Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Japan Then & Now


Published on

Pre and post war Japan...A success story

  • Be the first to comment

  • Be the first to like this

Japan Then & Now

  1. 1. Japan – then and now May 2010 A M Choudhari
  2. 2. Historically <ul><li>Europe has a recent record longest time in history of having no war since 2 nd world war </li></ul><ul><li>Japan did not have any war for long 250 years from 1600 – Shogun period </li></ul><ul><li>Japan had rigid class lines with Samurai at top and farmers, merchants at bottom. But by educating your children you could move up. Now these are further thinner </li></ul>
  3. 3. Beginning and end of war <ul><li>On December the 7 th 1941: Pearl harbor was attacked by Japanese forces </li></ul><ul><li>British ships Prince of Wales and Repulse were sunk </li></ul><ul><li>Japanese took the Philippines and Hong Kong in a month’s time </li></ul><ul><li>In retaliation, 1 st atomic bomb was dropped on 6 th of August 1945 at 8.15 A M on Hiroshima and then on Nagasaki </li></ul><ul><li>The war was over </li></ul><ul><li>The Emperor Hirohito spoke to nation. For the first time Japanese heard him… on radio. </li></ul>
  4. 4. Effects of war on Japan <ul><li>2,750,000 Japanese soldiers died </li></ul><ul><li>Soviets seized southern half of Sakhalin island and still hold it </li></ul><ul><li>Soviets stormed into Manchuria and 500,000 Japanese soldiers were taken as prisoners and sent to Saiberia as bonded labour </li></ul><ul><li>In this process, many Japanese offered their children and orphans to Chinese. These children, now grown up, still try and manage to locate their old parents in Japan </li></ul><ul><li>32% of the population was de-housed in bombing </li></ul><ul><li>The US seized Okinawa which they returned in 1972 </li></ul><ul><li>Japan spends only 1% of GDP on defense now </li></ul>
  5. 5. Effects of war on Japan <ul><li>B 29 bombers had destroyed Osaka, Nagoya, Tokyo, Yokohama. Everything except few sturdy buildings was destroyed </li></ul><ul><li>4 out of 7 million left Tokyo </li></ul><ul><li>It was worse than 1923 Tokyo earth quake </li></ul><ul><li>Only 10% of the cars and 60 buses were running in Tokyo after the war </li></ul><ul><li>Sickness was rampant and tuberculosis was at 22% </li></ul><ul><li>Hospitals were short of medicines, bandages, cotton </li></ul><ul><li>Japanese burnt many important like news papers-photographic achieves, company records due to fear and suspicion </li></ul><ul><li>Inflation was high at 150% </li></ul>
  6. 6. After war <ul><li>Nobility was deposed </li></ul><ul><li>Ranking system was abolished </li></ul><ul><li>Diet gave equal rights to women and minorities </li></ul><ul><li>Established basis for divorce and marriage laws </li></ul><ul><li>More rights to individuals </li></ul><ul><li>Most important reason for change in social structure was that, land from large land lords was dispossessed </li></ul>
  7. 7. Post war <ul><li>Post war all Japanese struggled to rebuild nation </li></ul><ul><li>They bought technologies and bettered them </li></ul><ul><li>They bought steel making technology from Austria but were selling improved technology back after a decade </li></ul><ul><li>Most advanced research is carried out in National universities, but 80% burden is carried by private industries </li></ul><ul><li>High education helps in development </li></ul><ul><li>Today even though labour is expensive, it is educated </li></ul><ul><li>Today there is dis content that education system warrants earning high marks and leaves less time for original thinking and experimentation </li></ul><ul><li>Today Japan files 117 patents / 1000 population PA as compared to USA 70 and South Korea at 65 ( India, China at 0.5) </li></ul>
