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Focusing on crises unfolding and not yet resolved, Diamond begins with Japan. He first notes the strengths that Japan has. It has “the world’s third-largest economy” (294), high individual productivity, an “excellent infrastructure,” and a “healthy, well-educated workforce” (295). Ethnic tensions are low, as is the crime rate (297). The country also has environmental advantages, with high agricultural productivity.
Among its problems is Japan’s high national debt. However, most of the debt is owed to “bond-holding Japanese individuals” (299), not foreigners. Still, its large size consumes most of the government’s income from taxation. Its other problems are linked together. They are women’s roles, a low and declining birth rate, a declining population, and an aging population (300).
Although men and women theoretically have the same status, the reality is disadvantageous for women. Wives are expected to stay home and raise children, while men work long hours. For those women who do work outside the home, they are paid poorly compared to men. Compared to other wealthy countries, women are significantly more underrepresented in managerial and faculty positions. Childcare is not readily available to working mothers. Diamond notes that the “underemployment of Japanese women constitutes” (303) a loss of half Japan’s human capital.