If Japan's banks clear most of their bad loans and resume lending, business spending could finally pick up and fuel real growth. Japan fails to reform and rebound, courting financial and economic collapse and possibly dragging the world into a depression. Fortunately, after a decade of muddling, Japan may finally be moving. In addition to just throwing more yen by the trillions at the economic slump, the government is seriously tackling the banking mess. Spurred by the example of such innovative juggernauts as Sony, companies are cutting costs and staff, enhancing efficiency and promoting creativity and competitiveness.
Japan is in the grip of restructuring fever.
Many are cutting overseas operations, and several plan to merge or pursue other tie-ups. As for companies, Asahi Chemical Industry sold its non-core food operations in January. The following month, NEC pledged to slash staff by a tenth and overhaul its management. Promises, promises, some may shrug. They seem more real.