Incredibly balanced article about japan`s economic system

Unfortunatley for our international readers it is in german.

http://www.nzz.ch/aktuell/startseite/kapitalismus-nach-japanischer-art-1.527647


Summary:

• Japanese itself see japan as unique; manifesting itself  in the popularity of writings about the "Nihonjinron", theories about the uniqueness of japanese culture
• Japan's special status also perceived in the western (investment) world, manifesting itself by investment themes like Asia ex-japan. Meaning = investement theme relevant for Asia but not for Japan.Regulatory rules and standards appear too mystic; incomparable to other economies
• Japan miracle of the 70's/80's was perceived with admiration and anxiety, as economic modell stood diametrical to western economic model.
• After bursting of the bubble, interest by experts was lost. If experts bothered to analyse japan's economic situation, they alway came up with the same advice: Japan has to adopt anglo-saxon economic modell; own modell has been disqualified
• Japan's economic malaise is thing of the past (article is from 2007!); non performing loans in bank balance sheets are written off; companies paid down there debt and showing record earnings; deflation conquered
• expansion rate of economy not as impressive anymore as in the past, but oscillating around potential growth rate of 2%
• convergence of economic models (anglo-saxon/japanese) questionable, but some western practice was adpoted: more stringent book keeping; more transparency; obligation of consolidation of subsidaries; dismantling of cross shareholdings (in te 80's = 50% of market cap and in 200720%)
• dismantling of cross shareholdings ==> increased controll of stockmarket by foreigners (5% in the 80´s vs. 28% in 2007); reason = strict cost management and consolidation in segements of the economy (finance sector had around 24 big banks in the 80's and in 2007 only 3)
• labor market was flexibilized; non regular workforce in 2007 33% compared to 20% before
• but change didn't happen with a big bang and some of the old japanese modell still adhered to (toyota and canon still offer lifetime employment, but still the most successful companies in Japan; Toyota and Honda still use the keiretsu modell for component suppliers)
• Idea of maximizing shareholdervalue in Japan still unpopular concept; who adhers to isn't very popular within Japan ==> no problem for companies to convince japanese sharholders for poison pills; Unfriendly takeovers have never suceeded in Japan ==> japaneses firms sitting on pile of (unproductive)cash ==> market cap < Book value in japanese market often to be found
• not only shareholders suffering, but also consumers; economic policy focuses on producers and maximizing autarky ==> consumers have to pay higher price than with free trade
• phenomenon of exclusion also manifests itself in low level of FDI (inflows) (only 2% compared to 23%USA and 41% in GB); as well as in extremely low level of immigration
• symbiosis between rule of law and market based economy of complex nature, because trust and moral pressure more important than formal privity of contract
• coexistence of different systems seems relaxed, main reason is that theories in Japan not of main importance; japanese use the spectrum of liberal/market friendly approaches and guidance measures/ protectionism in a discretonary manner, without sticking to  (economic) doctrines