Japan has a higher life expectancy, lower crime rate and lower rate of drug overdose death, than other advanced economies.
Having safe streets, not inundated with severely mentally ill people with severe substance abuse problems, or rampant property crime that residents often don't even report due to the police being overwhelmed and apathetic, provides for a more tranquil and enjoyable life, not reflected by wage or per capita GDP statistics.
I'm not so certain it can be considered failing in how it manages itself - at least not any more than peer states.