Summer Davos at Dalian: ‘D.Light’ and other flourishing Social Entrepreneurs

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As at elsewhere, ‘Social Entrepreneurs’ is in the spotlight at Summer Davos also.  Japan as a high tech country tends to see the world just from her perspective making international contribution with philosophy or products that lack ‘knowledge or sensitivity to the local situation’ or having ‘too much focus on cutting -edge technology’ – both being the ‘weakness’ that Japanese must recognize.

The D-Lab of MIT which I have introduced to you in my blog is a good example of the project that started with consideration to these points.

At IdeasLab, the session on social entrepreneurs, many examples were introduced but I would say Ned Tozan of ‘D.Light’ (Ref.1) caught most attention.  In India and Africa, many places are without electricity so some people burn kerosene at night.  This is apparently dangerous, unhealthy, and costly for poor people.  What can we do about it?  Their work starts from this question.  Their enthusiasm was felt to all who listened.

Other examples included:  1) Activities to provide modest education and skill training to migrant workers for their possible career opportunity after their return to homeland. 2) Helping people with only small land to be financially independent 3) Helping young women forced in prostitution in Cambodia and other lands to become financially independent.

I asked Mr. Tozan ‘Did your project stem out from D-Lab (Ref.1) ?’ and his answer was ‘Yes’.  Recently I posted a column on D-Lab, a wonderful new course that started at MIT.  I was told that this activity spread through the alumni and heard about a successful example of a Stanford student.  I had a feeling that D.Light was it, and correctly so.  Just looking at the background of Sam Goldman (Ref.1), CEO and founder of D.Light, you will see how American youth are aware about the world affairs, have energy and vitality to do something about them.  I also admire from the bottom of my heart the innovative ways elite universities of America treat the students and their ambitions.

I think that more social entrepreneurs would emerge from Japan if more Japanese business people or youth see global issues through their own personal experience. Letting them pass time in ‘Hikikomori (Social Withdrawal)’ is ‘mottainai’.  I wonder whether young people in Japan find it difficult to draw a bright picture of future when they see people 20-30 years older and think to themselves that those kind of life are their only options.  But they are so wrong!

In order to open up Japan to the world, it is crucial to ‘let young people experience and see more of the outside world’ (Ref.1, 2, 3).  It is now almost my mantra, but once again, I confirmed its importance.  The world is big.  As Steve Jobs puts it, ‘Don’t Settle, Keep Looking’(Ref.1)

World Economic Forum Japan meeting in commemoration of the opening of Tokyo Office, then to New Dheli, Taipei, and Summer Davos in Dalian

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WEF annual meeting in Davos may be described as the world famous place for the so-called “Track II” dialogue by members of the global society.  On the year of its 39th anniversary WEF opened Japan Office in Tokyo.  I understand that the Tokyo office is the fourth office of WEF in the world.  How exciting!  But then, why?  Might it be because of their high expectations for Japan?  Then, we certainly must do our best.

On September 4th and 5th, a meeting to announce the opening of Japan office  was held in Tokyo.  Large number of people gathered making this meeting very lively.  As the election of the Shugi-in (i.e. House of Representatives) just ended with the implication of the possibility of establishment of historical new administration, Mr. Hatoyama, the head of Democratic Party of Japan (and Davos meeting caucus)  joined to deliver a reassuring message.  I also participated in the panel afterwards.

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In the afternoon of the opening day of this meeting I left for New Delhi.  Arriving early next morning via Singapore I went straight to the meeting titled “India and Japan of Clean Energy Technology”(Ref.1, 2).  The conference opened with the keynote lectures of Dr. Pachauri of IPCC (it’s been a year)  and myself followed by a number of presentations from Japan introducing ecological technologies through which they seek “Win-Win” partnership of India and Japan. Ambassador Domichi also came to greet, and we had an honor of having him at the reception party in the evening.

India has a population of 10 million with expectation of annual 6-8% growth in economy for many years to come, but to my regret, Japanese business people residing in India are only 3,300 in total.  Isn’t this sad?  Although high potentials for establishing “Win-win” partnerships exist, we have such few Japanese doing business in India.  I think this is such a waste of opportunity, as I always say. (Ref.1)  Chinese and Korean industries are making quick moves into India.  I did point this out clearly to people participating from Japan.

