Japan should form its own economic system, rather than simply emulating that of the United States, by making use of its advantages and changing to meet new needs, the newly appointed chief of a government think tank said July 1.
Speaking at an inaugural news conference, Masahiko Aoki, new director general of the Research Institute of International Trade and Industry, said economic systems differ from one country to another and that there is no single answer that is perfect for all nations. "Japan definitely must have its system reformed," he said. "But you cannot bring and implant the American system here overnight. We must think up and build a new system (which fits Japan)."
What is most important, he said, is to combine the strength of Japan's traditional system with new elements that are necessary to meet diverse needs. He said that such reform should take place first on a micro-level, namely, with individual companies trying out various models. In the meantime, he said, the government should help create an environment that is open to diversity instead of dictating a direction for firms to follow, as it has done in the past.
Touching on trade relations with the U.S., Aoki said it has become useless to discuss the issue based on bilateral trade figures now that both U.S. and Japanese firms operate in various parts of the world. Aoki has served as an economics professor at Stanford University since 1984 and will retain that post concurrently with his new job at the MITI think tank.