Turning Strategy into Action though 3Cs: Creativity, Collaboration and Connection
Oct 28, 2011; TAC, Tokyo
Opening Keynote;
Turn Crisis into Opportunity: Time to Shape and Create for New Generation Diversity
Kiyoshi Kurokawa, MD, MACP, FRCP
Academic Fellow at GRIPS
Chair, Health and Global Policy Institute
Chair, Impact Japan
Professor Emeritus, University of Tokyo
ACCJ 2011 Person of the YearGOOD MORNING, Distinguished guests, friends, ladies and gentlemen.

I am truly happy to be here with you all today, and thank you Broussard-san and
Tatebe-san for inviting me to this wonderful gathering.

1. INTRODUCTION
I would like to begin by thanking each one of you for your thoughts, prayers, actions
and encouragements to the people of Japan. In this difficult time, your sympathy andcompassion have been so valuable to the families of more than twenty thousands
people who lost their lives, their homes and their livelihoods to the Great Tohoku
Earthquake and Tsunamis of 3.11;

as well as to those who have suffered as a result of

the Fukushima Daiichi Nuclear Disaster.

Thank you.

2. ABOUE ME
My view today may seem quite contentious amongst ordinary Japanese, but as you see
in my brief biography in the program, my career is considered out of norm in Japan to1

begin with. I spent 14 years of my professional career in the US as a physician in US
universities, where the career path is very competitive for the sake of quality. But the
US was ‘FAIR’ and kind to me, and helped me to pursue my career as to become aprofessor of Medicine at the UCLA School of Medicine in 10 years. I returned to Japanand I was elected to become the Professor and Chair of Medicine at the University ofTokyo School of Medicine, my alma mater. I was also elected to become a dean at
Tokai University, I served as president of the Science Council of Japan and various
professional societies; and I was also the first and only scientist to serve as Special
Advisor to two Prime ministers of Japan, Mr. Abe and Fukuda – 5 years and 5 prime
ministers ago.

More recently, I was surprised when I was chosen as the 2010 Person of the Year of
ACCJ, for my efforts to open up Japan to the world and had the privilege of delivering
my acceptance speech to the ACCJ in this room in February. For this honour I am truly
grateful.

I have not changed a bit since my return to Japan 20 some years ago, but the world haschanged since then and it has pushed me to several prestigious positions which called
for my duties. I have been fortunate to be surrounded by amazing opportunities; I owemuch to my friends in Japan, the US and elsewhere. As a result, I sense this is my duty
and mission to return what I owe by opening Japan to the world, helping the youth at
every opportunity, and by sharing my experiences with them.

Yes, my view has been regarded as a bit crazy by many Japanese, but it isn’t perceived
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that way at all by the global community;and I often feel that my driving force has

been my desire to share, with my home country, what I was given in the US. Thus, myapologies for some of my seemingly rude comments, but they are what I would like tocontribute to the future of Japan. Furthermore, I am primarily addressing mycomments to the youth -- the young men and women, boys and girls -- to those whowill have to shoulder the future of Japan in Uncertain Times to come.

3. IMPACTS OF 3.11
The 3.11 disaster exposed to the world the strength and weaknesses of the Japanesepeople and our society. Japan’s strengths clearly rested in the power and spirits ofthe common people who coped, and are still coping with, this tremendous tragedy
with such calmness and discipline. Everyday these people continue to reconstructtheir daily lives, despite the weak leadership of our nation.

The weakness of Japan was clearly seen in the leadership of the establishments – be it
the government, big corporations, media, or the academic community – as they display
poor skills in communicating to the world and an utter lack of transparency.

Thisweak leadership has caused the credibility of Japan as a nation to fall and, it is still
continuing to fall, unfortunately. This could have been prevented had our government
asked for the expertise of the rest of the world, and tried to learn and share lessons
from the disaster. Fortunately for us, there is still time to do so.

