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      Thirty years ago, the name Clyde Prestowitz stood for the top Japan-basher who was warning the US to get its act together. But the true Prestowitz also had deep respect for Japanese values, was proficient in Japanese, and adopted a Japanese boy as his son. Now, in his latest book, he is advising the Japanese how to get its act together based on his own experience advising the US. It is a worthy read.

      —Richard C. Koo, Chief Economist, Nomura Research Institute

      Can Japan reverse decline? We all have a stake in this. Japan, after all, might be a model for other advanced post-industrial societies. There has probably not been a prescription for revival as radical, as pertinent, and as challenging as the one that Clyde Prestowitz lays down. Yet as I read it I found myself hoping that Japan will adopt his advice and continue to make its contribution to world civilization.

      —Bob Carr, former Foreign Minister of Australia

      “Ever since Japan successfully challenged American industrial dominance in the 1980s, Clyde Prestowitz has been a leading voice in urging us to think differently about this remarkable and still-misunderstood nation. His newest book builds on his rich career in trade and economic policy to probe more deeply into both Japan’s persisting problems and its still-enormous potential to remain a creative force in the global economy.”

      —Martin Fackler, New York Times Bureau Chief, Tokyo

      Fascinating story of how a country could reinvent itself, in a world where the focus is on China and Japan is yesterday’s lunch. Clyde Prestowitz does a terrific job of creating a fictional blueprint of how Japan can become a world power and the impact it will have on our children and grandchildren. It’s hard to put down.

      —Daniel M. Slane, Commissioner, Congressional US-China Economic and

       Security Review Commission, Washington, DC

      HOW JAPAN CAN REINVENT ITSELF

       AND WHY THIS IS IMPORTANT

       FOR AMERICA AND THE WORLD

      NEW YORK TIMES BESTSELLING AUTHOR

       CLYDE PRESTOWITZ

       with Hiromi Murakami and William Finan

      TUTTLE Publishing

       Tokyo | Rutland, Vermont | Singapore

      Published by Tuttle Publishing, an imprint of Periplus Editions (HK) Ltd.

       www.tuttlepublishing.com

      Copyright © 2015 Clyde Prestowitz

      All rights reserved. No part of this publication may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without prior written permission from the publisher.

      Library of Congress Cataloging-in-Publication Data is in process

      ISBN 978-4-8053-1346-6

       ISBN 978-1-4629-1532-3 (ebook)

      Distributed by

      North America, Latin America & Europe

       Tuttle Publishing

       364 Innovation Drive

       North Clarendon

       VT 05759-9436 USA.

       Tel: 1 (802) 773-8930

       Fax: 1 (802) 773-6993

       [email protected] www.tuttlepublishing.com

      Japan

       Tuttle Publishing

       Yaekari Building, 3rd Floor

       5-4-12 Osaki, Shinagawa-ku

       Tokyo 141 0032

       Tel: (81) 3 5437-0171

       Fax: (81) 3 5437-0755

       [email protected] www.tuttle.co.jp

      Asia Pacific

       Berkeley Books Pte. Ltd.

       61 Tai Seng Avenue #02-12

       Singapore 534167

       Tel: (65) 6280-1330

       Fax: (65) 6280-6290

       [email protected] www.periplus.com

      First edition

       18 17 16 15 10 9 8 7 6 5 4 3 2 1 1507CP

      Printed in Singapore

      TUTTLE PUBLISHING® is a registered trademark of Tuttle Publishing, a division of Periplus Editions (HK) Ltd.

      Contents

      INTRODUCTION Bookends

      CHAPTER 1 Tokyo, 2050

      CHAPTER 2 2016—Year of Crises

      CHAPTER 3 Shifting Alliances

      CHAPTER 4 Women to the Rescue

      CHAPTER 5 Japan Becomes an English-speaking Country

      CHAPTER 6 Innovation Nation

      CHAPTER 7 Energy Independence

      CHAPTER 8 From Japan, Inc. to Germany with Japanese Characteristics

      CHAPTER 9 Overthrow of the Insiders

      CHAPTER 10 Up with the People, Down with the Bureaucrats

      CONCLUSION Why Japan Matters to America and the World

       Acknowledgments

       Index

      INTRODUCTION

      Bookends

      Ifirst saw Japan on the cold, gray morning of February 5, 1965, as SS President Cleveland steamed into Tokyo Bay toward Yokohama after a storm-tossed six-day voyage from Honolulu. Accompanied by my American-Chinese wife Carol, our four-month-old daughter Anne-Noelani, and my wife’s Chinese uncle, who ran the ship’s laundry, I looked down from an upper deck at the totally unfamiliar scene below as the tugs nudged our great vessel into its berth.

      As we marched down the gangway carrying luggage and baby, and

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