Japan’s Development Experience ―The Role of the Government － GSID, Nagoya University 1 September 2008 Prof. KIMURA, Hirotsune Non-Degree Training Program for the Professional Human Resource Development Project, Phase III (PHRDP-III) Ministry of Finance, Republic of Indonesia on Good Governance: Japanese Experience
Before modernization, the Warlord system had been the basics of Japanese history. The castle in the picture is a warlord residence.
Warlord trained warrior’s children, introduced merit system and used them in all fields of local government management like finance, commerce and agriculture
Children of merchants and better off farmers went to private schools called “Terakoya” (There were about 15 thousand in mid-19 th century). Teachers of “Terakoya” were Buddhist monks, unemployed warriors and others. Japan’s literacy rate in 1868 was 54% among men and 10% among women (In UK 1837, it was 20 ～ 25 ％ ). More important thing is that the textbooks were on ordinary life and practical science.
Distribution of warlord schools (in square) and terakoya (red dots) in present Tochigi Prefecture (Northern Tokyo)
In case of Aizu warlord government （会津藩） , they produced value added tableware by painting on the lacquered wooden bawls( 会津漆器 ).
Aizu government lacquered tableware used also qualified net design.
Sword artisans made guns easily from iron sand using their traditional skill for producing sward. After 2 guns being bought in 1543 by warlord of Tanegashima with 200 million yen (in present value), guns were massively produced within a decade. In 1575, warlord Oda mobilized 3000 guns to defeat Takeda army.
In 1575, warlord Oda mobilized 3000 guns to defeat Takeda army at Nagashino.
Warlord governments prepared shelters for casualties. Farmers were believed to be the basics of the nation in producing local wealth.
The US military fleet enforced the opening up of Japan. The Meiji Restoration in 1868 was the foundation of Japan’s modernization under threat of colonization.
Reasons of Japanese success in modernization <ul><li>Present danger in international relations set the national mobilization system not only in national resources, but also spirits. </li></ul><ul><li>Building government (bureaucracy) went ahead of making constitution and parliament </li></ul><ul><li>Industrialization ： the government took the initiative for the industrialization (+ success of business mobilization) </li></ul><ul><li>Importance of SMEs : 80% of GDP in Meiji era was personal consumption represented by agricultural products and cottage industry products (ceramic, textile, processed foods…). </li></ul><ul><li>Agricultural modernization promoted by the government (+ peasant’s efforts) </li></ul><ul><li>Japan’s literacy rate in 1868 was 54% among men and 10% among women (In UK 1837, it was 20 ～ 25 ％ ) </li></ul><ul><li>Recently, the social capacity for industrialization has been noticed (Prof. Suehiro Akira). </li></ul><ul><li>All red marked elements were prepared during Edo era (1600~1867) or even before Edo era. </li></ul>
A fully set modernization started. The picture shows a government owned iron mines (Kamaishi, Miyagi Prefecture).
The Meiji Government constructed a nation-wide railroad system.
The first railroad was constructed inside Tokyo City.
Railroads were constructed nation wide. Japan’s 70% of land is mountainous areas. Often times, the public works was a tough work .
Construction of bridge pillars at the valley area for railroad.
The Meiji government constructed the first modern textile factory with much borrowing administered by a French engineer.
Warriors’ daughters became first generation laborers and teaching staffs in other factories.
The Meiji government practiced big scale public works to widen cultivating fields. The population of Japan increased from 30 to 90 million during 1868 to 1941. Developing countries can’t develop if they underestimate agricultural modernization .
A present road along the embankment of that public works
Koriyama basin, Fukushima Prefecture, was an arid barren land during Edo era. Meiji government constructed underground canal system from Lake Inawashiro to the basin and introduced 500 families of unemployed former warriors. The length of the main canal was 52km and the total length of branch canals was 78km. Using 3 years, Meiji government brought 4000 ha under cultivation.
Intellectuals who led the modern Meiji era in a local area (Gunma Prefecture)
The Meiji Government founded various government schools, vocational schools, and universities which were followed by private schools.
Junior high school before the WWⅡ was for 5 years.
A preserved old primary school building now used as a municipal library.
All primary schools had the statue of Ninomiya Kinjiro , an intellectual farmer who promoted agricultural devices and helped many people during the Edo era. He studied hard when he was a child while helping parents’ jobs.
At the final stage of WWII, the US bombers destroyed the top 44 cities of Japan, except 4 atomic bomb candidate cities (Hiroshima, Nagasaki, Kyoto, Niigata).
