Akio Okawara

Executive Director
Sumitomo Shoji Research Institute, Inc.

I am writing this as 2009 draws to a close. A year ago I wrote a column titled "The Immortal Auto Industry," and over the course of the year since then, a number of automobile-related topics have become major news stories, such as the Japanese government's "eco car" system of tax breaks for buyers of environment-friendly new autos, the posting of an annual loss by Toyota, the collapse of General Motors and Chrysler, and China's move into top place in annual auto sales.

Amid concerns about Japan's ability to maintain its competitive position internationally, the auto industry stands out as one of the country's strongest performers. This industry is also a leading representative of Japan's prided skill at manufacturing. Our country's underlying strength is to be found on the front lines, particularly on the factory floor, and it is generally thought that this strength is grounded in good teamwork. I would not deny the importance of teamwork, but there is a limit to how much can be accomplished through teamwork if the individuals on the team are not capable.

In connection with the importance of human resources, I recently saw a story that caused me concern. Though the number of Japanese studying abroad increased by 30% from 1995 to 2005, reaching a total of 80,000 in 2005, over the decade from 1997 to 2007 the number of Japanese students in the United States actually fell by more than10,000. Reportedly prospective students are saying things like "the competition is [too] fierce" and "my English may not be good enough" (Asahi Shimbun, December 11). Today's young Japanese seem to lack vigor and to want to avoid competition; they have lost the spirit of challenge. This is regrettable.

Japan's mobile phone industry is often said to be suffering from the "Galápagos syndrome." This refers to the sort of phenomenon that Charles Darwin observed on the Galápgos Islands, where plants and animals evolved in an isolated environment. In Japan's case, mobile phones have become highly advanced to survive the fierce competition in the domestic market, but they are not adapted to other markets. It seems to me that a similar phenomenon can be seen in the field of human resources.

As globalization progresses, the development of human resources has become a crucial issue in countries around the world. And for Japan, amid the demographic shift to fewer births and an aging, shrinking population, the domestic market is contracting, and even businesses that have up to now focused on domestic demand need to extend their operations to external markets, particularly China and other Asian countries. This makes it even more important to increase the ranks of employees capable of coping with diversification and passing muster on the international scene.

The year 2010 is the year of the tiger according to the oriental zodiac, and it is year 27 in the traditional 60year cycle. This is said to be a year of escaping from the stagnation of the previous year of the ox and achieving bold renewal and progress, while maintaining the necessary continuity with the past. I hope we will be able to accomplish this as individuals—and that through bold renewal and progress we can keep Japan as a whole from succumbing to the Galápagos syndrome.