Japan Inc A Miracle A Model

Japan Inc. • A Miracle • A Model: The East Asian Strategy • From: http: //benmuse. typepad. com/ben_muse/2005/11/changes_in_inco. html

Economic Philosophy • Nationalism/Protectionism • Exports

Rich Nation, Poor People “Salaryman” Capsule Hotels

What is Japan Inc. ? 1. Business-Government relations 2. Industry-Industry relations 3. Labor-Management relations

Business-Government relations • Partnership • Yoshida Doctrine • “GNPism” • Yoshida Shigeru • PM 1946 -7, 1948 -54

Administrative Guidance Ministry of Economy, Trade, and Industry formerly Ministry of International Trade and Industry (MITI) • The Visible Hand?

2. Industry-Industry relations Pre-war Zaibatsu • Mitsui • Mitsubishi • Sumitomo (Mazda, NEC) • Yasuda (dismantled post-WW II)

Post-War Keiretsu From: http: //www. wtec. org/loyola/polymers/c 7_s 7. htm

3. Labor-Management Relations • 1950 s: the end of independent unions • Company Unions • Lifetime Employment

Dilemmas • Inflexibility • Protectionism and competition • Innovation?

Collapse of Bubble Economy, 1990 Pay back loans Banks Loans Companies Government Pay back Loans Build factories Hire people Buy land Build offices

GDP Growth in Japan 1956 -2008

Japanese GDP From Sian Fenner, The Japanese economy and future growth prospects, Department of the Treasury, Australia, http: //www. treasury. gov. au/documents/817/HTML/docshell. asp? URL=05_article_4. asp

Another Look From: http: //japan. blogspot. com/2008/02/japan-q 4 -2007 -gdp. html

GDP Growth 1980 -2013