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nyu mu n c viii
Konichiwa minna-san!
Or, for all you non-otakus out there, “Good afternoon, everyone!” It is our pleasure to welcome
you to the Contemporary Japan committee!
My name is Kang Huh, and I will be acting as your Chair throughout what I hope is a weekend
full of fun, sanity, and/or fear. By way of background, I am a Sophomore studying Management
and Political Science through the Stern School of Business or, as some call it, “the Death Star.”
In addition to chairing your committee, I serve as the Secretary for the NYU Model United
Nations Club and compete un-regularly on the Travel Team. On the off-chance you recognize me
from a previous conference, I am either very sorry for my behavior in committee or very pleased
to see you again! Whether you’re a fresh face or not, I am a friend to all, be a plant or fish or tiny
mole, and I look forward to meeting each and every one of you.
Your beautiful Crisis Director is Javier Beltranena, a Freshman at the Stern School of Business
interested in Finance, Management and Marketing, with an intention to pursue a minor in
Politics as well. Javier was born in Guatemala, but moved to El Salvador at ten months old, and
then moved to Mexico City when he was eight. He participated in his first Model UN conference
in 7th grade, and has taken part in at least one conference every year since, debating and
chairing committees for his high school, as well as in international conferences in both New
York City and Mexico City. This year, he has the honor of being your Crisis Director, and is eager
to see how you develop solutions to steer Japan through the Contemporary JCC storm.
In the coming weeks, prepare yourselves for a rollercoaster ride of a weekend. Read the news,
watch the news, or eat the news. We have no preference as to how you enjoy media, as long as
you come to committee ready to drop truth-bombs on your fellow delegates. We expect nothing
less than truthiness.
If you have any questions, feel free to email either me or Javi! We will happily accept any
questions or otherwise extraneous messages at any time. Otherwise, we look forward to seeing
you strut your stuff in April!
Until then,
Kang Huh
Chair, Contemporary Japan
NYUMUNC VIII
chair.japan.nyumuncviii@gmail.com
Juan Javier Beltranena Larrave
Crisis Director, Contemporary Japan
NYUMUNC VIII
cd.japan.nyumuncviii@gmail.com
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nyu mu n c viii
History
Shinto System. The new constitution, drafted
Japanese Occupation after WW2
introduced in 1947. The new constitution
almost entirely by the United States was
guaranteed civil liberties, labor rights and
In 1945, following the two atomic bombings
women’s right to participate in politics. It
in Hiroshima and Nagasaki, respectively,
Japan
surrendered
Occupation
began.
and
The
the
also renounced its right to have a national
Allied
nation
army or to declare war on another nation.
had
The US occupation of Japan officially ended
undergone dramatic political, economical
in 1951 when the San Francisco Peace Treaty
and social changes. American policymakers
was signed between the two countries.
decided to sit Douglas MacArthur, the
Supreme Commander of Allied Powers as the
Economic Development
de facto leader of the Japan’s transformation
Shigeru Yoshida, Japanese prime minister
plan
from 1946 to 1947 and from 1948 to 1954
which
was
majorly
inspired
by
introduced a policy called Yoshida Doctrine,
president Roosevelt’s New Deal.
major
which suggested Japan focus on its internal
objectives: to promote labor union, to break
economic development rather than engaging
up the zaibatsu, which had too much
in world diplomacy as an active member. At
influence over the society, and to grant the
the end of World War 2 the struggling
peasants ownership of land that previously
Japanese economy began to dramatically
belonged to wealthy landlords.
improve through an austerity program in
Other objectives included: demilitarization,
1949 and the Korean War in 1950, out of
establishment of democratic government
which Japan made a huge fortune. The
system,
granting
Ministry of International Trade Industry, or
colonies,
MITI, was established by Yoshida’s cabinet
The
transformation
independence
had
three
disarmament,
to
Japanese
abolishment of Peace Preservation Law and
in
Tokkō, and punishment of war criminals by
development through closely collaborating
International Military Tribunal of the Far
with the major conglomerates, especially in
East
the field of manufacturing and heavy
In terms of the political system, the cabinet
industry.
started answering to the National Diet, an
Under Yoshida’s leadership, Japan increased
elected congress, instead of the Emperor who
the number of jobs and improved quality of
was allowed to remain on the throne only
life of workers. Despite this, Japan’s
after being forced to renounce his claims to
economy crashed in 1989. It entered a
divinity, a fundamental factor for the State
deflationary spiral and prices of stock and
2
order
to
promote
the
economic
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land fell greatly. The period between 1990 to
Government
2000 is called the Lost Decade, a name that
suggests the economic difficulties the nation
The government of Japan takes the form of a
went through. As Japan entered the 21st
constitutional monarchy. However, since
century,
WWII the monarchy and emperor’s role has
however,
its
economy
slowly
recovered.
