JapanReview.net Economist Poll
The Magnificent Eleven (July 2003)
 

Selected responses

Section I  Japan's "Lost Decade": Who's Fault Is It?
"In order of importance, "0"being "not important at all"" and "10" being "most important", please number who/what bears that greater responsibility for Japan's economic malaise."
1 MoF & FSA
ING R. R .Jerram 10  
HSBC P. Morgan 8 They actively delayed adjustment to and recognition of bad debts
CSFB C. Walker 8  
Lehman P. Sheard 8 "Being the most powerful and influential one, MoF has to take the brunt of the blame among the ministries. "
Merrill J. Koll 6 Why so soft on the banks?
2 BoJ
  R. Jerram 9 Not quite as responsible at the financial authorities and the politicians.
P. Morgan 6 They were behind the curve in easing policy
C. Walker 7  
P. Sheard 7 "The BoJ, for years, has tolerated macro deflation and a weak banking system, thus failing to act in the spirit of its two legislated objectives. "
J. Koll 9 BoJ NEVER considered the possibility of monetary policy becoming impotent once you enter deflation - stayed on brakes far too long
3 METI
  R. Jerram  5  
  P. Morgan 0  
  C. Walker 6  
  P. Sheard 3 Has been a prime mover in promoting institutional reforms in the corporate sector.
  J. Koll 5  Why so soft on companies?
4 Prime Minister & Cabinet
  R. Jerram 10  
P. Morgan 5  
C. Walker 9  
P. Sheard 10 "Although structurally weak in Japan, that' s no excuse: the buck for policy mismanagement stops here."
J. Koll 7 "Until Koizumi, the emphasis was always the protection of LDP vested interests, never a statesman-like will to make a hard decision"
5 LDP
  R. Jerram  10  
P. Morgan 6  
C. Walker 10  
P. Sheard 9 "The LDP is the ruling party, which should mean what it says. "
J. Koll  8 "LDP turned Japan into a ""Losers Paradise"" by peddling zero-cost loans and public contracts to keep inefficient companies alive"
6 Corporate de-leveraging
  R. Jerram 3 "Can it be held ""responsible' if it is rational behavior? To me 'responsible' implies an error or weakness."
P. Morgan 8 This is the key source of deflationary pressure
C. Walker 3  
P. Sheard 6 "A significant part of corporate de-leveraging was an unavoidable part of the unwinding of the 1980s asset bubble, but the corporate de-leveraging process could have been handled differently and much better."
  J. Koll 2 Did not happen fast enough - lack of more aggressive de-leveraging a direct result of not-functioning corp.governance
7 Corporate Governance
  R. Jerram 5  
P. Morgan 7 This is one of the main reasons why adjustment has been so slow
C. Walker 4  
P. Sheard 5 "The main bank system, cross holdings and ""convoy"" system constituted a weak form of governance system in the postwar period, complementary to the corporatised employment system, but with the bursting of the bubble the whole system became dysfunctional and part of the problem."
J. Koll 10 Lack of clear busines purpose and professionalism of managers is shocking ; internal rules squash inovation and creative power of human capital
8 USA & 'Gaiatsu'
  R. Jerram 2  
P. Morgan 0  
C. Walker 0 "The three areas I identified with ""0""s are not sources of malaise at all, in my view, but, rather positive influences on the economy that ought to be emphasized more."
P. Sheard 0 Japan has only itself to blame.
J. Koll 3 Over-rated and used as the excuse for domestic-induced action initiatives
9 China & Cheap imports
  R. Jerram 1  
P. Morgan 3  
C. Walker 0 "The three areas I identified with ""0""s are not sources of malaise at all, in my view, but, rather positive influences on the economy that ought to be emphasized more."
P. Sheard 2 "Japan's deflation is not due to China. Japan benefits from China's emergence, although it has not maximised the opportunities."
J. Koll 1 That's a net plus for the economy
10 Labor Unions
  R. Jerram 1  
P. Morgan 2  
C. Walker 5  
P. Sheard 1 "Contributed to the institutional stasis, but more of a residual than anything else."
J. Koll 4 Incapable of fostering a contructive opposition to LDP rule
11 Deregulation
  R. Jerram 6 Lack thereof
P. Morgan 0 There clearly hasn't been enough
C. Walker 0 "The three areas I identified with ""0""s are not sources of malaise at all, in my view, but, rather positive influences on the economy that ought to be emphasized more."
P. Sheard 4 "It being too slow, ad hoc and insufficient, opportunities for growth and an injection of dynamism into a moribund economy were lost."
J. Koll 0 Net plus for economy
 Source: JapanReview.net 2003 Economist Poll  

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