Japan’s Deglobalization

Robert Dujarric and co-author Shin Woon highlight a troubling trend: instead of integrating further into the global economy, Japan in the early 2010s appeared to be turning inward. They cite metrics showing Japan’s relative disengagement: a very low percentage of Japanese students study overseas compared to South Korea or China, a tiny share of foreigners in Japan’s skilled workforce, and minimal inward foreign direct investment (only around 4% of GDP). The authors metaphorically describe this as Japan erecting a “virtual Berlin Wall” around itself – a barrier to the flow of people, ideas, and capital.

This deglobalization, they argue, stands in contrast to other Asian countries that are eagerly globalizing. The piece suggests multiple causes: language barriers, insular education and corporate practices, and a complacency born from past success. However, Dujarric and Shin warn that such insularity will hurt Japan’s long-term dynamism. Innovative industries and competitive economies thrive on exchange and diversity, which Japan risks missing out on. They call for policy changes to tear down this wall – for example, embracing immigration, encouraging Japanese youth to gain international experience, and opening domestic sectors to foreign competition. Without these changes, the article implies, Japan could see its regional influence and economic vigor wane as its neighbors become more cosmopolitan and connected.