Img_1815_2 At Sotokufu, the office of governor-general of Taiwan. The bust behind us is Sun Yat-sen.

Next day, I went to Taipei to join in with my colleague at GRIPS, Dr. Sunami and others.  Here again, the topic is “Japanese clean energy technologies” but it seems that the world does not know how good Japan is in this field.  Japan’s existence is not prominent.  Why?  I discussed on this, too.  In this global age, it is important to recognize your advantage or weakness about global issues and collaborate with others so that you can quickly spread into the society or the world.  This “Creation of new social values.” is what the innovation of the 21st century is all about. 

After Taipei, I went to Dalian via Shanghai to participate in the “New World Champions”, the so called ‘Summer Davos’ organized by WEF.  It’s a bit busy travel, but this is diplomacy, making friends world wide.  The first New World Champions took place in Dalian,   the second in Tensin. Participants included many young business people so naturally the event was quite energetic.

From the very first day I attended 3 sessions.  I was happy to hear that as many as 80 people came from Japan and was participating actively.  I saw many friends from the day 1.  Dr. Yoko Ishikura’s Blog  also reports on this event so please take a look.  Premier Wen Jiabao of the People’s Republic of China delivered a speech as in the first and second meetings.  He talked about the policies China took to respond to this global economic crisis, explaining how their outcomes were, how the current status is, and sent out strong confident message that China is ready and willing to continue taking up responsibilities.

In the evening, I attended several receptions including Japan dinner hosted by Taiyokeizai no Kai.

SteLA, K-RIP and Grameen Change Maker Program

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Last week, I had very enjoyable three unique encounters, SteLA, K-RIP and Grameen Change Maker Program

STeLA stands for Science Technology Leadership Association which began two years ago by and for the graduate students between University of Tokyo and MIT  (Massachusetts Institute of Technology). This is its third annual meeting and was held in Tokyo with participation of about 90 students from Japan and USA, and, in addition, students from China and France. They spent about 10days in Tokyo and I was invited to give a speech and sit on the jury panel of their contest. It was such a fun and joy to see collaboration by science, technology and engineering graduate students for global agenda focusing on the benefits and risks of such technologies as nuclear, biotechnology. I fully endorse and enjoy such initiatives by the young leaders-to-be of the global age.

In Nagasaki, I participated K-RIP meeting in Nagasaki University and delivered a keynote speech (this site is in Japanese). Chair of the program  is one of leading business leaders of Kyushu, Yutaka Aso, a brother of Prime Minister Aso, who lost two days earlier the Lower House Election in a major way to the Democratic Party of Japan.  But we spent a great day with many college students and graduate students. I enjoyed speaking and discussing various issues of innovation emphasizing potential distinction of Kyushu in the flattening global world. I enjoyed the day very much engaging and discussing with students on their potentials. In the evening, Mr Aso and senior members of the program shared a pleasant dinner.

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Photos; Professor Yunus and Japanese college students to Bangladesh

Upon my return to Tokyo, I had a visit to my office by Daisuke Miyoshi (this site is in Japanese), a leader of Grameen Change Maker Program, (Ref.1) and two students who participated this program. They just returned to Japan after three weeks in Bangladesh. Two students are college freshmen and this was their first travel abroad, for the first time they held and saw their own passport. It may be quite unique for young Japanese in these days. They truly enjoyed their experiences, such as no bath tab but instead bathing in the river, diarrhea, and many fun and learning of the differences, heterogeneity, diversity, reality of poverty. One of my former students and a medical doctor from Bangladesh, Dr Jamil, was very helpful for sickness. Before leaving Bangladesh, they could meet Professor Yunus 、(Ref.1) of Grameen Bank who spent almost three hours with these young boys and girls from Japan.

This one week was quite gratifying and enjoyable to associate myself with many young Japanese seeking and looking for their each future possibilities.

Sony’s magic lab ? a place where geniuses and super-talents pop up

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This is a title of a book that was recently published. (in Japanese)

The book was written by “Mario Tokoro and Nobuko Yuri”, and on the Obi (a belt like sheet of paper over the cover of the book) it reads: “A secret of the ‘wonder lab’- The Sony Computer Science Laboratories Ltd. – home to Hiroaki Kitano, Kenichiro Mogi, Hideki Takayasu, and Jyunichi Rekimoto ”, “Haven’t you heard those names somewhere before?”

