The disturbing thing about Japan today is that it lacks a clear sense of national purpose even though the 21st century is close at hand. The economic slump of the 1990s is often described as a "lost decade" or a "second surrender" (after the defeat in World War II). But it is not just the stagnant economy that has created a sense of national paralysis; Japan also drifts in the fields of politics, diplomacy and education.
Yet our political leaders do not seem willing to establish a clear-cut national strategy. To be sure, some bigwigs like former Prime Minister Yasuhiro Nakasone are advocating a "grand design." But Nakasone's recent book "Nippon no Kokka Senryaku" (Japan's New Strategy) has not received much attention. The nation as a whole lacks a sense of crisis. Politicians seem concerned mainly with short-term problems, shunning hard-hitting debates about long-term concerns. This myopia could be a recipe for national disaster.
True, the economy is now on the recovery track. The banking sector, though still beset by structural problems, is restoring a measure of health. Consumers are no longer gripped by gloom, although unemployment stays high and spending is slow. The Bank of Japan, citing improvement in economic conditions, has lifted its zero-interest rate policy over the strong objections of the government and the ruling parties. The market has reacted calmly.