When it comes to economic development, one of the most important questions to ask is: Did globalization help Japan prosper? There are numerous arguments for both sides of this question, but the debate is far from settled. The United States and Japan are arguably the most competitive nations in the world, and their economies are both shaped by globalization. Still, there are also many problems with the Japanese economy. The following are some of the most significant.
The first argument for globalization is that Japan needs it. The country has an ageing and declining population and requires a boost in productivity. The government has been attempting to increase productivity in Japan through FDI. In 2002, labour productivity in foreign affiliates was 60 percent higher than in the nation. In the corporate sector, fund demand was low. And the rate of international activity, although growing, seems to be dwindling. The globalization of Japan has brought economic prosperity, but it has also brought problems.
During the postwar period, Japan’s democracy progressed slowly but steadily. The Occupation reforms gave democracy a decisive push. In the 1960s, workers’ rights, land reforms, and income maintenance policies led to an overall improvement in living standards. In the 1970s, Japan became the world’s largest exporter, as well as its largest importer. Its trade dependence increased, but decreased slightly. These developments were the result of increasing trade openness and regional integration.
As a result of globalization, Japan’s trade barriers were reduced, which allowed for increased exports and a more competitive economy. Yet, there were still trade barriers. This meant that Japan was not as competitive as it once was. The country also had barriers to investment and employment. Its population was aging, but the aging population is the largest demographic in Japan, holding three-fifths of its massive savings.
In addition to the increased trade and investment flows, Japan also needed to play a political role in the world. In 1977, Takeo Fukuda made public his Fukuda Doctrine, which sought to maintain regional stability in Asia through economic means. In 1978, Masayoshi Ohira pushed for the establishment of the Pacific Basin Cooperation Concept. The latter was followed by the Pacific Economic Cooperation Council in 1989.
In the 1970s, the Japanese government recognized the need to become a “full-range player” in the global economy. It sought ways to play a political role in the world. In 1977, the government announced the Fukuda Doctrine, which aims to maintain regional stability through economic means. Then, Masayoshi Ohira, a former prime minister, made public his idea of the Pacific Basin Cooperation Concept. By the end of the 1980s, the two countries had created a new organization called the Pacific Economic Cooperation Council (PECC). In 1989, he had pushed APEC, which was later renamed the Asia-Pacific region.
The Japanese government played an important role in globalization. The Japanese government was an indispensable business adjunct. It was able to steer the keiretsu into promising sectors. In return, it received cheap credit and tax breaks. However, despite the many problems with Japanese trade, Japan was a leader in globalization. By joining the APEC, Japan was able to reap the benefits of globalization while contributing to global economic development.
As the world economy became more competitive, Japan began to seek ways to play a political role. In 1977, Takeo Fukuda published the Fukuda Doctrine, which sought to keep regional stability in Asia by economic means. In the early 1980s, Ohira proposed the Pacific Basin Cooperation Concept. In 1989, the APEC was established. Further, FDI helped Japan to improve its trade and development in East Asia.
As the Japanese economy prospered, they realized that they had to become a “regional player”. They looked for ways to play a political role. In 1977, they published the Fukuda Doctrine, which aims to maintain regional stability in Asia through economic means. In the same year, they developed the Pacific Basin Cooperation Concept, which led to the creation of the APEC.