Central Japan's Aichi region, cradle of the samurai and silent force of the nation's economy, will be under a rare global spotlight that could help it grow even further when it hosts the World Exposition which opens tomorrow.
Aichi prefecture, known as "the manufacturers' kingdom," has long been a locomotive for Japan's economy by fostering textile industries before World War II and afterward shifting its focus to automobiles led by titan Toyota.
The usually low-key province is expected to see some 15 million visitors during the Expo, a showcase of technology and innovation with exhibits from more than 120 countries in a forest park.
PHOTO: AP
"The Aichi economy is literally the dynamo of the Japanese economy as its earnings and spending have enriched not only the region but the entire country," said Toshihiro Uchida, an analyst at UFJ Research Institute.
The GDP of Aichi, some 250km west of Tokyo, is estimated at US$270 billion, a near match for that of Taiwan or Russia.
The region's trade surplus in 2003 stood at ?7.6 trillion (US$72 billion), accounting for 60 percent of that of the nation. Aichi shipped a record ?35 trillion in manufactured goods in 2003, the 27th straight year it was Japan's top industrial region.
The prefecture, whose capital is Nagoya, has the nation's fourth largest population at 7.3 million and an economically ideal infrastructure with a fertile plain and well-placed harbors.
Aichi produced some of Japan's key samurai knights including Tokugawa Ieyasu, the shogun who emerged from Japan's civil war era in the late 16th century to found a seat of power in what is now the capital Tokyo.
But modern-day Aichi -- halfway between Japan's two largest cities, Tokyo and Osaka -- has been in the shadows and will relish the attention that comes with the expo.
"Aichi has a great chance to appeal to the world and give an extra boost to its powerful economy by hosting the expo," Uchida said.
The economic impact of the exposition, the region's first major international event, is forecast to top ?2.2 trillion.
The figure includes the positive influence from the construction of Centrair, Japan's third major international airport, which opened last month as a gateway to the exhibition venue.
"Taking advantage of the World Expo, we aim to develop [Aichi] further in a bid to become a Mecca of manufacturing in the world," said Katsuhiro Nakagawa, vice chairman of Toyota Motor Corp, Japan's largest company.
One factor seen in Aichi's economic strength is its historically conservative management, which largely avoided the speculation during Japan's economic "bubble" which burst in the early 1990s,triggering a decade of recession.
"Rock-solid management prevented a lot of countries in the region from going on a spree during the bubble," said Yoshihiro Yasui, chairman of Brother Industries Ltd, another of the prefecture's leading companies.
But the counter side is less investment from the rest of the world.
"Traditionally, we have not been good at being appealing," Yasui said. "So our next challenge is to be able to send out a message to the world to introduce our solid spirit as great manufacturers."
The Nagoya Chamber of Commerce and Industry, Aichi's biggest business lobby, has taken an initiative to welcome foreign investment in the region.
"An important task before us is to emphasize our presence a bit to survive amid global competition with other cities," chairman Sokichi Minoura said.
Uchida said diversification was key for the region: "Aichi either swims or sinks with Toyota."
"As long as Toyota remains strong, the region is safe. But no one can tell what will happen to Toyota in a decade," he said. "Aichi has to take action now. Prevention now is better than a cure later."
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