Japan is sick, but once again people are becoming hopeful that it may at long last recover, mostly because a committed reformer named Heizo Takenaka now seems to be running the economic policy. But what policymakers and pundits fail to recognise - or refuse to recognise - is that economic policies per se will not reinvigorate Japan.
Japan's crisis is systemic, not cyclical. Debt, deflation and other maladies are purely symptoms of Japan's disease. The causes are a combination of institutional sclerosis, social anomie and gerontocratic governance.
For several decades after WWII the Japanese system worked remarkably well, not only in generating growth, but in providing high levels of education, long life expectancy, security, and other welfare benefits to its citizens. This system rested on three pillars: a cohesive political-industrial establishment, the mobilisation of resources to achieve national economic ends and America's defensive shield.
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Since 1960, only a few countries in Latin America have narrowed the gap between their per capita income and that of the United States, while most of the region has lagged far behind. Making up for lost ground will require a coordinated effort, involving both technocratic tinkering and bold political leadership.
explain what it will take finally to achieve economic convergence with advanced economies.
Between now and the end of this decade, climate-related investments need to increase by orders of magnitude to keep the world on track toward achieving even more ambitious targets by mid-century. Fortunately, if done right, such investments could usher in an entirely new and better economy.
explains what it will take to mobilize capital for the net-zero transition worldwide.
Japan is sick, but once again people are becoming hopeful that it may at long last recover, mostly because a committed reformer named Heizo Takenaka now seems to be running the economic policy. But what policymakers and pundits fail to recognise - or refuse to recognise - is that economic policies per se will not reinvigorate Japan.
Japan's crisis is systemic, not cyclical. Debt, deflation and other maladies are purely symptoms of Japan's disease. The causes are a combination of institutional sclerosis, social anomie and gerontocratic governance.
For several decades after WWII the Japanese system worked remarkably well, not only in generating growth, but in providing high levels of education, long life expectancy, security, and other welfare benefits to its citizens. This system rested on three pillars: a cohesive political-industrial establishment, the mobilisation of resources to achieve national economic ends and America's defensive shield.
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