  8. 8. Industry after war <ul><li>New labour laws were passed </li></ul><ul><li>It became impossible to fire any one </li></ul><ul><li>25000 unions were formed and 5 Million joined </li></ul><ul><li>Long suppressed liberals went on strike and rampage attempting to storm the palace </li></ul><ul><li>Supreme commander General Douglas and the Diet banned strikes by public servants </li></ul>
  9. 9. After war <ul><li>Zaibatsu (large / powerful conglomerates) was banned </li></ul><ul><li>New tax laws came into force </li></ul><ul><li>Japan became egalitarian society </li></ul><ul><li>Earlier Japanese life was full of poverty and bitter struggle for survival </li></ul><ul><li>Now there is no poverty as it is known else where in the world </li></ul><ul><li>Today the middle class is 90%. There are very few rich or poor people </li></ul><ul><li>Japan today has 100% literacy </li></ul>
  10. 10. Japan then and now <ul><li>Pre war, few family owned companies like Mitsui, Mitsubishi, Sumitomo controlled 25% of paid up capital of Japan </li></ul><ul><li>These “ Zaibatsu” controlled politicians and decisions </li></ul><ul><li>After war these were disbanded and assets were frozen </li></ul><ul><li>Wealth and power were taken away from rich families </li></ul><ul><li>New banking laws were imposed </li></ul>
  11. 11. Economy after war <ul><li>Quality of Japanese goods before war was unknown to the world and limited to umbrellas, toys and Kimonos </li></ul><ul><li>“ Made in Japan” was printed on goods in smallest possible letters </li></ul><ul><li>Japanese economy grew at double digit from mid 50s </li></ul><ul><li>>20% saving rate and low inflation helped </li></ul><ul><li>Today > 99% homes have colour TV, washing machine and refrigerator </li></ul>
  12. 12. Industrial development <ul><li>Companies like Sony founded after war moved aggressively crating innovative products and still lead the world in their playing field </li></ul><ul><ul><li>Basic transistor was modified in to completely new kind of transistor with tunneling effect earning a Nobel for Leo Esaki </li></ul></ul><ul><ul><li>Walkman. Sold >20 Million in 70 models </li></ul></ul><ul><ul><li>World’s 1 st VCR ( Emmy award) </li></ul></ul><ul><ul><li>Trinitron technology for projecting in colour TV (Emmy award) </li></ul></ul><ul><ul><li>3.5 inch floppy disc </li></ul></ul><ul><ul><li>First hand held video camera </li></ul></ul><ul><ul><li>1 st CD </li></ul></ul><ul><ul><li>1 st film less camera </li></ul></ul>
  13. 13. More progress <ul><li>1964 Olympic games boosted development </li></ul><ul><li>Express ways </li></ul><ul><li>Bullet train – Shinkansen </li></ul><ul><li>Magnetic lavitation trains </li></ul><ul><li>Hotels, air ports, urban beautification </li></ul><ul><li>1972 – Japan hosted Winter Olympics </li></ul><ul><li>Boosted civic pride </li></ul><ul><li>Laws against noise polluting vehicles </li></ul>
  14. 14. Japanese management <ul><li>Belief in life time employment </li></ul><ul><li>Belief in equality </li></ul><ul><li>A graduate trainee can aspire to become chairman like Kenichi Yamamoto of Mazda motors </li></ul><ul><li>High employee involvement in decision making (Quality circles) </li></ul><ul><li>Famous Toyota management </li></ul><ul><ul><li>Lean manufacturing </li></ul></ul><ul><ul><li>Kanban </li></ul></ul><ul><ul><li>Kaizen </li></ul></ul><ul><ul><li>TPM </li></ul></ul><ul><ul><li>Pokayoke </li></ul></ul><ul><ul><li>Jidoka </li></ul></ul><ul><ul><li>Hejunka </li></ul></ul><ul><ul><li>5S </li></ul></ul><ul><li>Winning a Edward Deming ( American) quality award is the highest distinction a Japanese company thieves to attain </li></ul>
