Tokyo, Japan, 21 January 2021 — Today, Deloitte announced the publication of “Driving Growth Using ‘Practical Wisdom’: Japan’s Perspectives.” The report was developed in response to the World Economic Forum’s Great Reset initiative, which calls for actions to manage the enormous consequences as a result of the COVID-19 pandemic. With insights contributed by leaders from across multiple fields, the report proposes how Japan could drive the Great Reset that leads to a fundamental transformation of its economic and social system.
The report explores how the public and private sectors in Japan could work together to achieve a fair and vibrant social model for the post-COVID era. Japan has long practiced sustainable business models, disaster resilience, social cohesion and coexistence with nature. The report demonstrates to the world Japan’s commitment to leveraging these attributes, referred to as “Practical Wisdom”.
It is imperative to establish and implement country-level strategies on digitalisation, de-carbonisation, diversity and inclusion, and economic revitalisation. In order to turn the COVID-19 crisis into an opportunity for transformation while achieving a much-needed Great Reset, a sense of urgency should be shared among not only business leaders but throughout society as a whole. The report aims to outline such a vision, proposing that Japan implement four “Great Resets” – reset attitudes, reset business culture, reset the economy and reset the global collaboration framework for a post-COVID world.
“I am very proud that Deloitte made a contribution to the development of Japan’s proposal as a part of the World Economic Forum’s Great Reset initiative. We would like to extend our gratitude to the World Economic Forum, who chose us as a partner, as well as every person who worked with us to make this happen,” says Takashi Nagata, Deloitte Japan CEO. “As the COVID-19 pandemic has accelerated many changes on a global scale, Japan as well as other countries around the world, are compelled to take the initiative in making a Great Reset that is a fundamental reform of the economy and society. With increased focus on how climate change affects society, the concept of planetary boundaries, i.e. the limitations on an earth where humans can safely live is becoming widely recognised. We are urged to break away from the growth model that only focusses on economic returns to pursue sustainable growth that ensures a balance between social and economic values. This report is being published at this important time and I hope that this serves as a compass, helping Japan drive the Great Reset while looking at things from a global perspective.”
“The current crisis requires us to revisit the status quo of every aspect of society. At the same time, it presents us with a unique opportunity to accelerate necessary reforms to shape a better future,” says Nobuhiro Hemmi, Deloitte Japan, Chief Strategist and International Business Intelligence Leader, who organised the report. “How we view this era of significant change is what the Great Reset is really all about. Japan has a long history of overcoming many natural disasters and other challenges. The country is highly regarded globally for presenting a prosperous and orderly society, capitalising on its long history, rich and unique culture, and world-leading technologies. In this initiative, the report is a result of the collective insight and wisdom contributed by the leaders from many fields in Japan. I believe that the proposals Japan is presenting to the world will lead us to create significant value at this critical juncture.”
The report proposes that Japan draws on its “practical wisdom” in its effort to resetting four areas:
- Attitudes: To address systemic challenges such as sustainability and climate change, leaders must abandon wishful thinking that such a task will be easy. Three approaches should help this shift: sharing a greater sense of urgency among officials, businesses and the public; accelerating necessary reforms for a long-lasting impact on public trust; and addressing unresolved issues to usher in a new era for Japan.
- Business Culture: Leaders should transform their own businesses’ behaviour, moving the focus away from their own successes in favour of contributing to the common good. Three steps are proposed: growing truly purpose-driven businesses for long-term value generation; upgrading community and environmental solutions via digital leapfrogging; and promoting diversity and inclusion to revitalise the leadership.
- Economy: Japanese leaders must transform the economy system, shifting the emphasis away from shareholders to stakeholders. Three measures should support the shift: redefining economic success; striking a shareholder-stakeholder balance to reframe economic focus; and shifting investor focus from short-term returns to long-term value creation.
- Global collaboration framework: Japan must rebuild the bonds of global cooperation by growing out of its traditional role as a rule-follower and becoming a rule-shaper. This is made possible by three approaches: adjusting or adopting rules to create a new era of co-operation; renewing global trade systems; and serving as a great mediator for transnational co-operation.
To review the full report, “Driving Growth Using ‘Practical Wisdom’: Japan’s Perspectives,” that illustrates the details of the four areas of the Great Reset, click here.
To review the World Economic Forum’s press release on this announcement, click here.
