Japan’s ailments overstated, consul tells county audience
By Tom Kisken, Staff writer, Ventura County Star
Japan’s economy is ailing, with unemployment expected to get worse, but the condition isn’t terminal, a consul general for the nation told globally minded business people in Camarillo this week.
“It has become fashionable in the U.S., and even in some circles in Japan, to overestimate Japan’s economic weakness,” said Masaharu Kohno in his first formal presentation since becoming consul general to Southern California and Arizona a month ago. “In the judgment of many, the country has gone from an economic powerhouse to the sick man of Asia, all in the blink of an eye.”
Kohno emphasized Japan’s strength despite its problems, noting it has a gross domestic product that is more than two-thirds of Asia’s total economic output. Far from weak, Japan is embracing a restructuring that will eventually make it even more competitive, he said.
Based in Los Angeles, the consul general has the job of nurturing relationships in a region with more Japan-affiliated businesses than anywhere else in the nation. Speaking at a World Affairs Council of Ventura County dinner Wednesday night, Kohno estimated that Japanese-linked companies employ about 160,000 people in Southern California. He said those people earn an average of about $40,000 a year in Southern California, making for an industry with a payroll of $6.4 billion — comparable to defense manufacturing.
But he also said California’s stronghold on Japanese capital investment is diminishing as other regions of the country boost their efforts to attract foreign business.
“I’m not implying that tax incentives are the key to attracting companies from Japan,” he said. “But, as I’m sure you’re aware, the competition to woo top quality investment has become very keen here in the U.S. … California would be well advised to be more sensitive to creating a favorable business climate for foreign investment.”
And if Americans over-exaggerate Japan’s woes, Kohno said, they tend to underestimate an ongoing economic revolution that he compared to Japan’s meteoric rise from the ashes of World War II. Unemployment will climb in the short term but economic expansion could begin to emerge in about three years.
Before an audience that included a handful of women in kimonos, Kohno covered ample ground: a summit meeting between new Japanese Prime Minister Junichiro Koizumi and President Bush set for Saturday; the Los Angeles Dodgers’ frustration at not being able to sign baseball player Ichiro Suzuki; the U.S. internment of Japanese-Americans during World War II, and the movie “Pearl Harbor.”
Though the film’s take on history has offended some people, Kohno said he didn’t think it would bring any lasting tension. Others in the room echoed his comments, though at least one person boycotted the movie.
Kohno said California is often the place that creates images of Japan and also the strongest reactions to those images. He suggested the state should also head the pack when it comes to enhancing business relationships with the entire Pacific Rim.
“California tends to take the lead in so many things, why not this as well?” he said.
— Tom Kisken’s e-mail address is kisken@insidevc.com.
June 29, 2001 ©Ventura County Star
September 12, 2001
Japan’s ailments overstated, consul tells county audience
By Tom Kisken, Staff writer, Ventura County Star
Japan’s economy is ailing, with unemployment expected to get worse, but the condition isn’t terminal, a consul general for the nation told globally minded business people in Camarillo this week.
“It has become fashionable in the U.S., and even in some circles in Japan, to overestimate Japan’s economic weakness,” said Masaharu Kohno in his first formal presentation since becoming consul general to Southern California and Arizona a month ago. “In the judgment of many, the country has gone from an economic powerhouse to the sick man of Asia, all in the blink of an eye.”
Kohno emphasized Japan’s strength despite its problems, noting it has a gross domestic product that is more than two-thirds of Asia’s total economic output. Far from weak, Japan is embracing a restructuring that will eventually make it even more competitive, he said.
Based in Los Angeles, the consul general has the job of nurturing relationships in a region with more Japan-affiliated businesses than anywhere else in the nation. Speaking at a World Affairs Council of Ventura County dinner Wednesday night, Kohno estimated that Japanese-linked companies employ about 160,000 people in Southern California. He said those people earn an average of about $40,000 a year in Southern California, making for an industry with a payroll of $6.4 billion — comparable to defense manufacturing.
But he also said California’s stronghold on Japanese capital investment is diminishing as other regions of the country boost their efforts to attract foreign business.
“I’m not implying that tax incentives are the key to attracting companies from Japan,” he said. “But, as I’m sure you’re aware, the competition to woo top quality investment has become very keen here in the U.S. … California would be well advised to be more sensitive to creating a favorable business climate for foreign investment.”
And if Americans over-exaggerate Japan’s woes, Kohno said, they tend to underestimate an ongoing economic revolution that he compared to Japan’s meteoric rise from the ashes of World War II. Unemployment will climb in the short term but economic expansion could begin to emerge in about three years.
Before an audience that included a handful of women in kimonos, Kohno covered ample ground: a summit meeting between new Japanese Prime Minister Junichiro Koizumi and President Bush set for Saturday; the Los Angeles Dodgers’ frustration at not being able to sign baseball player Ichiro Suzuki; the U.S. internment of Japanese-Americans during World War II, and the movie “Pearl Harbor.”
Though the film’s take on history has offended some people, Kohno said he didn’t think it would bring any lasting tension. Others in the room echoed his comments, though at least one person boycotted the movie.
Kohno said California is often the place that creates images of Japan and also the strongest reactions to those images. He suggested the state should also head the pack when it comes to enhancing business relationships with the entire Pacific Rim.
“California tends to take the lead in so many things, why not this as well?” he said.
— Tom Kisken’s e-mail address is kisken@insidevc.com.
June 29, 2001 ©Ventura County Star
September 12, 2001