  15. 15. Japanese management <ul><li>In Japan there are no separate canteens for workmen and executives </li></ul><ul><li>No cabins for managers </li></ul><ul><li>All wear same uniform </li></ul><ul><li>Foreman has short meeting with workmen every morning to discuss plan for the day </li></ul><ul><li>There are Quality circles to resolve problems </li></ul><ul><li>They believe in finding solution at Gemba meeting ( work place) and not in a meeting room </li></ul><ul><li>An employee is recruited based on his qualification but later the growth is mainly performance based. </li></ul><ul><li>Average employee gives 8 suggestions a year </li></ul>
  16. 16. USA Vs Japan <ul><li>In the US, when there is a traffic accident, the lawyers take up to 35% from the victim to settle the insurance claim, the situation unknown in Japan </li></ul><ul><li>While the US was busy creating lawyers, Japan focused on creating engineers </li></ul><ul><li>In the US the businessmen often do not trust his colleague as he may become a competitor, not in Japan </li></ul><ul><li>In the US satisfying goal in life is comfort (most advertisements also project this aspect), whereas in Japan, company patriotism and Job satisfaction is equally important as money. </li></ul><ul><li>In Japan there are many holidays but no long vacations, even to school children </li></ul>
  17. 17. Equality <ul><li>Only few trains have 1 st class </li></ul><ul><li>Domestic airlines do not have 1 st class </li></ul><ul><li>Very few companies have private planes </li></ul><ul><li>Now Japan has rich people but not wealthy </li></ul><ul><li>It was difficult afford a car </li></ul><ul><li>Wealthy had to pay huge wealth tax, 85% tax and lost land in reforms </li></ul><ul><li>Even today, inheritance taxes are high </li></ul><ul><li>Graduated taxes rise sharply with income and make it useless for a company to pay high salary </li></ul><ul><li>Salary of the chairman is only 7 to 8 times that of newly joined executive </li></ul><ul><li>Japan has no multi millionaires </li></ul><ul><li>Companies do not give huge bonuses or stock options </li></ul>
  18. 18. Industrial growth <ul><li>Japan has more makes of civilian products than any where on earth </li></ul><ul><ul><li>9 auto makers </li></ul></ul><ul><ul><li>2 heavy truck makers </li></ul></ul><ul><ul><li>900 machine tool makers </li></ul></ul><ul><ul><li>600 electronic companies </li></ul></ul><ul><ul><li>7000 textile companies </li></ul></ul><ul><ul><li>Etc. </li></ul></ul><ul><li>Japanese believe in long term profits (capital investment) than short term </li></ul><ul><li>They invested in semiconductor plant and machinery when Americans and world was on decline </li></ul>
  19. 19. Business success <ul><li>Japanese believe in </li></ul><ul><ul><li>Good quality </li></ul></ul><ul><ul><li>Innovation </li></ul></ul><ul><ul><li>Large variety to suit different customer tastes </li></ul></ul><ul><ul><li>Design excellence </li></ul></ul><ul><ul><li>Construction class </li></ul></ul><ul><li>Largest producer in the world </li></ul><ul><ul><li>TVs(45%), 4 wheelers (20%), machine tools(40%), robots(45%), digital camera (45%), ship building(30%) </li></ul></ul>
  20. 20. Glimpse of Japan % figures indicate share of the world’s capacity 1 26 55 74 PCs / 100 persons 2004 5 22 75 76 Mobile phones / 100 persons - 2008 0% 24% 30% 1% Ship building 0% 3% 40% 15% robots industrial 0% 45% 45% 0% digital camera 0% 40% 45% 15% colour TV 4% 10% 20% 20% 4 wheelers 1% 12% 40% 8% machine tools India China Japan US
  21. 21. Japan today <ul><li>Japan has one of the highest life expectancy at 83 years </li></ul><ul><li>Lowest mortality rate under 5 years: 4/1000 (India 69) </li></ul><ul><li>Today Japan has high 22% of population over 60 years of age </li></ul><ul><li>Consumer price increase rate is low at 0.3% (India 7%) </li></ul><ul><li>Interest rate is low at 1.5% (India 8%) </li></ul><ul><li>2 nd highest GDP next to the US </li></ul><ul><li>High per capita at 34000 USD (India at 1000 USD) </li></ul>
  22. 22. It’s a success story