Improved corporate governance at Japanese firms coupled with better public policy can "lead to a magnificent revival" in the country's economy, according to James K. Glassman, who delivered the 2002-'03 Mansfield American-Pacific Lecture, jointly sponsored by Keizai Koho Center.

Speaking at Keidanren Kaikan in Tokyo last week, Glassman applauded Japan's economic "miracle" over the last half century, but emphasized that present public policy is deficient and is harming Japan unnecessarily. He added, however, that he is an optimist and that there is no serious impediment to a revival.

Taking as his initial example Enron, the disgraced Texas-based power firm, Glassman pointed to the company's successes -- earnings per share leaping from 9 cents in 1989 to $1.47 in 2000 and the company trading at a price-to-earnings ratio of 41 -- before detailing its dizzying decline.