Third, only 0.2 percent of Japan's work force is foreign or foreign-born. The next lowest of the G7 countries is Italy at 1.7 percent. France stands at 6 percent and the United States is close to 10 percent. There are many historical and cultural reasons for the absence of foreign workers in the Japanese workforce. But what worked in the Nineteenth and Twentieth Centuries will not work in the Twenty-first.
Immigration is a fundamental measure of a society's openness to the world.
Fourth, despite the creation earlier this decade of a new electoral system designed to sustain a multi-party system, little policy differentiation has developed among the political parties. Narrow interest groups continue to obstruct much of the political decision-making process. The contrast between the restructuring taking place in China versus Japan is striking. Even after China formally joins the WTO, the United States and other nations will still have a lot to do to penetrate the Chinese market for our goods, services, and investment. Nevertheless, it is clear that the senior Chinese leadership has decided that it is willing to face enormous short-term dislocation because of the need to restructure.