June 6 2007 Natural Resources versus Human Resources

June 6, 2007 Natural Resources versus Human Resources Makoto Utsumi President and CEO Japan Credit Rating Agency, Ltd.

Market Economy in 1990 U. S. A & Canada l Western Europe l Japan and some Asian Tigers l The Market Economy embraces 5 billion population (a hypothesis) High commodity prices 2

Education in Edo Period( 1603 ) - 1876 “Terako ya” (small-scale private schools) to read and to write ② ethics ① – family value – loyalty to the entities to which one belongs 15, 000 – 20, 000 all over the country ③ capacity building Meiji Restoration 1867 The modern Education System promulgated in 1973 3

Elementary Schools Ratios of attendance in total school age Year boys 1874 girls 46. 17% 17. 23% (Compulsory Education introduced in 1888) 1895 76. 65% 43. 87% 1900 90. 35% 71. 73% 1905 97. 72% 93. 34% 4

The Secondary the Higher Education and Professors and Experts invited - from the U. S. A. and Europe - covering all fields in Western civilizations and culture Those cost 4 - 5 % of the total budget of each Ministry (more than 50 % in the case of the Ministry of Industry) 5

A Development Model Capacity building of the next generations Japanese young Elites enlightened Foreign Professors and Experts 6

Golden Triangle Loyalty to the company to which one belongs Long-term Employment In-house Capacity Building 7