The possibility of former U.S. President Donald Trump being re-elected is becoming more realistic, false information created by generative AI is spreading, and there is no end in sight to wars and conflicts. In a world that is becoming increasingly divided and chaotic, in what way can Japan, which is unable to stand on its own feet in terms of food, energy, resources or military, become the kind of country that the world needs?

With the rapid rise of the so-called Global South, Japan can no longer hope for the economic status it once enjoyed, and the key to its future now lies in the soft power. However, Japan's soft power is not just about culture, such as anime and food, the discipline and politeness of the Japanese people which foreigners admire, or its safe and clean cities. Rather, the soft power which Japan should essentially appeal for is its freedom, democracy and inclusiveness.

Japan ranked 16th in the "Democracy Index" ranking performed by the Economist Intelligence Unit (EIU), the research arm of The Economist in 2023. Among the 167 countries and regions surveyed, Japan was grouped as one of the 24 countries and regions that were rated as "full democracies." In contrast, the U.S. was classified in a group described as 'flawed democracies', ranking in 28th place. Ironically, Japan is now the democratic frontrunner ahead of the U.S. Soft power advocate Joseph Nye, Distinguished Service Professor, Emeritus, at Harvard University, also expresses his hopes that Japan's soft power is rising in the face of surging populism and authoritarianism.

The presence of a prosperous middle class is essential for exercising the soft power. It is the middle class, which is more inclusive and open to diverse opinions, that becomes the bearer of healthy democracy based on 'mutual respect and tolerance' and 'a sense of camaraderie and care for each other'.

In this respect, it is crucial to materialize the 'virtuous circle of growth and distribution' advocated by Keidanren (Japan Business Federation). While it is inevitable that competition for growth will generate inequalities, such inequalities must be prevented from being expanded and solidified. We, as management, are required to grit our teeth to continue to create innovation and increase profits, whilst rewarding our employees and business partners in a fair manner. Maintaining a stable society that is both free and inclusive is a value that could appeal to the world.

The role the business community can play in Japan's challenge to build a country that would be admired and needed as a fellow country by people around the world is by no means small.