We Are Tomodachi Winter 2018

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6Japan’s economy was in full bloom from the 1960s through the 1980s, its post-war recovery deemed a miracle. And it wasn’t simply a rebound. Japanese companies were at the forefront of business innovation. In fact, one of BCG’s seminal concepts, time-based competition, was inspired by Japanese companies and their pioneering approach to flexible manufacturing.The era of double-digit growth, however, is a distant memory. For more than two decades, Japan has been trying to reverse an economic downturn. Although the problems run deep, recent policies have been transformative—they’ve stabilized the economy and laid the groundwork for sustained growth. To keep the momentum going, leaders will have to continue pushing existing reforms while taking a fresh look at a set of emerging priorities for both business and society.Abenomics has provided a foundation for growth Japan is dealing with many of the same challenges confronting other developed countries: namely, an aging and shrinking workforce and population and a mature, high-cost industrial base. As a result, the coun-try now faces pincer competition, with pressure coming from lower cost nations on the one hand and disruptive new players from the digital economy on the other. At the same time, the government is in the difficult posi-tion of trying to balance declining income with the increasing costs associated with higher dependency ratios and an aging population. As vexing as such constraints may be, they can be powerful catalysts for the kind of bold adaptation and innovation that can revitalize a country’s competitive-ness. Under the Abe administration and its agenda of Abenomics, Japan has confronted its structural issues head-on. Monetary and fiscal policy, two of the “three arrows” Rich LesserPresident and CEO of BCG; previously served as Chairman of North and South America. Under his leadership, BCG has continued its strong global growth across all regions and practices, fueled by investments in new offices, digital and analytics, and capabilities to drive transformation. Member of several leading organizations, such as the WEF’s International Business Council and the US Business Roundtable. Has also sustained BCG’s investments in social impact through its many partnerships including the World Food Programme, Save the Children, Teach for All, and WWF.Contributed Article: Rich LesserAs we enter the sixth year since the launch of Abenomics, Rich Lesser, President/CEO and visionary leader of worldwide consulting firm Boston Consulting Group (BCG), gives us his assessment of Japan’s economy and his thoughts on its future prospects.Three Ways Japan Can Build on Its Economic Revival