Eisuke Sakakibara, MR YEN: Japanese firms must localize and globalize to prosper

Eisuke Sakakibara is known as Mr Yen for the influence of his pronouncements on Japan’s currency and was Japan’s vice-minister for finance for international affairs from 1997 to 1999. An internationalist famed for making key policy speeches in English, he argues in this interview with Tetsuya Shibata that Japanese companies must become more outward-looking to prosper.

Are you worried about the possibility of increasing (US) economic protectionism harming Japanese interests? What would yen appreciation mean forJapanese companies? The Japanese financial industry has seemingly turned the corner of its bad debt problems. What’s their next move? The economic growth of China and India in particular has been spectacular. What do Japanese companies need to do to compete?  Is there a strong anti-Japan sentiment in China that makes it difficult for Japanese firms to operate there? Many foreign financial firms operating in Japan grant greater authority to their Japanese staff. What is your strategy in foreign markets?  Is localization an issue for senior management at the Japanese banks? It seems the major Japanese banks need to pursue seemingly contradictory courses: economic and financial globalization, and business localization.

Given the mid-term election results in the US and the apparent rise of the Democratic party, are you worried about the possibility of increasing economic protectionism harming Japanese interests?

"Japan’s companies had better make use of the advantage of being in the Asian region. The urgent task for them is to promote localization in Asia, in order to secure from European and American firms the fruits that this prospering economy brings forth"  Eisuke Sakakibara

I don’t expect any drastic changes.