The key demographic changes happening in Japan are population decrease and aging. There are two main reasons for this:
1. Low fertility rates. As fewer babies are being born each year, this directly leads to a decreasing population over time as well as population aging since there are fewer young people being added.
2. Increased life expectancy. While longer lifespans are a positive development, it also means that more of the population is surviving into old age, leading to population aging.
Together, low fertility rates and increased longevity have reduced Japan's population growth and caused its population to rapidly age over the past few decades. With very little immigration to offset these trends, Japan is experiencing both a shrinking and graying population. Addressing low
Monthly review of key market segments within India including Equity (Domestic and International), Fixed Income, Currency, Economic Indicators, Mutual Funds & Recommended Portfolios (India).
Monthly review of key market segments within India including Equity (Domestic and International), Fixed Income, Currency, Economic Indicators, Mutual Funds & Recommended Portfolios (India).
Stressed Assets Effect on Post Merger Scheduled Commercial Banks in Indiaijtsrd
The global banking reform agenda made further progress in 2017 '18, the Reserve Bank of India ushered in a revised framework with the insolvency and bankruptcy code as the focal point in pursuit of declogging of bank's balance sheets from overhang of stressed assets. Going forward, issues such as recapitalization, improvement in banks' corporate governance, implementation of Ind AS and containment of cybersecurity risks may assume prominence. Indian banks will continue to face deterioration in their non performing assets NPAs or bad loans due to the current economic conditions in the current fiscal year 2019 20 . The gross non performing assets GNPAs plus restructured standard advances in the banking system remained elevated at 12.1 percent of gross advances at end March 2018. Going forward, the stress tests carried out by the Reserve Bank suggest that under the baseline assumption of the current economic situation prevailing, the GNPA ratio of scheduled commercial banks SCBs may increase further in 2018 19."" The aggregate gross NPAs of SCBs increased primarily as a result of this transparent recognition of stressed assets as NPAs, from Rs 3,23,464 Crore, as on March 31, 2015, to Rs 10,35,528 crore, as on March 31, 2018. Dr. S. Gautami | Dr. Nalla Bala Kalyan ""Stressed Assets Effect on Post Merger Scheduled Commercial Banks in India"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-2 , February 2020,
URL: https://www.ijtsrd.com/papers/ijtsrd30234.pdf
Paper Url : https://www.ijtsrd.com/management/equality-diversity-and-inclusion/30234/stressed-assets-effect-on-post-merger-scheduled-commercial-banks-in-india/dr-s-gautami
The presentation highlights the status of Bangladesh economy, its challenges and prospects in future. Current scenario of Bangladesh economy along with the investment perspective of the country has been highlighted in a well manner.
As part of its Independent Review of Bangladesh’s Development (IRBD) programme, the Centre for Policy Dialogue (CPD) undertakes several interim reviews of the economy throughout every fiscal year. Accordingly, CPD has prepared an assessment report titled “State of the Bangladesh Economy in FY2014-15 (First Reading).”
American Research Journal of Humanities & Social Science (ARJHSS) is a double blind peer reviewed, open access journal published by (ARJHSS).
The main objective of ARJHSS is to provide an intellectual platform for the international scholars. ARJHSS aims to promote interdisciplinary studies in Humanities & Social Science and become the leading journal in Humanities & Social Science in the world.
media briefing to release the report “State of the Bangladesh Economy in FY2015 and the Closure of Sixth Five Year Plan,” prepared as part of CPD’s Independent Review of Bangladesh’s Development (IRBD) programme. The event was held at CIRDAP Auditorium, Dhaka on Monday, 1 June 2015.
Monthly market outlook (July 2021) | ICICI Prudential Mutual Fundiciciprumf
Valuations are not cheap but the business cycle remains in the nascent phase. Read our Monthly Market Outlook for July 2021 to understand more about Equity Markets and Fixed Income Markets.
