in Ann The Korean War significantly altered the the base for periodic trips to South Korea Arbor. This was my first choice, as it had immediate future plans of myself, my to arrange for four-person teams from the most comprehensive faculty coverage classmates, and other friends. We were Washington to go directly to the sites of the of a range of disciplines at any university in subject to the draft for two years of military abandoned Soviet equipment, which were the United States, especially those in which service; or we could volunteer for officer strewn all over the South Korean countryside, I was interested. I started with summer programs in the Army, Navy, or Air Force, in order to photograph serial plates and other school in June 1954. The key courses were serving for three or four years. I took my markings for each tank, truck, gun, and other interdisciplinary, led by the historian John W. physical exam for the draft in New Haven. pieces of equipment. My work was essentially Hall, the anthropologist Richard Beardsley, The doctor said I had very weak eyes, which I administrative, negotiating with the U.S. the political scientist Robert Ward, and other knew. He went on to say that if I were drafted military in South Korea to provide support for Japanese specialists. I took a course on the into the military, my eyes might get much our teams. Chinese and Japanese economies taught by worse, and they would have to pension me off Carl Remer, a senior scholar. for the rest of my life. He said I was not worth I arrived in Tokyo in early 1952; that was a few that risk to the government budget, so he months before the formal ending of the Allied I completed the MA in Japanese studies in declared me 4-F, draft ineligible. This was my Occupation on April 28, though in practice 1955, sooner than I expected, but there first significant, direct lesson in cost-benefit not much then changed. The Occupation were no jobs in Japanese studies. I therefore analysis. Since, unlike my friends, I could not authorities had already turned over most of decided to pursue a master’s in economics; I go into military service, I decided to seek a their duties to the Japanese bureaucracy, had become deeply interested in developing civilian position working for the government in particularly since Occupation officials were economies and in Japan as the first case Washington for two years. deeply involved in managing the Korean War. of successful economic development and industrialization by a non-Western, non- As it happened, I was hired to work on a Tokyo was a huge cultural shock for me. I Christian country. I was stimulated by my project just being set up to estimate Soviet quickly realized Japan has a deep, strong economics professors Gardner Ackley, military production amounts and locations, culture and long history based on its Wolfgang Stolper, and especially Richard based on the serial numbers, markings, and homogenous population. I also became much Musgrave. They urged me to continue in other indicators on the Soviet equipment more aware that U.S. history is relatively

CJEB Annual Report 2019–2020 | 11 economics at Michigan and earn a PhD. So, spend most of my time at the Bank of Japan indicating that on completion of my PhD, I too, did William Lockwood, the Japan political since it was heated, while his building at would be appointed an assistant professor. economy specialist at Princeton. My plan was Hitotsubashi, built during the war, had no Eager to take up this opportunity, I returned to obtain the PhD, and then get a position in heat other than a big daruma stove (similar to Ann Arbor. However, in the fall of 1959, as I economic development at the World Bank. And to potbelly stoves in concept if not in design) was completing my dissertation draft, the new I wanted to get back to Japan and learn more. in the middle of the common room. Everyone chair of the economics department decided congregated and chatted there, but our offices that I should not automatically become an I received a two-year Ford Foundation grant were too cold to do much research there. My assistant professor in 1960, but I should enter to do my dissertation research in Japan. I had research went well, particularly at the Bank of the job market for new PhDs. I was shocked. decided to do my dissertation on Japanese Japan. monetary policy and financial markets, Fortunately, the new PhD job market in 1960 though I also considered a thesis on Japan’s The Bank collected and published was strong, and I was a good candidate. foreign trade since imports were essential comprehensive, detailed statistics. Research I received several excellent assistant and exports were necessary to pay for them. department members explained how the professorship offers, including from Yale and I was doubly fortunate in my dissertation BOJ aspired to achieve a financial system MIT, and eventually from Michigan as well. I research arrangements when I went to Tokyo comparable to the Federal Reserve standards accepted the Yale offer because it had one of in fall 1957. First, I had been accepted as a of highly competitive financial markets, central the best economics departments, not because graduate student researcher at Hitotsubashi bank open-market purchases of government I had been an undergraduate there. A major University’s Institute for Economic Policy, bonds, and flexible interest rates to allocate attraction was that in addition to a three-year where Professor Shigeto Tsuru, one of Japan’s funds quickly and effectively. However, Japan’s contract, I would be able to spend the second most famous economists, became my adviser. institutional and financial realities were year (1961–62) as a visiting professor at the Second, I was introduced to the Bank of Japan significantly different from those in the U.S. University of Bombay, as it was then called. (BOJ) by a U.S. Federal Reserve Board official This enabled me to be directly exposed to one Japan’s economy was growing rapidly since who had received his PhD in economics at the of the world’s two huge developing economies; there were so many technology catch-up University of Michigan several years earlier. at that time no American could go to China. investment opportunities for business. The postwar Bank of Japan had never had a Financial institutions, led by city banks, lent as Yale administered a Ford Foundation four-year foreign researcher affiliated with it before. Its much as they could to companies. To finance program to develop monetary economics at staff graciously welcomed me, provided me loans, city banks were allowed to borrow the University of Bombay. It did this by each with an office, and diligently met with me to heavily from the Bank of Japan. This provided year sending a famous senior professor from a explain the series of questions I wrote down the BOJ immense power to quietly apply direct major American economics department and a as the basis for our discussions. My Japanese controls on credit, in addition to the central junior faculty member from Yale. In 1961–62, was not good enough, but some young BOJ bank weapons of the discount rate, reserve the senior economist was Princeton’s Lester V. research department members spoke good requirements, and other standard instruments. Chandler, a wonderful person, with me as the English. junior faculty member. Business investment demand inevitably I lived in Futago Tamagawa, about 10 resulted in import surges and balance of My year at Bombay was fascinating and very miles southwest of the Bank of Japan’s payment crises in a world where capital market educational. India and the university had many headquarters, which was in its wonderful old borrowing had not yet developed significantly, holidays, so I was able to travel all over India. Western building in Nihonbashi, in central so a major BOJ function was to constrain However, I did not fall in love with India; I was Tokyo, a block from the amazing Mitsukoshi investment. already enamored of Japan. Department Store. During the fall I also My almost idyllic stay in Japan was brought I had my dissertation, with minor updates, commuted several days a week the somewhat to an unexpected end after only one year, published in 1962 by the University of farther distance to the Hitotsubashi campus, instead of the two I expected. A senior Bombay. They agreed to publish it quickly, to meet with Professor Tsuru, and often professor at Michigan had suddenly died, and without the reviews and revisions, in contrast with Professor Kazushi Ohkawa and several Professor Remer had retired. The Department to the long time that it took for publication graduate students who later became major of Economics asked me to return from Japan with a major U.S. academic publisher. I figures in Japanese academia as economists. promptly and become a lecturer in fall 1958, wanted publication off my back and to move As winter came, Professor Tsuru suggested I teaching a range of intermediate courses, forward with my research agenda on Japan.

12 | CJEB Annual Report 2019–2020 In retrospect, it was a naïve decision, but it two governments and their policies, and on Dilemmas of Growth in Prewar Japan, edited actually worked to my benefit. American and Japanese businesses and by James W. Morley, published by Princeton their interactions. My third area, since Japan University Press in 1971. When I first joined the Yale economics had by far the earliest and most developed department, I continued to think I would join I had the opportunity to learn about the Asian economy, has been Japan’s role in Asia- the World Bank at some point. I had learned South Korea economy in 1965 when David Pacific economic development. In addition to, at Michigan that teaching is the best way Cole of the U.S. Aid Mission in Seoul invited and complementary with, my own research, to learn about a subject. So I decided that me to develop a policy-oriented research I became actively involved in institution- teaching at Yale and at the University of project on Korean financial development and building, notably in the Japan Economic Bombay would prepare me well for a World monetary policy, together with the Stanford Seminar, the U.S.-Japan Economic Relations Bank career. However, one spring day in 1963, economists Ed Shaw and Jack Gurley. We Group, the Pacific Trade and Development while walking in a courtyard at Yale, I realized, spent most of summer 1965 in Seoul, working conference series (PAFTAD), the Yale at age 33, that I actually wanted an academic together intensively and happily, and meeting Economic Growth Center, and, notably, the career. I enjoyed teaching and the interaction with a range of Korean policymakers and Center on Japanese Economy and Business at with students. Equally important, I was curious scholars. We drafted a long report, Financial Columbia. about economies and their performance and Development of Korea, issued by the U.S. Aid liked doing research, particularly on Japan. Research at Yale Mission and published in the Bank of Korea bulletin. Through this project, I developed This was before widespread interest in Japan’s At Yale, I pursued my interests in Japanese an abiding interest in the Korean economy, economy had developed, so I had a first-mover macroeconomic policy, especially monetary reinforced by interacting with Korean scholars advantage. Most importantly, as an academic, policy and fiscal policy, finance and financial in various projects and subsequent trips to I was my own boss. I decided what research markets, and economic development. My Korea over the course of my career as noted topic I wanted to address; no one told me output appeared as articles in professional below. I developed a deep personal, as well as what to do, though of course, I benefitted journals and chapters in books. The article that professional, relationship with Yung Chul Park from friendly suggestions and criticisms from has been most widely cited over my career of Korea University. However, I refrained from colleagues and others. I actively commented and reprinted was my “Financial Development visiting Korea until the late 1980s, once the on the research of others, as well as engaging and Economic Growth in Undeveloped repressive authoritarian regime was replaced in my own research, and published widely. I Countries,” published in the journal Economic by a democratic government. I have visited wrote on Japanese monetary and fiscal policy, Development and Cultural Change (EDCC) in Korea every year since then until 2020, when for chapters in books edited by me or others. 1966. Little had been written about the topic, the coronavirus pandemic prevented travel. The context typically was both Japan’s overall so my article has substantial scarcity value. economy and society and the evolving global I have always been an active member of those economic system. Several pieces of my research established academic and professional committees on me in the 1960s as one of the few specialists which I have served over the course of my In late 1963, I received an offer of tenure from on the Japanese economy. Those include career. As it happens, I discovered I am good the University of Michigan. I had a published my chapter “Cyclical Instability and Fiscal— at organizing and managing research projects, book and several published articles and had Monetary Policy in Postwar Japan” in The bringing together a range of American, become known professionally. I informed Yale State and Economic Enterprise in Modern Japanese, and other specialists on the I intended to accept the Michigan offer unless Japan, edited by W.W. Lockwood, published by Japanese, Asia-Pacific, or other economies. Yale countered. In 1964, I was promoted Princeton University Press in 1964; “Japan, All but three of my 21 books and monographs to associate professor of economics with 1868–1914” in Banking in the Early Stages have been co-edited or co-authored. However, tenure at Yale. In 1968, I was promoted to full of Industrialization, edited by Rondo Cameron, only a few of my specific chapters and articles professor. published by Oxford University Press in have been co-authored. My focus on the Japanese economy has 1967; “The Phoenix Rises from the Ashes: One of my favorites of these projects been threefold. First of course has been Postwar Japan” in Modern East Asia: Essays generated Asia’s New Giant—How the the domestic economy, its institutions, in Interpretation, edited by James B. Crowley, Japanese Economy Works, published by the its markets, its economic performance. published by Harcourt, Brace & World in 1970; Brookings Institution in 1976. Henry Rosovsky Equally important has been my focus on the and “The Economic Muddle of the 1920’s” in of Harvard and I co-edited the book and Japan-U.S. economic relationship, on the

CJEB Annual Report 2019–2020 | 13 co-authored its beginning and final chapters. The studies of specific industries included Volume 1, The Domestic Transformation, It was the first major book in English on the the occupational differences between edited by Kozo Yamamura and Yasukichi contemporary Japanese economy. predominantly white-collar workers in large Yasuba, consisted of 14 chapters written by trading companies, male skilled blue-collar 19 scholars, 15 of whom were economists. In 1973, the Brookings Institution had workers in shipbuilding, and female semi- Volume 2, The Changing International approached Henry and me to develop a skilled workers in the cotton textile industry. Context, edited by Takashi Inoguchi and Daniel comprehensive project on the Japanese Okimoto, had 15 chapters; 10 of the authors economy. Our plan was to bring together as The chapters on social consequences address were political scientists; 7, economists; and co-authors of chapters well-known American four major topics that have continued to be 1, a historian. Volume 3, Cultural and Social experts in various economic subfields and important for Japan until now, and, I expect, Dynamics, edited by Shumpei Kumon and young Japanese economists, in some cases into the foreseeable future: demographic Henry Rosovsky, had 13 chapters, of which their former students. We held joint meetings transition, narrowing (and now widening) economists wrote 6; anthropologists, 3; in the U.S. and in Japan with the participants income inequality, poverty, and welfare and sociologists, 2; and political scientists and to review chapter drafts or initial outlines. the environment. I have explicitly addressed lawyers, 1 each. I made detailed comments on each of the poverty in my annual essays these past several chapter drafts before the final revisions. The years. In the first volume, I co-authored a chapter project took two years and it was well worth it. with Tom Rohlen, “Small-Scale Family The definition and measurement of poverty Enterprises,” in order to address a topic then The other project I was working on at and the poor have evolved as Japan has not much covered in the English-language that time resulted in the book I edited, achieved a high per capita income and literature. It came to be widely cited. In the Japanese Industrialization and Its Social standard of living. Few Japanese now are second volume, I co-authored with Koichi Consequences, published in 1976 by absolutely destitute. Nonetheless, income Hamada “Japan and the International the University of California Press. I was a inequality remains a problem. For example, Monetary Regime.” Since I also commented member of the SSRC-ACLS Joint Committee based on the OECD definition that a country’s at some length on each chapter, this was my on Japanese Studies, which held an poor are those with an income less than main research agenda in the 1980s, starting international conference in August 1973, one-half the national median income, some at Yale and continuing when I moved to bringing together an interdisciplinary group 20 million Japanese now are poor, about 16 Columbia in 1984. of 25 American and Japanese economists, percent of the population. The prototypes sociologists, and anthropologists. I chaired are elderly males or females living alone, Institution-Building the planning committee. Larry Meissner, my especially in cities, and importantly spouseless graduate student at Yale, was the conference women with children. Education is the major In 1961, the Yale economics department, with rapporteur and became the main copyeditor of escape path for children of the poor. major Ford Foundation funding, established the volume. Larry also took on a role of critic, the economic development institution—which In 1982 I was asked by Dan Okimoto of corrector of factual inaccuracies, and improver came to be the Yale Economic Growth Center Stanford University to co-chair with Yasusuke of substantive text, far beyond the standard (EGC) under the leadership of Professors Murakami of the University of Tokyo the Japan definition of the job and the call of duty. I have Lloyd Reynolds, Robert Triffin, and Richard Political Economy Research Committee to subsequently utilized him in these excellent Ruggles at Yale and Simon Kuznets at oversee the development of an immense, capacities for everything else I have published, Harvard—to apply the Kuznets methodology comprehensive, interdisciplinary project to including this. We are a great team. of GDP measurement and analysis to some consider Japan’s position, not only in economic 25 developing countries. I was a member The focus of the book was on Japan’s modern but also in political and cultural dimensions, since Japan was classified as a developing economic development from the late 19th with the participation of major American and country until 1964. Each year, for five years, century to the early 1980s. The book has Japanese social scientists. The major purpose the economics department and the Economic three major parts. The first is on the functions was to evaluate the political economy of Japan Growth Center hired five new assistant of the industrial workforce, male and female. as it approached the 1990s. The organizing professors with five-year contracts to spend The second is on similarities and differences committee had 16 members. Murakami and I two years at the EGC studying their country, between large enterprises and small. The third were the general editors of the three-volume then a research year or so in their country, and is on some major social consequences. publication with the overall title The Political then returning to the EGC to write their book Economy of Japan.

