...LECTURE Less immigrants => non-flexible labour market. Social capital (culture, value, identity, spiritual dimension..) human capital. 2011: china took over Japanese position as 2nd world economy. Yen is fixed to the US dollar. Germany, France, .. benefited from invasion, in 1937. What’s the impact of Marshall on japan? How japan became such a miracle economy? Japan was a miracle economy since the helped of the US, in 1960. Highest growth during 50’s and 60’s, but what caused this growth? Keiretsus: the bank is at the heart of business, and businesses hold crosshold of equity. The keiretsus system won’t allow foreigners to invest. It has been accused by the US to prevent free market from operating. The vertical and horizontal kereitsus: Other features of the Japanese economy: 1. Long life employment: decating yourself to a company, they will probanly care for your family 2. Seniority wages: it goes hand in hand with wage equality, they eat in the same cantine as the employees, park in the same car park. 3. Japanese miracle: the role with government is an important point (MITI) in promoting Japanese business. MITI targeted business which it thought will become giants or national champions, some organisations became big some didn’t. MITI promoted the mission cartel. Sales time Chinese buying American bonds, controversy will begin if they start buying lands, houses. In the 1990’s when we had a period of stagnation. Stagnation was caused by something we do not...
Words: 611 - Pages: 3
...business or business cultures in Japan. Give a detailed argumentation for your descriptions. 2 Japan Business Background 2 Meiji era 3 End of the Second World War 3 The Economic Miracle 5 The “Bubble” and the “Lost Decades” 7 SWOT Analysis 9 SWOT Analysis Findings 9 Japanese Industries 10 The Future 11 Reference: 12 Write an Individual Essay on business or business cultures in Japan. Give a detailed argumentation for your descriptions. Japan Business Background Despite the growth of China and India as both regional and global economic super-powers, Japan remains a major force in world status with leading players in sectors such as banking and finance, software, automotive and pharmaceuticals. and it would be unwise to switch attention away from this potentially lucrative market. The approach that the Japanese people make to business is determined by their historical values and their society as a whole. Japan has the world’s third largest economy, with a very strong democratic setup and stable macroeconomic policies. There were many historical events that took place, which had a large effect on the economic development of the country. Meiji era This era of Japan’s history, which ran from 1868 to 1912, symbolised the shift of Japanese society from being isolated to becoming its modern form. The first industrial revolution, of the Meiji era occurred as response to the growing industry in western countries and areas...
Words: 2688 - Pages: 11
...RETHINKING THE EAST ASIAN MIRACLE JOSEPH E. STIGLITZ AND SHAHID YUSUF Editors RETHINKING THE EAST ASIA MIRACLE JOSEPH E. STIGLITZ AND SHAHID YUSUF Editors A copublication of the World Bank and Oxford University Press i Oxford University Press Oxford • New York • Athens • Auckland • Bangkok • Bogotá • Buenos Aires • Calcutta • Cape Town • Chennai • Dar es Salaam • Delhi • Florence • Hong Kong • Istanbul • Karachi • Kuala Lumpur • Madrid • Melbourne • Mexico City • Mumbai • Nairobi • Paris • São Paulo • Singapore • Taipei • Tokyo • Toronto • Warsaw and associated companies in Berlin • Ibadan © 2001 The International Bank for Reconstruction and Development / The World Bank 1818 H Street, N.W., Washington, D.C. 20433, USA Published by Oxford University Press, Inc. 198 Madison Avenue, New York, N.Y. 10016 Oxford is a registered trademark of Oxford University Press. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of Oxford University Press. Cover design and interior design by Naylor Design, Washington, D.C. Manufactured in the United States of America First printing June 2001 1 2 3 4 04 03 02 01 The findings, interpretations, and conclusions expressed in this study are entirely those of the authors and should not be attributed in any manner to the World Bank, to its affiliated organizations...
Words: 190305 - Pages: 762
...“Rostow’s pattern of thought of economic development is often compared and contrasted with that of Alexander Gerschenkron, though the two are more or less compatible and complementary.” Critically discuss this statement. The theory of economic development throughout history has been of significant discussion especially in regard to the works of Rostow and Gerschenkron. The differentiation between the pattern of thoughts and ideals is a hotly debated topic within economics. The ideals the two theorists create, each substantially creditable in their own right, entail degrees of correlation and variation. Leaving the conclusion, do the to patterns of economic thought complement one another or is there distinct disparity between the two. Applied examples will be used below to analyse the extent of segregation or association between the works of Rostow and Gerschenkron. The two theories of work are mainly discussed with Asian development as it is more relevant, timely and there is significantly more information available than previous developed countries such as Great Britain. Walt Whitman Rostow developed one of the major historical models of economic growth in 1960, The Stages of Economic Growth: A non-communist manifesto. This piece portrays the process of economic development in a previously unseen approach, evidently forging it as a milestone in economic literature. Rostow's Stages of Growth model, The five stages are (1) the traditional society, (2) the preconditions...
