Beyond floppy disks: Can Japan modernize its digital economy

Japan’s dependence on outdated, analog administrative procedures is stunting its digital economic potential, according to an analysis by Charles Crabtree for the Lowy Institute. The report identifies a «state capacity problem» where government services fail to match the precision of the nation’s private sector, particularly regarding routine tasks like criminal-record checks.

A gap in efficiency

While peer nations like Australia and Singapore offer digital certificates within days or hours, Crabtree notes that Japan requires physical presence and the manual pickup of sealed paper documents. This bureaucratic friction affects everyone from researchers seeking European work permits to graduates starting jobs in Singapore, often resulting in months of unnecessary delays. Despite having world-class infrastructure in other sectors, the government’s refusal to allow citizen-initiated, digital requests signals a lack of priority for individual efficiency.

Pathways to administrative reform

To bridge this gap, the analysis outlines a five-point plan centered on making digital services the default standard. According to Crabtree, the government should utilize the existing «My Number» ID system to issue digitally signed PDFs and implement secure QR code verification. He highlights that these reforms are relatively simple to enact, as they require neither constitutional changes nor significant budgetary increases. Ultimately, modernizing these «small» frictions would signal that Japan is ready to compete as a modern, digital state.

Read also: Bureaucracy in pictures: A global tour with Jan Banning.