14 | CJEB Annual Report 2019–2020 on the country’s economic performance. The and most research papers on its economy (ANU) and I had each been at Hitotsubashi, Growth Center was an exciting intellectual were being presented at a number of other Kojima relied on us to help contact conference environment, especially since those hired conferences. The advent of the internet made participants. ranged across the political spectrum. It was papers directly available. Since the March The conference made clear that Kojima’s a great time to be a member of the EGC. I 2006 meeting, JES has become a daylong proposed free trade area would not be became involved in the Center’s administration conference. The authors present two papers achieved anytime soon. It also made clear from its beginning and was its director for two in the morning and two in the afternoon, with that the participants knew a great deal about three-year terms from 1976 to 1983. assigned discussants from Japan and the the U.S., but not much about each other’s U.S. In 2011 we decided that JES would countries. So, we agreed we needed to Japan Economic Seminar meet once a year, at Columbia, with CJEB the organize a second conference to consider administrator and sole sponsor. In the early 1960s, only a few specialists were ways in which regional cooperation promoting teaching about Japan’s economic performance Frankly, by 2014, I thought the time had come trade and foreign direct investment could at East Coast universities. In 1965, in order to end JES. Fortunately, Professor Takatoshi be pursued. It was also recognized that the to learn about each other’s research, to invite Ito, a long-term JES participant, rejected that developing market economics of Southeast visiting Japanese academics, and to encourage idea and took active leadership. He became Asia must be included. This meant Taiwan advanced graduate students, Henry Rosovsky JES chair and successfully implemented and Hong Kong, but not China since its at Harvard, James Nakamura at Columbia, a new strategy. JES invited two academic economy was government-controlled. and I, then at Yale, founded the interuniversity economists from Japan to present their Nonetheless, Chinese scholars were invited Japanese Economic Seminar (JES), which research papers; they could cover their travel to and participated in the tenth conference has met at least annually ever since. Initially expenses from their soon-to-expire research in Canberra in 1979, when China became a JES met monthly during the academic year at funds. Discussants came from Japan as well. member. Harvard, Yale, or Columbia to discuss a paper CJEB continues as JES administrator and PAFTAD’s organizational structure has always circulated in advance, and then we would have sponsor. The most recent JES conference was been relatively simple. Peter Drysdale at dinner together at a nearby restaurant, usually held in February 2020. I am proud of what JES ANU and I, together with Kojima as chair, at Chinese. We soon shifted to meeting four times has achieved over the years. the beginning, were an informal executive a year and discussing two papers. I became committee. I raised substantial funding chairman of JES. PAFTAD from American foundations. After the JES initially received institutional support from PAFTAD—the Pacific Trade and Development fourth conference, an International Steering four research institutes and their universities. conference series—has been an important Committee (ISC) was established, with Yale dropped out when I left, and there part of my professional career. It enabled economists from all the PAFTAD economies as was no immediate successor. Once it was me to come to know and make good friends members. I was an ISC member until I retired in established, CJEB joined the Columbia East with outstanding policy-oriented academic 2015. I then served on PAFTAD’s international Asian Institute as a sponsoring institution. economists from all the Asia-Pacific advisory board established in 2016, until I In 1985, the Brookings Institution, and, in economies, notably through the series of resigned in 2020. 1994, George Washington University, became conferences held almost every year since The Japan Economic Research Center in cosponsors, and one of the four JES meetings 1968. Tokyo, the Australia-Japan Research Center was held in Washington. In 2000, when Henry PAFTAD developed, rather accidentally, from at ANU, and the Economic Growth Center Rosovsky became provost, Harvard ended the conference in Tokyo in 1968 that Professor at Yale provided institutional support. At the its formal involvement, and JES met twice Kiyoshi Kojima of Hitotsubashi University sixth PAFTAD conference in 1975, it was annually in New York and Washington. CJEB initiated. The purpose of the conference, decided to formally establish an Executive took administrative responsibility for JES. which was facilitated by the Japan Ministry Committee. Once longer-term funding was With James Nakamura’s retirement in 2000, of Foreign Affairs, was to consider a Pacific received in 1983, the PAFTAD Secretariat I replaced him as JES secretary-treasurer, free trade agreement among the developed was established at ANU with Peter Drysdale leaving the chair position open. Pacific nations—namely Australia, Canada, as director. By the first decade of the 2000s, the Japan, New Zealand, and the U.S. Since Peter In 1977 Senator John Glenn asked me to do Japanese economy had become mainstream, Drysdale of Australia National University

CJEB Annual Report 2019–2020 | 15 research and write a concept paper in support 40). Mari resigned in May 2020 to accept a Our Group met five times between December of a governmental trans-Pacific trade and senior position at the World Bank. 1979 and November 1980, alternating development organization. Fortunately, Peter between the U.S. and Japan. These were PAFTAD has successfully made the papers Drysdale was on a sabbatical leave at Yale extraordinarily focused, substantive meetings, and proceedings available as book publications that year, so he and I drafted a policy-oriented carried out with great goodwill. Between relatively quickly, with those responsible concrete paper proposing the establishment meetings we interacted with a wide range of for organizing the conference taking on the of a U.S.-led Organization for Pacific Trade other institutions and individuals. editing of the manuscript. Lawrence Krause and Development (OPTAD). I testified on and I co-edited the ninth conference volume, In January 1981, we released our 105- this before Senator Glenn’s committee in published in 1978. The current PAFTAD page Report of the Japan-United States fall 1978, having already presented our members are from Canada, the U.S., Mexico, Economic Relations Group, with strong written report; however, our proposal was Japan, The Philippines, South Korea, Taiwan, policy recommendations to strengthen this not implemented by the U.S. government. Hong Kong, China, Vietnam, Myanmar, important bilateral economic relationship. Nevertheless, our paper provided useful input Malaysia, Singapore, Thailand, Indonesia, The Report addressed a wide range of topics, for subsequent PAFTAD discussions. India, Australia, and New Zealand. including inadequate consultative mechanisms PAFTAD played a significant role in the between the two governments, mistaken or establishment in 1980 of the Pacific Japan-U.S. Economic outdated perceptions of each country in the Economic Cooperation Council (PECC), Relations Group other country, inadequate American economic which brings together leaders from business, performance, lagging liberalization of Japan academia, civil society, and government in a The Japan–United States Economic Relations markets, unresolved energy issues, and the nonofficial capacity as an independent forum Group was established by Prime Minister politicization of economic and trade disputes. to discuss regional economic issues and Masayoshi Ohira and President Jimmy Carter I was actively involved in writing and editing consider ways to cooperate and coordinate on May 2, 1979. Its purpose was to examine the Report. This was probably my most policies in the Asia-Pacific. PECC is one of the factors affecting the longer-term bilateral exciting project over the course of my career; three official observers of the APEC process. I economic relationship and prepare written it was a high-level, public-policy initiative with was involved in PECC through my activities in recommendations to Prime Minister Ohira the active, high-quality involvement of my PAFTAD. and President Carter on how to strengthen seven fellow members. the relationship. This was in response to Sir John Crawford of Australia and Saburo domestic protectionist pressures on the U.S. Okita of Japan, high-level advisers to their Columbia, CJEB, and government against Japan’s significant export respective governments, participated actively increases to the U.S. Ongoing Research in the PAFTAD conferences and activities until their deaths, Sir John in 1985 and Okita The chairs were distinguished leaders—the In early 1984, Columbia Business School in 1994. Professor Harry Johnson of the dynamic and driven Nobuhiko Ushiba, former made me an excellent offer. I would become University of Chicago early on played a major minister for external economic affairs, and the first holder of a new chair, the R.D. Calkins intellectual role. He provided a brilliant, often affable and stalwart Robert Ingersoll, former Professor of International Business, with a acerbic summary of the conference and its deputy secretary of state. The American significant increase in salary, and an ability to papers in the concluding session in six of the members were AW Clausen, president of rent a large university apartment in a building first eight PAFTAD conferences, before his the Bank of America; Edson Spencer, chair near the campus. My research and institution- untimely death. of Honeywell; and me as the only academic building focus on Japan, Asia, and the Pacific, economist. The Japanese members were Akio based on economic and financial development, I succeeded Okita as ISC chair in 1986, a Morita, chair of Sony; Shuzo Matsumoto, would continue. While I was comfortable position I held until 2005. During that period president of Dai-Ichi Kangyo Bank; and Kiichi at Yale, I was ready for a new academic we held the 16th through the 30th PAFTAD Saeki, chair of Nomura Research Institute. The environment and happy to live in Manhattan. conference. I was succeeded as ISC chair by Group had a small, strong, administrative staff, Hadi Soesastro of Indonesia, 2006–2009 The Columbia Business School had long led by Tadashi Yamamoto and Jack Button (PAFTAD 31–33); Wendy Dobson of Canada, had an outstanding faculty and a strong as executive directors, and access to a wide 2010–2018 (PAFTAD 34–39); and Mari commitment to teaching and research in range of research in both countries. Pangestu of Indonesia, 2018–2020 (PAFTAD international business. It had strong programs

16 | CJEB Annual Report 2019–2020 in Europe and Latin America. Japan was the have joined in providing annual support, so in the United States; research activities; leading Asian economy. I was recruited to that now CJEB has 33 corporate sponsors, visiting fellows program, sources of financial implement the School’s strategic commitment as well as several individual contributors. support; library, data, and other resources; to develop leading economic programs on Importantly, Japanese supporters of CJEB and, importantly, its excellent professional the Japanese economy and business and on have never made their gifts contingent on administrative staff. The first Annual Report, Pacific Basin economic relations. Columbia special requirements or benefits to the donors. for 1986–87, was 17 pages. Reflecting the had a world-renowned, distinguished faculty They understand that having an American, Center’s growth, by 1998–99, the Report was not only in Japanese history, literature, and independent, objective, academic institution 67 pages. the arts but also in anthropology, sociology, developing programs and activities on the Beginning with 1999–2000, the Annual and law, as well as political science, notably Japanese economy and its business systems Reports have included my essay on the current the then young scholar Gerald Curtis, who is to their benefit. Japanese economy. My 19 essays aimed became my best friend. Columbia had the well- The creation and development of CJEB has to provide an analytical overview of and my established School of International and Public probably been my most important professional perspectives on the Japanese economy and Affairs (SIPA), and excellent libraries, notably contribution. It has achieved more than I ever its performance. This is my final essay in this the C.V. Starr East Asian Library. expected. After 33 years as its director, I was series; at David Weinstein’s suggestion, I have CJEB delighted to turn over CJEB’s directorship made it into this review of my professional to Professor David Weinstein in 2018 and career. When I first joined the Columbia Business to become “chairman,” which enables me to School faculty in 1984, I had no particular participate as much as I would like without the Research at Columbia institutional development plans in day-to-day responsibilities. Concomitant with leading CJEB’s mind, though I had the good experience CJEB’s public programs and related activities development, I continued my research, administering the Yale Economic Growth have always centered on and radiated out including several major projects. The Pacific Center. In fall 1985, Ralph Pfeiffer, chair of from the Columbia academic and New York Basin was the world’s most dynamic economic the board of IBM World Trade Americas/Far business and professional communities. While region in the 1970s and ’80s, although East, arranged a $60,000 grant to plan on it has held occasional seminars and workshops growth was not a simple process. While establishing a Center. I drafted a proposal to in Japan, it was only in 2006 that CJEB held some industries and companies gained establish the Center on Japanese Economy a major conference there to celebrate its first competitiveness, others lost it and faced and Business (CJEB) at Columbia Business 20 years. The keynote was given by the Bank severe adjustment challenges, exemplified School. CJEB’s purpose was, and is, to be a of Japan governor. The members of the two by labor-intensive textiles. I developed a vigorous research institution on Japanese panels were distinguished business leaders project to analyze the process of structural business and the economy in an international and academics. The 250-plus audience adjustment, trade protection promotion, and context, and to organize and hold international included Japanese company presidents and other policies of manufacturing industries in symposia, conferences, and lectures. senior business and government officials. The distress in developed Asia-Pacific economies. CJEB’s proposed initial budget was $400,000 conference’s success resulted in its becoming I recruited outstanding economists in Canada, annually—then a lot of money—for five years. an annual CJEB event in Tokyo. COVID-19 the United States, New Zealand, Australia, To my delight, in spring 1986, Sumitomo forced the cancellation of the May 2020 Singapore, Hong Kong, Taiwan, South Korea, Corporation of America agreed to make a conference, but the conference will be held in and Japan to write chapters considering how five-year, $1 million contribution. We were 2021. their respective economies dealt with stressed then able to obtain grants from other major industries. While considerable structural I do not need here to describe CJEB’s Japanese companies and establish CJEB. adjustment took place through markets, in all activities. That is well done in CJEB’s Annual except Hong Kong, the government intervened In 1986, CJEB received a $2 million Report, published every year and available on to aid certain distressed industries. I was able major endowment gift, paid in five annual CJEB’s website. The Report lists faculty; the to raise funding from American and Japanese installments, from four major Japanese members of its distinguished International companies and foundations for the project. financial institutions. Sumitomo has Advisory Board; the Center’s research subsequently made new five-year associates, who are major specialists on the Our group worked closely together, developing contributions, and other Japanese companies Japanese economy teaching (initially at least) a common framework and general outline

CJEB Annual Report 2019–2020 | 17 for each country study. We met twice, in addressing banking and finance in Germany, Financial System, edited by Takeo Hoshi and July 1988 and January 1989, to review South Korea, India, China, and Poland. Aside me and published by Kluwer in 2000. Takeo preliminary drafts. Each workshop included from Asia’s New Giant, this is probably the and I wrote a 33-page substantial overview economic specialists. The resulting book, book for which I am best known. chapter, followed by 11 chapters appearing edited by me, is Pacific Basin Industries in in three parts: “The Origin of Japan’s Banking My interest in financial development—in Distress, published in 1991 by Columbia Crisis,” “Responding to Crisis,” and “Financial the many market countries where formal University Press. Larry Meissner played a Structural Change or the Big Bang.” Big Bang, markets were initially repressed and then major role in editing this book. borrowed from physics and applied to the more eventually liberalized—has always been comprehensive 1986 recasting of London’s In the late 1980s the World Bank Economic comparative, while based on my research financial markets, became the term for Prime Research Institute approached Masahiko on Japan. In 1988, my close friend Yung Minister Ryutaro Hashimoto’s proposal for Aoki and me to head a research study of the Chul Park, professor of economics at Korea a range of major market-oriented reforms Japanese main bank system. The purposes of University and president of the Korea Institute of the financial system, long term in nature. the project were twofold: to define and analyze of Finance, and I developed a project on the However, the financial crisis was immediate. the Japanese main bank system, and to financial development of three successful Some reforms did take place, initially to cope assess its relevance as a model for developing market economies—Japan, South Korea, and with the crisis. Implementation of the Big Bang market economies and transforming socialist Taiwan. We recruited outstanding economists reforms (a term now not much used) began in economies. The selection of Aoki was obvious. from these three economies. Our team held 1998 and continued for its three-year period. Based at Stanford University, he was one of an initial planning workshop in New York in It was a difficult time in Japan’s financial Japan’s most distinguished economists and early 1989, then a meeting in Tokyo in the history and a wonderful project. an outstanding specialist on the Japanese fall, a workshop in Seoul revising drafts in economy. I presumably was selected based on early 1990, and a substantive conference in My final major group project was on Japan my research on the Japanese financial system Tokyo in summer 1990. We worked on editing with Takatoshi Ito, then at the University of and my ability as an organizer and manager and reviewing the chapter drafts through Tokyo, and my colleague David Weinstein. We of participants in multischolar projects. the summer of 1992. Yung Chul and I were were meeting one summer evening in Tokyo in Funded mainly by the World Bank, the result the editors of The Financial Development 2002 at a yakitori restaurant together with of this project was the 651-page volume The of Japan, Korea, and Taiwan: Growth, our friend Tokuo Iwaisako of Hitotsubashi Japanese Main Bank System—Its Relevance Repression, and Liberalization, published by University. Over many beers and a little sake, for Developing and Transforming Economies, Oxford University Press in 1994. I wrote the we commiserated about Japan’s persistent, edited by Masahiko Aoki and Hugh Patrick, concluding chapter, “Comparisons, Contrasts, debilitating economic malaise. We decided published by Oxford University Press in 1994. and Implications.” to develop a comprehensive, policy-oriented research project designed to recommend This was a wonderful project, as was Japan’s postwar financial system was bank- economically optimal solutions to major working with Masa Aoki. The book has 17 centered and initially highly regulated, with problems thwarting Japan’s return to a self- chapters written by 20 authors, including controls on deposits and low interest rates. sustaining, full-employment growth path. three chapters co-written by two authors Liberalization began in the late 1970s but and the introductory chapter by Masa Aoki, progressed slowly. The combination of bad We held a preliminary draft paper workshop Paul Sheard, and me. The authors held a loans, especially to housing-loan companies, at Columbia in August 2003. In June 2004, preparatory planning session and then two and the bursting of the asset price bubble in we held a two-day conference in Tokyo, with intensive workshops to review chapter 1990 generated a series of financial shocks a few invited commentators. As always, I drafts. We benefitted from the comments of leading to the financial crisis of 1997. was deeply involved in editing the papers. participants from the World Bank, the Japan Reviving Japan’s Economy—Problems and In October 1998, Takeo Hoshi at the Development Bank, and scholars from a range Prescriptions, edited by Takatoshi Ito, Hugh University of California, San Diego, and I of other institutions. Patrick, and David E Weinstein, was published arranged a conference at Columbia titled “The in 2005 by MIT Press, with 15 authors. Part I of the book contains our introduction and Japanese Financial System: Restructuring Taka Ito and I wrote the 36-page overview 10 chapters on the Japanese bank system and for the Future.” In my regular process, the chapter, followed by 10 chapters in four parts: the Japanese financial system. Part II covers, papers went through several revisions. The macroeconomic policy, reforming the financial in addition to my chapter on Japan, chapters result was Crisis and Change in the Japanese

18 | CJEB Annual Report 2019–2020 CJEB directors, administrators, and Visiting Fellows celebrating Professor Hugh Patrick’s 90th birthday in February 2020 system, changing markets and business a focus on Korea’s experience in the 2007–09 Saxonhouse, Robbie Feldman, Ed Lincoln, Kim investment, and international economic global financial crisis. This was my final group Schoenholtz, and Hong Tan. relations. Unfortunately, but not surprisingly, research project. In retrospect I think my institution-building has our policy recommendations were only partially been my most important contribution. With implemented. Conclusion its 34-year history, the Center on Japanese In 2009 Yung Chul Park took the leadership I have had a happy, productive, successful Economy and Business (CJEB) is the best, in organizing a reprise project on Japan and professional career. My curriculum vitae lists most consequential academic institution Korea, and replacing Taiwan with China. While 21 books and monographs. Almost all were on the Japanese economy and its business the three economies were in different stages books I edited and for which authored or co- systems anywhere in the world outside Japan. of economic and financial development and authored one or more chapters. My CV also The Japan Economic Seminar continues to had distinct histories, political systems, and lists 152 items published. They range from play a vigorous role. And PAFTAD reigns as a societal characteristics, all had experienced articles, introductory essays, and chapters major academic institution bringing together rapid catch-up development. Finance had in books, to comments on other books and economists from throughout the Asia-Pacific. provided both opportunities and challenges. articles. I also have placed on CJEB’s website My career has enabled me to develop some brief reports on companies I have We discussed preliminary drafts at a wonderful personal friendships, often from visited since 1984. Some 50 of my articles conference in Seoul in December 2010 and what began as professional relationships, at are on deposit at the Columbia University a follow-up meeting at Columbia University in Columbia, all over the United States, in Japan, Academic Commons. I am gratified that, as of August 2011. Further substantive revisions Australia, and Korea, and, indeed, throughout July 31, 2020, over the years they have been and editing was completed in summer 2012. Asia. I bask in them. downloaded 67,378 times. The resulted volume edited by Yung Chul Park August 5, 2020 and Hugh Patrick, How Finance Is Shaping I always greatly enjoyed interacting with my the Economies of China, Japan, and Korea, students and colleagues at Michigan, Yale, Professor Patrick’s essay, “My Career as an published by Columbia University Press and Columbia and learned a lot from them. Economist on Japan and the Asia-Pacific,” in 2013, had five chapters—one on each I was fortunate to have some excellent PhD will be rereleased with any updates and economy, a 43-page introductory review by students, including those going on to have adjustments as an occasional paper on our me, and an analytical chapter evaluating the important careers as specialists on Japan. website in Winter 2020. role of financial institutions and markets, with They include but are not limited to Gary