Words: 2883 - Pages: 12
...overcame so of history’s worst times but regained as an “economic miracle”. 1600-1868: The period of the Tokugawa Polity; medieval political order incorporating economic and social change within a gradual manner. This period saw increasing urbanization, the spread of education and different merchant classes. 1868-1890: The period of the Meiji; rapidly increasing modernization and a dramatic change to political, social, and economic institutions. The new leaders studied the economy and social powers of the Western countries and adopted those for their own purpose of growth. In 1889, a constitution was established to create a parliamentary government to administer power. The merchant classes were equal. The Samurai lost their privileges, while the merchants began to be respected. New Western technologies caused an explosion of industrial productivity and diversification. A national military established. Public education was introduced to teach the skills needed and to incorporate values of citizenship. 1890-1945: Imperial Japan; constitutional policy for industrialization, urbanization, and an increase in mobile society; International status and world power, including imperialism in Asia and war with the United States. This period was a time of social and economic change. Various branches of the government began competing for power. Japanese industry expanded in textiles, steel and shipbuilding. Cities grew, as Japanese moved from farming into factory and office jobs. Japan...
Words: 722 - Pages: 3
...forces in economic development. This dynamic serves as one of the basic foundations of the discipline itself as well as subsequent major schools of thought. Theories in International Economy have been founded on empirical observations on the economic conditions of a set of cases and are, as Robert Cox posits, critical of the circumstances from which certain politico-economic configurations emerge[1]. A contemporary theory that has surfaced in the last few decades is the developmental state theory which sought to explain the precipitous economic progress of East Asian states after the Second World War. Although the initial outcome of adopting developmental strategies among East Asian states have shown the theory’s potency as a basis for economic development policies, subsequent events especially the results of Southeast Asian attempts to pattern itself after developmental strategies have put into question the developmental state’s efficacy as a long-term arrangement. Specifically, the Philippines’ status as an “anti-developmental” state[2] serves as a channel for criticism of the developmental state theory through other IPE theories not only in terms of strategies and policies, but also in the deeper level of societal conflict and political structures. The origins of the Developmental State and its basic premises The literature on developmental state theory attributes its conception to Chalmers Johnson who argued in his book MITI and the Japanese Miracle, that “Japan’s...
Words: 2283 - Pages: 10
...But what is behind the fancy title is actually a major economic-political issue which can be observed from many angles (not only the two major ones that would be presumed). Even the final sentence of the wicked problem was a result of couple-of-hours discussion and rephrasing. Special and sensitive challenge - is the fact that we don’t have any member in the group that, based on its cultural background, deeply understands way of thinking and can go into the head of the people which problem we are trying to resolve. That’s why understanding goals and barriers of this Far East country is especially difficult, not only for us, but for the most of businessmen around the world. First part of our research will be focused exactly to these issues. So, let’s get to the point. Globally, what does China want and what problems is it facing? We will start with the presumed assumption that China wants to beat USA and become worlds leading economy. But first, we must emphasize that Chinese government never actually said these words. The biggest reason for that is the fact that China obviously doesn’t want to accept responsibilities which they will automatically undertake from USA if they become world’s leading economy. These responsibilities include the role of world policeman and the role of being the trigger for major changes in the world. There is also the fact that some other countries will automatically try to follow China’s economic politics, so they will be in a risk to lose their comparative...
Words: 728 - Pages: 3
...edu Political economy is the study of the role of government, politics and collective human behavior in shaping economic outcomes. This exciting field is both old and new. Political economy predates both political science and economics but only reemerged as a distinct field in the 1960s and 70s. It is concerned with understanding how political forces (broadly defined) shape and are shaped by economic ones (broadly defined). There are many research and policy-relevant questions addressed in this field: 1. What is globalization and is it really good for everyone? 2. Is free trade really the only “appropriate” means for international exchange? 3. Why are some countries or regions rich while others struggle? 4. How did the global casino of high finance emerge and what is its purpose? 5. Is economic performance the root of power or power the root of economic performance? 6. What should be the role of government in the economy? 7. Is there a best practice for government economic policy or are there many workable practices? 8. Why has Asia seemed to perform so well over the last 30 years while Europe appears to have stagnated? 9. Does a rising tide really life all boats? This is a critical class. Although I have my theoretical inclinations, I hold no sacred cows in terms of theories or approaches. Capitalism, socialism, economic liberalism, mercantilism and any other “ism” are all open for support, criticism and analysis. It is my hope we will...