“Hiroaki Kitano is….. one of the inventors of pet dog AIBO…..founder and top scientist of the new field of “system biology” …. Kenichiro Mogi is known for analysis of the function of brains such as “Qualia”, “Aha experience”…..original point of view and keen observations, fluffy hair, calm baby-face…….idol of media, books, TVs, games…..Hideki Takayasu is…..a best-seller author by his book “Fractal”…. started “Econophysics”, a field that is currently spreading throughout the world.  Junichi Rekimoto ……has developed a series of technologies that smoothly connect real world and the virtual world .. … these four were co-workers at one laboratory…. (Chapter one,  p.11)

This book is describing the 20 years of “Sony Computer Science Lab. (SONY CSL)”
since its foundation.  It is also a story about Mario Tokoro who devoted himself to the opening of the lab that produced number of geniuses and great talents.  Dr. Tokoro is by himself a “great talent, out of box type” but he is also a wonderful manager and a very attractive person.  His “out of box (henjin)” character was clear even from his childhood that his friends used to call him “Tokoro-henjin-Mariops”  (Chapter one, p.78)

SONY CSL – a laboratory that produced so many “henjins” who helped starting of a number of epoch making new fields, presenting new concepts to the world-, is but a small institute with only a little over than 30 members including administrative staff. And those 5 described above are not the only unique people that this lab produced.  There are many others.

I have had the privilege of working with Drs. Tokoro and Kitano in many ways for these several years (Ref.1, 2, 3)

Although the topics we talk about are quite serious, I always enjoy talking with them.  This book tells us that there are so many young people with great possibilities (including Tokoro and Kitano), the importance of setting up a “place” to nurture their talents, that in such place one can find the essence in things, create true values, and feel the excitement and challenges that are accompanied with discoveries.  The stories in the book are wonderful – it is truly an attractive book.  Partly this is due to the deep philosophy Dr. Tokoro and the extraordinary quality of his management skills.  Also Yuri, the co-author, contributes by her splendid talent on story telling and writing.

The content of the book is as follows:
1. It all began with a draft written in one day.
2. Working at the cutting edge of computer science
3. What is the essence of research management?
4. Escape from computer science
5. Broader, deeper
6. What the SONY CSL means to me
7. The future of science and SONY CSL

Chapter 2: “Tokoro says; ‘There are only two things that I do.  One is to decide the direction this lab must go.  Another is to manage human resources; hire those who fit in, help those who graduate, and ask anyone who seems to be a mismatch to leave.’” (p.62)

Chapter 3: “Most important is to open a new field of science, make a new culture.  If we succeed in this, it would not just skyrocket the brand value of Sony but will be without doubt an immeasurable contribution to humanity.” (p.75)

“The management that Mario Tokoro put into practice was clearly out of the “Japanese Standard”…..often we heard people saying “it’s insane”…..but “that insanity started to shine as they went on for years.  Oh, it was such a unique lab that they made.  Was it only possible because it was a private enterprise?  No, a private company will not have a way for such thing.  Well done!”

“Tokoro is known for being flexible and straight….  Even the editor in charge said, as Tokoro recalls, ‘Dr. Tokoro throws only straight balls’”

In Chapters 4-6 interesting episodes are introduced about how Tokoro met researchers such as Kitano, their backgrounds, and thoughts.  Tokoro sees their essence.  I recommend this book as reference to young researchers, or even non-researchers, for some lessons on life.

Kitano says “Synergy between fields that appear at first to be so irrelevant will not enhance unless we understand the fundamental idea that lies within each field.  However, that broadness is the only way to access to a new area or deep understanding of nature.”….”With the progress of computer technology, we are now able to handle sophisticated systems that involve many elements.  This opened the door to a new framework of science by breaking the walls between fields of information science, bio, sociology, economy, and so on and connecting them by new perspectives or methods.”  These words of Kitano become very convincing as we read through the works of seven (footnote 1) scientists that are introduced later.

Footnote 1; Junichi RekimotoLuc SteelsHideki TakayasuKenichiro MogiKazuhiro SakuradaFranc NielsenFrancois Pachet .

