The DPJ Expected to Lead Japan to Change Similarly to Turnaround of Ailing Companies but with More Dynamism and Complexity

Sunday, September 6, 2009 – Osaka, Japan

Japanese governors evaluate social security policies the DPJ’s manifest, Nikkei, the Japan’s leading newspaper specialized in economy and politics, reported yesterday as the survey result Nikkei implemented lately. The result is in line with what Japanese citizens are requesting to the new Japanese government for them to lead better lives.

According to Nikkei, the survey was implemented to 46 governors excluding Aichi prefecture governor who was on a business trip. The question was which policies of the DPJ’s manifest do they evaluate and think is/are the first priority to be implemented. Multiple answers were accepted.

From the survey result, it is apparent that healthcare and social security are the vital items the governors highly evaluate. Top of the list was increase in developing doctors with 19 people, followed by withdrawal of policy of restraining social security expense growth with 11 people. Others such as a certain amount of financial incentives per child and 25% reduction in CO2 emission followed with only 4 people. Making motorway free similarly to the U.K. which has been a hot debate was evaluated by only 3 governors but on the contrary 16 answered that they do not evaluate this policy.

These results overlap with the voices of Japanese citizens interviewed and broadcasted in TV news to make comments on what they expect to the new leading party to improve their lives. Many said that healthcare including increase in doctors and other healthcare experts plus hospitals is vital, and that social welfare including pension issues needs to be solved. Regarding measures to increase children to solve the aging society problem, many said that more “fundamental and systematic” measures to change the society and infrastructure are required.

Japanese citizens also request to the new leading party to stimulate business to improve the economy and employment situation, which is quite natural because they are all directly affected financially by the bad economy. This is a requirement to stimulate the consumer spending and expand domestic market demand. However, domestic market demand expansion alone is limited and something else to stimulate the business and economy is required such as reconstructing the total social infrastructure and fostering to develop new promising industries especially in the area of energy and environment, agriculture, healthcare and IT, and as incentives to attract direct (and indirect) investment to Japan. The reason this kind of issue was not mentioned in the survey to governors could be that there are so many other issues that are more critical, and that it is the companies that are the main players for this issues.

Free comments in the survey as “request and expectation” included clear vision and strategy for growth at an early stage from Mr. Hashimoto of Osaka, and freeing Japanese politics from bureaucratic-oriented style from Mr. Ishihara of Tokyo. Both are “must” of many turnarounds of ailing companies.

The DPJ are expected to lead change the “Japan Corporation” in very much the same way as many turnaround of companies that achieved V-shared recovery leveraging change management. With its size and complexity, this is indeed a big challenge but must be fulfilled for the country and its citizens of today and tomorrow.