4. THE WORLD HAS CHANGED – GLOBALIZATION AND FURTHER
It seems very apparent that the world has become quite different to what we knew just3

10 years ago. It seems that we are wandering into “Uncertain Times” of One Global
World. Did we ever imagine even 5 years ago, that a financial crisis of this magnitude
would affect the EU, the US and so many other leading nations?

Exactly 20 years ago, in 1991, the Cold War ended and we entered into the global
market economy. In the same year, the world-wide-web was introduced. Desktops
and laptops were connected to the Age of the Internet. New businesses followed,
such as Amazon, e-Bay, Yahoo, Netscape, then Windows 95. In 1997, two students
from Stanford started Google.

The concept of “human capital” replaced that of“human resource”, indicating the rapid impact a few individuals can spread in the
global market. The globe became more interconnected than she had ever been, andperhaps the first world felt invincible in some ways.

However, as a result, our issues and challenges have also become much larger andglobal. The status of the world has become, as Thomas Friedman said, “Hot, flat andcrowded” -- a very challenging state, created by what we call PROGRESS.

The 21st Century began with 9.11 (-happens to be my first birthday of the Century) andcurrently we must face regional conflicts, climate crisis; problems of energy, food,water and natural resources; we must adjust to the changes resulting from thereplacement of G8 by the G20; 10 months ago the Arab Spring began and we have yet
to see how this will affect the global economy and dynamic. Facing such a magnitudeof global challenges, it seems impossible to overcome them all, and it is tempting tosimply leave our planet earth for future generations to think about.
45. ‘JAPAN INC,’ GLOBALIZARION AND WEAK LEADERSHIP‘Japan Inc.’ certainly feels this way now, as it has not been able to adapt sufficiently tothe dramatically changing pace of the world. We have the oldest population on the
globe; we face issues of widening income disparities, unemployment, a stagnant
economy, a huge national debt, and there is always more. However, we have always
been doomed to face these problems long before 3.11. Our leading establishments
have never been able to steer through these difficult situations effectively for the past
20 years, except for perhaps during the 5 years under Prime Minister Koizumi, whodemonstrated some signs of change.

The weakening of the political leadership became increasingly apparent after Mr
Koizumi, who was followed by 3 LDP Prime Ministers who only served for 1 year each.
They were then followed by a land-slide historical victory by the DPJ, but now 3 of their
Prime Ministers have come and gone, and the sad reality of Japan is that we have had 6
Prime Ministers over a short period of only 5 years. What is wrong with our leadership?

The reign of the LDP leadership with closely netted ministries, a history of partneringwith big corporations and Keiretsu, the effects of the media -- all of this can be referred
to as the ‘Cartel of the Mind or Japan’s Intellectual Closed Shop’, as Professor Ivan Hall,an expert on Japan, wrote in his book. This certainly stirred up the pot for problems.

Also, those who are in the leadership posts are mostly those who came up the maledominated, single-track, seniority-based promotion ladder. The majority of them are5

of course good individuals, but this is not necessarily a ladder which is merit-based, andthus the environment is often not truly competitive when compared to organizations
and institutions in the global arena.

Many of these ‘leaders’ came from elite universities like the University of Tokyo. They
all go through the process of taking a competitive entrance exam to get into a good
university, but thereafter hard studies are not imposed upon them -- in essence, they
all go through just 4 years of moratorium. A large number of them may have studied at
graduate schools in the US and elsewhere, but they were chosen to be sent by big
corporations and ministries, and would have been guaranteed elite postings upon theirreturn. Most of them would not have gone through an open competition to go abroadas ‘AN INDEPENDENT INDIVIDUAL’. As a result, they would have returned to theirrespective organizations, and simply resumed their positions on the promotion ladder.

On the other hand, the few who were courageous enough to leave their organizations
and the secure ladder became very successful entrepreneurs, such as Mikitani-san of
Rakuten. Consequently, they are often called ‘misfits.’

These, however, are the people

who do have a good idea of what should be done now though.

