Land of the rising sun is now in the shadows
Published 17/08/2010 | 05:00
ECONOMISTS will blame the deflation trap and misguided fiscal spending. Political analysts will blame parliamentary deadlock and vested interests. Investors will blame over-engineering and timidity.
The simpler version is that Japan ceded its status as the world's second-biggest economy to China yesterday because it had lost interest in keeping it.
The farcical domino-run of six prime ministers in five years marked a haemorrhaging of national gravitas that few other electorates would tolerate. It has left the country without a credible champion for its cause. Even if Japan as a whole were hungry enough to give China a battle for the second-place spot, it has nobody willing to channel that energy.