CJEB Annual Report 2019–2020 | 19 Current Research Highlights

From left to right: David Weinstein, Hugh Patrick, Takatoshi Ito, and Gerald L. Curtis

One of CJEB’s highest priorities is promoting Professor Weinstein has also been working Takatoshi Ito contributes to the Center’s research related to the Japanese economy, on how the entry of Japanese e-retailers research activities and has several individual businesses, management systems, and has affected consumer prices and welfare ongoing research projects. Professor Ito’s financial markets. Typically, the Center’s core in Japan, and he was invited to present research and teaching focus on international faculty members obtain funding individually the work at the Bank of Japan. Finally, one finance, foreign exchange market through competitive outside grants, as well of his papers on measuring price changes microstructure, Asian financial markets, as additional financial and administrative was published in The Quarterly Journal of inflation targeting, and the Japanese support from the Center in order to facilitate Economics—one of the most prestigious economy. Professor Ito also maintains a their research. journals in the field. teaching and research position during the summer at the National Graduate Institute for Professor Weinstein’s research is often Policy Studies in Tokyo. His research focuses David E. Weinstein leads the Center’s cited and discussed in the media, and he is a on three broad themes: international finance, research activities and has several projects frequent commentator on Japan. the Japanese economy, and the Asian under way. Professor Weinstein’s research financial markets. He has carried out a series and teaching focus on international Gerald L. Curtis divided his time last year, of research projects on the dynamics of the economics, macroeconomics, corporate as he has for many years now, between living exchange rates in various time spans and finance, the Japanese economy, and in New York and Tokyo. He conducted frequencies. He has done macroeconomic industrial policy. In addition to his role as research on Japanese politics, U.S.-Japan analysis of the yen/dollar exchange rates CJEB’s director, he is the co-director of the relations, and the changing political order in after the rate floated in 1973. Currently, NBER Japan Project, a visiting professor the Asia-Pacific region; spoke at many public he is examining the microstructure of the at the London School of Economics, and a events in both countries; and consulted foreign exchange markets using a tick-by- member of the Federal Economic Statistics with policymakers, business leaders, and tick dataset, which contains all firm quotes Advisory Committee. Professor Weinstein others. He participated in a number of track and deals in a computerized order-matching was also the chair of Columbia University’s II meetings to discuss policy issues with engine. He is researching how particular Department of Economics. experts from the United States, Japan, institutions and rules in the market influence Professor Weinstein published several papers China, and Korea. His views on issues pricing and deal activities. examining the costs of the trade war, which relating to Japanese politics and to U.S.- His work on the Japanese economy includes were widely cited in media in the United Japan and U.S.-East Asian relations were both macro- and microeconomic aspects States, Europe, and Japan. In addition, he quoted in numerous publications on both of the economy. On monetary policy, he has released a new paper, which found that sides of the Pacific. His plans to be in Japan was a proponent of inflation targeting in the U.S.-China trade war lowered the market in the spring of 2020 were suspended due Japan long before the Bank of Japan finally capitalization of U.S. listed firms by $1.7 to the coronavirus pandemic. He has been adopted it in 2013. He is investigating trillion and will lower their investment growth participating in webinars and writing articles transmission channels and the effects of rate by 1.9 percentage points by the end of about the pandemic’s political impact on the quantitative easing adopted by the four 2020. U.S. and Japan.

20 | CJEB Annual Report 2019–2020 major central banks. On fiscal policy, he trade, finance and investment, the digital has been analyzing the debt sustainability economy, and the intersection of those areas of Japanese government debts. He has in Japan and China. Over the past four years, been conducting a simulation analysis of a she has spoken to international corporate, menu of fiscal consolidation with varying academic, and policy audiences on topics degrees and speeds. On growth strategy, he including financial regulatory reform in the investigates various reform plans in regulated United States, developments in international industries from agriculture and education to trade and investment, and comparing Chinese medical and health care. He combines theory and Japanese industrial policies and policies and empirical research and derives policy around high tech and digital, and corporate implications. governance issues. As dean, she also has initiated a number of new initiatives around He belongs to a research group at the the intersection of technology and policy, Research Institute of Economy, Trade, and notably focusing on cybersecurity, internet Industry, which examines Japanese exporters’ governance, and digital economy; a major decisions to pass through the exchange rate China/Asia initiative; new initiatives on central changes on export and destination prices. banking and financial policy; and global urban He is also a special member of the Council policy. on Customs, Tariff, Foreign Exchange, and other Transactions at the Ministry of Finance, Alicia Ogawa continues her private Japan. Professor Ito organizes internationally consulting work for an activist fund on the acclaimed seminars, such as the NBER East Japanese equities market. She has been a Asian Seminar on Economics in June 2016. featured speaker on corporate governance at several NPOs this year, including the He served as chair of the study group on American Chamber of Commerce in Japan, reforming public pension funds in Japan. the Council of Institutional Investors, and A report from his group, recommending the International Corporate Governance portfolio rebalancing away from Japanese Network. The project on Japanese Corporate government bonds and toward more risk Governance and Stewardship organized assets, has been very influential in the several events at Columbia this year, including subsequent change of the Government Public seminars entitled “Knocking Down Walls: Investment Fund. Making Japanese Companies Responsive to Professor Ito’s involvement in Southeast and Their Shareholders” and “ESG Investing: A East Asian economies dates from the time of Local, Not a Global, Issue.” At SIPA, she led the Asian currency crisis in 1997–1998. He a seminar sponsored by Goldman Sachs on has done research on, as well as given policy identifying impact investment ideas related to advice related to, economic and financial reducing income inequality. issues in Southeast Asia, in particular Thailand, Indonesia, Korea, and Myanmar. He Hugh Patrick continues his study of Japan’s continues to visit these countries to engage current economic performance, monetary in academic and policy discussions. He has policy, and institutional changes. His most been doing research, as well as teaching, recent paper is a special essay on his career on inflation targeting and exchange rate as a specialist on the Japanese economy and regime and financial and capital markets on Pacific Basin economic relations, included development in the Asian emerging market in this annual report, starting on p. 10. He is economies. an active participant in a range of conferences Merit E. Janow, appointed dean of the School about Japan and Asia. He made a trip to Japan of International and Public Affairs (SIPA) in in fall 2019 and had meetings with senior 2013, undertakes research on international policy advisers and business leaders.

CJEB Annual Report 2019–2020 | 21 Faculty Engagement

From left to right: Hugh Patrick and Takatoshi Ito, and Yumiko Shimabukuro

CJEB actively supports Columbia University On September 27, 2019, CJEB held a Funds (p. 31). Takatoshi Ito moderated faculty members who are not formally workshop titled “Effective Knowledge the first panel, “ESG Investment: Will It associated with the Center by promoting Transfer Workshop” featuring Yumiko Make Returns Higher?” which also included dialogue between the business, professional, Shimabukuro, director of the Urban and Patrick Bolton, Barbara and David Zalaznick academic, and cultural communities in Social Policy Program at SIPA (p. 36). On Professor of Business at Columbia Business the United States and Japan. CJEB funds October 1, 2019, Takatoshi Ito gave his School. Patricia Mosser, director of the MPA Japan-related research and explores ways annual lecture on the Japanese economy Program in Economic Policy Management to incorporate the study of the Japanese titled “The Seventh Year Stretch: Structural and senior research scholar at SIPA, economy and business systems into Reform Still Needs a Hit” (p. 34). On October moderated the second session, titled “The faculty research and teaching. We foster 29, 2019, CJEB cohosted a symposium Macroeconomic Environment: How Long Will collaboration and use our extensive network with the Weatherhead East Asian Institute Low Interest Rates Continue?” of Japanese professional contacts to arrange (WEAI) of Columbia University and SIPA CJEB featured James Holtje, adjunct for speakers from the private, academic, featuring Kanji Yamanouchi, ambassador and professor of international and public affairs and government sectors to give lectures consul general of Japan in New York; Gerald at SIPA, in speechwriting and speech delivery to the Columbia community. CJEB faculty L. Curtis, Burgess Professor Emeritus of workshops on January 10 and 17, 2020 (p. have access through CJEB to various Japan- Political Science at Columbia University; and 37). CJEB held its annual Japan Economic related databases for use in their research. Hugh Patrick, titled “U.S.-Japan Relations Seminar (p. 56) on February 20, 2020, Additionally, where appropriate, CJEB can in a Turbulent World” (p. 32). The speakers highlighting several papers on the Japanese fund and arrange faculty trips to Japan. discussed the history of relations between economy. Columbia University professor the United States and Japan in a wide This past year, CJEB invited several faculty Yeon-Koo Che was a discussant for the range of areas, notably politics and the members to participate as speakers or paper “Meritocracy and Its Discontent: Long- economy, and endeavored to make sense panelists in its various public programs. On Run Effects of Repeated School Admission of the unpredictable global developments September 25, 2019, CJEB held a luncheon Reforms,” presented and coauthored by Yale influencing the relationship currently. This featuring Shinjiro Koizumi, minister of the University professor Yusuke Narita. Shigeo was moderated by Carol Gluck, George environment of the Cabinet Office of the Hirano, Columbia University professor, Sansom Professor of History at Columbia Government of Japan (p. 33). The event, titled served as a discussant for the paper “Do University. “Special Luncheon with Minister Shinjiro Trade-originated Income Shocks Mobilize Koizumi,” was moderated by Takatoshi Ito, On November 1, 2019, CJEB held a Higher Backlash against Free Trade?” written professor at the School of International and workshop using a Japan-focused design and presented by Megumi Naoi, professor at Public Affairs (SIPA) and director of CJEB’s thinking method featuring Yumiko the University of California, San Diego. Program on Public Pension and Sovereign Shimabukuro (p. 37). On November 21, The Center held several live webinars this Funds. The event was cosponsored by SIPA, 2019, CJEB hosted its fourth annual spring featuring Columbia affiliates. On Columbia University. Conference on Public Pension and Sovereign April 29, 2020, “COVID-19: Economic

22 | CJEB Annual Report 2019–2020 From left to right: Gerald L. Curtis, Patricia Mosser, and Pierre Yared

Implications for Japan and the United States” at SIPA, as discussant, and Takatoshi Ito as playing behavior. Amit Khandelwal, Jerome featured Glenn Hubbard, dean emeritus and moderator; an April 21, 2020 event featuring A. Chazen Professor of Global Business at Russell L. Carson Professor of Finance and Keiko Honda; a May 16, 2020 workshop Columbia Business School, examined the Economics, Columbia Business School, and featuring Adam Royalty, founding director effect of language barriers—in particular, the with Yumiko Shimabukuro as moderator and of the Columbia Entrepreneurship Design lack of English language ability—on efficiency welcoming remarks from David Weinstein Studio, and Yumiko Shimabukuro; and and knowledge spillovers. In addition, Martina (p. 38). CJEB held two live webinars on May our annual Tokyo conference, “The Future Jasova, assistant professor of economics 1, 2020: “The Role of Central Banks in the of Global Interdependence: Environment, at Barnard College, Columbia University, COVID-19 Pandemic: The U.S., Japan, and Trade, and Politics” (pp. 40–41). Several has been using CJEB’s data resources, Beyond,” featuring Patricia Mosser, and eminent Columbia faculty members were including Nikkei NEEDS Financial QUEST with welcoming remarks from Takatoshi slated to participate in this conference, 2.0, for her research focusing on the impact Ito (p. 38); and “Developing Your Career including Gerald L. Curtis, Keiko Honda, of bank credit supply shocks on trade credit and Designing Your Future during a Period and José A. Scheinkman, Charles and Lynn relationships in Japan. of Crisis,” featuring Keiko Honda, adjunct Zhang Professor of Economics at Columbia CJEB continues to work with the Jerome A. professor and adjunct senior research scholar University. Chazen Institute for Global Business and at SIPA, and with Yumiko Shimabukuro This year, CJEB funded the following Japan- the student-run Japan Business Association as moderator (p. 39). Our final webinar related research projects from Columbia (JBA) at Columbia Business School (CBS) to for the 2019–2020 academic year was a Business School faculty members. Andrey support the annual travel of a CBS faculty presentation from Takatoshi Ito on June Simonov, assistant professor of marketing leader on the Chazen International Study 17, 2020: “What Japan Should Do Now in at Columbia Business School, studied which Tour to Japan. Unfortunately, the tour was Preparation for Japan’s New Normal,” with preference mechanism is the key driver canceled this year per University guidelines Keiko Honda as moderator. behind using and purchasing loot boxes in in response to the COVID-19 pandemic. We had planned to hold more events on video games—the functional value of the This year CJEB also cosponsored the campus in March and April featuring Columbia items or preferences for playing the loot Chazen Global Immersion Program to Japan, faculty members; however, they had to box itself. His analysis shows supporting with Pierre Yared, MUTB Professor of be postponed per University guidelines in evidence for the functional value of the loot International Business and the vice dean for response to the COVID-19 pandemic. box—players are more likely to draw loot executive education at Columbia Business Affected events include a March 24, 2020 boxes when they are more unsuccessful in School, which unfortunately also had to be zadankai featuring Nobuchika Mori, senior their game play. He does not, however, rule canceled (p. 50). research scholar and adjunct professor out the possibility of preferences from the at SIPA, and with Christine Cumming, loot box itself and is currently developing an adjunct senior research scholar and adjunct economic model to dissect the role of the professor of international and public affairs two forces in describing consumers’ loot box–

CJEB Annual Report 2019–2020 | 23 Research Paper Series

CJEB fosters dissemination of research WP 370 WP 371 on Japan’s economy and business within Coming In at a Trickle: The Optimal Offshoring and Working Hours Columbia and in the broader academic, Frequency of Public Benefit Payments Adjustments in a Within-Firm Labor business, professional, and public policy Market communities. While much of the research pro- Cameron LaPoint and Shogo Sakabe duced by scholars affiliated with the Center Masahiro Endoh October 2019 ultimately appears in scholarly books and November 2019 professional journals, early drafts of the work The question of how governments should and research results can be found in CJEB’s choose the frequency of payments has Although a growing body of literature identi- Working Paper (WP) Series. We also accept received little attention in the literature on fies the within-firm redistribution effects of interesting topical papers, not slated for the optimal design of public benefits pro- trade, research on the adjustment processes eventual publication, in our Occasional Paper grams. We propose a simple model in which in within-firm labor markets is scarce. This (OP) Series. Papers in both series are avail- the government chooses the length of the study analyzes the within-firm adjustment able for free download through our website at interval between payments, subject to a of working hours and wages by considering www.gsb.columbia.edu/cjeb/research, which trade-off between the administrative cost workers’ educational background and gen- links to the Columbia University Libraries’ of providing more frequent benefits and the der in response to a change in offshoring. Academic Commons website. There were no welfare gain from reducing deviations from Matched worker–firm panel data in the Occasional Papers presented in 2019–2020. full consumption smoothing. In our empiri- Japanese manufacturing sector covering cal application, we examine consumer and 1998 to 2013 are being used. The analysis retailer responses to bimonthly payments leads to the following observations: First, 2019–2020 from the Japanese National Pension System. offshoring does not significantly change We exploit variation in the duration of pay- monthly and annual incomes. Second, off- Working Papers ment cycles using a unique retail dataset shoring decreases working hours—that is, imported inputs are close substitutes for WP 369 that links consumers to their purchase history. Our difference-in-differences style labor inputs. More than three-quarters of the Trade Effects on Job Changes through Job approach shows a clear spike in spending decrease in scheduled working hours can Creation and Destruction Responses on payment dates for customers who are of be attributed to a decrease in working days. retirement age relative to those who are not. Third, hourly wages increase in all worker Masahiro Endoh While within-store average prices increase groups examined. Though the impacts of October 2019 by 1.6 percent on payday, this effect is offshoring on hourly wages and incomes are almost entirely due to consumers substitut- contradictory, both share the same feature: This study estimates the impact of both ing towards higher-quality goods rather than offshoring expands neither skill premium nor export and import shocks on the creation a retailer response. We use these reduced gender gap. and destruction of jobs. Using Japanese jobs form estimates to parameterize the model data from 1996 to 2016, I take a conser- and conclude that the optimal frequency of vative approach to see the effects of trade Japanese public pension payments is less WP 372 on jobs according to industry. Results show than one month, implying the government that trade shocks change a greater number The Future of Japan’s Financial Market could improve welfare by increasing payment of jobs through establishments’ extensive frequency. Nobuyuki Kinoshita margin than through their intensive margin. Additionally, trade shocks have the effect of December 2019 creating jobs in smaller establishments and cutting jobs in larger establishments. The The subject of this paper is the relationship implied net job change accounts for 12–15 between developments in ICT and financial percent of total manufacturing job decreases, services and legislation, with a focus on the half of those based on liberal, widely used financial market. estimates.