Two women helping them as staffs comment in the book: “I go to the presentations of researchers… and their way of thinking or ideas astonishes me quite frequently.”  “I am stimulated…… by the small words that the researchers utter in every day life”, “The researchers are all gentle and kind….of course there are many aspects in them that do not fit in to the standard value of company or ordinary life, but for matters outside research, they are basically nice people.” (p.226-227)

It seems that Dr. Tokoro’s philosophy is about finding unbelievably out of box “henjins” that have high potentials and creating a “place” to enable them grow freely. Maybe it has to do with his experience of being at several western laboratories working together with first class researchers.  Because of this experience SONY CSL is able to say that “…fresh PhDs…young inexperienced researchers are treated as colleagues, fairly, openly, and also with strictness….this atmosphere…. is a manifestation of very pure spirits that has nothing to do with disguise or connivance……” “….even in the presence of the most distinguished professors, no matter what they may say, SONY CSL researchers will not flinch” (p.216-217)

In Chapter 7, Dr. Tokoro proposed an “open system science”  as one possibility in facing future challenges and has published a book by this title  early this year in celebration of the 20th anniversary.

Anyway, I recommend this book strongly to anyone who is interested in research or anything fun, and to students in universities or graduate schools.

And as I repeatedly point out in this site also (please ‘Search’ by keywords such as ‘out of box (henjin)’, ‘nails that stick out’ or ‘common sense’),  it is these “out of box (henjin)”, “nails that stick out” “non-common sense” that go beyond the frontier, create new values, and change the world.  My conviction is even stronger after reading the stories of many scientists introduced in this book.

Reformer of Education for the Global Age

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After the Rehman shock, Japanese economy’s status is worse than it was initially anticipated by domestic authorities and the weakness of the structure of industry is rising to the surface.  ‘The 1955 Regime’, beginning of ‘Iron-Triangle Regime’ of Post-War Japan coming to a deadlock may have something to do with this.  When situations like this take place, it is always the case that some people start discussing “Leader theory” that sounds nostalgic of the activities of the people in the Meiji era such as in the novel by Ryotaro Shiba, “Saka no Ue no Kumo” (Ref. 1).  However, the situation is very different today and their viewpoints seem irrelevant. 

Changes in the world today will not wait for Japan to catch up.  If we think of 5, 10, 20 years ahead from now, it is perfectly clear that the producing future human resources should be the most important basis of national policies (in Japanese).  Search in this site by keywords such as “human resources”, or “education” since there are many columns that I have written on this theme.

Budget for education is extremely small in Japan compared to other developed countries.  Political parties at last came up with manifests with budgets for “children, education” included for the next Shugi-in election ? a speed not at all impressively wonderful.

However, though reinforcement of conventional budget on education is important, it is much more necessary to create strong policies for producing variety of talents for the future challenges.  At present, the changes in this nation are too small and timid even at the level of university education.  I have been pointing this out so many times in this site (Ref.1, 2) and although I do notice some good drastic attempts they are unfortunately too small to become big trends.  Such activities at Asia Pacific University or Akita International University , for example, are not well known even in Japan.  Graduate School of International Corporate Strategy, HItotsubashi University  is a revolutionary program open to the world and is evaluated highly by international standards.

By the way, reforms are underway in many of the Western universities as well as in the field of education utilizing IT technologies such as internet where totally new potentials are being sought after or being put into practice.  In this respect there are several Japanese active in overseas universities such as Dr. Miyagawa who was involved in the development of MIT’s OpenCourseWare  or Dr. Iiyoshi, who is seeking for new possibilities having recently moved to MIT from the Carnegie Foundation.

I met Dr. Iiyoshi in Dubai last year (Ref.1, 2)  Recently he edited and published a book “Opening Up Education” together with Dr. Vijay Kumar.  The book is highly evaluated as you can see from the book reviews written by people such as Dr. Charles Vest (who was the President of MIT for many years.  Search for topics related to him in my site.)

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Photo: Dr. Iiyoshi and I at GRIPS

Recently, I had an opportunity to see Dr. Iiyoshi.  I learned that there is a possibility of unimaginably big change in the field of education in this “Flattening” world.  People of the world are very much devoted in effort to produce leaders who will lead the politics, industries, universities in the global societies with clear vision, strong will, and strong energy by strengthening the potentials of young generation, their spirits of challenge, minds not afraid to change in the face of this global age.

I strongly advise people of Japan to listen open mindedly to the opinions of educators such as Drs. Miyagawa and Iiyoshi, who have minds full of love for the nation (see footnote), working actively at “outside”, seeing Japan from “outside”

Footnote: Person with love for the nation as I understand is “Patriot” not “Nationalist”.

