Executive Summary

'Kyosei' Versus The Big Tree In The World Market

T. Ogasawara
Chairman & Publisher of the Japan Times

October 1992

Thirty business leaders from the United States, Europe, and Japan gathered last month to discuss the theme of Europe-U.S.-Japan: New Avenues for Competition and Cooperation. This "Caux Round Table" has been held annually since 1986.

I went to this year's conference expecting once again to hear Japan being blamed for its increasing trade imbalances with its trading partners. However, the conference opened with an explanation from the Japanese side of the idea of "kyosei" (mutual prosperity and harmony).

Contrary to my expectations, I got the impression that there was a deeper understanding of Japan as the discussion turned to long-term management planning, the manufacture of quality goods, and praise of Japanese management methods.

But it also became clear that current unemployment problems in such countries as Germany, Britain and especially France were being blamed on increasing Japanese imports which, it was intimated, were robbing people of their work.

Despite this attitude, it was difficult for Americans or Europeans, who profess to be in favor of free trade, to openly espouse such heretical opinions. Still, I felt that Japan must try and appreciate the difficult dilemma in which they find themselves.

I came away from the meeting with the conclusion that Japan must take three steps if it is to avoid being ostracized from the international community.

First, Japanese should more extensively participate in international conferences such as the Caux Round Table, listen carefully to their counterparts, debate with them without merely criticizing others' positions, admit their faults, try to understand the others' position, and moreover, try to help their counterparts. It is particularly important that Japanese industrialists, whose actions create many of these problems, should actively participate in such events.

Second, although Japanese enterprises are already expounding the idea of their economic interdependence with foreign concerns, it is necessary for them to put these principles into practice. The basis for good international relations is one of give-and-take but up to now, Japan has mostly taken, be it technology or market share.

Third, and most importantly, Japan must alter the attitude that has existed since Japan's defeat in World War II, or indeed since the Meiji Reformation, of trying to catch and overtake the West.

I believe that these changes must be undertaken to produce a society which can exist in harmony with the international community.

Most Japanese do not realize just how strong Japan's economy has become nor the far-reaching influence it exerts throughout the world.

The situation is like a tree growing in Japan's backyard. As it becomes larger and larger, its branches spread into adjacent properties. Japan only thinks it natural that a healthy and well-fed tree will grow so large and that the neighbors will be pleased to see it. There is no appreciation of the fact that the tree's size can create problems for others nor any effort made to amend the situation.

I believe this metaphor describes Japan's greatest problem at the present time.

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