Japan’s lesson for S Africa
BUSINESS, CYRIL TAKE NOTE: HOW TO TURN FROM ECONOMIC COLLAPSE
It embraced tech; it was open to learning from others, applying what worked and adapting it.
Commentators have called President Cyril Ramaphosa’s State of the Nation speech inspiring and hope-giving. However, the question remains as to how SA will address its current economic woes.
How does SA learn from other countries?
In “confronting the challenges we face and accelerating progress in building a more prosperous and equitable society”, I’m compelled to argue that SA should learn from countries that have done just that: pulled people out of poverty and picked up the economy.
Japan presents us with lessons that must not be dismissed simply because it’s so different. It experienced a leadership vacuum early in the last century. By the 1930s, its effects had led to an economic collapse that impoverished the nation.
By the 1960s and through to the 1990s Japan had turned itself around, becoming one of the world’s fastest-growing economies. It took advantage of the industrial revolution by modernising effectively and developing its capacity; in the process it became an economic powerhouse.
It learned from other countries and regions, applying what worked for Japan, augmenting to its needs and capabilities. It embraced technology and was open to learning from other nations.
It was encouraging to hear Ramaphosa emphasise the call for “business and social partners” to be on board and “to work together”.
Last year, I reminded the private sector how its investment strike is condemning South Africans to deepening poverty and inequality while aiding the worsening crisis of joblessness and a failing economy. Unless Business SA comes on board to help pull the economy out of its current conundrum, government alone won’t succeed. If this carries on for much longer, we risk further regression of living standards, declining household consumption, rising government debt and inflaming millions of gatvol unemployed youth.
The Japanese lesson is in its willingness to learn from others, and in its political leaders and business-sector partners who understood what needed to be done.
Junichiro Koizumi is a worthy consideration to those advising Ramaphosa. As Japan’s prime minister between 2001 and 2006, he turned around a country that lost the gains made between the 1960s and 1990s, by changing how it was governed.
He did this, against some in his party and despite citizen criticism of his approach – rightfully earning the nickname “Lion Heart” – and surrounded himself with people in government and business who shared a common vision. Business SA, get on the train.
To Ramaphosa and his team, of the many lessons SA can learn from Japan, consider this one from Koizumi: decide what you want to achieve in restarting the economic engine for the greater benefit of all. Do it even when it will be unpopular within and know when to leave office.