Okinawa's competitiveness challenges for self-reliant economic development

Abstract

This chapter focuses on Okinawa's post-reversion economic performance, problems and prospects. In doing so, we will also discuss Okinawa's competitiveness in the Japanese as well as the world economies. How to measure competitiveness is rather illusive for Okinawa because it is now an integral part of Japan politically as well as socioeconomically. The chapter identifies economic activities in which Okinawa can reap comparative advantages on tourism, health and foods, sports and entertainment, small-scale industries and networking businesses including call centres, and entrepot trading. These activities are already emerging visibly by the initiative of the private sector with institutional support from local as well as central governments. A crucial requirement for economic success is a highly flexible, skilled labour force. Okinawa has been experiencing a growing mismatch in the labour market arising from a rapid transformation of economic structure and lagging human resource development. The chapter calls for a drastic policy shift, from investments in hard and tangible infrastructures such as roads, bridges, ports, monumental buildings, to investments in soft infrastructures such as human resources development and information networking.