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  4. The Tokyo 2020 Olympic and Paralympic Games are coming, so what should we do for Japan’s economy?

2015 Vol.2,3
The Tokyo 2020 Olympic and Paralympic Games are coming, so what should we do for Japan’s economy?

Discover our hidden strengths

2015/05/11

The 1964 Olympic Games in Tokyo and Expo ’70 in Osaka were major events symbolizing Japan’s rapid economic growth. For this reason, people increasingly have high hopes about the 2020 Tokyo Olympic and Paralympic Games.hopes that the event will trigger Japan’s economic revival. The Olympic Games held 50 years ago were certainly a turning point: Construction of the Shinkansen high-speed rail network and the expressway network started, and significant advances occurred in Japan’s manufacturing sector as the country’s rapid economic growth was reaching its peak. The fact that Japan successfully hosted the Olympic Games may have boosted the confidence of the Japanese people and the spirit that supported the economic growth. The period of rapid growth ended 40 years ago, and the Japanese economy entered an era in which domestic and foreign demand for its products and services did not significantly increase. As this fact was not properly recognized, Japan ended up having excess supply capacity and its bubble economy collapsed 20 years ago. During the 20 years that followed, firms recognized the change in the economic environment (lack of demand) and strengthened their ability to earn profits through downsizing, although the downsizing of facilities and equipment has cast a shadow over the competitiveness of Japan’s manufacturing sector. However, new fields are constantly emerging in manufacturing and the sector can increase the value of its products by making improvements concerning safety, precision, and customers’ peace of mind, which are hallmarks of Japanese products. Furthermore, Japan has many hidden strengths, such as services provided with a spirit of hospitality, Omotenashi . Some of these strengths may still be unnoticed by the Japanese themselves. Hosting the 2020 Olympic Games will provide an opportunity for Japan to welcome many visitors from around the world. As people interact and cultural exchange deepens, opportunities to discover the country’s advantages and strengths may arise and these could become the seeds of new growth areas.

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