The impact of government equity investment on internationalization: the case ...FGV Brazil
We examine the impact of government equity ownership on the degree of internationalization of emerging market firms. Our analysis of 173 Brazilian publicly traded firms from 2002 to 2011 shows that the higher the equity held by the state through the state investment bank and the pension funds of SOEs and privatized SOEs, the higher the firm’s degree of internationalization. Firms in which the government shared control with families, and with both families and foreigners, had a higher degree of internationalization. Our findings underline the importance of the institutional context in explaining the internationalization of Brazilian firms.
Date: 2016
Author:
Sheng, Hsia Hua
We look closely at the fourth quarter of 2011. We reflect that anxiety over recent market developments is completely understandable, and it is quite human to feel concerned about events in Europe. But amid all the bad news, it is also clear that the world is changing in positive ways that provide plenty of cause for hope and, at the very least, gratitude for what we already have.
Stressed Assets Effect on Post Merger Scheduled Commercial Banks in Indiaijtsrd
The global banking reform agenda made further progress in 2017 '18, the Reserve Bank of India ushered in a revised framework with the insolvency and bankruptcy code as the focal point in pursuit of declogging of bank's balance sheets from overhang of stressed assets. Going forward, issues such as recapitalization, improvement in banks' corporate governance, implementation of Ind AS and containment of cybersecurity risks may assume prominence. Indian banks will continue to face deterioration in their non performing assets NPAs or bad loans due to the current economic conditions in the current fiscal year 2019 20 . The gross non performing assets GNPAs plus restructured standard advances in the banking system remained elevated at 12.1 percent of gross advances at end March 2018. Going forward, the stress tests carried out by the Reserve Bank suggest that under the baseline assumption of the current economic situation prevailing, the GNPA ratio of scheduled commercial banks SCBs may increase further in 2018 19."" The aggregate gross NPAs of SCBs increased primarily as a result of this transparent recognition of stressed assets as NPAs, from Rs 3,23,464 Crore, as on March 31, 2015, to Rs 10,35,528 crore, as on March 31, 2018. Dr. S. Gautami | Dr. Nalla Bala Kalyan ""Stressed Assets Effect on Post Merger Scheduled Commercial Banks in India"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-2 , February 2020,
URL: https://www.ijtsrd.com/papers/ijtsrd30234.pdf
Paper Url : https://www.ijtsrd.com/management/equality-diversity-and-inclusion/30234/stressed-assets-effect-on-post-merger-scheduled-commercial-banks-in-india/dr-s-gautami
The presentation highlights the status of Bangladesh economy, its challenges and prospects in future. Current scenario of Bangladesh economy along with the investment perspective of the country has been highlighted in a well manner.
As part of its Independent Review of Bangladesh’s Development (IRBD) programme, the Centre for Policy Dialogue (CPD) undertakes several interim reviews of the economy throughout every fiscal year. Accordingly, CPD has prepared an assessment report titled “State of the Bangladesh Economy in FY2014-15 (First Reading).”
American Research Journal of Humanities & Social Science (ARJHSS) is a double blind peer reviewed, open access journal published by (ARJHSS).
The main objective of ARJHSS is to provide an intellectual platform for the international scholars. ARJHSS aims to promote interdisciplinary studies in Humanities & Social Science and become the leading journal in Humanities & Social Science in the world.
media briefing to release the report “State of the Bangladesh Economy in FY2015 and the Closure of Sixth Five Year Plan,” prepared as part of CPD’s Independent Review of Bangladesh’s Development (IRBD) programme. The event was held at CIRDAP Auditorium, Dhaka on Monday, 1 June 2015.
Monthly market outlook (July 2021) | ICICI Prudential Mutual Fundiciciprumf
Valuations are not cheap but the business cycle remains in the nascent phase. Read our Monthly Market Outlook for July 2021 to understand more about Equity Markets and Fixed Income Markets.
The impact of government equity investment on internationalization: the case ...FGV Brazil
We examine the impact of government equity ownership on the degree of internationalization of emerging market firms. Our analysis of 173 Brazilian publicly traded firms from 2002 to 2011 shows that the higher the equity held by the state through the state investment bank and the pension funds of SOEs and privatized SOEs, the higher the firm’s degree of internationalization. Firms in which the government shared control with families, and with both families and foreigners, had a higher degree of internationalization. Our findings underline the importance of the institutional context in explaining the internationalization of Brazilian firms.