24 | CJEB Annual Report 2019–2020 The basic approach is as follows: the ser- WP 373 WP 374 vices for financial transactions are built on The Responses of Consumption and Prices The Effect of the U.S.-China Trade War on the latest ICT, while the legal implications in Japan to the COVID-19 Crisis and the U.S. Investment are stipulated by existing financial legisla- Tohoku Earthquake tion. Although the rapid development of ICT Mary Amiti, Sang Hoon Kong, and David E. has put enormous pressure on the financial Tsutomu Watanabe Weinstein industry to innovate their services, a nation’s March 2020 May 2020 financial legislation might show remarkable delay because of the path-dependency of This note compares the responses of con- We develop a new method of quantifying the lawmaking and enforcement systems. The sumption and prices to the COVID-19 shock impact of policy announcements on invest- discrepancy between the progress of ICT and and another large-scale natural disaster ment rates that makes use of stock market delayed legislation varies by country, which that hit Japan, the Tohoku earthquake in data. By estimating the effect of U.S.-China reflects the relative competitiveness of finan- March 2011. The comparison shows that the tariff announcements on aggregate returns cial industries and markets. responses of supermarket sales and prices and the differential returns of firms exposed at a daily frequency during the two crises to China, we identify their effect on treated Following this approach, I first show that are quite similar: (1) the year-on-year rate of and untreated firms. We show theoretically the economic value produced by financial sales growth increased quickly and reached and empirically that estimates of policy- transactions consists of saving transac- a peak of 20 percent two weeks after the induced stock market declines imply lower tion costs. Transaction costs are basically outbreak of COVID-19 in Japan, which is returns to capital, which lowers investment information processing costs, which are quite similar to the response immediately rates. We estimate that the tariff actions determined by the level of ICT. Second, I after the earthquake; (2) the items consumers through 2018 and 2019 will lower the explain the grand design of financial legisla- purchased at supermarkets in these two cri- investment growth rate of listed U.S. compa- tion and the peculiarities of Japan’s system. ses are almost identical; (3) the year-on-year nies by 1.9 percentage points by the end of Generally speaking, the financial legislation rate of consumer price inflation for goods 2020. of a country is composed of two categories. rose by 0.6 percentage points in response to The first category is broad, such as bank- the coronavirus shock, compared to 2.2 per- ruptcy laws, and the second is narrow, such centage points in the wake of the earthquake. as security exchange laws. Third, I examine However, evidence suggests that whereas the changes in financial transactions caused people expected higher inflation for goods by ICT advancement in various countries and services in the wake of the earthquake, and compare them to development in Japan. they expect lower inflation in response to the Fourth, I focus on current changes in finan- coronavirus shock. This difference in inflation cial markets by introducing examples from expectations suggests that the economic around the world. Former financial exchanges deterioration due to COVID-19 should be have transformed themselves into providers viewed as driven mainly by an adverse aggre- of financial market infrastructures. Global gate demand shock to face-to-face service regulations have also changed in accordance industries such as hotels and leisure, trans- with this transformation. Fifth, I identify two portation, and retail, rather than as driven by main challenges for Japan’s financial legisla- an aggregate supply shock. tion in adapting to digital innovation. The first is how to design overall financial legislation, and the second is how to enforce individual legislation.

I hope this paper stimulates further research and widespread construction on this theme.

CJEB Annual Report 2019–2020 | 25 CJEB PROGRAMS

Program on Public Pension and Sovereign Funds

With imposed stress on public pension systems across advanced economies because of the growth in aging populations, many countries have created or reformed public pension funds to finance future shortfalls in pension con- tributions. Under the guidance of Professor Takatoshi Ito, CJEB established this program in order to examine and conduct extensive research on how public pension funds and sovereign wealth funds should be structured, both in portfolio and governance. The program evaluates public pension fund reforms across Japan and other global economies, with an aim toward deriving lessons for Japan to enhance From left to right: Takatoshi Ito, Keiko Honda, Patrick Bolton, Lukasz Pomorski, and Sudhir Rajkumar its Government Pension and Investment Fund (GPIF). Similarly, the GPIF can serve as a model (pp. 31–32). The conference was composed of John Lipsky, Peter G. Peterson Distinguished for structuring other public and quasi-public two sessions: “ESG Investment: Will It Make Scholar of the Henry A. Kissinger Center for pension funds in Japan and other emerging Returns Higher?” and “The Macroeconomic Global Affairs at Johns Hopkins University. market economies, with the intention of setting Environment: How Long Will Low Interest Rates up or reforming its own funds. Continue?” The keynote speakers were Keiko Honda, former executive vice president and This year, the Program on Public Pension former chief executive officer of the Multilateral and Sovereign Funds (PPPSF) held its fourth Investment Guarantee Agency (MIGA), and annual conference on November 21, 2019 Corporate Governance and Stewardship Program

As a major policy to promote structural reforms, market. The program’s mission is to inspire best Prime Minister Abe introduced the Corporate practices among other firms in Japan as they Governance Code and the Stewardship Code consider new approaches to governance. in order to encourage Japanese firms to In 2019–2020, CJEB held two evening innovate and invest, and for shareholders to symposia for its Corporate Governance and actively monitor and promote those efforts. Stewardship Program: “ESG Investing: A Local, The Corporate Governance Code is designed Not a Global, Issue” (p. 33) and “Knocking to increase transparency and accountability Down Walls: Making Japanese Companies in Japanese corporate management, and the Responsive to Their Shareholders” (p. 32). Also, Stewardship Code is designed to encourage two lunchtime seminars were held as part of investors to engage in active discussion with the program: “The New Role of Board Director their invested companies, in order to guide and in Japan: A Global Context” (p. 35) and “Making accelerate the evolution of Japan’s corporate Cross-Border M&A Work: A Success Story” (p. culture. Through a series of public programs and 34), while a third lunchtime seminar: “A Wave of papers led by Alicia Ogawa, this program ini- Shareholder Activism Hits Japan’s Shores” was tially focuses on an analysis of the governance unfortunately postponed per University guide- structure of the most innovative Japanese Participants at The New Role of Board Director in lines in response to the COVID-19 pandemic Japan: A Global Context companies and how it has contributed to their (p. 40). status as leading competitors in the global

26 | CJEB Annual Report 2019–2020 Program on Japan’s Role in the Evolving Global Economic System

Selected speakers from the program on Japan’s Role in the Evolving Global Economic System’s past events

Corporate Governance and Stewardship Program It is our great pleasure to announce that Trade Agreement was signed. As the leader- Global, Issue” (p. 33), “COVID-19: Economic CJEB has established a new program, ship and dynamics of free trade agreements Implications for Japan and the United States” Japan’s Role in the Evolving Global and other trading arrangements evolve, (p. 38), and “The Role of Central Banks in the Economic System, in effect as of fall 2019. Japan’s role will be more important than ever. COVID-19 Pandemic: The U.S., Japan, and This program will focus on Japan’s wide-rang- This program will be a significant part of the Beyond” (p. 38). ing economic, business, and trading relation- Center’s activities in the future. Some events—“Corporate Governance and ships, bilaterally with the U.S., regionally with In 2019–2020, CJEB held the following Regional Banking Reform: The Key to Japan’s the Asian and EU economies in particular, events for its Program on Japan’s Role in Future Success” (p. 40), “Is Korea Following and globally. It builds upon the Center’s the Evolving Global Economic System: “The in Japan’s Footsteps? An OECD Perspective research, training, and public programs Seventh Year Stretch: Structural Reform on the Two Economies” (p. 40), “A Wave of involving Japan over the past 33 years. Still Needs a Hit” (p. 34), “Turning Japanese? Shareholder Activism Hits Japan’s Shores” (p. This new program is of great importance now Lessons from Japan’s Lost Decades and 40), “Multilateral Development Banks (MDBs) as protectionist trends are becoming stron- Challenges for the World” (p. 34), “U.S.- and the Role of Japan” (p. 40), “The Future of ger in the U.S. and Europe. After the United Japan Relations in a Turbulent World” (p. 32), Global Interdependence: Environment, Trade, States withdrew from the Trans-Pacific “Banking in a New Age: Responding to Future and Politics” (p. 41), “The Frontier of Driving Partnership Agreement, Japan constructively Paradigm Shifts” (p. 35), “The New Role of Innovation through Design Thinking” (p. 41), and actively assumed a major leadership role Board Director in Japan: A Global Context” and “The Japan Project Meeting with Joint in what is now termed the Comprehensive (p. 35), “Knocking Down Walls: Making ESRI International Conference” (p. 41)—were and Progressive Agreement for Trans-Pacific Japanese Companies Responsive to Their postponed or canceled per University guide- Partnership (CPTPP), with 11 members at Shareholders” (p. 32), “Servant Leadership” lines in response to the COVID-19 pandemic. present. Just recently, a bilateral U.S.-Japan (p. 35), “ESG Investing: A Local, Not a

CJEB Annual Report 2019–2020 | 27 Japanese Management Leadership Program

women in the workplace and provides novel career path development workshops. This initiative seeks to turn the “gender” challenge into tangible assets for the Japanese economy and society as a whole.

The Japanese Management Leadership Program is cofounded by Professor Yumiko Shimabukuro of the School of International and Public Affairs at Columbia University and Ryoko Ogino, the managing director of CJEB. Director of CJEB, Professor David Weinstein, and chairman of CJEB, Professor Hugh Patrick, serve as the founding academic directors of the Japanese Management Leadership Program to provide advisory support and guidance.

In 2019–2020, CJEB held various workshops and lunchtime seminars under its Japanese Participants at Developing Your Career and Designing Your Future during a Period of Crisis Management Leadership Program: “Effective Knowledge Transfer Workshop” (p. 36), “Japan- We are proud to announce the spring 2020 on the study of leadership, organizational Focused Design Thinking Workshop” (p. 37), launch of a new program: The Japanese management, diversity, and the changing “The Invisible Minority: Are Asians Under- Management Leadership Program. As the industry landscape. The seminar is designed Represented in Leadership Positions in the world undergoes profound technological and to foster intellectual diversity in ways that help United States?” (p. 36), and “Speechwriting economic transformation, Japanese execu- identify areas of opportunity for leadership and Speech Delivery Workshop” (p. 37). tives and emerging leaders in corporate, non- development. profit, and governmental organizations must Through this program, CJEB has continued to Our global communication in leadership cur- stay up to date with the latest research and provide the University’s students with exclu- riculum empowers participants with science methodologies to hone their leadership skills. sive opportunities for education and career and research-based tools and techniques to CJEB’s Japanese Management Leadership development with additional special support become an impactful communicator in a variety Program supports this ongoing skill invest- for Japanese women. In May, students at of global settings. A team of world-renowned ment by offering customized leaders-in-learn- Columbia University were invited to attend instructors with a strong understanding of ing workshops and research seminars for a private webinar, “Developing Your Career Japanese organizational and cultural contexts our Visiting Fellows and the broader CJEB and Designing Your Future during a Period will help participants cultivate essential skills. network members in New York and Japan of Crisis” (p. 39), as part of the Japanese throughout the year. Our leaders-in-learning The innovation and diversity workshop series Management Leadership Program, where the initiatives have four major components: brings experiential learning to the next level by students had the opportunity to get guidance utilizing human-centered design and creative and insight from a panel of highly successful (1) Leadership Research Seminar collaborative methods to drive innovation at Japanese women in business, media, aca- (2) Global Communication in Leadership work. Led by prominent design and entrepre- demia, and government. Training neurship experts, participants learn how to Two events—“550 Years in Bloom: Revitalizing embrace and enhance diversity in the work- (3) Innovation and Diversity Workshop Series a Traditional Flower Arranging Family Business force while maintaining the traditional values in Modern Era Japan” (p. 41) and “The Frontier (4) Women’s Career Advancement and culture that are important to their organi- of Driving Innovation through Design Thinking” zations in Japan. The leadership research seminar series pro- (p. 41)—scheduled for April and May, were vides a platform for academics and practi- The CJEB women’s career advancement ini- postponed per University guidelines in tioners to share their latest research findings tiative fosters discussion on how to empower response to the COVID-19 pandemic.

28 | CJEB Annual Report 2019–2020 The New Global Financial Architecture

This program brought together distin- it usually included two major conferences program and sought a small number of appro- guished finance and economics professors each year, one at Columbia University and priate sponsors prepared to make significant at Columbia Business School and other one in Tokyo. An inaugural event, “Coping annual commitments for three years. parts of the University with financial market with Crisis: Financial Policy in the U.S. and The program ended in June 2019 with its participants in the United States and Japan, Japan,” was held at Columbia Business involvement in the successful organization of and, in principle, in Europe and China as well. School on November 10, 2009, including a number of consecutive CJEB annual Tokyo While the focus was on the United States and Professor Heizo Takenaka, then director of conferences and various on-campus events. Japan, this necessarily was in the broader the Global Security Research Institute at We especially appreciate the generous con- context of the global financial system and its Keio University, and Professor Takatoshi Ito, tributions from our sponsors for this program. other major players. Potential topics included, then professor at the University of Tokyo, as but were not limited to, financial system speakers. The program also included a series Selected list of events: restructuring; development of national and of workshops in which faculty and practi- international regulatory systems; effective tioners met to discuss specialized topics and • U.S.-Japan Relations in a New Era: Trade, governance, supervision, and monitoring; the research, the development of joint research Governance, and the Global Economy operations of and interactions among specific projects, and the development of new curric- • Japan as a Leading Power: Trade and the financial markets; the relationships between ula by participating faculty based on the work FinTech Revolution finance and macroeconomic performance; of the program. and the nature and role of government and • Japan’s Global and Domestic Futures: The To support the program initially, CJEB pro- monetary policies. U.S. Relationship and FinTech vided seed money from its reserve fund for The program began with an initial three-year new programs and administrative resources. • U.S.-Japan Economic Relations commitment and developed and grew sub- The Center established a special lead cor- • Japan’s Changing Corporate Governance stantially beyond that. Subject to funding, porate sponsor funding category for this

Selected speakers from The New Global Financial Architecture program’s past events

CJEB Annual Report 2019–2020 | 29 CJEB CONTRIBUTIONS TO COLUMBIA BUSINESS SCHOOL COURSES

CJEB Contributions to Columbia Business School Courses

Shoji Yamauchi speaks to students

CJEB uses its wide network and diverse campus as part of the coursework in prepara- Economic Cooperation and Development connections to provide Columbia University tion for a one-week trip to Japan, where stu- (OECD). students with unique opportunities for edu- dents would meet with business executives CJEB also tapped into its connections abroad cation, networking, and research. The Global and government officials while working on in Japan to help plan several exclusive visits Immersion Program, through the Jerome team projects. for the students during their visit to Japan. A. Chazen Institute for Global Business at For the class sessions leading up to the In addition to arranging visits to the Bank of Columbia Business School (CBS), provides trip, CJEB invited esteemed guests to Japan, Ministry of Finance, and Mitsubishi CBS students with a bridge for classroom the campus to speak about their areas of UFJ Trust Bank, CJEB provided introductions lessons and business practices in other coun- expertise, including Tomohiro Fujiyama, so that the students could have meetings tries. In spring 2020, CJEB was a cospon- deputy consul general of Japan in New with Yuriko Koike, governor of Tokyo, who is sor of the course “Global Immersion: The York and Koji Nakamura, general manager the city’s first female governor, and Masako Japanese Economy,” an official, accredited for the Americas, Bank of Japan. Some of Mori, minister of justice. Unfortunately, per MBA course that would bring its students CJEB’s current Visiting Fellows also joined University guidelines in response to the to Japan for the first time in the program’s the students to present on their companies COVID-19 pandemic, the visit to Japan history. Under the instruction of Pierre Yared, and industries, such as Shoji Yamauchi, had to be canceled. Nevertheless, CJEB MUTB Professor of International Business assistant product manager, New Hampshire truly enjoyed collaborating with Professor and the vice dean for executive education Ball Bearing Inc., MinebeaMitsumi Inc.; Yared and hopes to leverage its resources at Columbia Business School, the course Masahiro Hisae, manager, Planning Team, to continue to benefit the Global Immersion addressed the main macroeconomic trends, Human Resources Department, Sumitomo Program in Japan in the future. opportunities, and risks faced by businesses Mitsui Trust Bank, Ltd.; and Randall S. Jones, and policymakers in Japan. CJEB delivered former senior counselor – East Asia and immense support by providing special guest head of Japan/Korea Desk, Organisation for speakers for the course’s weekly sessions on

30 | CJEB Annual Report 2019–2020 Each year, CJEB organizes and hosts numerous major conferences, symposia, lectures, seminars, and workshops that EVENTS feature distinguished speakers. This year, we have a separate section in this report for events that were held during the COVID-19 pandemic. These programs provide an important educational platform for students, academics, members of the private sector, and policymakers from Japan and the United States. The 2019–2020 events are listed below and split into the following sections: Conferences, Symposia, Lectures, Lunchtime Seminars, Workshops, and Special Webinars in Response to COVID-19. All professional titles listed for participants are accurate for the time of the event. In addition to the descriptions below, videos and reports can be found on CJEB’s website: www.gsb.columbia.edu/cjeb. Conferences

Research Scholar and Adjunct Professor, School of International and Public Affairs (SIPA), Columbia University (as of January 2020)

Session 1: ESG Investment: Will It Make Returns Higher?