6. WHAT CAN BE DONE?
Necessity is the mother of invention. A crisis can be an opportunity, as it often leads topractical solutions and often radical changes. These changes are what we callinnovation, or the creation of new social values. When we really meet the need foraction, we may become innovative and creative. This will be led, more often than not,6

by the crazy ones, those who think DIFFERENT.

Think of Honda, SONY, Kuroneko-Yamato, Ito-yokado of 40 years ago; many of themwere ‘Misfits’ from the outset, and thus they were challengers, who became CHANGE
MAKERS -- GAME CHANGERS. Currently they include Yanai-san of UniQlo, Son-san of
SoftBank, Mikitani-san of Rakuten, Niinami-san of Lawson, and many others, but they
were generally not recognized as a part of the main stream of Japan Inc. until recently.
We need individuals like these, DESPERATELY though.

At this point we must also pay tribute to Steve Jobs, the most creative of the “crazyones” of the 20th century, who changed the world with the first desktop computer –the Apple 2 in 1977, followed by the iPod, iTunes, iPhone, iPad in just the last 10 years.
Infants are now born with touch panels and even touch screen TV to change programs.
Apple is now the most valued company in the US. Jobs left a truly astounding legacy
when he passed away 3 weeks ago -- he made the third apple of our civilization, thefirst being the apple of Adam and Eve, the second of Newton, and now the iApple
which truly moves the world.

So, Japan must respond to the 3.11 disaster as a great opportunity to muster thecourage to make bold moves and hard decisions, in order to adapt to globalization andthe reality of geopolitics. Otherwise, Japan will fall completely behind and will nevercatch up.

7. FOCUS ON STRENGTH, RECOGNIZE WEAKNESS
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We must think about, based on our legacy, where our strengths currently lie and focus
on them. And in the context of this highly interconnected and interdependent world,when I say “we”, I mean humanity.

Japan’s strength lies in its population’s admirable pursuit of precision and perfection -Nebari, Kori-sho.

Why are there are more Michelin stars restaurants in Tokyo than in

Paris? Many try to be perfect, go beyond just original. In the end, we are also thenation of Sony, Honda, Toyota and the bullet train. Our people are known for theirdiligence and their good work ethic. These are examples of our strengths and selling
points to the world, which we can take pride in.

MORE IMPORTANTLY, HOWEVER, WE MUST RECOGNIZE OUR OWN WEAKNESSES, thisis absolutely critical – bar none.

We place too much trust in homogeneity, conformity, hierarchical values or tateshakai
shinkou, okami-ishiki ; even ‘amakudari’ -- or descent from Heaven. This closed
mind-set, which most Japanese think led to the economic success of the 60s to the 90s,
is the major set-back of current Japan. Cross generational resistance is also very strong
as a result. Despite the famed Japanese attention to detail, the general population also
fails to think about the BIG PICTURE.

These are the targets which need INNOVATION. We need to fuel demand driven
innovation and open innovation, not adhere so much to small changes based onconventional, supply side views. By recognizing our own weaknesses, we can in turn8

seek optimal partners who could compliment the strengths that we do have. We canconnect and collaborate for the purpose of INNOVATION, for the creation of new social
values in the globe, as a whole big picture. Such new combinations are the basis of
Schumpeter’s or Neues Kombinationes’ concepts of innovation.

Why shouldn’t we nurture each other’s strengths? Why shouldn’t we provide eachother with support where we are weak and learn from the strengths of others? Work
with your friends from your high school or college when you are ‘independent’
existence -- they are the partners for you. Don’t limit yourself because you think you
have to. Share common values, make connections and don’t hesitate to create andseize new opportunities for collaboration.

If you want to develop your business in new emerging markets like India or Ghana, go
for it! Cater to those local markets’ needs with locally affordable prices. Be creative!
Think big to start with, and then think about what you can actually do now, based on
those initial big ideas.

Of course, to ensure that these good ideas meet the need and bear fruit – in order tomake a strong career in this uncertain future -- you need, besides good collaborators,
education.

