Preface

Drucker

Part I--Times of Challenge

1 The challenges of China

What is the future for China's huge market?

Nakauchi

China offers greater dangers than any other market ... and opportunities too great to be ignored

Drucker

Only the development of invisible infrastructures will bring prosperity to China ... and that development is our task

Nakauchi

Only distribution-led economic development can create the human resources which China needs more than anything else

Drucker

2 The challenge of a borderless world

What do you think about the `hollowing out' of Japanese industry and Japan's role in a borderless world? What is the ideal arrangement of global economic blocs?

Nakauchi

There is no need for pessimism over the Japanese economy. The fear of `hollowing out' rests on fallacies

Drucker

Developing countries don't need government-to-government aid, but partnerships with private enterprises in developed nations

Drucker

Management has to learn to balance the three dimensions--global, regional and local

Drucker

Knowledge plays an important role in changing industrial structures

Nakauchi

3 The challenges of the `knowledge society'

Present educational systems cannot develop talent for the `knowledge society'

Nakauchi

The Japanese educational system itself is not wrong. Japan has its own forms of creativity and originality

Drucker

Continued learning is essential in the knowledge society. Wisdom is what being educated has always meant

Drucker

Now I have hope for young people who can innovate

Nakauchi

What changes will information technology bring to society, the economy and private enterprises?

Nakauchi

Convenience stores present an example of the information-based organization of tomorrow

Drucker

Developments in IT will transform every worker into an executive

Nakauchi

4 The challenges for enterpreneurship and innovation

An entrepreneur's role in society is to bring innovation

Nakauchi

I am confident that a third `economic miracle' will happen in Japan

Drucker

`Creation of customers' will be an eternal challenge

Nakauchi

5 Appendix to Part I

Correspondence concerning the Great Hanshin-Awaji Earthquake of January 17, 1995

Part II--Time to Reinvent

6 Reinventing the Individual

Japan urgently needs to reinvigorate ordinary people and make them more effective

Nakauchi

Knowledge people must take resposibility for their development and placement

Drucker

Executives can affect people's lives

Nakauchi

7 Reinventing business

How to design an organization structure that can revitalize a company?

Nakauchi

Without an effctive mission statement, there will be no performance

Drucker

The very reason for the existence of a company is to turn what is learned immediately into action, thus contributing to society

Nakauchi

8 Reinventing society

Converting organizations into social entities that contribute to society can protect society from degeneration

Nakauchi

There is need for a social sector to rebuild community

Drucker

Through volunteer work in the social sector one can regain citizenship

Drucker

Each of us must endeavour to influence and change society based on the principles of self-offering, self-discipline and self-responsibility

Nakauchi

9 Reinventing government

What are your views on government regulation and the role of government in a free market? What is your advice on reinventing government?

Nakauchi

The great strength of the free market is that it minimizes threats and mistakes

Drucker

We need to avoid regulations that are not enforceable, that have outlived their usefulness, and that penalize economic activity

Drucker

The initiative has to come from government and its policy has to be transnational

Drucker

Old political theory has collapsed Government has to re-think to transform itself into `effective government'

Drucker

Government must adopt an approach to economic policy that is oriented to the private sector