Date: 2016
Author:
Sheng, Hsia Hua
We look closely at the fourth quarter of 2011. We reflect that anxiety over recent market developments is completely understandable, and it is quite human to feel concerned about events in Europe. But amid all the bad news, it is also clear that the world is changing in positive ways that provide plenty of cause for hope and, at the very least, gratitude for what we already have.
After World War II ended in 1945, Japan made a new start toward economic reconstruction as a democratic and pacifist state. Thanks to its highly educated and abundant labor force and to the concentration of capital and resources in certain key industries, such as electric power and steel, Japan succeeded in recovering from the ruins of war and achieving industrialization during the 1950s and 1960s.
Based on Erik Reinert, How Rich Countries Got Rich ... and Why Poor Countries Stay Poor (2007), London: Constable, Chapter 8: “Get the economic activities right”, or, the Lost Art of Creating Middle-Income Countries. Further discussion on how to make upper-middle income county out of middle-income trap. And how to synchronize different aspect on developmental policy in modern era.
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Professor Yashiro, one of Japan's leading economists, will look at the results of Abenomics (a term coined to describe Japan's economic policy while Shinzo Abe was premier) and Prime Minister Kishida's plans for what he calls a "New Capitalism."
International Journal of Humanities and Social Science Invention (IJHSSI)inventionjournals
International Journal of Humanities and Social Science Invention (IJHSSI) is an international journal intended for professionals and researchers in all fields of Humanities and Social Science. IJHSSI publishes research articles and reviews within the whole field Humanities and Social Science, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
We believe valuations are not cheap, but business cycle remains in the nascent stage. Prefer middle-of-the-road approach and recommend investing in schemes with higher flexibility.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
Honest Reviews of Tim Han LMA Course Program.pptxtimhan337
Personal development courses are widely available today, with each one promising life-changing outcomes. Tim Han’s Life Mastery Achievers (LMA) Course has drawn a lot of interest. In addition to offering my frank assessment of Success Insider’s LMA Course, this piece examines the course’s effects via a variety of Tim Han LMA course reviews and Success Insider comments.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
2. Unique Structural Features Japanese Employment System: lifetime employment, seniority system, company unions Keiretsu Corporate finance and banking system The dual economy
3. Unique Structural Features Japanese-style management Japanese democracy: the Liberal Democratic Party Social consensus on growth
40. So what went wrong? Structural peculiarites of the Japanese economic system What about the Japanese people? Should they have spent more and demanded more?
65. 16-46 Japan Keiretsu form of industrial organization A group of companies that are controlled through interlocking ownership—companies own stock in each other Encourages strong loyalty among the companies, including favoritism in customer-supplier relationships Each keiretsu has a main bank that typically owns stock in other members of the keiretsu
66. 16-47 Japan (Cont.) Japanese banks may own equity in nonfinancial companies, although this is now limited to 5 percent in any single firm Organization of the banking system City banks—represent a disproportionately large fraction of the world’s biggest banks Regional banks Special-purpose financial institutions—include long-term credit banks, specialized small business and industrial institutions
67. 16-48 Japan (Cont.) Historically corporate debt markets have been suppressed, further enhancing power of banks The result is a vast majority of debt financing that comes from the banking system Unlike Germany, stock market is quite large, however extensive cross ownership masks high degree of concentration of ownership Adopted laws that separate commercial banking from investment banking, however, this separation has been eroded
75. 56 1Current Status of Postal Services in Japan ○ Postal Service - Total Mail Volume: 24.8 Billion Items (FY2005) ○ Postal Savings - Balance: 1.7 Trillion USD* (FY2005) - Number of Household Users: Approx. 39.2Million Households (Rate of Household Users: 77.8%) (Oct. 2005) - Number of ATMs: 26,297 Units (Mar. 2006) ○ Postal Life Insurance - Total Amount of Funds: 1.0 Trillion USD* (FY2005) - Number of Household Insurers: Approx. 28 Million Households (Rate of Household Insurers: 56.1%) (Mar. 2004) ○ Post Office - Number of Post Offices: 24,631 (Including Contracted Post Office: 4,410) (Mar. 2006) *1 USD = 117.47 Yen (March, 2006)