Words: 1381 - Pages: 6
...2012 Journal of Undergraduate Research at Minnesota State University, Mankato The Role of the International Monetary Funds (IMF) in the East Asian Debt Crisis of 1997 By Yaro Sadek Tahirou Minnesota State University, Mankato 2 ABSTRACT During the East Asian Financial crisis in particular, the IMF has been criticized of promoting international cooperation because of the supervised enforcement of its rules. The purpose of this research is to find out how the IMF responded to the East Asian debt crisis and whether or not its responses were the best possible responses to this crisis. Through my research, I talked about the causes of the East Asian financial crisis, the role of the IMF in the international monetary system, and if the IMF responses to Thailand, South Korea and Indonesia were the best responses or not. After analyzing the IMF responses in this crisis, I found that the IMF policies need to be reformed in order to monitor and prevent future financial crises spill-over effects at the global and regional levels. I will analyzed 5 scholarly journals on the financial crisis in East Asia, 3 scholarly articles on the role of IMF in the East Asia financial crisis, and 1 novel called POLITICS IN SOUTHEAST ASIA DEMOCRACY OR LESS by William Case. INTRODUCTION Several financial crises have occurred in the world economy through the last decades. Some examples include the East Asian financial Crisis of 1997, the Latin American debt crisis of 1994-95, the Russian crisis...
Words: 7746 - Pages: 31
...The Myth of Asia’s Miracle Paul Krugman Foreign Affairs; Nov/Dec 1994; Vol.73, Iss. 6; pg. 62, 17 pgs The Myth of Asia’s Miracle Paul Krugman A CAUTIONARY FABLE Once upon a time, Western opinion leaders found themselves both impressed and frightened by the extraordinary growth rates achieved by a set of Eastern economies. Although those economies were still substantially poorer and smaller than those of the West, the speed with which they had transformed themselves from peasant societies into industrial powerhouses, their continuing ability to achieve growth rates several times higher than the advanced nations, and their increasing ability to challenge or even surpass American and European technology in certain areas seemed to call into question the dominance not only of Western power but of Western ideology. The leaders of those nations did not share our faith in free markets or unlimited civil liberties. They asserted with increasing self-confidence that their system was superior: societies that accepted strong, even authoritarian governments and were willing to limit individual liberties in the interest of the common good, take charge of their economies, and sacrifice short-run consumer interests for the sake of long-run growth would eventually outperform the increasingly chaotic societies of the West. And a growing minority of Western intellectuals agreed. The gap between Western and Eastern economic performance eventually became a political issue. The Democrats recaptured...
Words: 6453 - Pages: 26
...An Economic Comparison of Japan 日本国 And South Korea 대한민국 Introduction South Korea and Japan have had a close relationship from ancient history to the present day. Because of this reason, their economic growth and development have similarities and disparate differences. This paper will discuss some of the two countries’ major characteristics including geographic, social, and political characteristics and look at their histories and economies. Another reason that it is natural to compare them is their economic growth has mirrored one another. Both emerged from a war with its economy devastated and its infrastructure in ruins. Both countries changed with the economic climate of the time and took advantage of foreign investment in order to rebuild. Finally, both countries used their strengths to develop their economies to the point that they are world leaders in their field. Finally, both counties enjoy close political and economic relations with the United States, with each country being among our Top 10 largest trading partners. We have been a good friend to both, which has helped to stabilize relations in the regions between the two. Brief History (Since World War 2) The Korean Peninsula was occupied by Japanese forces for 35 years, from 1910 until the end of WW2 in 1945. Due to existing agreements, Japanese forces in Northern Korea surrendered to the Soviets and those in South Korea to the United States. The Korean War (1950-1953) was an attempt...
