Tadaharu Uehara, President of Japan Georgia Chamber of Commerce and Industry, member of Geocase Advisory Board, Ambassador Extraordinary and Plenipotentiary of Japan to Georgia from 2017 to 2020.
Interview by Victor Kipiani, Chairman of Geocase
- Mr. Uehara, please kindly share with us your experience and insights when serving as Ambassador of Japan to Georgia
- Victor, thank you for having me for this opportunity today. As a member of the Geocase Advisory Board, I am pleased to discuss how Japanese business contributes to further strengthening the relationship between our two countries, which the Japanese Government has contentiously pursued to build stable and fair economic fundamentals for the benefit of all like-minded countries.
I left Georgia for Tokyo in December 2020, in the middle of the coronavirus pandemic's peak. The one-way ticket back to Japan was very unappealing, and leaving the beautiful country of Georgia was extraordinarily emotional. I could have had acquaintances, Embassy colleagues, Ministers, Diplomats, Business people, and outstanding Artists and I missed many friends here.
The citizens of Georgia have been destined to live at the crossroads of civilizations, demonstrating the significance of geopolitical realities. I was fascinated by the deep history of people passing through this land and the Black Sea, building families here, and moving to new lands. This interaction has brought together wealth, fighting, war, and wisdom of humans in this land.
With its strategic location at the crossroads of the Middle Corridor, a vital trade route connecting Europe and Asia, Georgia plays a unique role. Beyond its economic significance, Georgia's value lies in its ability to connect human wisdom. It can serve as a convergence point for global economic initiatives like the EU's 'Global Gateway,' a trade strategy to enhance connectivity between Europe and Asia, and China's 'One Belt, One Road,' a development strategy to improve regional connectivity and foster economic cooperation, showcasing its acceptance of diverse cultures and economies.
- You now act as the Japan-Georgia Chamber of Commerce and Industry Chairman. Please briefly explain the mission of the Chamber and its activities so far.
- As the Chairman of the Japan-Georgia Chamber of Commerce and Industry, I aim to facilitate and promote business exchanges between our two countries. Our activities have included promoting trade, Japanese investment in Georgia, exchanging advanced technology, and encouraging dialogue between business persons. We have discussed with our Chamber members holding the 'Japan Fair' in Georgia to introduce fine Japanese goods and food ingredients to the Georgian market once we can see the environment is ready to go. This initiative promotes Japanese exports to Georgia and provides an excellent opportunity for Georgian products to be exported to Japan. We also want to develop a joint marketing strategy with Georgian partners to export 'Georgian-made Japanese products' to neighboring countries, including Russia and Central Asia.
While cultural exchanges between the two countries are awaking, I hope the business exchanges become positive encounters that expand our outlook, even though it may be stinging initially.
It is challenging to generalize the aspect of Japanese business, but it actually sees a broader range of stakeholders to pursue sustainable profits. We need to pay attention to values of diverse stakeholders in earning customers' trust in various countries, empowering employees with different cultural backgrounds, contributing to global shareholders, and paying favors back to societies as good corporate citizens. It is not just about corporate social responsibility- it is about creating shared business value.
The knowledge and experience exchange between us can generate significant business value across Asia and extend it to other Continents. While the two countries may have different business sentiments, mindsets, and approaches to entrepreneurship, we can harness these differences to create new business values and innovations. I hope our Chamber can serve as a platform for mutual understanding, laying a solid foundation for our cross-cultural business ventures.
- Business ties between Japan and Georgia hold significant potential for my country. Based on your experience and knowledge, could you identify the venues and industries in Georgia that could be of interest to Japanese companies?
Indeed, exploring opportunities is an exciting prospect that could lead to mutually beneficial partnerships and economic growth. Venues for growth and progress should inspire us to continue our collaborative efforts and remain optimistic about the future.
Each member of our Chamber has plans to launch a business in Georgia. One Japanese iron products maker plans to collaborate with a Georgian partner by introducing Japanese technology to produce advanced iron products to meet the domestic demand in Georgia and prepare for export to Ukraine, contributing to her reconstruction demand in the near future. One Japanese medical doctor is interested in broader applications of bacteriophage to regenerate cell treatment. One Japanese electric power company is eager to develop green energy with cutting-edge technology to meet carbon-neutral goals. Japanese Sake (rice wine) tourism institution seeks the opportunity for joint efforts with the Georgian Wine Agency to promote and stimulate an inbound tourism demand in both countries. One Japanese financial institution is about to enter Georgia's microfinance business.
We must remember the vital aspiration among Japanese food companies to export authentic Japanese food ingredients and interest in importing Georgian wines, nuts, beans, mushrooms, herbs, and spices.