Moderator: Takatoshi Ito

Panelists:

Patrick Bolton, Barbara and David Zalaznick Professor of Business, Columbia Business School

Keiko Honda

Lukasz Pomorski, Managing Director, AQR Capital

Sudhir Rajkumar, Representative of the Secretary-General (RSG) for UN Pension Back row: Koji Nakamura, Gauti B. Eggertsson, Patrick Bolton, and Lukasz Pomorski Front row: Sudhir Rajkumar, Keiko Honda, Takatoshi Ito, Hugh Patrick, Patricia Mosser, and Eric Ngiam Fund Investments

Keynote: John Lipsky, Peter G. Peterson Conference on Public first panel, “ESG Investment: Will It Make Distinguished Scholar, Henry A. Kissinger Returns Higher?” In this session, the panel- Center for Global Affairs, Johns Hopkins Pension and Sovereign ists discussed the definition of ESG investing University; Former Deputy Managing Funds and possibilities for significant returns on Director, International Monetary Fund (IMF) ESG investments. John Lipsky, Peter G. November 21, 2019; The Italian Academy, Session 2: The Macroeconomic Peterson Distinguished Scholar of the Henry Columbia University Environment: How Long Will Low Interest A. Kissinger Center for Global Affairs at Rates Continue? This was the fourth annual conference of Johns Hopkins University, delivered the sec- CJEB’s Program on Public Pension and ond keynote, which was followed by the sec- Moderator: Patricia Mosser, Director, MPA Sovereign Funds (PPPSF). CJEB chairman, ond panel, “The Macroeconomic Environment: Program in Economic Policy Management; Professor Hugh Patrick, gave opening How Long Will Low Interest Rates Continue?” Senior Research Scholar, School of remarks and briefly introduced the program. This panel noted potential reasons for contin- International and Public Affairs (SIPA), PPPSF director Takatoshi Ito, a professor at ued low-interest rates post-2008. Columbia University the School of International and Public Affairs Welcoming Remarks (SIPA) at Columbia University, followed with more details about the program and its suc- Hugh Patrick, Chairman, CJEB cess in the past year and then introduced Takatoshi Ito, Director, PPPSF, CJEB the two panels. Keiko Honda, former exec- utive vice president and former chief exec- Keynote: Keiko Honda, Former Executive utive officer of the Multilateral Investment Vice President and Former Chief Executive Guarantee Agency (MIGA), delivered the first Officer, Multilateral Investment Guarantee keynote speech, which was followed by the Agency (MIGA); Incoming Adjunct Senior

CJEB Annual Report 2019–2020 | 31 Symposia

Panelists:

Gauti B. Eggertsson, Professor of Economics, Brown University

John Lipsky

Koji Nakamura, General Manager for the Americas, Bank of Japan

Eric Ngiam, Senior Vice President, GIC Asset Management

Maria Vassalou, PhD, Chief Investment Officer, VASSALOU C∆PIT∆L MANAGEMENT

From left to right: Hugh Patrick, Kanji Yamanouchi, Carol Gluck, Gerald L. Curtis

U.S.-Japan Relations in a Knocking Down Walls: Turbulent World Making Japanese

October 29, 2019; International Affairs Companies Responsive to Building, Columbia University Their Shareholders

Kanji Yamanouchi, ambassador and con- February 5, 2020; International Affairs sul general of Japan in New York, visited Building, Columbia University Columbia University for a discussion with Gerald L. Curtis, Burgess Professor Emeritus CJEB hosted a panel discussion on the impact of Political Science, and Hugh Patrick, Robert of activist investors on corporate governance D. Calkins Professor of International Business in Japan. Alicia Ogawa, director of the Project Emeritus and chairman of CJEB. Carol Gluck, on Japanese Corporate Governance and George Sansom Professor of History, deliv- Stewardship at CJEB, moderated the event. ered introductory remarks. Four panelists provided their perspectives on this topic: Ken Hokugo ’93, director, Head of The event covered the history of relations Corporate Governance, and director, Hedge between the United States and Japan in a Fund Investments, Pension Fund Association wide range of areas, notably politics and the of Japan; Tim Laurie, investment analyst, Fir economy, and endeavored to make sense of Tree Partners; Tsuyoshi Maruki, president the unpredictable global developments influ- and CEO, Strategic Capital, Inc.; and Howard encing the relationship today. Other topics Smith, portfolio manager, Japanese Equities, of discussion included the encouragement Indus Capital Partners. of study abroad programs for Japanese and American students, innovation and pat- Ms. Ogawa discussed the objectives of activ- ents by Japanese companies, and Japan’s ist investors and their strategies to influence relations with other countries and regions, corporate governance. Mr. Smith shared his including India, China, South Korea, and the experiences in the Japanese market and European Union. This event was presented by noted Japan’s progress on corporate gover- the Weatherhead East Asian Institute (WEAI), nance and the ability of Japanese institutions CJEB, and SIPA. to exercise their fiduciary responsibility.

32 | CJEB Annual Report 2019–2020 Lectures

From left to right: Tsuyoshi Maruki and From left to right: Yasuhisa (Justin) Tsurumi, Jake Walko, Leslie Special Luncheon with Minister Shinjiro Koizumi Tim Laurie Norton, Alicia Ogawa

Mr. Maruki discussed the case of Strategic ESG Investing: A Local, Not Special Luncheon with Capital Inc.’s investment in Tosho Printing, where the tensions between the two illus- a Global, Issue Minister Shinjiro Koizumi trated the often-intricate relationship March 4, 2020; Uris Hall, Columbia September 25, 2019; Faculty House, between stakeholders and management in Business School Columbia University Japan. Mr. Laurie commented on his com- pany, Fir Tree Partners; its investment in JR This panel discussion was focused on envi- CJEB was honored to hold a special lun- Kyushu, a rail service, retail, hotel, and con- ronmental, social, and governance (ESG) cheon with His Excellency Shinjiro Koizumi, struction company; and how the relationship investing trends in Japan and around the minister of the environment, Cabinet Office, between the two led to a more responsive world. Alicia Ogawa, director of the Project Government of Japan. At the luncheon, management of shareholders’ concerns. on Japanese Corporate Governance and Columbia University students, including many Mr. Hokugo discussed competing economic Stewardship at CJEB, moderated the from Columbia Business School, had the indicators in Japan and their relationship to event. Three panelists participated in the opportunity to have an informal discussion corporate governance and pointed out the discussion: Leslie Norton, senior special with Minister Koizumi on topics ranging from insufficient measures taken in Japanese writer, Barron’s; Yasuhisa (Justin) Tsurumi, student life in New York to Japan’s efforts on companies to improve corporate governance. senior vice president and head of equity challenges related to climate change. At the end of the event, each panelist articu- investments, Nippon Life Global Investors CJEB chairman, Professor Hugh Patrick, lated his idea of success in investor activism Americas, Inc.; and Jake Walko, VP of ESG expressed great pleasure in welcoming in Japan. Investing and director of Global Investment Minister Koizumi back to campus and shared Stewardship, Neuberger Berman. the story of meeting the minister for the first The discussion explored issues such as the time when Minister Koizumi was a student global nature of ESG investment factors at Columbia University. Professor Takatoshi (with climate change and income inequality Ito, director of CJEB’s PPPSF, moderated the as leading examples), the trend of global lecture. This event was cosponsored by CJEB financial institutions developing products and SIPA. and approaches that appeal to all markets, and the rising tensions between global asset managers and national governments, includ- ing the U.S., who fail to support ESG initia- tives, such as the Paris Accord.

CJEB Annual Report 2019–2020 | 33 Lunchtime Seminars

Takatoshi Ito Masazumi Wakatabe Toshiaki Sumino

The Seventh Year Stretch: CJEB organizes a series of lunchtime seminars Deputy Governor Wakatabe used Japan’s on campus for students, faculty, and members Lost Decades as a case study to highlight Structural Reform Still of the Columbia and New York community. some lessons and challenges for economists Needs a Hit These include zadankai, or informal discus- and policymakers. In particular, he described sions, which involve lengthy question-and-an- what exactly had been the harmful effects October 1, 2019; Davis Auditorium, swer periods with the audience and are geared of deflation on the economy, questioning the Schapiro Center, Columbia University toward presenting new and insightful angles usual assumption of separating cycles from CJEB hosted a special lecture delivered for understanding Japanese business and growth. Also, he talked about challenges by Professor Takatoshi Ito, director of the economic issues; and brown bags, in which that the Bank of Japan had faced during PPPSF and professor at SIPA, on current CJEB collaborates with other organizations on the Lost Decades, including demographics, themes and issues in the Japanese economy. campus to sponsor talks featuring a diverse reanchoring inflation expectations, and lower The event was moderated by Professor Hugh range of topics related to Japan. Seminars held profitability in the banking sector. Lastly, he Patrick, CJEB chairman. in 2019–2020 included: discussed broader lessons and remaining issues for economists and policymakers of Professor Ito discussed Japan’s low infla- the world. tion rate, despite labor shortages and high corporate profits, the importance of struc- Turning Japanese? Lessons tural reforms for the continuation of Prime from Japan’s Lost Decades Minister Abe’s plans of economic expansion, Making Cross-Border M&A and Challenges for the the effect of the September 2019 cabinet Work: A Success Story appointments on Prime Minister Abe’s push World for structural reforms, and the outlook of Zadankai Zadankai Prime Minister Abe’s plans to revise the October 10, 2019; Warren Hall, Columbia constitution to recognize Japan’s Self- October 4, 2019; Uris Hall, Columbia Business School Defense Forces. Business School Toshiaki Sumino, President and Chief Masazumi Wakatabe, Deputy Governor, Bank Executive Officer, DLI NORTH AMERICA of Japan INC.; Executive Officer and Chief General Moderator: Takatoshi Ito, Director, PPPSF, Manager, North America, Dai-ichi Life CJEB Holdings, Inc.

34 | CJEB Annual Report 2019–2020 Lunchtime Seminars

Masato Miyachi Jon Lukomnik Ayako Weissman Timothy E. Sander

Moderator: Alicia Ogawa, Director, Project Mr. Miyachi discussed structural economic Ms. Weissman and Mr. Lukomnik utilized their on Japanese Corporate Governance and issues that financial institutions are facing experiences with corporate governance to Stewardship, CJEB in developed countries, including Japan; discuss how companies are adjusting to a explained MUFG’s global growth strategy new reality in which they are required to have Mr. Sumino commenced by discussing the over the past decade; and presented visions independent directors. Drawing attention to factors behind the record-high levels of for- for the future. He also shared key consider- a few independent directors on Japanese eign acquisitions by Japanese companies in ations of the financial industry in the new age corporate boards, they explored the merits recent years. He outlined the importance of of disruption and consolidation brought by and demerits of both American and Japanese cross-border M&A as part of Dai-ichi’s busi- FinTech players and tech giants. systems. They examined Warren Buffett’s ness strategy, before discussing the chal- quote, “Appointing independent directors to lenges of integrating fundamentally different company boards is one of the great hoaxes business cultures through a case study perpetrated on public investors.” They also involving Dai-ichi’s $5.7 billion acquisition of The New Role of Board discussed how changes in norms are affect- Alabama-based Protective Life. Director in Japan: A Global ing a relatively conservative Japan. Context

Zadankai Banking in a New Age: Servant Leadership Responding to Future December 5, 2019; Warren Hall, Columbia Zadankai Paradigm Shifts Business School Ayako Weissman, Outside Director, Toshiba February 13, 2020; Uris Hall, Columbia Zadankai Corporation; Senior Vice President, Horizon Business School November 7, 2019; Uris Hall, Columbia Kinetics LLC Timothy E. Sander, Executive Vice President; Business School Jon Lukomnik, Managing Partner, Sinclair Chief Administrative Officer; General Masato Miyachi, Deputy President; Chief Capital; Senior Fellow, High Meadows Institute Manager, Legal & Compliance Group Executive, Global Corporate & Investment and Human Resources Group, Sumitomo Moderator: Alicia Ogawa, Director, Project Banking Business Unit, MUFG Bank, Ltd. Corporation of Americas on Japanese Corporate Governance and Moderator: Hugh Patrick, Chairman, CJEB Stewardship, CJEB

CJEB Annual Report 2019–2020 | 35 Workshops

From left to right: Ryoko Ogino, Jackson G. Lu, Hugh Patrick, Yumiko Shimabukuro Japan-Focused Design Thinking Workshop

Moderator: Hugh Patrick, Chairman, CJEB Moderator: Yumiko Shimabukuro, Director, Effective Knowledge Urban and Social Policy Program, School Mr. Sander covered a wide range of topics, of International and Public Affairs (SIPA), Transfer Workshop from the origins, history, and philosophy of Columbia University September 27, 2019; The Interchurch Sumitomo, to management and its importance Center to both personal and corporate values, as well Introductory Remarks: Hugh Patrick, as the evolution of Sogo Shosha (Japanese Chairman, CJEB Yumiko Shimabukuro, Director, Urban and trading companies). In addition, he explained Social Policy Program, SIPA Cosponsor: APEC Study Center, Columbia the concept of servant leadership, and how it University guided early management at Sumitomo and This customized workshop provided a hands-on session on how to transmit knowl- currently affects Sumitomo Corporation of Professor Lu discussed his research on edge through various strategies based on Americas. Mr. Sander also touched upon the potential mechanisms affecting Asian repre- one’s own personality type or presentation significance of this philosophy for individuals, sentation in leadership positions in the U.S., style. The workshop also addressed cultural organizations, and society as a whole. with a focus on differences between East differences between presentation styles in Asians, South Asians, and whites. He began English and in Japanese and included several his talk by stating that Asians are often exercises that taught how to make positive referred to as the model minority; however, The Invisible Minority: Are first impressions, visualize data in effective both U.S.-born and foreign-born East Asians and meaningful ways, and communicate Asians Under-Represented are least likely to be chosen for leadership directions and insight to others. The work- in Leadership Positions in positions. In trying to find the scope and shop served as a demonstration on how mechanism of this issue, Professor Lu com- the United States? to make an engaging presentation that trans- pared different subcategories of Asians, fers knowledge in thought-provoking ways, as Zadankai namely East Asians and South Asians in lead- well as an interactive experience with exer- ership positions. This talk was part of CJEB’s February 25, 2020; Uris Hall, Columbia cises that stimulated both the senses and Japanese Management Leadership Program. University the mind.

Jackson G. Lu, PhD ’18, Mitsui Career Development Assistant Professor, Sloan School of Management, Massachusetts Institute of Technology

36 | CJEB Annual Report 2019–2020 Workshops

Japan-Focused Design Thinking Workshop Speechwriting and Speech Delivery Workshop

Japan-Focused Design and team-building exercises to apply design feedback from the instructor during both thinking to challenges faced by Japan today, the writing stages and the presentation Thinking Workshop including work-life balancing, designing work- stages of their work. Each participant had November 1, 2019; The Design Studio, places women feel welcome in, and how man- the chance to receive exclusive live coaching Columbia University Entrepreneurship, agement strategies need to change for newer from an expert in the field who has served as Innovation, and Design generations of workers. a speechwriter for speakers at IBM, Siemens AG, McGraw-Hill, and MasterCard. The par- Taylor Light, Design Fellow, Columbia ticipants also had their speech deliveries, University Entrepreneurship, Innovation, and including the live coaching feedback they Design; Fellow, MIT’s D-Lab Speechwriting and Speech received, recorded and shared with them

Yumiko Shimabukuro, Director, Urban and Delivery Workshop to refer to for future development of their speechwriting and presentation skills. Social Policy Program, SIPA January 10 and 17, 2020; The Interchurch Center This workshop taught about design thinking and how human-centered design is a cre- James Holtje, Adjunct Professor of ative process to glean insights and develop International and Public Affairs, School appropriate solutions for tough challenges. of International and Public Affairs (SIPA), The attendees learned how to collaboratively Columbia University develop innovative and practical solutions to a variety of problems. Furthermore, they These two workshops were taught by James learned that this process of design is useful, Holtje, who teaches an immensely popu- not only for building great products, services, lar speechwriting course at SIPA and is or solutions, but also for pursuing a more the 2019 recipient of SIPA’s Outstanding creative and open-minded approach to life in Teaching Award. He provided participants Japan. The instructors brought participants with the opportunity to learn deeply about through specific parts of the design process, the process of speechwriting and how to such as empathy building, user research, pro- develop public speaking skills as great ora- totyping and testing solutions, and building tors do. The participants crafted their own creative confidence. The participants had speeches based on their needs in their cur- many opportunities for interactive group work rent work or studies and received one-on-one

CJEB Annual Report 2019–2020 | 37 Special Webinars in Response to COVID-19

During the COVID-19 pandemic, CJEB used COVID-19: Economic its expansive network to bring esteemed and high-level experts together in a virtual format Implications for Japan and for four live webinars, as well as to provide the United States the University’s students with an exclusive Live Webinar opportunity for education and career devel- opment. April 29, 2020

Glenn Hubbard, Dean Emeritus; Russell L. Carson Professor of Finance and Economics, Columbia Business School

Takeshi Komoto, Minister, Embassy of Japan in the United States of America

Keiko Tashiro, Deputy President / Member of the Board, Daiwa Securities Group Inc.

Moderator: Yumiko Shimabukuro, Director, Urban and Social Policy Program, SIPA

Welcoming Remarks

David E. Weinstein, Director, CJEB The Role of Central Banks in the COVID-19 Pandemic: Joshua Walker, President & CEO, Japan Society The U.S., Japan, and Cosponsors: Japan Society and APEC Study Beyond Center, Columbia University Live Webinar

May 1, 2020

Patricia Mosser, Director, MPA Program in Economic Policy Management; Senior Research Scholar, SIPA

Koji Nakamura, General Manager for the Americas, Bank of Japan

Moderator: Kathleen Hays, Global Economics & Policy Editor, Bloomberg Television and Radio

Welcoming Remarks

Takatoshi Ito, Director, PPPSF, CJEB

Joshua Walker, President & CEO, Japan Society

Cosponsors: Japan Society and APEC Study Center, Columbia University

38 | CJEB Annual Report 2019–2020 Ayumi Wada, Chairwoman & CEO, Toshiba America, Inc.

