Japan's Wakon-Yoosai and Sri Lankan industry
In the late 19th century, there was a leading philosophy among
opinion leaders in Japan; called "Wakon-Yoosai", which means Japanese
heart and Western learning. When Japan opened her door to the outside
world in 1860s, is exerted a great effort to quickly learn science,
technology, administrative system, etc. from the Western world in order
to make the country strong enough to maintain its independence.
Ambassador Akio Suda |
While this westernisation went on fairly successfully, there came out
an argument that it is not a right direction to try to totally
Westernize Japan, neglecting the country's valuable traditions and
spirit. In order to harmonize the efforts of learning from the West
while maintaining Japan's spiritual values, academics created the words
"Wakon-Yoosai". "Wa" means the old Japan and "Kon" means heart or
spirit. "Yoo" means Western world and "Sai" means talent, science and
technology, or materialistic capability.
I personally knew the late Honourable Lakshman Kadirgamar only for
one year and half. But fortunately, I could have frequent and very
personal exchange with him in that short period. It is Mr. Kadirgamar
who reminded me of the almost forgotten Japanese thought "Wakon-Yoosai".
Nobody embodies than Mr. Lakshman Kadirgamar the Sri Lankan way of
Wakon-Yoosai, a man of Sri Lankan heart with Western learning.
He took, as I saw it, the ethnic problem as purely a Sri Lankan
problem, which should be solved by Sri Lankan people with a good support
of the international community, but not by international community. He
received the highest level of Western education and lived a life of
Western civilisation. Yet, he seemed to have always thought of the
dignity and sovereignty of the country. His successful initiative to
protect the Buddha image from commercial abusing was a good example.
Once, I frankly told him that the bilateral relations between Japan
and Sri Lanka had been too much overwhelmed by Japan's official
development assistance to Sri Lanka and that we should work to depart
from aid-oriented relations to people to people relations based not only
on development cooperation but on cultural, business, tourism, and
intellectual exchanges. Thus we could expand and deepen our mutually
beneficial relations.
The Foreign Minister, being delighted by my way of thinking,
completely agreed to that and said that from now on let's make "widening
and deepening", the keywords of our policy on Japan-Sri Lanka relations.
He later declared this policy on September 10th, 2004 in Tokyo. I
think that Mr. Kadirgamar and I shared the view that this country,
though not sufficiently developed in economy and needs foreign
assistance for some more time, has valuable cultures, traditions,
natural environments, and potential human resources, and with them we
could and should make our relation to be even more equal-footed and
mutually beneficial one.
Balance
As embodied by Lakshman Kadirgamar, it seems to me that "Sri Lankan
heart with Western learning" can be a useful guidance for the
development of the country. The essence of this philosophy is a good
balance between Western learning and Sri Lankan heart.
In the contemporary world, no country can enjoy welfare of people
without developing its economy through international trade and
investment. This is how both advanced and developing countries expanded
their economic capacity and strengthened competitiveness. Sri Lanka also
has been learning from Western (including Japan) knowledge and
technology and engaging in trade and capital activities with the rest of
the world.
Still, I should say, Sri Lanka has not been as successful as some of
ASEAN countries in its economic development. There should be several
reasons for that including the unfortunate ethnic conflict and
inconsistent policy on infrastructure construction. But, I think that
the underlying problem here is a difficulty of well managed balance
between Sri Lankan heart and Western or foreign learning.
Japan and some ASEAN countries did not attain its advancement by just
putting itself at the disposal of Western ways but by finding best mix
between Western ways and its own ways.
The purpose of foreign learning should not be just to continue to
learn from foreigners and create some businesses in between, but to make
use of foreign knowledge and skills for the development of the country
by yourselves.
Foreign capital flow and assistance is not always conducive or
sometime even harmful if you don't build your own industry on them.
Where money comes in, there are certain people who can make business out
of that, but the question is whether and how effectively that money is
utilized for development of industries and jobs of the Sri Lankan
people.
Japan went through experiences of so called bubble-economy in 1980s,
where companies and traders could become richer and richer by just
trading lands, houses, golf-club membership, etc. Such a bubble-economy
has left little substantial benefit to the people of Japan because it
was driven by flow economy and not much by industrial production.
Sri Lanka is not in bubble economy now, but I see a similar problem
in a part of this country. In the top ten companies in Sri Lanka, there
are only two manufacturing companies and others are all banking and
other services. In the top 50, there are only 17 manufacturing companies
and other 33 companies are making profit in banking, insurances, trades
and other sort of services.
Some businessmen may scold me for my bold argument, but by and large,
banking and trading are not adding or creating much value by themselves.
These services are of course indispensable for the country's economic
activity, but dominance of such service sectors with relatively few
manufacturing industries indicates the dependency on flow economy and
very possibly on foreign capitals.