What is the state of education for our children who must face these very uncertain
times? In Japan, is traditional education good enough? Isn’t it where INNOVATION isneeded the most in some ways?
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When the Nobel Prize celebrated its centennial, the main theme was CREATIVITY. At
the celebration, King Gustaf said on creativity, “A child is not a vessel to be filled, but
the fire to be lit.”

8. EDUCATION
Every child is born curious and creative. Think of children in kindergarten, they are
curious; they collaborate for common interests so naturally; they show such creative
intuition. Notice how children follow their intuition and play with the iPad much better
than you do. Their behavior may just look cute, but we should learn from theircuriosity.

Why have we become less curious as adults? In Japan, our education systems don’t
leave much room for it, so that we don’t stray from the social norm. But our society
itself must adapt to Uncertain Times. So how can we maintain our curiosity andcreativity so that we can adapt to changes unforeseen?

Followings are of critical importance
1. Let children and youths experience living and studying abroad. Provide them with
opportunities to meet people from different backgrounds. Let them recognize
differences in language, religion, culture, but also similarities, such as love of family
and pride in one’s own culture. They will realize the value of having a goodcommand of spoken broken English or Globish – which is very weak in many
Japanese leaders.
102. Such experiences will allow them to accept DIVERSITY and form life-longfriendships with each ‘patriotic’ sense for own legacy. Through such experiencesfrom a young age, of the world and its tools -- such as facebook and twitter -- will
help them stay connected all the time. Together they will collaborate and connect
the DOTS.
3. It is critically important for youths to participate in social engagements, such ascommunity service, volunteering and NGOs, to work and help those who are lessprivileged. Adult must do and show such activities.
4. These experiences will make them aware of the fact that they are actually a part of
One global world. They will recognize how something simple can have so much
IMPACT in poor community. They can then pursue their aspirations to make suchmeaningful impacts through high school and college. Now, many leading colleges of
the world provide more and more programs for students to go abroad, particularly
to poor countries so that they can experience the reality of the world. Then,some of them start absolutely creative and innovative services and businesses tohelp solve global issues. Kickstart International, D-light, A-Z patient capital are a few
good examples.
5. Engaging in teaching others, not necessarily as a teacher, but as friends, brothers
and sisters, colleagues. Such experiences in your own community, country, orabroad, can broaden an individual’s scope and awareness of social issues. These
encounters will also help individuals to recognize the values of diversity, creativity
and collaborations. They are the ‘DOTS’ which will connect in the future.
6. Finally, this will make them leaders. Teach for America has become the No 1 mostpopular career choice, providing two years of experience as school teachers in11

underprivileged communities. Outstanding fresh graduates of leading American
universities, 18% of Harvard, 14% of Yale and many others apply. Many of them also
follow this by entering into the Peace Corps.

9. DEMAND DRIVEN INNOVATION
What are the social values of the world? What are the problems in our global
society?

How about poverty in Africa and India? How about the need for cheap and clean
energy? These could be areas where innovation can create powerful, positively lifealtering tools like the World Wide Web.

How about the problem of food? Does the issue lie in food production? The foodsupply chain? Maldistribution? Why do we waste so much food, whilst complaining
about obesity in affluent societies? How about water? We need to produce clean
drinking water that is CHEAP? So much needs to be developed in these areas; we reallyneed to start thinking about the BIG picture and reach out to alternative resources, as apost to straining the ones we already over depend on.

10. WOMEN
There is one more factor which I must mention at this point, regarding under-valued
resources. In Japan, by far the most under-valued and under-utilized inherent asset is
its WOMEN.

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According to the UNDP and other censuses, Japan is far behind the rest of the firstworld in terms of gender empowerment. If you were to visit a board of any major
corporation in Japan, the absence of women is all too striking. Amongst National
legislators, female members amount to only 12%.

