"These Days Japan Is Like the 1980s Bubble... Warning It Could Lead to a Collapse"

"Tough Tissue Like Crustaceans... Unsuitable for Globalization"

A renowned scholar’s claim likening Japan’s cause of being overtaken by emerging Asian players such as Korea and Taiwan to 'crustaceans' has drawn attention. He also warned that the recent boom in stock investment and redevelopment bears similarities to the bubble economy era of the past.

Japanese sociologist Shunya Yoshimi, professor emeritus at the University of Tokyo, defined Japan as a 'crustacean society' in an interview with local media Mainichi Shimbun on the 4th (local time). He pointed out, "Globalization and digitalization, which connect organizations horizontally, do not align with a crustacean society," adding, "Evaluation is based on affiliation, status, and age rather than ability." The crustacean society he defined refers to a stagnant society unwilling to emerge from a hard shell. Professor Yoshimi particularly saw Japan’s political power structure as resembling crustaceans.

[Image source=AFP Yonhap News]

He criticized, "(Japanese society) has a hard organizational shell like shrimp or crabs. People tend to be evaluated by their affiliated organization or status rather than ability," and added, "Even if the shell is broken, the burden is shifted to vulnerable groups such as non-regular workers, and the typical example of this is Japan’s political circles." He continued, "Members of the Diet are evaluated based on which party they belong to, whether they are elders, have ministerial experience, or if they are in the opposition, whether they are executives," and added, "The value of a member lies in legislative content, but they are evaluated by party or faction."

Conversely, he argued that Korea and Taiwan are successful examples of globalization and digitalization. He emphasized, "Korea and Taiwan also face low birthrate issues like Japan," but "they are currently the only two countries in East Asia where power transitions are possible under a two-party system."

Professor Yoshimi pointed out, "Japan achieved economic growth by receiving technology from the U.S. during the Cold War and reducing defense burdens. It was a stable democracy maintained without regime change," but noted, "After the Cold War ended, the situation reversed. Korea and Taiwan developed democracy after the dark period of the Cold War and created an industrial structure suitable for globalization."

He saw several scandals recently emerging in Japan’s ruling Liberal Democratic Party as reminiscent of the bubble economy era. Professor Yoshimi said, "The LDP’s slush fund scandals and the redevelopment boom in central Tokyo are similar to the Recruit scandal of the late 1980s." The Recruit scandal was a bribery case in 1988 where Recruit Holdings, a Japanese human resources intermediary company, delivered huge profits through undisclosed company stocks to influential political figures.

Professor Yoshimi lamented, "(Japan’s) economy might again lead to a bubble collapse. Why do we repeat the same mistakes?"