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1/Today's @bopinion post is about Japan's next Prime Minster, Yoshihide Suga, and what he needs to do in order to revitalize Japan's economy. https://www.bloomberg.com/opinion/articles/2020-09-15/how-yoshihide-suga-can-finish-what-shinzo-abe-started?sref=R8NfLgwS
2/Suga's predecessor, Abe, managed to put Japanese people back to work. COVID will interrupt that success, but only for a short while.
3/The problem is productivity.
Japan saw good productivity growth under Abe -- better than the U.S.! But it still lags BADLY behind other rich nations.
Suga needs to change this. https://www.japantimes.co.jp/news/2019/12/19/business/japan-labor-productivity-still-lowest-in-g7/
Japan saw good productivity growth under Abe -- better than the U.S.! But it still lags BADLY behind other rich nations.
Suga needs to change this. https://www.japantimes.co.jp/news/2019/12/19/business/japan-labor-productivity-still-lowest-in-g7/
4/Japan has an unproductive, inefficient corporate culture. It's holding back everything else in the economy.
This is what Suga needs to change.
This is what Suga needs to change.
5/The first way to change this corporate culture is to encourage more REMOTE WORK.
6/Fortunately, COVID has already pushed Japanese companies to implement remote-work policies.
Now Suga just needs to deploy the correct incentives to make sure the new approach is permanent. https://www.bloomberg.com/opinion/articles/2020-06-21/japan-s-work-culture-gets-a-needed-shock-from-coronavirus?sref=R8NfLgwS
Now Suga just needs to deploy the correct incentives to make sure the new approach is permanent. https://www.bloomberg.com/opinion/articles/2020-06-21/japan-s-work-culture-gets-a-needed-shock-from-coronavirus?sref=R8NfLgwS
7/The second important change is MID-CAREER HIRING.
Employees must flow between companies!!
Employees must flow between companies!!
8/And the most important corporate reform is to PROMOTE MORE WOMEN!
Abe set a target for promotion of women, but failed to meet it.
Suga must succeed where Abe failed! https://mainichi.jp/english/articles/20200626/p2a/00m/0fp/014000c
Abe set a target for promotion of women, but failed to meet it.
Suga must succeed where Abe failed! https://mainichi.jp/english/articles/20200626/p2a/00m/0fp/014000c
9/Economic analyses show that gender equality is a powerful engine of economic growth.
Women's talents must be fully utilized!! https://review.chicagobooth.edu/economics/2020/article/how-discrimination-harms-economy-and-business
Women's talents must be fully utilized!! https://review.chicagobooth.edu/economics/2020/article/how-discrimination-harms-economy-and-business
10/As things stand, Japanese women tend to get pushed into low-paying, dead-end "irregular" jobs. https://www.bloomberg.com/opinion/articles/2015-08-18/job-is-half-done-for-japan-s-working-women?sref=R8NfLgwS
11/The Japanese government can deploy many tools to fix this.
First, it can use preferential government contracting to award companies that promote more women. https://www.bloomberg.com/opinion/articles/2015-11-17/japan-needs-workers-and-women-are-ready-to-step-in?sref=R8NfLgwS
First, it can use preferential government contracting to award companies that promote more women. https://www.bloomberg.com/opinion/articles/2015-11-17/japan-needs-workers-and-women-are-ready-to-step-in?sref=R8NfLgwS
12/Next, Japan can repeal a very bad tax law that discourages women from making over a certain amount of money!! https://taxfoundation.org/how-tax-code-can-harm-women-japanese-case-study/
13/Remote work and mid-career hiring will also help women get promoted.
Remote work will help women balance career and family. Mid-career hiring will enable women to go from the "irregular" to the "regular" job track.
Remote work will help women balance career and family. Mid-career hiring will enable women to go from the "irregular" to the "regular" job track.
14/And a general corporate culture of efficiency and productivity will be good for woman managers!! https://www.bloomberg.com/opinion/articles/2017-08-15/for-the-sake-of-productivity-put-a-woman-in-charge
15/In addition to all these reforms, Suga should substantially increase the minimum wage, to prevent inequality from rising, and to make sure every Japanese worker can put food on the table.
