Lessons from Japan's Economic Transformation

1. Financial System Management:

• Act decisively during financial crises
• Establish bad asset management companies early
• Recapitalize banks promptly when needed
• Maintain strict lending standards

2. Property Market Reforms:

• Adopt modern valuation methods (DCF)
• Monitor asset bubble formation closely
• Prevent excessive corporate land speculation
• Balance urban-rural development

3. Demographic Challenge Response:

• Build comprehensive pension systems early
• Develop elderly care infrastructure
• Increase female workforce participation
• Embrace automation and innovation
• Maintain social security during transitions

4. Policy Implementation:

• Don't delay necessary reforms
• Act despite political opposition
• Balance monetary and fiscal policies
• Support affected sectors during transitions

5. Economic Adaptation:

• Diversify economic growth drivers
• Invest in new industry development
• Maintain social stability during changes
• Foster international economic cooperation
• Focus on productivity improvement

These lessons are particularly relevant for economies facing similar demographic and property market challenges.