76. 57 2 Governance in the Postal Sector 1. Global Governance - Global Network and International Norms ・ Postal network: a global network of interconnected national networks ・ UPU Constitution, Convention or Standards 2. National Governance - Institutional Framework - ・ Relationship between regulator and operator: identical / separated ・ ‘Transition from Public to Private Sector’ 3. Governance within Operators - Norms of Behavior - a) internal governance – CSR, Internal control, compliance, enhanced internal audit, improved efficiency of operations, consumer satisfaction, etc. b) enhanced external audit, acceptance of external executive officers c) provision of services based on user preferences
77. 58 3 Market Change and Expected Reform in Governance Swift and flexible provision of diverse services 1. Enhanced and diversified user needs 2. Increased competition in services or operators 3. Development and use of latest ICT technologies 4. Diversified international collaboration among stakeholders Increased freedom of business management Improved entry intonew businesses Increased satisfaction of complex user needs Improved quality of servicethrough better technologies International regime to reflect different values
78. 59 Fund Management of Postal Life Insurance Fund Management of Postal Savings *1 USD = 117.47 Yen(March, 2006) Total Assets: 1.7 Trillion USD* (End of FY 2005) Total Assets: 1.0 Trillion USD* (End of FY 2005) 4 Basic Principles of Privatization of Postal Services in Japan ・ Vitalize economies through transition from public to private sector ・ Reform in line with entire structural reform in Japan ・ Consider convenience of consumers ・ Utilize Japan Post’s resources (such as the existing network) ・ Consider present conditions of employment in Japan Post
79. 60 Promulgation of Laws on Privatization of Postal Services Government Japan Post Preparatory Period Holding Company Government Transitional Period Holding Company Postal Insurance Company Postal Savings Bank Postal Insurance Company Postal Savings Bank Incorporated Administrative Agency: Management Organization for Postal Savings and Postal Life Insurance * * Post Office Company Postal Service Company 100% Share 100% Share * Holding Company is obliged to dispose of all the shares of two financial companies during the transitional period 5Process for Privatization Privatization (October 2007) Final Privatization (October 2017) Note: The Government is obliged to hold over one third of the shares of Holding Company
80. 61 6 Characteristics of Privatization ○ When privatized, services will be basically the same as those of pre-privatization ○ Separation based on business function (Postal Service, Savings, Insurance, Post Office, and Holding Co.) ○ Complete privatization of two financial companies within 10 years (Disposal of all the shares) ○ To balance the degree of freedom in management, with an equalfooting with private companies during the transitional period
81. 62 7 Maintaining Level of Post Office Network ○ Post Office Company is obliged to maintain a nationwide post office network ○ Criteria: post offices are to be established: a) to meet the needs of local residents b) more than one in every municipality c) in areas that are easily accessible to local residents considering traffic, geography, and other relevant circumstances * In sparsely populated areas, maintain level of post office network that exists at the time of privatization
82. 63 8 Maintaining Level of Postal Services ○ Postal Service Company is obliged to provide universal postal service ○ Ensure nationwide financial services at the post offices - Two financial companies are obliged to have stable agency contracts during the transitional period - After the transitional period, the Social-Regional Contribution Fund can be utilized to maintain necessary financial services ● Holding Company is obliged to accumulate funds from its profit up to one trillion Yen ● To implement Social Contribution Activity and Regional Contribution Activity, profit from the Fund can be provided Social-Regional Contribution Fund
83. 64 9 Postal Service after Privatization ○ Ensure provision of universal postal service ○ Enable flexible revision of postage rates ○ Enable expansion into international logistics business ○ Domestic parcel post business will be regulated under general cargo distribution rules
84. 65 10 Privatization from the Perspective of Governance ○ Postal Privatization in Japan is expected to affect governance in the following ways: a) improve oversight functions by the regulator over the operator b) enable more flexible operations and entry into new business c) enhance the operator’s ability of governance in business management <Anticipated Profit> (Unit: Million USD*) (From “Skeleton Plan for Business Succession Plan of Japan Post”) (*1USD = 118 Yen (Nov. 2006))
85. ECON 4315: The Japanese Economy Lecture 5 Demographics Satoshi Tanaka 02/21/2011
86. Goals 1. Overview the basic facts of Japanese population and its future
87. Goals 2. Examine the consequence of aging and a decrease in population
88. Goals 3. Understand the cause of these changes and possible reactions of the government
218. "Shidehara Diplomacy" which to them seemed too soft on China. Their primary goal was to "defend Japanese interests in Manchuria and Mongolia [more precisely, eastern part of "Inner" Mongolia]).