Moderators:

Yumiko Shimabukuro, Director, Urban and Social Policy Program, SIPA

Ryoko Ogino, Managing Director, CJEB

What Japan Should Do Now in Preparation for Japan’s New Normal

Live Webinar

June 17, 2020

Takatoshi Ito, Director, PPPSF, CJEB

Moderator: Keiko Honda, Adjunct Professor and Adjunct Senior Research Scholar, SIPA; Developing Your Career Former CEO and Former Executive Vice and Designing Your Future President, MIGA during a Period of Crisis This webinar was conducted in Japanese as the inaugural event for “The Japanese Private Live Webinar for Current Columbia Economy in the COVID-19 Era” series in University Students summer 2020. Information on other events in May 1, 2020 this series will be included in the 2020–2021 Annual Report. Tokiko Araya, Director General / American Bureaus, New York Bureau Chief, TV Asahi America, Inc.

Keiko Honda, Adjunct Professor and Adjunct Senior Research Scholar, SIPA

Yoriko Suzuki, Minister, Permanent Mission of Japan to the United Nations, New York CJEB Annual Report 2019–2020 | 39 Events Postponed or Canceled Due to COVID-19

Please note that the events listed below have Zadankai been postponed or canceled per University April 7, 2020; Uris Hall, Columbia Business guidelines in response to the COVID-19 School pandemic. We look forward to having these events in the future. We will update our Josh Black, Editor-in-Chief, Activist Insight upcoming events page on our website when we have more information on future events. Timothy Foley, Director of Research, Chalkstream Capital Group, L.P.

Moderator: Alicia Ogawa, Director, Project on Japanese Corporate Governance and Is Korea Following in Stewardship, CJEB Japan’s Footsteps? An OECD Perspective on the Two Economies (POSTPONED)

Zadankai

March 31, 2020; Uris Hall, Columbia Business School Corporate Governance and Randall S. Jones, Non-resident Fellow, Korea Regional Banking Reform: Economic Institute of America; Former Senior The Key to Japan’s Future Counselor – East Asia and Head of Japan/ Korea Desk, Organisation for Economic Success (POSTPONED) Cooperation and Development (OECD) Multilateral Development Zadankai Banks (MDBs) and the Role Moderator: Hugh Patrick, Chairman, CJEB March 24, 2020; Uris Hall, Columbia of Japan (POSTPONED) Cosponsor: APEC Study Center, Columbia Business School University Zadankai Nobuchika Mori, Senior Research Scholar and Outreach Partner: The Korea Society April 21, 2020; Uris Hall, Columbia Business Adjunct Professor, School of International School and Public Affairs (SIPA), Columbia University; Former Commissioner, Financial Keiko Honda, Adjunct Professor and Adjunct Services Agency (FSA), The Japanese Senior Research Scholar, SIPA; Former CEO Government and Former Executive Vice President, MIGA

Discussant: Christine Cumming, Adjunct Moderator: Takatoshi Ito, Director, PPPSF, Professor of International and Public Affairs, CJEB School of International and Public Affairs Cosponsor: SIPA (SIPA), Columbia University

Moderator: Takatoshi Ito, Director, PPPSF, CJEB

Cosponsor: SIPA A Wave of Shareholder Activism Hits Japan’s Shores (POSTPONED)

40 | CJEB Annual Report 2019–2020 The Future of Global Dennis Novy, Associate Professor of Economics, University of Warwick Interdependence: Environment, Trade, and Robert Staiger, Professor of Economics, Dartmouth College Politics (CANCELED) Moderator: David E. Weinstein, Director, May 18, 2020; Otemachi Financial City CJEB Conference Center, Tokyo, Japan Closing Remarks We deeply regret that we had to cancel our 2020 Tokyo conference as all Columbia busi- Hugh Patrick, Chairman, CJEB ness travel, both international and domestic, was suspended for all affiliates per University 550 Years in Bloom: guidelines in response to the COVID-19 pan- The Japan Project Revitalizing a Traditional demic. Meeting with Joint ESRI Flower Arranging Family Welcoming Remarks International Conference (CANCELED) Business in Modern Era David E. Weinstein, Director, CJEB June 19–20, 2020; Tokyo, Japan Japan (POSTPONED) Keynote: U.S. Politics and Foreign Policy at The Japan Project meeting is held annually by April 24, 2020; Pulitzer Hall, Columbia the Crossroads Journalism School CJEB in partnership with the National Bureau Gerald L. Curtis, Burgess Professor Emeritus of Economic Research (NBER), the Center for of Political Science, Columbia University Mika Ikenobo Advanced Research in Finance (CARF) at the Moderator: Hugh Patrick, Chairman, CJEB University of Tokyo, and the Australia-Japan Research Centre (AJRC) at the Crawford Panel I: ESGs and SDGs in 2020 and The Frontier of Driving School of Public Policy of the Australian Beyond National University (ANU). Professor David Innovation through Design Panelists: Weinstein organizes this academic confer- Thinking (CANCELED) ence with Professors Shiro Armstrong of Keiko Honda, Adjunct Professor and Adjunct ANU, Charles Horioka of Kobe University, and May 16, 2020; The Classic House at Senior Research Scholar, SIPA Takeo Hoshi and Tsutomu Watanabe of the Akasaka Prince, Tokyo, Japan University of Tokyo. The organizers are grate- José A. Scheinkman, Charles and Lynn Zhang ful to the Asian Development Bank Institute Adam Royalty, Founding Director, Columbia Professor of Economics, Columbia University Entrepreneurship Design Studio for its generous assistance and support. Keiko Tashiro, Deputy President and Member The ESRI International Conference, spon- Yumiko Shimabukuro, Director, Urban and of the Board, Daiwa Securities Group Inc. Social Policy Program, SIPA sored by the Economic and Social Research Moderator: Takatoshi Ito, Director, PPPSF, Institute (ESRI) of the Cabinet Office of the Design thinking is a powerful hands-on CJEB Government of Japan, is held jointly with the approach to creating innovative solutions Japan Project meeting every year. that can be applied in the private, govern- Panel II: Bilateralism Resurgent: The mental, and nonprofit sectors. The seminar Changing Nature of Trade Relations Unfortunately, this year’s Japan Project Meeting and ESRI International Conference was intended for participants with some Panelists: or no prior knowledge of design thinking have been canceled. and was scheduled to be led by Columbia Fukunari Kimura, Professor, Keio University University professors Adam Royalty and Yumiko Shimabukuro.

CJEB Annual Report 2019–2020 | 41 RESOURCES

Faculty Advisory Committee

U.S.-Japan Relations in a Turbulent World

CJEB’s Faculty Advisory Committee was Wouter H. Dessein Merit E. Janow formed to provide insight and guidance to Eli Ginzberg Professor of Finance and Dean CJEB’s governance, research, teaching, and Economics Professor of Professional Practice, outreach activities. The diversity of intellec- Chair of Economics Division International Economic Law and tual focus among the committee members is Professor, Heilbrunn Center for Graham and International Affairs key to furthering CJEB’s mission of serving Dodd Investing School of International and Public Affairs as a comprehensive forum for collaboration Columbia Business School Co-director, APEC Study Center and reflection on Japan, the United States, Columbia University and the global economy. CJEB directors Robert J. Hodrick receive valuable advice and recommenda- Nomura Professor of International Finance Bruce M. Kogut Academic Advisory Board Member, Program Sanford C. Bernstein & Co. Professor of tions on potential opportunities to expand for Financial Studies Leadership and Ethics and develop the Center. In addition to David Columbia Business School Columbia Business School Weinstein and Hugh Patrick, the members of the Committee are: Sheena S. Iyengar Charles W. Calomiris S. T. Lee Professor of Business Henry Kaufman Professor of Financial Columbia Business School Institutions Columbia Business School

42 | CJEB Annual Report 2019–2020 2019–2020 Visiting Fellows

Each year, a small number of professional and academic fellows are selected to spend a period of time in residence at Columbia Business School. CJEB Visiting Fellows receive a unique research and networking experience at one of the world’s most pres- tigious business schools in a top-ranking university while experiencing the dynamic Masahiro Hisae Rei Imamura Hiroshi Ishijima Randall S. Jones lifestyle of New York City. The 2019–2020 Sumitomo Mitsui Mitsui Sumitomo Chuo University Organisation for Visiting Fellows are: Trust Bank, Limited Insurance Co., Ltd. September 2018– Economic Cooperation and Development September 2019– July 2019–June August 2019 September 2019–June May 2020 2020 2020

Satoshi Konagai Hiroki Kuranami Kiyotaka Daisuke Ugaeri Takashi Unayama Shoji Yamauchi Industrial Growth Ricoh Company, Nakashima Tokio Marine Hitotsubashi MinebeaMitsumi Inc. Platform Inc. Ltd. Konan University Holdings Inc. University New Hampshire Ball January 2020–May July 2018–August March 2019– July 2019– September 2018– Bearings Inc. 2020 2019 September 2019 December 2019 August 2019 September 2019– May 2020

Joint Fellows with the Weatherhead East Asian Institute (WEAI) of Columbia University

Susumu Kamesui Toshiaki Kamijo Hiroyuki Kamimaru Motoi Kano Ministry of Finance Bank of Japan Cabinet Secretariat Development Bank September 2019– September 2019– August 2018– of Japan August 2020 June 2020 August 2019 July 2019–July 2020

CJEB Annual Report 2019–2020 | 43 2019–2020 Visiting Fellow Activities

how to take creative approaches to tackle challenges that exist today in Japan (p. 37). The Visiting Fellows also joined an exclusive two-session workshop on speechwriting and speech delivery on January 10 and 17, 2020, and learned the craft of writing and delivering speeches from James Holtje, adjunct professor of international and public affairs at SIPA, a highly specialized expert who teaches a course on the same topic with experience providing speechwriting to speakers at IBM, Siemens AG, McGraw-Hill, and MasterCard (p. 37). In response to the COVID-19 pandemic, CJEB held a special online session titled, “Virtual Presentation: Best Practices,” for its Visiting Fellows on April 17, 2020, which covered how to com- CJEB directors and Visiting Fellows municate effectively over virtual conferencing platforms. Every year, CJEB hosts roughly 10–15 Fellows, including networking gatherings. The Visiting Fellows also had numerous Visiting Fellows. Candidates for this program In addition, we arrange a monthly research opportunities to engage with students on are selected from a variety of backgrounds meeting for CJEB Visiting Fellows and core campus outside of their own course auditing. in Japanese business, government, and aca- faculty and advisers, where each Visiting In spring 2020, the Visiting Fellows partici- demia to spend a period of time in residence Fellow is asked to give a presentation on his pated in a mentorship program with students at Columbia Business School. CJEB Visiting or her research, followed by peer review from taking Columbia’s Business Japanese lan- Fellows receive a unique research and net- other Visiting Fellows and a Q&A session guage course. They had lengthy conversa- working experience at one of the world’s with professors. tions with the students and provided them most prestigious business schools within a In addition to annual sessions with outside with opportunities to network and learn top-ranking university and a dynamic city. professional speech coaches on how to give about the Japanese professional world (p. The Visiting Fellows Program at CJEB has presentations in English effectively, this year, 53). Some of the Visiting fellows also gave grown and evolved ever since the program a number of unique workshops were created presentations in CJEB’s cosponsored course was established almost 35 years ago. CJEB for the Visiting Fellows. They included two at CBS, “Global Immersion: The Japanese has hosted over 270 Visiting Fellows, and we workshops taught by Yumiko Shimabukuro, Economy,” an official, accredited MBA course now have amassed a large and active alumni cofounder of the Japanese Management that addressed the main macroeconomic group in the private sector, government, and Leadership Program at CJEB and director trends, opportunities, and risks faced by academia. of the Urban and Social Policy Program at businesses and policymakers in Japan (p. CJEB Visiting Fellows have access to many SIPA. The first was the Effective Knowledge 50). One of the Visiting Fellows, Randall S. Columbia University campus resources, Transfer Workshop, on September 27, 2019, Jones—non-resident fellow, Korea Economic including 22 libraries and a rich and diverse which covered how to present information Institute of America, and former senior coun- calendar of public events at the Business well and how strategies may differ in English selor—East Asia and Head of Japan/Korea School and beyond. They audit classes in and in Japanese (p. 36), the second was the Desk, OECD— gave a guest talk on the 2019 the Business School and other schools of Japan-Focused Design Thinking Workshop, Economic Survey of Japan for an evening Columbia (with the instructor’s permission) on November 1, 2019, where she was joined event hosted by Columbia’s Department of and can attend any or all of CJEB’s public by Taylor Light, design fellow at Columbia East Asian Languages and Cultures to a full events. CJEB also organizes several events University Entrepreneurship, Innovation, audience. per year specifically for CJEB Visiting and Design and fellow at MIT’s D-Lab, on

44 | CJEB Annual Report 2019–2020 2020 Visiting Fellow Reunion Reception and Annual Visiting Fellow Business Field Trips

CJEB had scheduled its annual Visiting The first visit would have been a tour of Fellow Reunion Reception on May 14, 2020, the Bloomberg office on April 8, 2020. In at the Classic House at Akasaka Prince in previous years, the Visiting Fellows had the Tokyo. In previous years it was attended opportunity to see the company’s unique by more than 130 CJEB Visiting Fellows, office, as well as learn about its history, CBS alumni, and incoming and prospective company culture, and business initiatives. students. Unfortunately, the event had For the second trip, the Visiting Fellows to be canceled per Columbia University’s would have visited the 9/11 Memorial guidelines in response to the COVID-19 & Museum on April 10, 2020. Benjamin pandemic. Milakofsky, ’20, the chief of staff at the CJEB had organized two corporate vis- 9/11 Memorial and Museum, had kindly its for its Visiting Fellows in April 2020. planned to give them a private talk on lead- Unfortunately, both trips also had to be ership during a crisis and a guided tour of canceled. both the memorial and the museum.

Selected CJEB Visiting Fellow activities

CJEB Annual Report 2019–2020 | 45 Research Associates

CJEB benefits from an ongoing collaboration Peter Drysdale Takao Kato with Japan specialists from institutions other Emeritus Professor of Economics W. S. Schupf Professor of Economics and than Columbia, principally within the United Head, East Asia Bureau of Economic Far Eastern Studies, States. Research associates are invited to Research Department of Economics communicate their research through partic- Editor in Chief, East Asia Forum Colgate University ipation in the Center’s projects and public Crawford School of Public Policy programs and by contributing to the Center’s The Australian National University Kenneth N. Kuttner Working Paper Series. Robert F. White Class of 1952 Professor of Robert Eberhart Economics, Department of Economics Christina Ahmadjian Assistant Professor Williams College Professor Leavey School of Business Graduate School of Business Administration Santa Clara University Patricia H. Kuwayama Hitotsubashi University Research Fellow Economist Stanford Technology Venture Program Professional Fellow Shiro Armstrong Center on Japanese Economy and Business Director, Australia-Japan Research Centre David Flath Columbia Business School Editor, East Asia Forum Professor, Department of Economics Former Vice President Crawford School of Public Policy Ritsumeikan University JPMorgan Chase Bank, N.A. The Australian National University Emeritus Professor of Economics Poole College of Management Edward Lincoln Schon L. Beechler North Carolina State University Adjunct Professor, Economics Department Adjunct Professor of Organisational Columbia University Behaviour Koichi Hamada INSEAD Tuntex Professor Emeritus of Economics, Robert A. Myers Department of Economics Senior Vice President Lee G. Branstetter Yale University Fairfield Resources LLC Professor of Economics and Public Policy Special Advisor to the Prime Minister of Former Director of Technology Heinz College and Department of Social and Japan IBM Japan Decision Sciences Carnegie Mellon University Masanori Hashimoto Terutomo Ozawa Nonresident Senior Fellow Professor Emeritus Professor Emeritus of Economics, Peterson Institute for International The Ohio State University Department of Economics Economics Colorado State University Takeo Hoshi Jenny Corbett Professor Joe Peek Rio Tinto Fellow Graduate School of Economics Vice President and Economist, Foundation for Australia-Japan Studies University of Tokyo Research Department Professorial Fellow, Griffith Asia Institute Federal Reserve Bank of Boston Griffith University Martina Jasova Emeritus Professor Assistant Professor of Economics Adam S. Posen The Australian National University Barnard College, Columbia University President Peterson Institute for International Robert Dekle Anil Kashyap Economics Professor of Economics, Department of Stevens Distinguished Service Professor of Economics Economics and Finance University of Southern California The University of Chicago Booth School of Business

46 | CJEB Annual Report 2019–2020 Professional Fellows

William V. Rapp A professional fellow appointment at the Harvard Business School. Following his under- Henry J. Leir Professor of International Trade Center recognizes former government officials graduate studies, he served in the U.S. Peace and Business and business leaders who have had distin- Corps, including three years as a volunteer School of Management guished careers in economics-related fields. mathematics teacher at Chanel College in Director, Leir Center for Financial Bubble This position facilitates his or her ongoing Western Samoa. Mr. Fallon is chairman of Research involvement with CJEB and its activities. the Council on International Educational New Jersey Institute of Technology Exchange, Inc.; a member of the Asia Society Robert E. Fallon is and the Council on Foreign Relations; and a Frances McCall Rosenbluth president and CEO of professional fellow of CJEB. He is a former Damon Wells Professor of Political Science Phosplatin Therapeutics director of the Japan Society and of the Korea and Global Affairs LLC, a company he Society as well as trustee emeritus of the Director, Program on Ethics, Politics, and helped found that is Ohio University Foundation. Economics, developing a novel class Yale University of anticancer chemother- Patricia Hagan apy drugs. From 2008 Kuwayama has been Ulrike Schaede to 2011, Mr. Fallon studying the Japanese Professor of Japanese Business was adjunct professor at Columbia Business economy since she was Director, JFIT Japan Forum for Innovation School, where he taught international banking. a graduate student in and Technology Prior to his Columbia appointment, Mr. Fallon the 1960s, completing School of Global Policy and Strategy (GPS) was chairman of Korea Exchange Bank, a pub- a doctoral dissertation University of California, San Diego licly listed $80 billion institution that is Korea’s on effective tariff pro- leading international bank. After taking over tection of Japanese Michael J. Smitka as chairman and CEO in January 2004, he led industry in 1970. She became a professional Professor Emeritus of Economics a successful reorganization and restructuring fellow of CJEB in 2009, after retiring as a Williams School of Commerce that restored the bank’s capital strength and vice president and international economist Washington and Lee University achieved record profitability. He is also the at JPMorgan Chase in New York. Previously, first non-Korean to chair a public company in she was JPMorgan’s chief economist in Tokyo Tsutomu Watanabe Korea. Previously, Mr. Fallon was an interna- and earlier with Chemical Bank in Tokyo. From Professor tional banker based in Tokyo with JPMorgan 1970 to 1986, Dr. Kuwayama was with the Graduate School of Economics Chase, where he was Asia-Pacific division Federal Reserve Bank of New York, serving University of Tokyo head for the Chase Manhattan Bank and a in various research and management posts member of the Chase Manhattan Corporation in the International Research, Statistics, and Eleanor Westney Management Committee. He was responsi- Foreign Exchange Departments. She has Sloan Fellows Professor of Management ble, as senior executive in Asia, for Chase’s been a visiting scholar at the Bank of Japan Emerita, activities in the Pacific Rim located across 13 Institute for Monetary and Economic Research MIT Sloan School; different countries. Mr. Fallon has lived in Asia and visiting consultant at the Bank for Professor Emerita of Organization Studies for more than 30 years and enjoys a myriad International Settlements in Basel and taught Schulich School of Business of contacts across a wide spectrum of gov- as a visiting professor at Keio University in York University ernment, corporate, and financial institutions Tokyo and at Kobe Gakuin University. Dr. in the region. He travels widely and speaks Kuwayama has written widely about Japanese Jiro Yoshida often on Asian economic and business affairs. macroeconomic policy, balance of payments Associate Professor of Business, He started his banking career with Citibank issues, and financial institutions, including the Department of Risk Management in Hong Kong in 1975 and later worked in postal savings system. She assisted Eleanor Smeal College of Business investment banking and management posi- M. Hadley in writing Memoir of a Trustbuster: The Pennsylvania State University tions in Tokyo. Subsequently, he assumed Asia A Lifelong Adventure with Japan. She earned Guest Associate Professor regional responsibility with Drexel Burnham her BA and PhD degrees in economics at Graduate School of Economics Lambert and Bankers Trust Company before Harvard University and the City University of University of Tokyo joining Chase in 1992. Mr. Fallon holds a New York, respectively, and did her Japanese BA from Ohio University and an MBA from language studies at Columbia University.