Asian Innovation Forum

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Mr. Nobuyuki Idei is one of the globally active business leaders.  I agree very much with his philosophy as well as his view of the time.  After retiring from the position of Chairman of Sony, he started a new challenge by setting up a new business consulting/investment firm named “Quantum Leaps” .  Many talented young people are gathering there to start new businesses or to support inception of new businesses.  His commitment as the great senior of business world is so admirable.

One of Quantum Leaps’ various activities is Asian Innovation Forum which was initiated in 2007.  I have the honor of joining in this forum to offer some help.  Unfortunately, I had to miss the 2007 meeting but did participate in 2008.  A great rise of energy and enthusiasm was felt in the air.

This year’s forum will take place in Tokyo on September 14th and 15th.   Dr. Hirotaka Takeuchi (Dean, Graduate School of International Corporate Strategy at Hitotsubashi University, also well known in connection with the Davos meeting etc.) and I will participate as senior advisors but most of the plans and discussions will be carried out by young members.  We all share Mr. Idei’s vision and the event should be very enjoyable.

Search with keywords such as “Idei” or “Takeuchi” in this site and I am sure that the search engine will come up with many “hits”.

The forum posted an announcement ad on Nikkei newspaper .  I whole heartedly wish that new businesses – driving force for the growth of economy – will emerge from such networks as in this forum.

I feel that wonderfully energetic young people; capable of developing “personal” power, open-minded to the world, spreading networks with high speed, are emerging one after another.  Each one of them are the resources we need for the good of this nation’s future.  They are our hope, and I intend to help them in any way I can.

Tracks of politics; Masato Shimizu, journalist

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At last, we are having the Shugi-in (House of Representatives) election.  Dissolve of Parliament by Minister Koizumi of the time, named “Yusei (Ministry of Post and Telecommunications)” dissolve, and the following Shugi-in election which ended up with the sweeping victory of Jimin-to (Liberal Demographic Party) seems just like yesterday.  But after this, Koizumi, Abe, Fukuda, and Aso respectively became Prime Minister for one year each, which I assume was somewhat a “strange” period of time perhaps to many people.

There are many unclear elements in the background of politics like this, unknown truths hidden behind, but here lies the mission of journalists.

Mr. Masato Shimizu of Nikkei published for us the “documentary record” of the process and record of Kantei initiatives led by PM Koizumi, activities of Council on Economic and Fiscal Policy (Keizai Zaisei Shimon Kaigi), and the drama of 3 PMs taking turns after Koizumi.  Now the record is a “series of 3 books”.

I read through the first book and was very impressed.  Shortly after, he wrote another two books in very timely topics.  I am very pleased about it.

“Kantei initiatives-revolution of Junichiro Koizumi (Kantei syudo – Koizumi Jyunichiro no Kakumei)” (2005)
“Commentaries on the war on Economy and Finance (Keizai Zaisei Senki)” (2007)
“Misstep of the Prime Minister (Shusyo no Satetsu”) (April, 2009)

They are records based on careful coverings by Mr. Shimizu on the national politics of Japan ? what happened, who did what, when, how and what are their meanings and impacts.

It is always the case that newspapers, televisions, or magazines-because of the limits they are imposed of time and space-are not sufficient to make us fully understand about the politics of Japan.  Besides, it takes great effort or almost impossible to try to access to these reports or articles later on.

For this very reason, it is so important and valuable for us Japanese citizens to have a journalist, active in that time, publish a timely book on what happened based on his/her coverage in spite of the very busy life they lead.  It will be a good record, too.  The “Afterword” of his third book illustrates very well the difficulty Mr. Shimizu encountered in catching up with such rapidly changing circumstances.

In newspapers and other medias, journalists cover, study, and write articles on his/her own focused fields (but probably most of their works do not appear on the pages due to editing policies the desks have based on the priorities of the news etc.) but I would say in most cases one article is not enough to cover the issue simply because of the transient nature of newspapers, its limited spaces.  Of course, there are weekly and monthly magazines, series on newspapers too.  And quite a volume of articles are now readable on internet.  But still, I would say that it is quite meaningful to have those information gathered, edited, added and published as a non-fiction.