220. Political Map in the early 1950s Conservative Forces Liberal Party (Yoshida Shigeru) led the peace treaty and the US-Japan Security Treaty. Democratic Party (Hatoyama Ichiro) objected the “subordinate independence.” Progressive Forces Socialist Party (Left faction) sought a revolutionary transformation of capitalism at home and opposed to the partial peace treaty. . Socialist Party (Right faction) sought partial reform of capitalism and accepted the partial peace treaty. Communist Party lost popular confidence since they took violent actions suggested by Stalin
221. 1955 The two conservative parties merged to found the Liberal Democratic Party (LDP). LDP would remain in power in the following 38 years. Business Leaders financially supported. The bureaucrats offered policy expertise and manpower to the party. Leading midcareer bureaucrats left their posts to run for political office under the LDP banner. The two factions of the Socialist Party reunited
222. Economic Policy Debate Arisawa Hiromi (Economist U of Tokyo) and Tsuru Shigeto Japan should develop natural resources (coal and hydroelectric powers) minimize interdependence, fearing foreign conflicts that might endanger oil supplies. Nakayama Ichiro only sustainable choice was to join the global economy, by importing raw materials and exporting manufactured goods
223. Yoshida VS Hatoyama The followers of Yoshida Shigeru followed the American lead in containing the communist bloc. Hatoyama and his allies sought independence from US. They succeeded in normalizing relations with Soviet Union in 1956 without Peace Treaty.
224. Yoshida Doctrine Japan must focus on economic growth Japan must avoid international conflict Yoshida Shigeru Rely on US for security Follow US lead in international relations Focus all energy on economic development
225. Japan: Neo-mercantilism Yoshida Doctrine details: Focus on Growth Grow through export, export, export Protect domestic industry Focus on market share and growth, not consumer satisfaction
226. Japan’s Economic Model Export-led Growth Protect domestic firms at first Demand that they export Provide government assistance to direct investment and to support export Brilliantly successful for Japan (& later Korea, Taiwan, Singapore, Hong Kong, & now China) Standard (not Japanese) 1940s development model Import Substitution Protect domestic industries, produce for domestic market Import only raw materials and capital goods Fails miserably: leads to debt and weak domestic industries that never “grow up”
227. Bureaucracy’s role in economic planning Administrative Guidance Control of import licenses Control of capital allocation Encourage collaborative R&D Amakudari (descent from heaven) Chalmers Johnson’s Classic Study of bureaucracy in Japanese economic development
228. MITI (Ministry of International Trade and Industry) Founded 1949 Responsible for Deciding on the structure of industries and their distribution activities Guiding the development of industries and their distribution activities Co-ordination of Japan's foreign trade and commercial ties Managing specific areas such as raw materials
229. LDP The LPD has a central position between the bureaucracy and business Its uninterrupted tenure of office for the past decades was a necessary guarantee of the government-industry relationship in Japan (Reading 1992) It assumes a central position between the bureaucracy and business, co-ordinating their interests and playing their referee
230. Business (zaikai) The business world is represented by a number of organizations The most important ones are the keidanren (Federation of Economic Organization), nikkeiren (Federation of Employers` Association), keizai-doyukai (Committee for Economic Development) the Japan Chamber of Commerce and Industry
231. Formal and informal consultation among the three players The bureaucracy maintains good access to the communication networks by practicing amakudari (descending from heaven), which removes retired bureaucrats from MITI etc into the LPD or into corporations to benefit from their bonds Strong interdependence with a clear mission Cooperation is not always harmonious and the centre of many scandals