remained purely ceremonial. The emperor’s
Japan’s Diplomacy
position in the government is as a “symbol of
Japan joined the United Nations as a
Japan and the unity of the people.” The
member in 1956, hosted the Olympic Games
emperor
in Tokyo in 1964 and started becoming a
Minister and Diet of Japan into office, but
proactive member of world diplomacy.
has no power over who is elected into these
Throughout the cold war, Japan was a firm
positions. The Emperor today is Akihito, of
ally of the United States and it reorganized its
the Imperial House of Japan, also known as
army under the name of Japan Self-Defense
the Yamato dynasty. The Emperor takes on
Forces, or JSDF. Japan normalized its
this role through succession, and will
relations with the USSR in 1956 and with the
ultimately be replaced upon his death by his
Republic of Korea in 1965. Japan also
son Prince Akishino. Japan operates on a
initially recognized the Republic of China as
male
the legitimate government of China until
members of the Imperial House are ineligible
1972 when it established formal diplomatic
for leadership.
relations with the People’s Republic of
“The highest organ of state power” in Japan
China.
is the Diet. The Diet is a bicameral legislative
However, Japan’s war legacy has obstructed
system with two branches, the ‘higher’
its diplomatic relations with countries in
branch of the House of Councillors and the
East Asia. Korea and China believe Japan has
‘lower’ branch the House of Representatives.
not
Both of these branches are voted in through
given
a
sincere
apology
for
its
formally
only
appoints
succession
elections.
the
law,
The
so
Prime
female
wrongdoings during the war. Moreover,
public
House
of
Japan has an ongoing territorial disputes
Representatives has 480 members; 300 of
with China, Korea and Russia. Especially
these are elected according to the single seat
with the far right current prime minister,
constituency system. The nation is then
Shinzō Abe, the diplomatic tension is
divided into 11 electoral blocs and the
stronger than ever.
remaining 180 members of the House of
Representatives are appointed through a
proportional
3
representation
system.
nyu mu n c viii
Depending on the size of electoral blocs there
emperor will appoint the Chief Justice. All
will be between 6 and 30 members
juridical power is invested in the Supreme
appointed. The House of Councillors has 242
Court, and the lower level High Court and
members, 146 voted in by the electoral
District Courts.
system
Prime Minister Shinzō Abe was appointed to
and
the
remainder
through
proportional representation.
Of
the
two
houses,
the
his position in December 2012, and is the
House
of
leader of the Liberal Democratic Party of
Representatives (the lower house) has
Japan (LDP). The LDP has won two
greater legislative power. For example,
subsequent
should the House of Councillors vote
maintaining their parliamentary majority
differently on a law than the House of
and Abe’s position as Prime Minister. The
Representatives, as long as the House of
Liberal Democratic Party is a conservative
Representatives has a majority vote, their
political party, and has had the majority in
decision is the one that passes.
government since 1955, apart from four
The Prime Minister of Japan is appointed by
years in 1993 when seven opposition parties
the Diet, and is typically the leader of the
formed the Japan New Party and won the
majority party in the Diet. The Emperor will
election.
then officially assign the position of Prime
leadership in the 1996 election. To secure its
Minister to this person, and they will begin
majority rule, the LDP has formed a coalition
the role. The Prime Minister has executive
with its junior party, Komeito. This party is a
power over the government, along with the
more liberal group and has supported the
cabinet that they appoint, which is typically
LDP since 1999. Below shows the makeup of
made up of members of the Diet.
the parliament today.
The Cabinet consists of the Prime Minister
and up to 17 other members. The Prime
Minister's role in the Cabinet is to appoint
the Ministers of States, represent the cabinet
in the Diet and report on general affairs,
foreign relations and other administrative
branches. Various ministers in the cabinet
represent
different
areas
such
as
Finance, Justice, and Foreign Affairs, as well
as many more. The cabinet will also appoint
the Justices of the Supreme Court. The
4
The
elections
LDP
since
regained
2012,
majority
nyu mu n c viii
The main opposition party in Japan is the
monetary stimulus, fiscal flexibility and
Democratic Party (DP). This is a left of center
structural reform. The economy is a hot topic
politically aligned party. Following the July
for government official, as during the LDP
2016 elections for the upper house, which left
rule post-1996 the economy fell into
the Democratic Party with only 49 seats, the
recession four times (all since 2008).
leader Katsuya Okada stepped down. The
Abenomics mildly helped this, however the
party has now appointed a new leader,
LDP party faces fears of losing popularity as
former news reporter, Rehno Murata - the
the national debt remains at 230% of GDP.
parties first female leader. The other political
Other LDP policies that are of great public
parties in Japan are:
interest include whether to restart the
•
•
Japan Communist Party or JCP [Kazuo
nuclear power plants in Japan following the
SHII]
Fukushima Disaster in 2011, assuming all
Japan
Innovation
Party
or
JIP
plants pass safety tests; and the move Abe
[Yorihisa MATSUNO]
•
New
Renaissance
may make to alter the constitution, which
Party
[Hiroyuki
renounces war, and changing it to allow
ARAI]
increased military spending and potential
•
Osaka Ishin no Kai [Ichiro MATSUI]
involvement in future wars.
