Nissan Syndrome and Structural Reform in Japan: Will It Take a Gaigin?

Currently the leadership in Japan is fighting an uphill battle against cultural and political norms to implement structural reforms needed to bolster its sagging economy. A series of prime ministers, including the current one, have all promised structural change but have failed to muster the political capital needed to break down the existing structures. This article examines the recent trends in corporate Japan to hire foreigners to do the dirty work of breaking cultural norms in order to implement corporate restructuring (the “Nissan Syndrome”) The article then projects the influence of this trend to the Japanese government’s struggle to implement structural reform. The role of gaiatsu (foreign pressure) is examined as a potential solution to Japan’s political struggle to do what is needed to save itself.