Economy of JAPAN


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  • Japan became a democracy in 1946 - not 1951
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  • The Japanese attack on Pearl Harbor was December 7, 1941 - not 1942
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Economy of JAPAN

  1. 1. Japan<br />And its economy<br />
  2. 2. History<br />first humans arrived around 35,000 B.C.<br />The position of Japan relative to the Asian mainland had played a significant role in the country's development. Although the archipelago is situated near the mainland, there is still a considerable amount of open sea, which separates the two landmasses.<br />Throughout most of Japan's history, it has been closed to the outside world refusing to open its borders to foreigners.<br />
  3. 3. History<br />The sakoku policy<br />"locked country“<br />enacted in 1633 by the Tokugawa Shogunate<br />prevented foreigners from entering Japan on penalty of death<br />The same policy also prevented Japanese from leaving Japan<br />
  4. 4. History<br />The Nara Period<br />the first centralized capital of the nation established in the late 8th century<br />the last time that political power was held by the emperor.<br />The Heian period<br />characterized by an affluent aristocracy with eccentric social customs<br />the moving of the capital from Nara to Kyoto<br />Kyoto became the residence of Japan’s emperors until the late 19th century<br />
  5. 5. History<br />The Kamakuta Period<br />Toward the end of the Heian period, the aristocracy lost their power and the Kamakura period marked the beginning of military rule<br />During this period, a caste system developed with the Shogun at the top<br />After a succession of powerful Shogun, Japan fell into a state of near-anarchy as provinces declared war upon one another during the 15th century<br />
  6. 6. History<br />The Tokugawa Shogunate<br />In 1600 during the Azuchi-Momoyama period, Tokugawa Ieyasu moved to reunify the country and successfully established the Tokugawa Shogunate<br />the feudalist system was re-established<br />During his reign, Tokugawa ruled from Edo, the location of present day Tokyo<br />
  7. 7. History<br />Convention of Kanagawa<br />Commodore Matthew Perry negotiated a trade agreement between Japan and the United States<br />The arrival of the fleet would trigger the end of Japan's 200 year policy of seclusion<br />The ships in Perry's fleet are now known in Japan as the "Black Ships" and have come to symbolize the threat imposed by western technology<br />
  8. 8. History<br />
  9. 9. History<br />Meiji Restoration<br />The imperial capital was moved from Kyoto to Tokyo, renamed from Edo to Tokyo (Eastern Capital)<br />Japan then directed their efforts toward industrialization and modernization<br />The Showa Recession<br />After World War I Japan's economy began to decline and hit a low point during the Showa recession in 1926<br />The negative impact of the recession combined with domestic political turmoil (assassination attempts on the emperor, coups d'etat attempts, terrorist violence) ultimately contributed to the increased militarism in Japan during the late 1920's and 1930's<br />
  10. 10. History<br />Japan vs. China<br />to acquire its vast material reserves and natural resources<br />full-scale war in 1937<br />Western powers supported the Chinese because they thought they would lose the war<br />1942 - surprise attack on Pearl Harbor by Japanese forces.<br />1945, atomic bombs were dropped on the Japanese cities of Hiroshima and Nagasaki<br /> Japan surrendered<br />After surrendering Japan was occupied by the Allied Forces marking the first time in the nation's history it had been occupied by a foreign power. After the occupation ended in 1951, Japan's government shifted from imperial and military rule to a parliamentary democracy.<br />
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  12. 12. Economic Development<br />
  13. 13. Economic Development<br />The post-war miracle<br />
  14. 14. Economic development<br />2 factors<br />government activism in national planning and implementation, with guidance of the largely free economy via sophisticated and powerful monetary and fiscal policies<br />the distinctively Japanese way of coupling largely private ownership of assets with conservative, public-spirited management<br />
  15. 15. Economic Development<br />Ministry of International Trade and Industry (MITI)<br />coordinates national industrial policies consistent with economic and social growth<br />selects and nurtures industries targeted as important to Japan's future economic growth<br />Industries so targeted have included chemicals, iron and steel, shipbuilding, and transistor radios in the 1960s; automobiles and electronics in the 1970s; and computers, computer chips, and other high-technology industries for the 1980s<br />
  16. 16. Economic Development<br />Ministry of International Trade and Industry (MITI)<br />smoothes the way for plant closings and worker retraining<br />has also assumed an active role in lessening Japan's positive trade imbalances through a variety of import promotion measures, in collaboration with both domestic companies and foreign firms<br />Close ties between government and industry are illustrated by the ministries' issuance of informal "administrative guidance" to Japanese companies<br />frequent placement of retired bureaucrats<br />delegations<br />
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  18. 18. Economic Development<br />Economic Planning Agency<br />Objectives<br />To maintain rapid GNP growth<br />To control inflation<br />To develop Japan's social and industrial infrastructure<br />
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  20. 20. Economic Development<br />The Ikeda Plan<br />doubled the national income between 1961 and 1970<br />consisted of a series of projections of growth in a free market economy, with the basic assumption—the continued growth of Japan's overseas trade—largely outside of government control<br />During the plan's 10-year span, an annual growth of 11% in GNP was realized, as against the forecast rate of 7.2%. An economic and social development plan (1967–75) accomplished a GNP growth rate of 10.6%, as against 8.2% projected. <br />
