After seven long years of ecomic malaise, it is clear that something has gone awry in Japan. Unless Japan undertakes sweeping reform, official forecasts w warn, growth will steadily dwindle. How could the world's most acclaimed ecomic miracle have stumbled so badly? As this important book explains, the root of the problem is that Japan is still mired in the structures, policies, and mental habits of the 1950s-1960s. Four decades ago while in the catch-up phase of its ecomic evolution, policies that gave rise to Japan, Inc . made a lot of sense. By the 1970s and 1980s, when Japan had become a more mature ecomy, catch-up ecomics had become passe, even counterproductive. Even worse, in response to the oil shocks, Japan increasingly used its industrial policy tools. t to promote winners , but to shield losers from competition at home and abroad. Japan's well-kwn aversion to imports is part and parcel of this politically understandable, but ecomically self-defeating, pattern. The end result is a deformed dual ecomy unique in the industrial world. Now this dualism is sapping the strength of the entire ecomy. The protection of the weak is driving Japan's most inefficient companies to invest offshore instead of at home. Without sweeping reform, real recovery will prove elusive. The challenging thesis articulated in this book is receiving widespread media attention in the United States and Japan and is sure to provoke continuing debate and controversy.