Aso’s optimism shines in spring visit to China

• Source: The Global Times
• [09:19 April 29 2009]
• Comments

GT: Based on the idea of “common interest” that you have been speaking about for several years, do you think it is possible for Japan and China to overcome the financial crisis jointly?

Taro Aso: At the G20 London Summit on April 2, the countries confirmed that they would take action on the dual fronts of macroeconomic policy to promote the recovery of growth and employment and regulatory reforms in the field of finance. They also expressed their strong will to oppose protectionism.

It is absolutely critical that both Japan and China, as the second- and third-largest economies in the world respectively, implement these areas of agreement steadily so as to help bring about the recovery of the global economy.

Based on this perspective, on April 10, Japan formulated countermeasures to address the economic crisis with a package of approximately 56.8 trillion yen ($589.8 billion), including new national fiscal outlays of about 15.4 trillion yen ($159.9 billion). In addition, Japan announced a loan of $100 billion to the IMF as well as measures to contribute to (the recovery of) Asia, including the provision of ODA on a scale of up to $20 billion and additional trade finance measures, so that Asia will be able to contribute to the recovery of the global economy as a center of growth open to the world.

I commend China for also announcing measures in November amounting to 4 trillion yuan to expand domestic demand and for steadily implementing these measures.
Japan will continue to engage in close cooperation with China and other countries both at the next G20 Summit, to take place this fall, and within the Asian region, while also making its greatest possible contribution towards the recovery of the global economy.

GT: You set forth your philosophy as a chief executive in “The Latent Power and Vitality of Japan – Building a Bright Japan.” When you find yourself facing major challenges in your personal life, how do you deal with them? Where does that “latent power” come from?

Taro Aso: The most important thing when facing a challenge is not to lose oneself. In other words, in the case of a nation, it is important to re-examine in a matter-of-fact way what constitutes Japan’s strengths. Then, I think you need to take an approach in which you utilize those strengths with confidence as you take on the challenges you are facing. In other words, don’t be needlessly pessimistic but make efforts to be optimistic. For example, Japan has developed to become the second-largest economy in the world through the strength of its approach to production. More specifically, working “with the sweat of our brow” is one of our values. We also have organizational strengths by which we produce superior results working as an entire team. This is Japan’s traditional approach to production and at the same time these are our strengths.

Japan’s success in overcoming difficulties in years past, such as the oil shocks of the 1970s, has also been the result of utilizing these strengths. I believe that the Japanese people should have more confidence in these areas.

Since last year’s “Lehman Shock,” the global economy has entered an era of major adjustments in which it has been searching for a new model of growth.

However, despite such a context, the Japan that I have just described must not lose sight of its strengths. Rather, it is my hope that with confidence we will carve out a new era on the foundation of these strengths.