CJEB Annual Report 2019–2020 | 47 International Advisory Board

Nobuchika Mori is a The International Advisory Board provides Yuzaburo Mogi ‘61 senior research scholar overall guidance for CJEB. Members are dis- Honorary CEO and Chairman of the Board of and adjunct professor tinguished leaders in the fields of Japan-U.S. Directors at Columbia’s School of economic, business, and political relations. Kikkoman Corporation International and Public Richard Folsom Affairs (SIPA). He joined Toshikazu Nambu Representative Partner CJEB as a professional Representative Director and Executive Vice Advantage Partners fellow in 2018. Before President joining CJEB and SIPA, Sumitomo Corporation Shinji Fukukawa he was the commissioner of Japan’s Financial Former Vice-Minister Services Agency (JFSA), which oversees Atsushi Saito Japanese Ministry of International Trade and Japanese banks and holds broad responsibility Commissioner Industry for financial regulatory and policy issues. Prior Nippon Professional Baseball Organization Senior Advisor to becoming the chief administrator of JFSA, Senior Fellow to KKR Global Institute Global Industrial and Social Progress he spent more than 30 years in senior posi- KKR Japan Research Institute tions at that agency and Japan’s Ministry of Chancellor Finance, as well as Japan’s Ministry of Foreign Taisuke Sasanuma Toyo University Incorporated Educational Affairs and the Inter-American Development Representative Partner Institution Bank. He contributes to SIPA and the Advantage Partners, Inc. University’s work on central banking and finan- Yasushi Kinoshita cial policy, particularly with respect to Japan Joseph G. Tompkins ’67 Chairman and East Asia. He collaborates with senior Development Bank of Japan Inc. faculty and researchers at SIPA’s Center on Global Economic Governance and Initiative on Charles D. Lake II Central Banking and Financial Policy as well Chairman and Representative Director as CJEB. He holds a BA degree in liberal arts Aflac Life Insurance Japan Ltd. from Tokyo University and BA and MA degrees President in economics from Cambridge University. Aflac International

48 | CJEB Annual Report 2019–2020 PROMOTING EXCHANGE OF IDEAS

CJEB in the News

CJEB and its academic directors are Hugh Patrick Randall S. Jones, Visiting Fellow, CJEB regularly featured in the media, providing (Major Startups Offer a Different Future for their insights and expertise on Japan-related アメリカ主要紙は懐疑的な見方 American Newspapers Have Skeptical South Korea’s Economy matters. Selected highlights* for this year Views) Economist, April 8, 2020 include: NHK News Web, October 4, 2019 David E. Weinstein Daisuke Ugaeri, Visiting Fellow, CJEB Local Businesses Revitalizing Regional Microsoft Tried a 4-Day Work Week – and How Much Will the Trade War Cost You by Economies: Case of Oita Productivity Soared the End of the Year? We Are Tomodachi, January 23, 2020 New York Times, September 1, 2019 CBS News, November 6, 2019

American Consumers, Not China, Are Takatoshi Ito Paying for Trump’s Tariffs Takatoshi Ito and Joseph Stiglitz discussed New York Times, January 6, 2020 伊藤隆敏の格物致知 (Pursuit of Knowledge the COVID-19 pandemic on May 28, 2020, by Prof. Takatoshi Ito) in an NHK Special titled「“ウィズ・コロナ時代” Trump’s Tax on Champagne Will Cost U.S. Forbes Japan, July 2019–May 2020 をどう生き抜く」 (How to Survive in “The Age Consumers of Coronavirus”). Wall Street Journal, January 14, 2020 What Are Japanese PM Abe’s Priorities? Bloomberg Daybreak: Australia, July 21, What Grade Does Trump’s China Trade 2019 Deal Deserve? Incomplete New York Times, January 16, 2020 BOJ’s Next Likely Move Is to Cut Negative Rate More, Says Professor Ito How Many Tariff Studies Are Enough? Bloomberg Daybreak: Asia TV, October 3, Wall Street Journal, January 20, 2020 2019

Trade War Cut $1.7 Trillion from U.S. コロナ対応で再度強化必要 異次元緩和、 Market Caps: Study 8年目へ (Reinforcement Required in Bloomberg, May 28, 2020 Response to Coronavirus [COVID-19] – Eighth Year of Unconventional Monetary Newsletter: Consumer Spending Could Easing) Look Ugly Nikkei Inc., March 24, 2020 Wall Street Journal, May 29, 2020 第6回通説覆すコロナショック 猛スピード Trade-War Collateral Damage: Destruction で縮む実体経済 (Coronavirus [COVID-19] of $1.7 Trillion in U.S. Companies’ Market Shock Overturns Precedent Theory – Real Value Economy Shrinking Rapidly) MarketWatch, May 31, 2020 Asahi, April 14, 2020

Trump’s Trade War Cost U.S. Company Stock Prices $1.7 Trillion Forbes, June 1, 2020

*Note: Articles with titles in Japanese are unofficially translated into English by CJEB.

CJEB Annual Report 2019–2020 | 49 Enhancing the MBA Experience

Special Luncheon with Minister Shinjiro Koizumi and Columbia University students

CJEB is a key contributor to the international consulted with Professor Hugh Patrick and Pierre Yared, MUTB Professor of International community at Columbia Business School CJEB’s managing director, Ryoko Ogino, on Business and the vice dean for executive (CBS) and seeks to pursue opportunities to possible company visits and on the overall education at Columbia Business School, enhance the MBA student experience. In this current state of the Japanese economy. the course addressed the main macroeco- endeavor, CJEB’s major collaborative partner nomic trends, opportunities, and risks faced The 2020 Chazen Japan Study Tour would is the CBS Japan Business Association (JBA), by businesses and policymakers in Japan. have taken place from May 17 to May 24; a student-led organization that promotes CJEB provided immense support by provid- however, it regrettably had to be canceled Japanese business and culture to the CBS ing special guest speakers for the course’s due to the COVID-19 pandemic. The itinerary community. The Center regularly meets with weekly sessions on campus and helped plan included visits to Tokyo, Nagoya, Kyoto, and JBA officers to exchange ideas on ways to exclusive visits for the students during their Hiroshima. The students had also planned promote Japanese economy and business-re- planned trip to Japan. Unfortunately, the trip company visits to Recruit, SONY, and the lated issues within CBS. portion of the course, scheduled during the Toyota factory, as well as visits to the school’s spring break, had to be canceled As an annual initiative, CJEB assists the JBA Hiroshima Peace Memorial, and more. due to the COVID-19 pandemic; however, in organizing the Chazen International Study In spring 2020, CJEB was a cosponsor of CJEB truly hopes to leverage its resources Tour to Japan. Led by the Jerome A. Chazen the course, “Global Immersion: The Japanese to continue to benefit the Global Immersion Institute for Global Business, the Japan Economy,” an official, accredited MBA course Program in Japan in the future (p. 30). Study Tour sends a group of students on a that would bring its students to Japan for weeklong trip to Japan, providing a unique On September 25, 2019, CJEB was hon- the first time in the history of the Global opportunity for the students to experience ored to hold a special luncheon with His Immersion Program, which is offered through cultural excursions and visits to Japanese Excellency Shinjiro Koizumi, minister of the the Jerome A. Chazen Institute for Global corporations. Since the tour’s initiation in environment, Cabinet Office, Government of Business at Columbia Business School. The 1989, CJEB has helped fund the program Japan. At the luncheon, Columbia University program provides CBS students with a bridge and contributed to its agenda. Before students, including many from Columbia for classroom lessons and business practices each trip, the student trip organizers have Business School, had the rare opportunity to in other countries. Under the instruction of

50 | CJEB Annual Report 2019–2020 CJEB’s annual welcome reception for its Visiting Fellows and the Columbia Columbia Business School Japan Business Association leaders and members, as Business School community well as CBS students, with Chef Joseph “Joe” Conti engage in a candid discussion with Minister Association of Japan, Columbia Business also joined to talk about her finance industry Koizumi on topics ranging from student life School, and Columbia Alumni Association. business background, as well as her passion at Columbia, to their bright futures as global Mr. Kosai has also interviewed prospective for the Japanese sake importing business, leaders, to Japan’s efforts and challenges MBA students as an ambassador of Columbia while providing the perfect sake pairings for related to environmental issues (p. 33). Business School. He has been an active the meal. Both were delighted to share how supporter of CJEB, including in his efforts to the directions of their lives and their success CJEB’s annual welcome reception for its promote CJEB events and CJEB’s Visiting in banking and finance led them to their pas- Visiting Fellows, as well as members of the Fellow-CBS Alumni Reunion Reception, which sion for sharing Japanese cuisine with others CBS student body and other CBS commu- is held annually in Tokyo, to the Columbia in New York. nities, was held on September 28, 2019. Business School Alumni Club members in CJEB officers and staff welcomed the CBS Japan. Everyone at CJEB sends their heart- community to the new academic year, allow- felt congratulations to Mr. Kosai. ing CBS students the opportunity to network with CJEB Visiting Fellows and CBS faculty On February 24, 2020, CJEB organized and staff from other departments. a special event for the Columbia Business School Japan Business Association leaders On October 4, 2019, Hajime Kosai ’96 of and members, as well as CBS students, to the Alumni Club of Japan was recognized have an exclusive evening at the Japanese for his significant contributions to both the restaurant Shuraku. The owner of the restau- Columbia Business School and University rant, Chef Joseph “Joe” Conti, shared the communities with the Outstanding Alumni story of his career in the finance industry as Club Leader Award at the Alumni Club well as his life-changing experience diving Leadership Summit. Mr. Kosai was an inaugu- into the world of Japanese food business ral recipient of this award. As vice president with no prior culinary experience. Chef of the Columbia Alumni Association of Japan, Conti shared his entrepreneurship-driven his dedicated engagement and volunteerism restaurant industry business strategies with has led to the Alumni Club of Japan becom- the attendees while cooking and serving ing one of the School’s most active clubs. Elizabeth Brown, Vice Dean of External Relations their meal. Yumiko Munekyo, president and He has served Columbia for more than 20 and Development at Columbia Business School, founder of Sake Suki and graduate of the presenting the Outstanding Alumni Club Leader years as a liaison among the Columbia Alumni School of International and Public Affairs, Award to Hajime Kosai

CJEB Annual Report 2019–2020 | 51 Enhancing the Columbia Experience

students from all around the world and pro- vided a forum for debating critical issues in East Asian studies. It also provided a plat- form for graduate students to present their works in front of a multiskilled audience, and participants received feedback not only from their peers but also from field-leading aca- demics. Furthermore, it offered opportunities for Columbia graduate students to connect with domestic and international scholars and peers.

CJEB is continually active in and committed to promoting Japan-related activities at Columbia through the support of Japan Study Student Association (JASSA) and its initia- tives. This year, JASSA continued to organize its 14th annual student-led trip to Japan, which is similar to the Chazen International Special Luncheon with Minister Shinjiro Koizumi and Columbia University students Study Tour to Japan and is partially funded by CJEB. Unfortunately, this year’s trip had to Columbia University offers many resources connect through the celebration of Japanese be canceled due to the COVID-19 pandemic. and opportunities for students, faculty, and cuisine and tradition. The trip was planned to focus on giving the alumni interested in learning more about participants a deep understanding of Japan’s On February 14, 2020, CJEB gave Daiki Japan outside the Business School. CJEB innovative responses to challenges facing Tagami, I.I. Rabi Scholar, Columbia College contributes to this initiative by assisting Japan today, from public policy and adminis- and Undergraduate Researcher, Mortimer other organizations on campus that are tration in Tokyo, to the still-lingering effects B. Zuckerman Mind Brain Behavior Institute, engaged in Japan-related activities. This of the 2011 Great East Japan Earthquake Columbia University, a special opportunity includes the Weatherhead East Asian in Fukushima, to initiatives in technology in to give a presentation. In his talk, titled Institute (WEAI), the APEC Study Center, the response to an aging population. The itiner- “Building a Safe and Eco-Friendly Society in Department of East Asian Languages and ary included plans for around 35 participants Which Humans and Mosquitoes Can Cohabit: Cultures (EALAC), the School of International to travel to Tokyo, Fukushima, Tsukuba, Economic Effects, Opportunities, and and Public Affairs (SIPA), and many others. Kashiwa, and Kyoto. The participants in these Challenges,” he discussed his research find- trips are often from at least 12 different CJEB continues to serve as a contributor ings on mosquito mating, including preven- countries, and they would have been able to to the Columbia Japan Society (CJS), a stu- tion measures for mosquito bites. Professor gain great insight from these visits for new dent-run organization that focuses on edu- Hugh Patrick, chairman, CJEB, moderated approaches to public policy, disaster relief, cating the University community as well as the Q&A session. and aging populations in their own countries. the greater New York City public on Japanese CJEB is proud to have sponsored the culture, history, and language. On November On May 1, 2020, CJEB organized a spe- 29th Annual Columbia Graduate Student 15, 2019, CJEB provided a generous spon- cial webinar, “Developing Your Career and Conference on East Asia, which took place sorship to fund CJS’s event: Flavors of Japan. Designing Your Future during a Period of February 21–22, 2020. With 20 panels and The event was a dinner with performances Crisis,” for Columbia students in response an estimated attendance of around 200 and presentations by local Japanese cultural to the challenges to their education and people, the conference was a great success, organizations. It served as a way to cele- future created by the COVID-19 pandemic. continuing its reputation as the oldest and brate Japanese history, food, and culture, The workshop was part of the Japanese largest conference of its kind in the United ultimately creating a space for students to Management Leadership Program, and States. The conference brought together

52 | CJEB Annual Report 2019–2020 Visits from Japan to Columbia

Groups of Japanese undergraduate and grad- uate students often visit CJEB during their tours of the East Coast. In 2019–2020, a student group from Wako University came to Columbia University. They met with Professor Hugh Patrick, who gave a brief introduction and fielded questions. Discussion topics included U.S.-Japan relations; Japan’s con- tinuing workplace challenges, especially for women, and related policies; and Japan’s social problems.