As shown by Kathie Matsui, a senior analyst at Goldman Sachs, gender empowerment
could increase the economic growth of Japan by 10% - the equivalent GDP of all of
Canada. Her analyses also suggest that the low fertility late will improve, pending upon
better social reform measures put in place. That can be done by carefully thinking
about who will resist and how to combat them.

Moreover, remember women make 60% of the purchase decisions of the global
economy. Can many men make decisions to buy their own clothes, cars, or homes,
without permission of women -- be it mothers, wives or girlfriends?

Are corporate

executives aware of this fact of the market?
Think also of the champion world soccer team, Nadeshiko Japan, or the Gold medal
soft ball team Japan in the Beijing Olympics. Just compare their performance with theJapanese men’s teams in world cup and baseball.
I will not elaborate more on this issue today, since I look forward to hearing more on
this from our other speakers here today. However, let me re-emphasise how now, asa result of the Japanese fervour to stick to tradition and to do things the Japanese way,even after 3.11, we are turning inwards and isolating ourselves once again. We areclosing the doors to valuable foreign investment and innovative global opinions, and at13

the same time we are closing the very ports of our minds, particularly that of ouryouth.

11. OPEN UP JAPAN TO THE WORLD
This 3.11 disaster has given us the rare opportunity to persuade the masses to accept
changes, adapt and open up Japan again to the world. AND CHANGE HAS TO BEGIN
NOW!

Even in just small steps.

America is, and always has been, Japan’s most reliable source of “gai-atsu” in modern
Japanese history. America also remains the best source to help us initiate the kind ofchanges that Japan needs. Operation Tomodachi of 3.11 is a great example.

This time, however, we cannot rely on a Commodore Perry and his black ships to force
us to open our doors. It is up to us, as I mentioned before, to open the ports of ourminds and form a more globally orientated mind-set.

12. IMPACT FOUNDATION JAPANA small group of us have launched an initiative we call “IMPACT JAPAN.” I invite you tovisit us at www.impactjapan.org.

Very briefly, we began our activities 2 years ago in order organize TED events and the
Global Entrepreneurship Week in Japan. Our aim is to change Japan by cultivating a
new generation of leaders, thinkers, doers and entrepreneurs. We endeavor topromote and encourage entrepreneurship, youths and women to find and pursue their14career that will be markedly relevant in this age of globalization. It is our mission to
help them to connect the ‘DOTS’ and acquire a sense of being a global citizen, withmany friends that will be future collaborators to make the world a better place.

This weekend we will host TEDxTohoku in Sendai, and next month we will host the
Global Entrepreneurship Week Japan. Currently more than 100 countries are scheduled
to host this event which celebrates innovation and collaboration. We also collaborate
with CSIS, the Washington-based Think-Tank, on its report “Rebuilding Japan.” This will
be delivered in a week in both Washington and in Tokyo, and we will host a special
session in Fukushima. We are also pleased to call Project Hope, the major Disaster
Relief program of US, one of our major collaborators, as we began working together
right after 3.11.

If you get involved, you will be guaranteed to find yourself in the company of some of
the most dynamic, committed, forward-looking people in Japan. It really would be achance to see strategy being turned into action -- through creativity, connection andcollaboration. I am proud to be able to say that this is precisely how our foundation
was created. We are not the result of any sort of government initiative; we are thebrainchild of individual Japanese and Americans working together. We are very
fortunate that Ambassador John Roos serve as our Honorary Chair.

Almost 100 years ago in 1905, President Theodore Roosevelt mediated in Portsmouth,
the end of Japan-Russo War. Next year will be the centennial of Cherry Trees at Tidal
Basin in Washington DC. This December will be the 70th year of the Pearl Harbour
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attack by Japanese Imperial Navy led to the major disaster to Japan – you know the restof history.

Such archives shows the real significance of the Japan-US relationship. That our two
peoples were able to go… in the span of one lifetime… from the bitterest enemies thatever were… to the best of friends… is the clearest testament… to the greatness of boththe United States and Japan.

THANK YOU.
[3,800 words]

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