Are we capable of making an open minded journalism?  This is an issue of consciousness and ethics of organization ? of media relations, journalism.

Media is a huge power that bears tremendous responsibility to the society.  I am weary and tired of our old, never changing “kisha club”, too.  There is no hope if institutions continue to be rigid, or journalists keep on behaving like salary earners.  Remember that the whole world is watching.  Excuses good for Japanese only will not persuade them.

Escape from “Garapagosnization (Garapagos-ka) of industry”

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A word "Galapagosnization (Garapagos-ka)" widely spread to refer to Japanese industry that possesses high technology but do not seek to go out to the world; cell phone industry, for instance, being a typical example.

What are the problems of “Garapagos-nization” and how do we fix them?  To answer this question Dr. Takeshi Natsuno, the father of “iMode”, and his friends launched “Cho Garapagos Kenkyu-kai (Overcoming Garapagos study team)”  (the site is in Japanese).  I participate as one of the members of the cheer group.  The goal is to find ways to conquer “Garapagos”.  Discussion was heated from the very beginning (Ref. in Japanese 1, 2)

We want to liberate the technologies of Japan from secluded management and have them go out to the world.

Dr. Natsuno is known as the true Entrepreneur, “Nail that sticks out”, man of ability, a challenger who overcomes failures.  He is one of the leaders recognized by the whole world.  Dr. Natsuno is also a person who makes you feel good.  I sincerely think that we must cheer and support such people..

This is his recent interview (in Japanese). “Uh-huh”, I nod as I read. It is precisely what I think.

The Post-American World

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Fareed Zakaria (born in 1964) is a young, aggressive journalist – most active and "hot" in the world today.  Besides being an editor of Newsweek International Edition he runs his own web site.

In 2008 Zakaria published a book titled "Post-American World".  The book is very interesting – with rich, inspiring contents.  Apparently Zakaria has wonderful lucidity, exceptionally good writing ability, great vision and broad views.  This is without doubt one of the books that I would like to recommend to all – especially to young people.

The book consists of following contents (The English translation of the titles in Japanese edition are given within the parenthesis for your reference);

1. The Rise of the Rest (The Rise of "All Nations Except America")
2. The Cup Runneth Over (Power is Shifting in a Global Scale)
3. A Non-Western World? (A New World Where "Non-Western" and "Western" World Mix)
4. The Challenger (China Heads Toward "Asymmetrical Superpower")
5. The Ally (India – A Nation Burdened with Destiny of Democracy)
6. American Power (Will America Keep on Falling?)
7. American Purpose (Can America Globalize Herself?)

The book not only introduces a view of the world that holds America and China as the center of policy and economy but naturally, as Zakaria was born and brought up in India until age of 18, also takes into account the medium-long perspective and challenges of India that makes this book even more interesting, offering a slightly different point of view compared to other books under this kind of a theme.

"The Post-American World" is a world where America ceases to be the only superpower and "The Rise of the Rest" takes place.  In that respect, China and India will have exceptionally strong impact in the world because of their large population although their tremendous growth will inevitably be accompanied by countless challenges.  His insight here is quite something.

Zakaria studied at distinguished schools in Dubai, continued education at Yale University, earned his PhD in Politics at Harvard.  At an astonishingly young age of 27, he was appointed to the chief editor of Foreign Affairs (a publication of Council of Foreign Affairs), and from 2000 to date is working for Newsweek.

His view of America as a "Big Island Country" matches with my view; I also talk about it in lectures and other occasions.  In the last part of chapter 2 Zakaria writes (p.47-48);

"American politicians constantly and promiscuously demand, label, sanction, and condemn whole countries for myriad failings.  Over the last fifteen years, the United States has placed sanctions on half the world’s population.  We are the only country in the world to issue annual report cards on every other country’s behavior.  Washington, D.C., has become a bubble, smug and out of touch with the world outside."

"The 2007 Pew Global Attitudes Survey (Pew Research Center; one of the nonpartisan think tank of America = footnote) showed a remarkable increase worldwide in positive views about free trade, marets, and democracy.  Large majorities in countries from China and Germany to Bangladesh and Nigeria said that growing trade ties between countries were good.  Of the forty-seven countries polled, however, the one that came in dead last in terms of support for free trade was the United States.  In the five years the survey has been done, no country has seen as great a drop-off as the United States."