•
Party for Future Generations or PFG
For many years the Japanese political
[Kyoko NAKAYAMA]
environment has been fairly stagnant due to
People's Life Party & Taro Yamamoto
the LDPs almost consistent governance.
and
Economic pressures weigh on the current
•
Friends
or
PLPTYF
[Ichiro
OZAWA]
•
•
Social
government, but the public, especially
Democratic
Party
or
SDP
youths
are
fairly
uninterested
in the
[Tadatomo YOSHIDA]
government and politics in general, due to
The Assembly to Energize Japan and
the monotony of Japanese leadership, with
the Independents [Kota MATSUDA]
surveys before the 2016 election showing
The popularity of the LDP in recent elections,
only 20% of young people were very
over the Democratic Party and other
interested in the upcoming election.
opposition groups, has been secured by their
Self-Defense Forces
proposed policies. The most famous of these
policies, suggested to have been key in Abe ’s
Although
election, is the policy of “Abenomics.” This
dismantled following World War II, the
economic plan hoped to improve the
nation retains some defense capabilities
economy
through its Self-Defense Forces. Originating
in
three
connected
changes:
5
Japan’s
military
was
largely
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in the postwar period, the Japanese formed
Forces were renamed the Self-Defense
the defense force after the Korean War in
Forces and were headed by the Chairman of
response to a large number of occupying
the Joint Staff Council, often a general or
American forces leaving Japan to fight the
close adviser to the Prime Minister.
Communist threat in the Korean Peninsula.
As outlined in the Treaty of Mutual
With backing from the United States, the
Cooperation and Security, Japan’s Self-
Japanese government created the 75,000-
Defense Forces still primarily serve to
person National Police Reserve in July of
maintain domestic safety and respond to
1950, which became the Self-Defense Forces’
natural disasters. However, Japan has also
predecessor.
allowed the Self-Defense Forces to protect
The National Police Reserve’s role was more
Japan’s interests in East Asia as well. The
clearly defined in 1960 following the passage
most recent example of the Self-Defense
of the Treaty of Mutual Cooperation and
Forces’
Security between the United States and
December
Japan,
distinction
government’s vote to redirect the previous
between the roles of occupying American
focus on combating the Cold War to
forces and Japan’s burgeoning military force.
protecting to Japan’s claim to the disputed
As specified by the treaty, the United States
Senkaku Islands.
assumed the role of Japan’s protector in
Although Japan does not possess the same
foreign conflict, while the Japanese defense
amount of military capability as neighboring
force was tasked with overseeing domestic
powers like China, it does maintain a fairly
issues and natural disasters. The National
large force of 250,000 active members, with
Police Reserve continued to evolve with the
an additional 47,900 reservists per each of
assumption of more tasks, becoming the
the divisions of the Self-Defense Force. Each
National Safety Forces in 1952 with 110,000
of the Maritime, Air, and Ground Self-
men.
Defense Force branches divide the number of
1954
which
marked
outlined
the
year
the
of
changing
2012,
focus
with
occurred
the
in
Japanese
increased
total personnel equally, with each branch led
militarization of the National Safety Forces
by an individual Chief of Staff who leads their
with the division of the forces into three
respective Self-Defense Force division.
separate groups: the Japan Ground Self-
Ultimate authority, however, lies in the
Defense Force, the Japan Maritime Self-
hands of the Prime Minister and the Minister
Defense Force and the Japan Air Self-
of Defense, who have the task of deciding
Defense Force, a structure that has held since
how to utilize the Self-Defense Force in
the Upon the division, the National Safety
accordance with the Treaty of Mutual
6
nyu mu n c viii
Cooperation and Security. In determining
GDP, with 4.123 trillion US Dollars, just
the use of the Self-Defense Forces, the Chiefs
under the United States and China. In 2015,
of Staff serve more of an advisory role,
Japan had a GDP per capita of USD $38,100
should the Prime Minister and Minister of
(PPP) placing the country in 43rd for the
Defense decide to involve the Self-Defense
global ranking. Japan nonetheless has
Force in fields of combat outside of Japan.
struggled to maintain a positive GDP growth
While primarily used as a means of ensuring
rate. The last quarter of 2015 saw a negative
military security on the domestic front, the
0.4% growth of the GDP, compensated by a
Japanese Self-Defense Force is still deployed
positive 0.5% growth on Q1 of 2016. Q2 fell
abroad,
international
back to a positive 0.2% growth and Q3 is
peacekeeping and disaster relief missions.
expected to have the same growth as Q2.
engaging
in
Japan often works with other member states
of the North Atlantic Treaty Organization or
the United Nations in conflict regions, most
recently deploying troops to Iraq to provide
medical
support
to
American
troops
throughout the reconstruction of Iraq.