234. DKB Asahi Mutual Life Insurance (DKB) The Dai-ichi Mutual Life Insurance Company (DKB) Daiichi Sankyo Dentsu (DKB) Fujitsu (Furukawa) Hitachi (Hitachi) Ishikawajima-Harima Heavy Industries (IHI) Isuzu (IHI) ITOCHU (DKB) JFE Holdings (Kawasaki) Kawasaki Heavy Industries (Kawasaki) Kao (DKB) K Line (Kawasaki) Kobe Steel (Suzuki) Meiji Seika (DKB) Mizuho (Mizuho Financial Group) Seibu Department Stores (DKB) Sojitz (Suzuki) Sompo Japan Insurance (DKB) Taiheiyo Cement (Asano) Tokyo Dome (DKB) The Tokyo Electric Power Company (DKB) Tokyo FM (DKB) Yokohama Rubber Company (Furukawa)
238. Interlocking Shareholdings A typical Japanese firm has about 70 per cent of its shares held by other companies The shares are held by a large number of firms in relatively small fractional parcels Firm has some kind of transactional relationship with these corporate shareholders (banking, insurance, lending, supply of inputs, purchase of outputs) Firm holds shares in many of the these firms: the sharefoldings are reciprocal Firms hold each other`s shares as “stable shareholders“ (antei kabunushi) (Sheard 1994)
239. Advantages Takeover is impossible Companies also have other strong relationships with each other, they are trading with each other
240. Disadvantages Inflexibility Criticism among companies is not possible either Also prevents access to the market for many foreign companies in Japan
241. Characteristics Close long-term relationship between banks and firms in the same group. Banks “rescue” affiliated firms. Banks place insiders on firms’ board (interlocking directorates - parson). Banks hold some shares.
242. Keiretsu Finance “Main bank” is a dominant lender for its affiliated firms. Avoid free-rider problem and duplication of monitoring and screening efforts. Long-term relationship makes shirking costly to borrowers. • Keiretsu firms have easier access to external funds. • Empirical Evidence • Keiretsu firms rely less on internal funds
244. Conflicts of Interest Debt holders face fixed payout. Equity holders hold residual claim. When firms are close to insolvent, Equity holders have nothing to lose from taking excessive risk. Debt holders do not reap the benefits of risk taking. Debt holders prefer conservative investment strategy. Liability mix might be important to firm value.
245. Banks To (partially) solve adverse selection, screening is important. To (partially) solve moral hazard, monitoring is important. Banks might be in a better positive to do both. Banks observe cash flow closely (provided that borrowers’ profit and loss enter into their deposits. Banks solve “free rider problem” and duplication of monitoring efforts in case of borrowers’ financial distress. Banks must have incentive to do this, though. Government bailout or deposit insurance partly reduce this incentive.
246. Japanese Business Model Post “Ford” industrial model Dr. W. Edwards Deming: Focus primarily on QUALITY Use statistical analysis to measure and improve quality Dr. W. Edwards Deming Empower shop floor workers to control and guarantee quality First presented ideas to US Automakers but was rejected Took his ideas to Japanese industrial leaders and they adopted them, leading them to become the world’s leaders in QUALITY
247. There was another major political protests in Kyushu: The Mitsui Corporation’s MiikeCoal Mine in 1960. Since then the conservative government deemphasized the drive for constitutional revision and confrontation with unions. The result was a new politics of high growth of the economy. Prime Minister Hayatolaunched the “Income Doubling Plan” to commit economi growth to double GNP by 1970.
248. Environmental Protests Chemical pollution-related diseases appeared in 1950s. Mercury poisoning struck and killed residents in southern Japan (Minamata- Kumamoto) and northern Japan (Niigata). Other notable protests: Air pollution (Mie) Cadmium (Jinzu River-Toyama)
250. Postwar Business Cycles in Japan Postwar business cycles in Japan. One complete cycle consists of a period of expansion and a period of contraction.