Mahathir says Japan must shun Western-style reforms to recover
Mahathir, a long-time admirer of Japan's work ethic, says in a book to be launched Thursday that it should stick to the "Japan Incorporated" formula of close relations between the government and the business sector.
Extracts from the book were carried Wednesday by Malaysia's Bernama news agency. Mahathir was due to leave Wednesday night for a four-day visit to Japan, during which he will launch his book.
The Malaysian premier, never ashamed to be a maverick thinker on economic issues, says Japanese companies should be doing well as they are still bringing out an endless range of new products.
Instead they are failing and retrenching workers for the first time.
"The reason is this desire to adopt Western business practices," he writes.
Mahathir, who once promoted a "Look East" policy encouraging Malaysians to learn from Japan, says Tokyo's success had inspired Asians, benefited poor countries and banished forever the belief among many Asians that manufacturing was beyond their capabilities.
"But now the Japanese have lost confidence in themselves. They have rejected almost everything that is Japanese in an apparent desire to be accepted by the West."
Japanese sensitivities about its wartime past also prevent it from playing a proper role in international affairs, he says.
Mahathir says Western countries, despite criticising the "Japan Inc" concept, are equally guilty of cronyism, the "old school tie" and nepotism.
They are known for giving massive subsidies to many industries, to new start-up industries and to agricultural products, he writes.
"However, these Western countries have managed to make it out that their practices are right but similar systems by the Japanese are wrong."
Mahathir makes his comments in a chapter entitled "Japan Must Regain Confidence," which is part of the book entitled "Reflections on Asia."
Apart from the specially written chapter, the volume is a compilation of his monthly articles for the Mainichi Daily News.
Mahathir, who pegged Malaysia's currency in September 1998 as part of selective capital controls, urges Japan to do likewise with the yen.
Only a steady exchange rate, he says, can hasten economic recovery anywhere -- even in Japan.