In spring 2020, the New York office of CJEB Visiting Fellows work with students from Columbia University’s Japanese Language CJEB’s founding sponsor, Sumitomo Program Corporation of Americas, visited CJEB and Columbia as part of its TOMODACHI featured Tokiko Araya, director general / Visiting Fellows for opportunities to network Sumitomo Corporation Scholars Program. American Bureaus, New York bureau chief, and learn about the Japanese professional Through this program, scholarship recipi- TV Asahi America, Inc.; Keiko Honda, adjunct world. They were also given the opportu- ents, who come from Japanese universities, professor and adjunct senior research nity to practice their interviewing skills in are given the opportunity to study abroad scholar, School of International and Public Japanese with the Visiting Fellows and in the United States for one year. This year, Affairs, Columbia University; Yoriko Suzuki, develop skills and insight that will be crucial Sumitomo visited CJEB on January 7, 2020, minister, Permanent Mission of Japan to the in their job search after graduation. CJEB where CJEB’s chairman, Professor Hugh United Nations, New York; and Ayumi Wada, preserves its strong ties with the Japanese Patrick, and CJEB’s managing director, Ryoko chairwoman and CEO, Toshiba America, Inc. Language Program by visiting its classes to Ogino, welcomed students and executives The esteemed panelists leveraged expe- promote opportunities for them to join events from Sumitomo, to engage in a lively discus- riences from their successful careers in or plan their futures with the CJEB Doctoral sion on Japan and the world economy and the business, academia, media, and government Fellowship (p. 54) and the Mitsubishi UFJ students’ future prospects. Students were to provide the students with guidance. The Trust Scholarship Foundation (p. 54). given the opportunity to meet, exchange event was moderated by the cofounders Aside from funding and programming, CJEB ideas with, and receive career advice from of the Japanese Management Leadership engages with the student community by pro- current CJEB Visiting Fellows. Unfortunately, Program, Yumiko Shimabukuro, director, viding opportunities for Columbia students to Sumitomo’s second visit in March was can- Urban and Social Policy Program, School of work at the Center as student casuals. They celed due to the COVID-19 pandemic. International and Public Affairs, Columbia are selected from a number of applicants, University, and Ryoko Ogino, managing direc- and their contribution to the CJEB team is tor, CJEB. Over 25 students from CBS, SIPA, invaluable, as they are deeply involved in the Teachers College, Columbia Law School, day-to-day operations of the Center. The Columbia College, and the School of General Center is committed to developing our stu- Studies participated in the event. Since it dents professionally while providing unique was held online, attendees joined from both opportunities for on-site learning and interac- New York and Tokyo (p. 39). tions with Japanese leaders from the private CJEB is very active in supporting the and public sectors. Our student casual pro- University’s Japanese Language Program. gram is open to high-performing and proac- In spring 2020, CJEB provided a mentor- tive students with relevant backgrounds and Professor Hugh Patrick with TOMODACHI ship program to students taking Columbia’s interests from across the University. Sumitomo Scholars Business Japanese course. The students had deep conversations with CJEB’s current

CJEB Annual Report 2019–2020 | 53 Fellowship and Scholarship Programs

included the current state of the U.S. and Japanese economies, their professional duties, and their prospective careers. Columbia students, including the Sumitomo Fellows, joined the lunch to speak about their research and academic experience.

The Mitsubishi UFJ Trust Scholarship Foundation provides one Columbia University student each year with tuition and living expenses for a program of either undergraduate or graduate study in Japan. CJEB conducts a University-wide competition Cameron LaPoint Shogo Sakabe Tatyana Avilova on behalf of the Foundation to nominate a student. The scholarship was awarded to CJEB provides select fellowships for Columbia from the Department of Economics, he has Spencer Cohen for 2018–2020, and he University students who demonstrate been investigating consumers’ response to the finished his second year in summer 2020. outstanding academic ability and a specific arrival of pension paychecks using point-of- interest in Japan and the Asia-Pacific sales data from Japanese supermarkets. economies. These fellowships support CJEB Doctoral Research Grants and Summer research and participation in academic Stipends are also available to PhD students programs related to Japanese economic at CBS or the Department of Economics and business fields. Further information who wish to pursue Japan-related research on these opportunities is available at projects or language training programs. www.gsb.columbia.edu/cjeb/resources/ studentopportunities under the heading The Sumitomo Fellowship Program was “Fellowships & Scholarships.” established by the Center as part of an initial operating grant from Sumitomo Corporation of The CJEB Doctoral Fellowship was Americas. The program has provided support established in 2013 to support PhD students to various Japan-related research initiatives, at CBS and/or Columbia’s Department of and the fellowship recipients engage in their Economics who intend to develop Japan own research as well as participate in CJEB expertise, culminating in dissertations focused programs. Tatyana Avilova, a PhD candidate primarily on Japan. Our CJEB Doctoral in the Department of Economics, was named Fellowship recipients include Shogo Sakabe, a Sumitomo Fellow this year. CJEB is proud currently in the Department of Economics at to have supported another Sumitomo Fellow, Columbia University. Cameron LaPoint, who finished his PhD in the Shogo Sakabe, the current Doctoral Department of Economics. Cameron will begin Fellowship recipient, has been working with his new academic endeavors as an assistant Professor David Weinstein on measuring professor of finance at Yale University School the effect of importing new knowledge from of Management in July 2020. foreign countries on industrial productivity On November 15, 2019, and February 21, growth when Japan opened its economy 2020, CJEB was honored to host a lunch and to international trade in the 19th century. provide a tour of Columbia University for young In another project with Cameron LaPoint, a leaders of Sumitomo Corporation of Americas. Sumitomo Fellow and, now a PhD graduate At the lunch meeting, the topics of discussion

54 | CJEB Annual Report 2019–2020 Library and Data Resources

David Weinstein speaking at a CJEB event

Columbia University is home to one of the CJEB’s databank includes: Daily Price Index project in May 2013, which largest collections of Japanese- and English- measures and publishes the consumer infla- • Time-series and cross-section data on language materials in the United States. tion rate on a daily basis. financial markets, institutions, and the mac- CJEB evaluates Columbia University library roeconomy from Nikkei NEEDS Financial resources and commits funding to procure QUEST 2.0 and the Development Bank of new materials on Japan and the Asia- Japan’s Industrial Financial Database Pacific economies. CJEB also maintains a small working collection of materials on the • An online news and data retrieval system Japanese and Asia-Pacific economies, includ- that provides essential corporate and eco- ing statistical resources, academic journals, nomic data as well as leading newspaper and periodicals. and journal articles on Japanese and other Asia-Pacific economies from Nikkei Telecom, Data Resources which is accessible via Columbia University The Center continues to develop its major Libraries (CLIO) computer-based databank on the Japanese Other data resources: economy, with an emphasis on financial mar- kets, under the direction of Professor David CJEB Research Associate Professor Tsutomu Weinstein. The databank is a compilation of Watanabe of the University of Tokyo (along statistical resources for faculty members and with Kota Watanabe of Chuo University and students conducting relevant research. the University of Tokyo) launched the UTokyo

CJEB Annual Report 2019–2020 | 55 Discussion Groups

Low Rates and Bank Loan Supply: Theory and Evidence from Japan Presenter: Cynthia Balloch, Assistant Professor of Finance, London School of Economics and Political Science (coauthor: Yann Koby, Princeton University)

Discussants: Kimie Harada, Chuo University; Etsuro Shioji, Hitotsubashi University

U.S.-Japan Discussion Group

Shortly after CJEB was founded, the then-CEO Speakers at the Japan Economic Seminar 2020 of Sumitomo Corporation of Americas and Professor Hugh Patrick took the initiative to Japan Economic Seminar Meritocracy and Its Discontent: Long-Run organize, on a private and individual basis, an Effects of Repeated School Admission evening discussion group attended by senior Reforms The Japan Economic Seminar (JES) was Japanese and American businessmen and Presenter: Yusuke Narita, Assistant Professor, founded in 1966 by the late Professor James professionals living in the New York area. The Department of Economics & Cowles Nakamura of Columbia and Professors Hugh group continues to convene to discuss frankly Foundation, Yale University; Visiting Assistant Patrick (then at Yale) and Henry Rosovsky of and informally—and off the record—issues and Professor, Stanford University (coauthors: Harvard. With a membership of up to one hun- prospects in U.S.-Japan business, economic, Chiaki Moriguchi, Hitotsubashi University; and dred individuals, it originally was an interuni- and political relations. Masaki Nakajima, the Mari Tanaka, Hitotsubashi University) versity forum for faculty, other professionals, current CEO of Sumitomo Corporation of and advanced graduate students to discuss Discussants: Yeon-Koo Che, Columbia Americas, and David Weinstein, CJEB’s direc- ongoing research in preliminary form by spe- University; Charles Horioka, Kobe University tor, are the co-organizers of this group. The cialists on the Japanese economy. The JES members come from the business and financial now meets once a year, sponsored by CJEB, Do Trade-Originated Income Shocks communities, together with several specialists and is held at Columbia in the spring semester Mobilize Higher Backlash against Free on Japan from the Columbia University faculty. under the leadership of Takatoshi Ito, professor Trade? The group avoids identification with any partic- at Columbia’s School of International and Public Presenter: Megumi Naoi, Associate Professor, ular companies or groups and meets twice in Affairs (SIPA) and director of the Program Department of Political Science, University of the fall and spring for dinner and discussion. on Public Pension and Sovereign Funds at California, San Diego The discussions naturally focus on the CJEB. Special arrangements have been made Discussants: Shujiro Urata, Waseda wide-ranging political economy and how to include economists from Japan as paper University; Shigeo Hirano, Columbia University authors and discussants. Japanese and American corporations operate domestically, abroad, and with each other. Spatially Uneven Pace of Deindustrialization Topics discussed in 2019–2020 included This year, the JES was held on February 20, within a Country the trade war, U.S.-Japan relations and pol- 2020, and had four sessions. These sessions Presenter: Kozo Kiyota, Professor of itics, U.S. Democratic primaries and candi- were moderated by Professors Tokuo Iwaisako Economics, Keio Economic Observatory, Keio dates’ prospects for the nomination, and the of Hitotsubashi University and Takatoshi Ito. University; Visiting Colleague, Department of Japanese justice system and the Ghosn case. The Japan Economic Seminar thanks the Economics, University of Hawaii, Manoa James Nakamura Fund for its support. These sessions hosted various high-level guest Discussants: Justin Pierce, Federal speakers to provide members with rare oppor- Reserve Board; Peter Schott, Yale School of The following papers were discussed: tunities to hear directly from experts from a Management number of industries and fields in an intimate setting.

56 | CJEB Annual Report 2019–2020 FINANCIAL SUPPORT

Financial Support

A CJEB special dinner in honor of Hugh Patrick and David Weinstein

Columbia University and Columbia Business Center donor. The Center also greatly appre- economy. A special luncheon was scheduled School (CBS) give basic support for the ciates and benefits from the income derived for May 14, 2020, at the Akasaka Prince Center by providing faculty salaries and from the generous endowments funded by Classic House in Tokyo for our corporate office space, library and administrative sup- Fuji Xerox Co., Ltd., Sanken Industrial Policy sponsors in Japan to demonstrate our deep port, and other essential services. However, Research Institute, the Marine and Fire appreciation for their continued support, as the Center relies on external sources of Insurance Association, the Federation of well as to share a presentation on the effects financial support from foundations, corpo- Bankers Association, the Security Dealers of the U.S.-China trade war on U.S. invest- rations, and individuals for its programs and Association, the Life Insurance Association, ment by Professor Weinstein. However, it was research activities. Income is derived from and Mitsubishi UFJ Trust and Banking unfortunately canceled per University guide- the Center’s endowment, operating and proj- Corporation during the first years of the lines in response to the COVID-19 pandemic. ect grants, and, especially, from its Corporate Center’s establishment at CBS and now. Sponsorship Program, which was established in 1995. Academic independence has not On September 11, 2019, CJEB held a been an issue, as there are no special restric- special dinner in honor of Professor David tions attached to any of these gifts. Weinstein, CJEB’s director, and Professor Hugh Patrick, CJEB’s founder and chairman, The Sponsorship Program has been instru- at Pulitzer Hall, Columbia University. A group mental in expanding the Center’s activities of CJEB sponsors and other guests cele- and guaranteeing their long-term financial brated the legacy and career of Professor support. The companies listed below support Patrick as CJEB’s director for the past 33 CJEB through funding to help establish an years and discussed the future trajectory endowment or provide funding on an annual of the Center in a private setting. Professor basis. Sumitomo Corporation of Americas Weinstein also gave a presentation titled “The made an initial significant contribution Economic Impact of the Trade War” and led a that enabled the Center to be established discussion on the U.S., Japan, and the global in 1986 and has continued to be a major

CJEB Annual Report 2019–2020 | 57 Sponsorship Program Tokio Marine & Nichido Fire Insurance Co., Ltd.* TV TOKYO Holdings Corporation Sponsors for the year 2019–2020 are as follows: Yaskawa Electric Corporation

Lead Corporate Sponsors Individual Sponsors ($100,000+ annually) ($10,000+ annually) Sumitomo Corporation of Americas Foundation (Founding Sponsor) Robin and Brian Kelly Effissimo Capital Management Pte Ltd Jun Kokui Shigeru Masuda Senior Corporate Sponsors In memory of Juichiro Takada ’62 ($50,000+ annually) Advantage Partners, Inc. Friends of the Center Daiwa Capital Markets America Inc. (up to $9,999 annually) Mitsubishi UFJ Trust and Banking Corporation Miyoko Davey Mizuho Bank, Ltd. Hiroko and Satoru Murase SMBC Tsunao Nakamura Tokai Tokyo Securities Co., Ltd. Hugh Patrick Shelby Ruch Major Corporate Sponsors Takumi Shibata ($25,000+ annually) Michael D. Van Zandt Kikkoman Corporation Mitsubishi Corporation (Americas) * Regularly sends visiting fellows Ricoh Co., Ltd.* Sumitomo Mitsui Trust Bank, Ltd.* Suntory Holdings Limited Tsuchiya Co., Ltd.

Corporate Sponsors ($10,000+ annually) Aflac Life Insurance Japan Ltd. ANA HOLDINGS INC. Canon U.S.A., Inc. Fuji Xerox Co., Ltd. Industrial Growth Platform, Inc. (IGPI) ITO Corporation ITO EN (North America) INC. Japan Industrial Partners, Inc. J.C.C. Fund of the Japanese Chamber of Commerce and Industry of New York, Inc. MinebeaMitsumi Inc.* Mitsui Sumitomo Insurance Co., Ltd.* Mitsui USA Foundation Mori Building Co., Ltd. Nikkei Inc. Nomura America Foundation

58 | CJEB Annual Report 2019–2020

Table of Contents

Letter from the Director and the Chairman 2 Special Webinars in Response to COVID-19 38 COVID-19: Economic Implications for Japan and the United States 38 CJEB Team 4 The Role of Central Banks in the COVID-19 Pandemic: Leadership and Staff 4 The U.S., Japan, and Beyond 38 Core Faculty 7 Developing Your Career and Designing Your Future during a Period of Crisis 39 Research and Faculty Engagement 10 What Japan Should Do Now in Preparation for Japan’s Design/Production: “My Career as an Economist on Japan and the Asia-Pacific” New Normal 39 by Hugh Patrick 10 Events Postponed or Canceled Due to COVID-19 40 Columbia Creative Current Research Highlights 20 Corporate Governance and Regional Banking Reform: Office of Communications and Public Affairs The Key to Japan’s Future Success 40 Faculty Engagement 22 Is Korea Following in Japan’s Footsteps? An OECD Research Paper Series 24 Perspective on the Two Economies 40 Editors: A Wave of Shareholder Activism Hits Japan’s Shores 40 Ryoko Ogino CJEB Programs 26 Multilateral Development Banks (MDBs) and the Sarah Santana Program on Public Pension and Sovereign Funds 26 Role of Japan 40 Corporate Governance and Stewardship Program 26 550 Years in Bloom: Revitalizing a Traditional Flower Arranging Family Business in Modern Era Japan 41 Assistant Editors: Program on Japan’s Role in the Evolving Global Economic System 27 The Frontier of Driving Innovation through Design Thinking 41 Emiko Mizumura The Future of Global Interdependence: Environment, Japanese Management Leadership Program 28 Shoko Nakamoto Trade, and Politics 41 The New Global Financial Architecture 29 The Japan Project Meeting with Joint ESRI International Julio “JP” Perez Conference 41 CJEB Contributions to Columbia Business School Courses 30 Photography: Resources 42 Eileen Barroso Events 31 Faculty Advisory Committee 42 Michael DiVito Conferences 31 2019–2020 Visiting Fellows 43 Anastasia Gracheva Conference on Public Pension and Sovereign Funds 31 2019–2020 Visiting Fellow Activities 44 Symposia 32 2020 Visiting Fellow Reunion Reception and Annual Shoko Nakamoto U.S.-Japan Relations in a Turbulent World 32 Visiting Fellow Business Field Trips 45 Julio “JP” Perez Research Associates 46 Knocking Down Walls: Making Japanese Companies Sarah Santana Responsive to Their Shareholders 32 Professional Fellows 47 ESG Investing: A Local, Not a Global, Issue 33 International Advisory Board 48 Lectures 33

Special Luncheon with Minister Shinjiro Koizumi 33 Promoting Exchange of Ideas 49 The Seventh Year Stretch: Structural Reform Still Needs a Hit 34 CJEB in the News 49 Lunchtime Seminars 34 Enhancing the MBA Experience 50 Turning Japanese? Lessons from Japan‘s Lost Decades and Enhancing the Columbia Experience 52 Challenges for the World 34 Visits from Japan to Columbia 53 Making Cross-Border M&A Work: A Success Story 34 Fellowship and Scholarship Programs 54 Banking in a New Age: Responding to Future Paradigm Shifts 35 Library and Data Resources 55 The New Role of Board Director in Japan: A Global Context 35 Discussion Groups 56 Servant Leadership 35 Japan Economic Seminar 56 The Invisible Minority: Are Asians Under-Represented in Leadership Positions in the United States? 36 U.S.-Japan Discussion Group 56 Workshops 36 Effective Knowledge Transfer Workshop 36 Financial Support 57 Japan-Focused Design Thinking Workshop 37 Sponsorship Program 58 Speechwriting and Speech Delivery Workshop 37 CENTER ON JAPANESE ECONOMY AND BUSINESS AND ECONOMY JAPANESE ON CENTER

Center on ANNUAL REPORT 2019–2020 REPORT ANNUAL Japanese Economy and

475 Riverside Drive Room 312F New York, NY 10115 Email: [email protected] Business Phone: 646-745-8569 Web: www.gsb.columbia.edu/cjeb ANNUAL REPORT 2019–2020 (JULY 2019–JUNE 2020) CJEB Representative Office in Japan c/o Terumi Ota 1-19-18-1003 Shibuya Shibuya-ku, Tokyo 150-0002 Fax: 03-5467-6012