The challenges of promoting trade require logistics efficiency, ability and capacity to meet food inspections, commitment to delivery deadlines (punctuality), and ensuring quality control throughout transit. While some Georgian traders might find such procedures and requirements somewhat annoying, joint efforts with Japanese businesses will be rewardable in penetrating the Japanese market and similar new markets.
As a private business is not a grant, a venture planning to launch a new business in a new market requires careful due diligence to ensure the bankability and soundness of the business, such as trustworthiness and sustainability of partnership, corruption-free and legal compliance, profitability of plan, and accountability to stakeholders. However, beyond these aspects, successful business partnerships are built on trust, integrity, and passion. These values will guide our collaborations and ensure their success, inspiring us to commit fully to our shared goals. The efforts will create more jobs, develop corporate human resources, and stimulate innovation with advancing technology.
- Mr. Uehara, we sure appreciate that there are some specifics when speaking to the Japanese business community in your endeavors to attract them to Georgia. Please share with us what those specifics are we should be aware of.
- Through 33 years since independence, Georgia has demonstrated remarkable resilience, thriving in the era of globalization. Similarly, despite World War II's profound impact, Japan has shown resilience, evolving and adapting over the nearly 80 years since the end of the war. Reflecting on my extensive career at Tokio Marine and Fire Insurance Company, Japan's largest insurance company, I have witnessed significant changes and innovations in its management, such as corporate governance, capital policy, empowering employees, and enhancing gender equality. We have had a lot of successes and failures, too. Every business has a bright and negative side, as does the individual. Notwithstanding the hermaphrodite of humans, it is intriguing that ancient business ethics remain in the subconscious of Japanese businesses.
In Japan, the word 'Sanpou Yoshi' exists (literally, 'Good for three stakeholders'). It is a business ethics concept that originated among the 'Omi Merchants' who were active in the Edo period more than 400 years ago. They embraced this motto, which advocated that sustainable business must be good for the three stakeholders: a customer, a company (even though there was no modern concept of 'company' in this era), and a society. 'Sanpou Yoshi' is ingrained in Japanese business culture, guiding decisions and actions today.
Japan has experienced trade friction with the United States since the 1960s in the textiles, steel, automobiles, and semiconductors industries. In the 1980s, 'Economic Structure' negotiations began, which called for changes in the Japanese economic structure, including the banking and insurance sectors, to address the trade imbalance. These frictions and negotiations were the precursors of a change in the Japanese business model, and together with the introduction of BIS regulations globally, the Japanese financial system and economy faced a real challenge in transforming its structure to survive and maintain its competitive edge in trade and investment in the global arena.
Having been deeply engaged in the transformation process at Tokio Marine, I understand the immense difficulty businesses face when trying to change. However, despite the challenges, the state economy must implement "transformation" and adapt to new norms while preserving core traditional values. It is not just a choice but a necessity for the survival and growth of our economies.
Like Japan, Georgia is a country with deep traditional values in society. The effort to integrate into the EU values over time will demonstrate the triumphant story of change among the rest of the world. We have common agendas that present opportunities for collaboration and mutual growth.
- Noting your capacity as an Advisory Board of Geocase member, we are truly grateful for your guidance and support. That being said, please elaborate very briefly on priorities for our think tank to contribute to promoting relations between Japan and Georgia.
- Thank you, Victor. Geocase's insights are critical in helping me better understand Georgia.
Politics and economies are arts created by human actions and efforts. They are not determined solely by an external fate or a nation's substructure but by the diversity brought about by human actions. The way we use words today, the way we understand the fate of economy and democracy, and our own Country's traditions may look very different in 20 to 30 years.
Japan spent about 80 years after the devastation of WWII trying to come up with a new democratic and pacifist constitution, and we are still arguing to adapt ourselves to the new norms. It's fair to criticize that the speed of change in Japan is too slow, but as a businessperson involved in transforming one of the private companies, I can honestly see how we've come this far. While I disagree with deterministic views of human development, commerce as a fundamental human activity can contribute to a more peaceful world. Georgia is essential in fostering peaceful integration between nations at this crossroads. We both underpin the sovereignty of the Country, liberalization of the citizens, and democracy in the nation's governance, which we decide for ourselves.
Like the Georgian economy, the Japanese economy is only halfway through its quest for a more equal and growth-oriented economy embracing diversity in individuals. I would be happy if our efforts could contribute to many success stories between the two countries' businesses. The efforts to learn from Georgia's nation-building trajectory will bring invaluable opportunities for us to review and realize a better Japanese society.