[talk] It is Impossible for the Japanese Economy to Achieve ”Revitalization of Industry” if it cannot Destroy Itself

Tadasu Ohe: President and a principal archtect of Plantec Architects, Inc.

He established Plantec Architects, Inc in 1985. His works include Shiga prefectural University and Toshima office of Tokyo Metropolitan Government. He received various awards for his works, including Japan Institute of Architects "Young Architects of the Year" (Fun house) in 1994 and Good Design Awards (Tea house in Yokohama) in 2001. He received his B.A. in Architecture in 1977 and M.A. in Architecture from The University of Tokyo in 1987e.

Michio Matsui: President, Chief Executive Officer, Matsui Securities Co.

Michio Matsui has been since 1995. He has authored O Yannasaiyo demo Tsumannnaiyo (Do It, but It Won't Be Interesting). Mr. Matsui graduated from the Economics Department of Hitotsubashi University in 1976.

Can the “Takenaka Plan” solve the serious problems that are troubling and weakening the Japanese economy such as the issues of non-performing loans, persistent deflationary pressure, and increases of bankruptcies and unemployment that have not changed in the past decade? The specific debate concerning the newly established “Industrial Revitalization Organization” which will be set up to help with the restructuring and revitalization of enterprises will begin from now on. The main point is how to categorize the firms that carry excessive debt into “rebuild” and “bankrupt”, but Matsui points out that “Politicians and bureaucrats do not have criteria to say ‘We should close this firm’ or ‘We should keep that firm’”. The key to this issue is the market. If the market which can bring about drastic selection and decide on the winners and losers, those within the firm will no doubt move to say that “with the old management, this firm will fail”. Along with these movements, the old structures will be removed as well. However, in the Takenaka Plan, there are no market-oriented ideas. Matsui points out the doubt of “why Mr. Koizumi or Mr. Takenaka does not realize this point”. However, it is not possible for the state or the regional governments to continue ignoring the market decisions and ordering projects for general contractors with stock prices of 10 yen. It can also be mentioned such as Mr. Ohe says that even without the selection process of the Industrial Revitalization Organization between restructuring or bankruptcy, “deflation will do away with the enterprises which should be done away”. Mr. Ohe sees “this deflation will continue throughout the next 20 years” and even if the present situation is left as it is, only the firms that “welcome deflation” will continue to survive. It may be nonsense to select problem firms and try to rebuild them. First, natural selection of firms should progress and all resistance power should be broken down. If the Japanese economy is able to completely destroy itself in this manner, it should find the natural birth of new industries that should promote the IT revolution in the 21st century. At that time, the problems of the Japanese economy will definitely be overcome.