"Or take a look at the attitudes toward foreign companies.  When asked whether they had a positive impact, a surprisingly large number of people in countries like Brazil, Nigeria, India, and Bangladesh said yes.  Those countries have typically been suspicious of Western multinationals.  (South Asia’s unease has some basis;  after all, it was initially colonized by a multinational corporation, the British East India Company.)  And yet, 73 percent in India, 75 percent in Bangladesh, 70 percent in Brazil, and 82 percent in Nigeria now have positive views of these companies.  The figure for America, in contrast, is 45 percent, which places us in the bottom five.  We want the world to accept American companies with open arms, but when they come here ? that’s a different matter."

"Attitudes on immigration represent an even larger reversal.  On an issue where the United States has been the model for the world, the country has regressed toward an angry defensive couch.  Where we once wanted to pioneer every new technology, we now look at innovation fearfully, wondering how it will change things."

"The irony is that the rise of the rest is a consequence of American ideas and actions.  For sixty years, American politicians and diplomats have traveled around the world pushing countries to open their markets, free up their politics, and embrace trade and technology.  We have urged peoples in distant lands to take up the challenge of competing in the global economy, freeing up their currencies, and developing new industries.  We counseled them to be unafraid of change and learn the secrets of our success.  And it worked: the natives have gotten good at capitalism."

"But now we are becoming suspicious of the very things we have long celebrated ? free markets, trade, immigration, and technological change.  And all this is happening when the tide is going our way.  Just as the world is opening up, America is closing down."

"Generations from now, when historians write about these times, they might note that, in the early decades of the twenty-first century, the United States succeeded in its great and historic mission ? it globalized the world.  But along the way, they might write, it forgot to globalize itself."

Footnote: Recently the Center supported a research related to international arguments on whaling and I participated in some of its meetings.  This April, the Center produced "A Roadmap for US-China Cooperation on Energy and Climate Change" in collaboration with Asia Society.

Zakaria also points out that the best industry of America is "University Education". 
His early education was in "Asian" method ・・・in which the premium is placed on memorization and constant testing・・・I recall memorizing vast quantities of material, regurgitating it for exams, and then promptly forgetting it."

"When I went to college in the United States, I encountered a different world.  While the American system is to lax on rigor and memorization…..it is much better at developing the critical faculties of the mind, which is what you need to succeed in life.  Other educational systems teach you to take tests; the American system teaches you to think." (p.193)

"Tharman Shanmugaratnam, until recently Singapore’s minister of education, explains the difference between his country’s system and America’s.  "We both have meritocracies," Shanmugaratnam says.  "Yours is a talent meritocracy, ours is an exam meritocracy.  We know how to train people to take exams.  You know how to use people’s talents to the fullest.  Both are important, but there are some parts of the intellect that we are not able to test well – like creativity, curiosity, a sense of adventure, ambition.  Most of all, America has a culture of learning that challenges conventional wisdom, even if it means challenging authority・・・." (p.193,194)

I think this argument is persuasive since America’s higher education contributed much to Dr. Zakaria’s success in becoming a world class opinion leader at such an surprisingly young age.  Compare this with Japanese higher education and think very hard, please.

Zakaria says, however, that "America remains by far the most attractive destination for students・・・All these advantages will not be erased easily, because the structure of European and Japanese universitiesp―mostly state-run bureaucracies―is unlikely to change."  He also points out that "・・・while China and India are opening new institutions, it is not that easy to create a world-class university out of whole cloth in a few decades." (p.191)

Keynes and Schumpeter

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Lehman Shock (September, 2008) that started from Wall Street has triggered financial crisis and doldrums of economy in a global scale which still seems to be far from ending.  Each nation crafted stimulus packages and put them into action that now the picture looks more like policy competition in a broad sense.

Here is where Keynes, and Schumpeter who set "Innovation" at the center of economics attract attention.  Schumpeter seemed to have been a strong opponent of Keynes.  Why is it then that these two "contradicting" economists are both necessary?

Recently a book on these two giants of economics in the early 20th century was published; "Now is the time to learn from Keynes and Schumpeter (Imakoso Keynes to Schumpeter ni manabe)" by Dr. Hiroshi Yoshikawa.  This is a very stimulating book.  Dr. Yoshikawa has written this book based on strict verifications and inspections – which is his style.  The content is even entertaining – not written for economists – so it was fairly understandable even for a person like myself.