  21. 21. Economic Development<br />The 1973 world oil crisis<br />severely shook Japan's trade-dependent economy<br />1974 – the GNP actually shrank by 1.8%, the first such negative growth in three decades<br />1975 – the cabinet approved a new economic and social plan for 1979–85 calling for an average annual growth rate of 5.7%<br />The 1978 oil crisis<br />necessitated downward revisions of projected growth targets<br />
  22. 22. Economic Development<br />Effects<br />steep declines and sluggish recovery in the stock market index since 1989<br />falling real estate prices<br />shrunken rate of GNP growth<br />wages have been rising<br /> In 1999, Japan began a tentative recovery from its longest and most severe recession since the end of World War II.<br />
  23. 23. Economic Issues<br />The Toyota Recall<br />announced the vehicle recalls on three continents and shut down five assembly plants in the US<br />A downgrade in the Japanese government's credit rating because Prime Minister Yukio Hatoyama is moving too slowly to reduce the debt.<br />China overtook japan as the world’s largest maker of cars, according to an announcement from the Japanese Automobile Manufacturers Association.<br />
  24. 24. Economic Issues<br />The working-age population<br />Collapsing - according to some economists<br />Japan has fewer children and more senior citizens as a percentage of its population than any country in recorded history, but the government does little to encourage childbirth or enable immigration.<br />Japan's economy remains addicted to exports for growth. <br />Deflation, the curse of the "Lost Decade" of the 1990s. Prices and wages are falling as aging consumers save their pension checks and wait for still-lower prices. Because of the seniors in Japan the consequence.<br />
  25. 25. Economic Issues<br />Debts<br />Japan's public debt is the highest among industrial countries as a percentage of GDP, but it is probably not going to be the problem that sinks the economy. For unlike the United States, which has borrowed heavily from China, Japan borrows almost exclusively from its citizens.<br />
  26. 26. Economic Issues<br />Employment “ice-age”<br />68.8 % of those graduating from a university receives a job offer<br />There is an obvious decline in employment.<br />
  27. 27. Economic System<br />Agricultural Age Economic Systems: During this age Japan's economics were limited to trading with foreigners who were deemed a non threat. There economic system was nowhere near what it is today because they were a isolated island nation who didn't trust anyone. However their farmers and fishermen were some of the world's best at their specialty, at this time they didn't recognize that there was large profits to be made from trading goods.<br />
  28. 28. Economic System<br />Industrial Age Economic Systems: This age saw Japan capitalize on the trading system. They became a textile manufacturing nation. The Japanese then began developing heavy industries such as steel and shipbuilding. After they started to be a financially rich country from the goods they were creating, their was no stopping them from creating new industries to exploit and reap a economic gain from during this age.<br />
  29. 29. Economic System<br />Information Age Economic Systems: In this age Japan is still striving to create new industries for additional revenue. This is the age where Japan really exploded on the economic scene with it's new inventions and it's improving of other nations existing inventions. For example during this era Japan improved on or created color television, VCR, walkmen, fax machines, compact discs, etc.<br />
  30. 30. Best Practices<br />Joint Development in Asia<br />Create a Free and Open Economic Area in Asia - Economic activities in Japan are deeply embedded in the dense manufacturing network in East Asia that is a growth center in the world. In order to ensure a foundation for long-term growth in Japan, it is necessary to strengthen the growth mechanism through which growth in Asia as a whole drives continuing growth in Japan. It is where free trade and business activities are governed by the rule of law. <br />The formation of [East Asia Free Trade Areas] - Japan has relied primarily on bilateral free trade agreements. Now, it is necessary to shift to a wide-area approach covering East Asia as a whole, once the negotiation of a Japan-ASEAN Economic Partnership Agreement is concluded.<br />
  31. 31. Best Practices<br />In recognition of such, this strategy makes two specific proposals in order to further the economic integration in East Asia. These are:<br />The vision of a Comprehensive Economic Partnership in East Asia (CEPEA); <br />The establishment of an international organization in East Asia that serves as a policy forum and think tank that operates like the OECD (Organization for Economic Cooperation and Development).<br />
  32. 32. Best Practices<br />Taking advantage of “soft power”<br />“hard power,” - economic strength and military strength.<br />“Soft power,” - social values, culture, political ideology, policy appeal, and the ability to form alliances are also important national strengths. <br />
  33. 33. Best Practices<br />In order to increase Japan’s soft power, and to develop new kinds of soft power through intellectual creativity: <br />To secure the talents of creative personnel from abroad.<br />From this perspective, the [Asian People’s 5 Fund (temporary name)] concept (Japan’s version of Fulbright scholarships) is proposed to bring in new exchange students. <br />To discover their own unique characteristics and, in spiritual terms, their culture. <br />The focus of international competition is shifting from pricing and the functions of products and services to more cultural aspects such as the concept of brands, and quality. <br />To establish “Japanesque Modern” that create new appeal and branding of Japan throughout the world.<br />