Saturday, September 3, 2011

The New Japanese President

The above graph shows GDP growth rate of UK (red line), JPN (green line), and US (purple line as a bench mark for global economy) between 1961 and 2010. In addition, red and green arrows indicate the succession of both Britain's and Japan's prime minister, respectively.

As you can see, the Japanese prime ministers change more frequently than those of UK. According to research on the managerial succession, there are two things regarding top management's changes. One is that poor performance in a firm is more likely to lead a leader to change than good performance. The other is that the more often a manager and CEO in a firm change, the poorer the firm's performance is.

As long as I can see the above graph, I think those facts may apply to this case (though I have not conducted a statistical test to the relationship between the turnover and GDP growth). If the relationship is true, what I expect the new Japanese prime minister, Yoshihiko Noda,  is to be in office as long as possible.

Even as one of the Japanese, I cannot remember the name of the prime minister anymore.

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