These two giants, Keynes and Schumpeter, were born in 1883 with just 4 months’ difference; in Cambridge, Great Britain and Vienna, Austria (Moravia, Kingdom of Hungary・・・ current eastern Czech Republic), and the year they died were only 4 years apart (Keynes in 1946, two years after Bretton Woods Agreements and Schumpeter in 1950.)  I recommend "Currency in Flame (Tsuka Moyu/the URL is in Japanese)" by Tomohiko Taniguchi on this topic.  It gives you good understanding of the age and place they lived, the background of their upbringing, education they had, relations with their mentors, and so on.

The book is a good reference with inspiring, rich content on policymaking which could be useful to Japan today.

There were many places that I found especially interesting and below are just few of the examples:

1. "・・・what are the motives for the enterprise operators (footnote) to go into new joints?  By no means they seek after financial benefits or money.  Schumpeter declares・・・and even goes on further to say "If this sort of desire appears it indicates not stagnation of their conventional activities but decline, not fulfillment of their missions but sign of their mortal deaths."  ・・・Schumpeter very clearly writes about typological classifications of industrial people・・・" (p.56,57)

Footnote: I telephoned Dr. Yoshikawa about difference between "enterprise operators" and "entrepreneurs".  He said that economists do not use the term "entrepreneurs" but instead "enterprise operators".  However, he added, "entrepreneurs" might be better understood by average readers.  So, please feel free to understand the term "enterprise operators, business operators" as "entrepreneurs".

2. "The business people as defined by Schumpeter – the heros/heroines that make capitalism the capitalism as is meant to be – are people born with special talents that are not bestowed to ordinary people.  Innovation is by no means created solely from rational calculations.  Rather, it is created only by business people who have irresistible impulse or ‘talents’ as I put it, that make them yearn for innovation.

Here, The Birth of Tragedy(1872), maiden work by Friedrich Wilhelm Nietzsche(1844-1900) comes to my mind.  Nietzsche discussed the history of classic Greek tragedies by using two opposing ideas of ‘Apollonian’ and ‘Dionysian’.  Apollo, the god of Sun gives clear figure to everything through its light.  Intellect/reasoning is thus Apollonian.  On the other hand the essence of Dionysus, god of wine, is frenzy/intoxication.  ‘Business operator spirit’ defined by Schumpeter is clearly Dionysian just as ‘Animal spirits’ in Keynes is." (p.227, 228)

About economy and decline in population

3. "Keynes discussed relations between decline in population and economy in a very scholarly way as economist – as this is very much his style.  On the contrary, words by Schumpeter are by far "discussions on civilizations"". (p.210)

And

4. "But eventually, as capitalism develops, business operators as plain human beings start transformation to ‘ordinary people’ that maximize ‘benefit’ of self.  What happens at the point of maximization of individuals’ benefit?  The moment people start rationally calculating the cost of bearing a child and raising it, decline in population will begin.  Schumpeter counts decline in population as one of the signs of decay in the spirit of business operation." (p.229-230)

How did these two giants of economics perceive of each other?  This is another very interesting human drama.

I strongly recommend this book to you.  It is "Onko Chishin (to learn new lessons by studying the past)."
Also, "Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism" by George A. Akerlof and Robert J. Shiller was published recently.  After reading this book, here are some of my thoughts about policy makings of Japan during these 6 months.

Speed is of course important but it does not justify pumping in tax payers’ money into society easily without inspection saying this is "once in 100 years" crisis (Greenspan, former chairman of FRB).  Sometimes it is forced by political dynamics but if you look into supplementary budgets, for instance, the budgets are almost scattering about of money with bureaucratic sectionalism.  I must say that people lack leadership; policy makers, industries, academics, and scientists… all of them.

If it is "once in 100 years", although doubt remains, clear vision and policies must be introduced for the major changes that need to take place several years from now.  And we don’t have them.  I have been pointing this out repeatedly in my blog and many other places. (Ref: 1, 2, 3, 4, 5, 6  *3,4,5,6 are in Japanese.)

Is the industrial framework OK as it is?  Can we expect "Innovators" to emerge in current industries?

What we need in society, in any place of the society, are "Innovators".  In other words, "Nails that stick out", "People with spirit of enterprise" ・・・.  These kinds of people are strongly needed at time like this.