Explore potential
Sri Lanka has developed such major industries as plantation, gems,
garments and tourism and smart businessmen can make a lot of profit in
these industries. But there are not sufficient Sri Lankan industries on
which the majority people can work and live well. For that you need more
to develop a kind of industries which activate the potentials of human
and natural resources of this country to the maximum extent.
They are industries of more indigenous, more manufacturing and more
value-adding nature. You have to create value in this country if you
like to bring welfare not to a small group of people but to the
majority. People as a whole cannot live a welfare life just on flow of
money coming in and out. You need Sri Lankan heart in your economy and
industry. That heart can create values for Sri Lankan people and the
world.
All of present major industries like tea and rubber, gems, garment,
tourism, etc. will continue to be extremely important for the Sri Lanka
economy. Tourism, for instance, has much bigger potential to be
developed and though not a manufacturing industry, can create big values
if it successfully involves more local communities and manufacturers.
In various sectors, I am sure, there should be thousands of good
companies, either indigenous of foreign, which contribute to the
creation of job, gain foreign currency and the economic growth in the
country. Let me introduce a few examples of a Sri Lankan firm with
Japanese investment which could be models for most needed industries in
Sri Lanka.
FDK Lanka
FDK Lanka (Pvt) Ltd., operating in Katunayake, produces high-tech
parts like floppy disk drives, rotary transformer for VTR, and optical
communication components. FDK employs 2,300 workers in the Katunayake
factory and records annual sales of two billion rupees, all of that are
exported to US, Europe, Japan and Southeast Asia.
This company was established in 1990 by a Japanese entrepreneur, Mr.
Katsuhiko Kono, the present President of the company. FDK's remarkable
success in high-tech production and worldwide sales can be attributed to
many reasons. But the most significant reason is the availability of
labour forces of high quality. Sri Lankan workers are outstanding in
their precision and persistence, which are essential to production of
delicate high-tech devices. On top of that, the firm made many
innovative efforts in order to strengthen its competitiveness.
It has built and keeps big space of factory dust and germ free with
tight air control and multiple doors. Further, it started in last
November to introduce "Kanban System" or Just in Time (JIT) system for
its production line. This "Kanban System", invented by Toyota Motor in
Japan, is a production control system to supply just necessary items,
with just necessary quantity and just in time, as to minimise excessive
stock, waste of production, and overall cost.
This system sounds simple, but requires sophisticated planning and
the closest coordination between workers and teams. According to Mr.
Kono, when "Kanban System" is completed (now introduced up to 30 per
cent), the productivity of FDK will jump by five times or more.
Workers eagerly cooperate to complete the system because they know
that the gain from a productivity hike will be reflected upon their
salary. With all these challenges and success, I would say, FDK is one
of the most promising models which indicates a right direction of Sri
Lankan industries in future.
Noritake Lanka
Noritake Lanka Porcelain, established in 1972, is more widely known
to the public than FDK because it has a way long history here and its
products are familiar to households. Noritake had been contributing to
Sri Lanka's industry and economy in various ways.
It has created jobs (now 1,200), it has introduced Japanese porcelain
technologies and transferred them to other local firms, it gains foreign
currencies by exporting 80 per cent of the total products, it uses
mostly local materials except gold, thus creating additional local
works. Noritake built factories in Ireland, the Philippines and Sri
Lanka besides its original factory in Japan.
As I was told, among the three factories abroad, Noritake Lanka is
most successful and now a major production centre for the whole Noritake
Porcelain. The main reason of the success here is again high quality of
labour forces, which are excellent at precise and persistent works.
Noritake's success coupled with the FDKs may indicate promising
possibility of new industries such as high-tech porcelain devices for
electronics.
Tokyo Cement
The third example of more needed type of firms I knows Tokyo Cement.
Everybody knows Tokyo Cement but it is not a high-tech company and a
cement supplier may not be a very attractive industry for the younger
generation.
However, firstly, cement production is a very essential industry for
the development of the whole country. Tokyo Cement supplies 30 per cent
of total demand in Sri Lanka. By only this fact, the company can be said
to have made a great contribution to the development of this country.
Secondly, and more importantly, Tokyo Cement actually produces cement
in this country rather than just importing finishing product and packing
for sale. Tokyo Cement manufactures two thirds of its production in its
Trincomalee factory by mixing clinker, plaster and volcanic ash then
firing and processing them.
The factory's operation is short of complete production but goes
through a half production, different from other many factories which
just bag imported finished cement.
To rely on imported finished products is on easy way to meet demands,
but it costs the country. If you don't produce or add values in the
country and easily rely on imports of finished products, you have to
continue to borrow from outside.
That is why value adding industry is essentially important and should
be encouraged in this country. Cement industry is just one example, and
there should be many industries where this country should explore
possibility of full production or value adding production. |