At the air strike of Tokyo on March 10, 1945 100 thousand persons were killed by 325 bombers （東京大空襲） . This experience produced the national atmosphere “We shall never fight the war” which connected with the support to the article 9 of present constitution. Just opposite to the US.
The Horrors of War The experience gave Japanese elite the conviction “If we fight against Anglo-Saxon, Japan will be destroyed.” It was the first experience Japan was defeated completely by other nation in its history. The very deep rooted Japan’s subordination to the US started.
The Japanese were forced to recognize that not only their physical facilities, but their whole system (militarism, authoritarian society etc.) was destroyed. A comprehensive reform has been started after the surrender. But actually, the post-world war Japan’s political system started as the extension of mobilizing industry for the state. That is called the “1940s System” which became the basics of Japan Inc. This scene signifies the basics (starting point) of post-world war Japan.
Construction of Developmental State: the Major feature of Post WW2 Japan’s economic growth <ul><li>Chalmers Johnson’s book “MITI and Japanese Miracle” (1982) is the leading book on this topic. MITI (Ministry of Trade and Industry)’s naming of Japan’s economic system = (government) planned market economy . “The most basic issue is the relation between the government institutions and economic activities.” </li></ul><ul><li>Developmental state means the government system where political- bureaucratic- business elite have the consensus to prioritize economic development and the whole government system led by the bureaucracy is set to support that direction. </li></ul><ul><li>Features of budget expenditure: </li></ul><ul><li>USA = military state = military expenditures have been prioritized in national budget. </li></ul><ul><li>EU = welfare state = social welfare expenditures have been prioritized. </li></ul><ul><li>Japan = corporation state (or Japan Inc.) </li></ul>
Kasumigaseki by the emperor’s palace (left side), Tokyo, is the area where the majority of central government ministry buildings are located.
The other side of emperor’s palace (former Edo castle) is the business center (Marunouchi) of Japan.
Keidanren (Federation of Japanese Business Association) is the headquarter of Japanese big business. Keidanren is center building. Right side is Nikkei building which issues Nikkei Business Daily, the representative business newspaper in Japan (3 million copies). The left side building is one of state banks of Japan.
The second building from the left is CCI (Chamber of Commerce and Industry) headquarter office, which represent Japanese SMEs SMEs count 99% of all Japanese companies. Left side building is Mitsui Life Insurance Co. which was used as the headquarter office of GHQ (General HeadQuarter of US occupation force after the WWⅡ 1945~52) which faces emperor’s palace.
Institutionalized Regular discussion system among 3 elements of elite class Accepting thousands of retired bureaucrats Donation to LDP (= “second investment”) 40% of LDP MPs from bureaucrats in 1980s Agriculture, Fishery and Forestry Committee of LDP Iron Manufacturing Section, Bureau of Heavy Industry, MITI Japan Iron and Steel Federation Commerce and Industry Committee of LDP Automobile Section, Bureau of Heavy Industry, MITI Japan Automobile Manufacturers Association Financial Committee of LDP Banking Section of MOF (MOF) Japanese Bankers Association Liberal Democratic Party (LDP) Bureaucracy Business associations
From e-Japan to u-Japan <ul><li>e-Japan as national strategy (2001~05) high speed internet to 30M by 2005 = attained: 2008: proliferation of internet to 57% of families = 2.8M families </li></ul><ul><li>proliferation of HP to 127M=80% of all people; US 76%; Africa 21%; world average 41% </li></ul><ul><li>(Indonesia: 25M internet users = 10% of population = urban; </li></ul><ul><li>HP user to 75.6M ) </li></ul><ul><li>Japan’s government strategy to make active IT system: </li></ul><ul><li>Proliferation of high speed internet </li></ul><ul><li>IT-zation in education </li></ul><ul><li>IT-zation in international deals and communication </li></ul><ul><li>E-government, e-local government </li></ul><ul><li>(a) more efficient management of governments </li></ul><ul><li>(b) information disclosure </li></ul><ul><li>(c) easier public service to citizens and companies </li></ul><ul><li>(d) promotion of participation by absorbing more opinions… </li></ul><ul><li>From 2006 to 2010, u-Japan (u = ubiquitous = anytime, anywhere, anything, anyone) </li></ul>
A Prefectural government building (Japan has 48 prefectures)
City Government Hall (Kobe) 1.5 million population Number of second level local governments before and after the large scale amalgamation ( ) means administrative village 1001 (193) 783 1784 Nov. 2008 2562 (568) 670 3232 1999 municipalities cities Total LGs
Former Shimizu City Hall (with 243 thousand population)
Miyako City Hall (with 55 thousand population)
Municipal Hall of Taro (with 5 thousand population)
Municipal Hall of Okushiri (with 4 thousand population)
The Community Hall of Yaizu City Government near the seashore. (constructed as a 3-story building as a preventive measure against tsunami)
Community Hall of Kora Municipal Government The building was built in a traditional style as part of local culture based on the rural revitalization movement.
