Japanese Industrial Policy

INTRODUCTION

JAPANESE INDUSTRIAL POLICY

Japan is the world‘s most successful expert of industrial policy. Industrial policies of Japan are responsible for it‘s economic recovery after the Second World War and its sucessful in high-technology industries. Japan had well educated population as far as back the mid-nineteenth century and invested a lot into human capital. Japan have shifted major resources into specific industries to gain benefits for country.

Japanese government took initiative in industralization process and economic development very early in it‘s history. In 1868, young samurai and court nobles overthrew the Tokugawa Shogutane who ruled Japan for two and a half centuries. People who took over the government became

Equality has been concidered as a core element in efficient production system. One of the main reasons why Japan achieved it‘s industrial success as many people believe was equality in income, wages, wealth and acess to education. To start with, income and wealth gaps are narrowed in Japan compared to other industrialized countries. In addition to this, there is no huge number of rich or poor people in Japanese society, majority of Japanese are in the middle class. Despite of that,inequality became wider since the 1980s when after growing about 4 percent per annum economic growth slowed about 1½ percent in 1990s. Ohtake and Saito (1998) argue that inequality in the 1980s and 1990s can be explained mainly by population aging. The increasing political power of the elderly and no changes towards income redistribution policies suggest that more efficient policies to reduce income inequality have not been

Firstly,great unequal wealth distribution is not acceptable on moral grounds, also Japan may lose one of the healthy foundations for social and economical development. In addition to this, work incencitives for wealthy people may be lost in the sence that they do not work, but want to live with property incomes. Moreover, fair competition of opportunities are not provided if someone receive a large amount of initial wealth, big houses and land. Furthermore, some households are able to enjoy excessively luxurious consumption. So, according to these statements, implementation of wider public policies and the opinion of general public should be concidered. Currently public policies that are implemented in Japan encourages increasing inequality trend. There has been no strong policies iniciatives by the government to prevent prices of land and urbanization problem . ‘Tokyo problem’ is well-known and reveals facts that necessary infrastructure should be provided not only to business and industry but also to citizens living in the city. Energy, water supply and level of pollution should be evaluated as serious threats to Tokyo city. People who are living in urban areas are not gaining as much benefits as people who live in urban environment. However, it is important to notice that since 1990s inequality in wealth distribution has been reduced due to decrease in land prices.