Words: 2960 - Pages: 12
...later amendments and other relevant legislation. 2 The Rise of Tony Fernandes and AirAsia in Malaysia This article discusses the emergence of Tony Fernandes and AirAsia. At first, when AirAsia was relaunched as a Low-Cost Carrier (LCC) under the leadership of Fernandes, no one thought the airliner would survive, let alone become a symbol of the liberalisation of the aviation industry in Southeast Asia. Second, Fernandes, a Malaysian Indian of Portuguese Malaccan descent – obviously not a Bumiputra2 - was able to thrive as an entrepreneur in an environment where the government gave top priority to Bumiputra entrepreneurs. These issues are discussed in this paper. Malaysia’s New Economic Policy (NEP) The Malaysian Government has played a significant role in Malaysia’s rapid economic growth. After the independence in August 1957, the economy shifted from agriculture to industrialisation; an import-substitution strategy was adopted to reduce dependency on primary sector and simultaneously diversify the economy. By the late 1960s, with the exhaustion of import substitution, the Malaysian government made the transition to exportoriented industrialisation. The May 1969 election and ensuing race riots resulted in the increased state...
Words: 4100 - Pages: 17
...people are more inclined to do the next right thing. The crime rates are definitely lower in Japan compared to the United States (Table 1). Table 1 Here’s a comparison of the frequency of major crimes in the United States and Japan in 1996. This table shows the number of crimes per 100,000 people: | United States | Japan | | Murder | 7.53 | 0.97 | | Robbery | 255.8 | 1.75 | | Rape | 37 | 1.5 | | Arson | 46 | 1 | | Aggravated Assault | 440 | 5.4 | | Burglary | 1,099 | 187 | | Source: Reid, T. R. Confucius Lives next Door: What Living in the East Teaches Us about Living in the West. New York: Random House, 1999. Print. The Asian Miracle is broken down into two types: Economic and Social. The book talks about the social miracle. “The answer I got was that the Asians achieved their social miracle primarily by holding to a set of ethical values – what they call Confucian values or Asian values or, sometimes, the Asian way” (Reid 228). I agree with this quote from the book and what Reid learned while in Japan. There are five Confucian values. Ren (humanity), Yi (justice), Zhi (knowledge), Xin (integrity) and...
Words: 1593 - Pages: 7
...later amendments and other relevant legislation. 2 The Rise of Tony Fernandes and AirAsia in Malaysia This article discusses the emergence of Tony Fernandes and AirAsia. At first, when AirAsia was relaunched as a Low-Cost Carrier (LCC) under the leadership of Fernandes, no one thought the airliner would survive, let alone become a symbol of the liberalisation of the aviation industry in Southeast Asia. Second, Fernandes, a Malaysian Indian of Portuguese Malaccan descent – obviously not a Bumiputra2 - was able to thrive as an entrepreneur in an environment where the government gave top priority to Bumiputra entrepreneurs. These issues are discussed in this paper. Malaysia’s New Economic Policy (NEP) The Malaysian Government has played a significant role in Malaysia’s rapid economic growth. After the independence in August 1957, the economy shifted from agriculture to industrialisation; an import-substitution strategy was adopted to reduce dependency on primary sector and simultaneously diversify the economy. By the late 1960s, with the exhaustion of import substitution, the Malaysian government made the transition to exportoriented industrialisation. The May 1969 election and ensuing race riots resulted in the increased state...
Words: 4100 - Pages: 17
...[pic] TABLE OF CONTENTS EXECUTIVE SUMMARY 4 INTRODUCTION 5 KONGO GUMI ENVIRONMENT 7 Feudal Japan 8 The Restoration of Edo 8 The Meiji Restoration 9 World War 1 12 The Mid War Period 13 World War 2 15 The Occupation of Japan and Post War Reconstruction 16 The Economic Miracle 17 The Lost Decade 18 Global Financial Crisis 19 Natural Disasters 20 Abenomics 21 STRATEGIES KONGO GUMI USED TO SURVIVE TURBULENCE 23 Kongo Gumi in the 20th Century 23 Meiji restoration 23 The Mid War Period 24 World war 11 24 KONGO GUMI WOULD HAVE SURVIVED IF: 25 WOULD KONGO GUMI HAVE SURVIVED IF IT MADE IT THROUGH TO THE ABENOMICS ERA? 26 LESSONS FROM KONGO GUMI 27 CONCLUSION 28 REFERENCES 31 Appendix 1 – Infographic of Japan’s timeline EXECUTIVE SUMMARY Kongo Gumi was a success as it operated in a stable industry. The belief system has survived for thousands of years and has many millions of adherents. With this firm foundation, Kongo had survived some tumultuous times. The temple construction had until recently been a reliable mainstay, contributing 80% of Kongo Gumi's $67.6 million in 2004 revenues. The story of Kongo Gumi suggests that firms should blend elements of conservatism and flexibility. This means that firms should stay in the same business for more than a millennium and...
Words: 6387 - Pages: 26