Social infrastructure Japan’s community is very strong. It has the combination system of self-help, mutual -help (neighborhood) and public help. <ul><li> In Japan, there are about 300,000 neighborhood (community) associations (RT, RW) throughout the country. In the community, centered around neighborhood association, there are: </li></ul><ul><li>organized self-disaster prevention association (jishu-bosaikai); </li></ul><ul><li>women’s cease fire association; </li></ul><ul><li>community women’s association; </li></ul><ul><li>association for aged; </li></ul><ul><li>association for children. </li></ul><ul><li>Cease Fire Organization at the community level is also organized under the fire station that has the responsibility in anti-disaster system at the local government level. </li></ul>These community organizations are especially strong in rural areas and local city areas where about 90% of inhabitants pay the fee for neighborhood association. But they took an important role even in big city areas where only about 50% of people pay the fee for neighborhood association. The good example is at the time of Hanshin earthquake in 1994 at Kobe and surrounding cities. In Japan, successful community organizations reduce the cost of organizing self-help or mutual-help system at the bottom.
Building Developmental Regime at the Local Leve l <ul><li>LGU should be the agency or the “think tank” of “Integrated Management Body at the Local Area” and “Planning Agency” and also should be the Center of tripartite cooperation among LGU, business and civil society at the area. LGU is an Integrated Service Industry for practicing economic and social developments of the area. </li></ul><ul><li>In Japan, society is “strong” because of the well developed Agricultural Cooperative (JA) (nation wide organization having 350 thousand full staffs) and CCI (Chamber of Commerce and Industry in cities and Association of Commerce and Industry in municipalities) as cores. It has been easier for Japan’s local areas to build Japan Inc. local version and realizing NGO-GO synergy between strong and institutionalized LGU and strong and institutionalized Business and (not so strong) civil society organizations. </li></ul>
Agricultural Research Center of Aichi Prefectural Government: It is an 8-story building located at the center, having surrounding laboratory farms and about 30 agricultural extension workers.
Nisshin City (Government) Hall The city, adjacent to Nagoya, has 70 thousand population.
Nisshin City CCI (Chamber of Commerce and Industry) Building is on the opposite side of the road from the city hall.
Let’s promote Dream to our area!! Prosperity to our companies!! Board sign of CCI We provide tax consultancy on …. every month.
Agricultural Cooperative (JA) has a big influence. Because of the amount of members, the JA head has a big influence in supporting the next mayor. Banking section Insurance section for life, health, car, fire… Direct Deal Shop of Agricultural products
City Hall, CCI and Agricultural Cooperative are in the same site.
National road Direct deal shop of cooperative. Member farmers bring in their products City Hall at the back Cereal Center of Agricultural Cooperative: Imported cereals for livestock
Agricultural Cooperative Direct Deal Shop: The Local Government, Agricultural Cooperative and the Association of Commerce and Industry cooperate closely and constitute the core of Japan Inc. local version.
Horizontal Transparency Inside Municipal Halls, it can be observed that various sections are not divided by walls.
Local Economy Promotion Corporation building which is the joint venture between the Local Government, Agricultural Cooperative and the Association of Commerce and Industry The building is former municipal hall (former Municipality of Hachiman, Gujo District, Gihu Prefecture)
Inside the building, there is a souvenir shop selling local products.
Winery factory of the Municipality of Ikeda, Hokkaido another typical joint venture among the three sectors: local government, agricultural cooperative and chamber of commerce and industry
“ One village one product” movement shop, Municipality of Oyama (the birth place of this movement) now promotes “one village 128 products.” Agricultural sector as the typical 6 th industrial sector = Agricultural sector (1 st ) × Industrial sector (2 nd =food processing) × Service sector (3 rd )
Party after 5 p.m. with rural revitalization movement activists/inhabitants.
For getting deeper information, drinking together after 5 p.m. is indispensable.
If you go to a Shinto Shrine and look around carefully, you can find out sake barrels. Japanese gods are known to love drinking. “ Sake” is made from rice. It has been the symbol of good harvest. “ Sa” meant god. “Ke” meant food in ancient Japan. Sake meant gods’ food.