1. Top
  2. Publications
  3. "Youth & Millennials, the Enablers of Sustainable Capitalism"

Messages from Keidanren Executives September, 2021 "Youth & Millennials, the Enablers of Sustainable Capitalism"

Mitsuru IZUMO Vice Chair of the Board of Councillors, Keidanren
President, Euglena Co., Ltd.

It was in 1989, the first year of the Heisei era that Japan was ranked as top in IMD World Competitiveness Ranking. However, 30 years later, Japan dropped to a record low of 30th place in the ranking. For the last 30 years, Japan's labor productivity has been the lowest in the Group of Seven Countries (G7) and it is even below the average levels of OECD member countries today.

In Reiwa era, an international business environment is becoming fiercely competitive.
It was in summer of 2020 that the market capitalization of GAFAMs exceeded the total market capitalization of all companies listed on the first section of the Tokyo Stock Exchange. The gap keeps widening and the market capitalization of GAFAMs has been about to reach 1,000 trillion yen in less than one year, while the total market capitalization of the companies listed on the first section of the Tokyo Stock Exchange has been stagnant at around 700 trillion yen.

Japan was the first country in the world to succeed in the period of rapid economic growth, and as a result, Japan has become the slowest in the world in developing entrepreneurial human resources and digitalization, which are essential when population is declining.
The next four years will be literally the last chance for Japan. In 2025, digitally native, sustainability-first Millennials and Generation Z will be a majority of all the working-age population. If we start to prepare from now on, we believe that we will make a miracle in 2025.

Millennials, who started to work since 2000, are digital natives having an access to the Internet from an early age. At the same time, they have faced serious crises such as the Great East Japan Earthquake, a series of extreme weather events, and COVID-19 at a young age. From this kind of circumstance they are serious about building a sustainable society and start a business with the mission of achieving the SDGs for granted.

It may sound difficult to realize Sustainable Capitalism, but it can be achieved by 2025 if Japan Business Federation member companies, universities, and young people work together to bring about innovation. I hope that young people, students, and Millennials will be given the chance to open up the Japan in Reiwa era and create Sustainable Capitalism for the first time in the world.

Publications