While the Japanese government has not
made express maneuvers to expand the Self-
Officials
Defense Forces, Prime Minister Abe has been
have
already
recognized
the
problem of stagnation in Japan and have put
instrumental in increasing funding for
forward a stimulus package of financial
defense programs in Japan. Furthermore,
policies that will be discussed further on in
the anti-foreign military aid stance of US
the specialized section of the background
President Donald Trump has thrown the
guide. Nonetheless, some still doubt the
future of the Japanese military into question,
effectiveness of the stimulus package as the
with many positing that the Japanese
Bank of Japan (BOJ) cut back the target
military must expand in the event of
inflation rate when the inflation rate dropped
America’s withdrawal from the mutual
to -0.27% on the first half of 2016. Retail
security agreement.
sales are also struggling to improve, as the
Economy
last time they were ever positive was in
Macroeconomic indicators
month since then averaging -0.9% as of
February of 2016 and have fallen every
Japan was ranked as the third largest
October 2016. These indicators are a crucial
economy in the world in terms of nominal
signal that Japan is struggling to boost its
7
nyu mu n c viii
economy and the fact that the stagnation has
indicators, it has continued to weaken
lasted for over a year might suggest that the
throughout the years. In 2011, one USD was
policies set forward by the government are
equivalent to 79.81 JPY. The figure has risen
not having the desired effect. Despite the
to 104.50 JPY per USD as of October of 2016.
stagnant economy, the unemployment rate
Japan ranked 5th as the country with most
in Japan hit 3% June 2016, the lowest ever in
exports in the world, estimating in 2015 a
21 years.
$622 billion USD. Of these, 14.9% of the
Public Debt
exports were motor vehicles, 5.4% were iron
Japan ranked first place in the world for debt
and steel products, 5% were semiconductors.
as percentage of GDP with over 245% of its
Japan’s top export partners are the US
annual GDP, or more than a quadrillion yen,
(20.2%), China (17.5%), and South Korea
equivalent
(7.1%).
to
$11
trillion
USD.
The
International Monetary Fund (IMF) said in
The island nation ranked 6th in the world for
2015
is
imports, estimating in 2015 $627.3 billion
unsustainable under current policies.” A plan
USD. Of these, 16.1% was petroleum, 9.1%
to increase government revenue through
was natural gas, 3.8% was clothing, and 3.1%
sales taxes had been designed to go into force
were semiconductors. The top nations from
on 2017, however, the policy which would
which Japan imports from are China
raise sales tax from 8% to 10% was delayed
(24.8%), US (10.5%), and Australia (5.4%).
that
“"Japan's
public
debt
Society and Culture
until late 2019 because Prime Minister Abe
was afraid it would interfere with the
momentum to increase consumer spending
Japanese society and culture is somewhat of
and stimulate economic growth. The IMF
an internal juxtaposition; it is both rooted
also predicted that the debt as percentage of
deeply in tradition, and constantly moving
GDP will reach a 290% by the year 2030. The
forward with changing trends and fads. It is
BOF as of December 2015 held more than
thought of as one of the most homogenous
30%
Bonds.
countries in the world. There are much fewer
Standard & Poor cut Japan credit rating from
linguistic differences across the country, and
AA- to A+ in 2015.
lifestyles have more similarities along the
of
Japanese
Government
social class ladder. However, there are
Trade
ethnic minorities, including the Ainu and
The Japanese Yen (JPY) was the third most
Ryukyuan peoples. There are many different
traded currency traded in the foreign
aspects of Japanese society and culture, each
exchange market in 2013. Nevertheless,
with their own special customs. Some of
along with the country’s macroeconomic
8
nyu mu n c viii
these facets include, religion, family life,
as a private matter and influential in daily
education, social conventions, and etiquette.
life, represents the mix of tradition and
The one thing all these different facets of
modern values in Japanese culture.
society and culture have in common, is the
Family life in Japan today very much
dynamic, and often times, oppositional
resembles
combination of strict tradition and fluid
contemporary US and European countries,
contemporary developments.
with families in the home consisting
Traditional Japanese religions are Shinto
predominantly of a married couple, children,
and Buddhism, however there are over 600
and perhaps one grandparent. However,
“new religions” incorporating aspects from
historically, the Japanese family, known as
both of these religions as well as Christianity.
the Ie looks very different from US and
Japan is considered the most secular society
European
in the world, but since the 1950s the number
families in Japan were multigenerational,
of people belonging to the different branches
with four and even up to five generations
of religion in the country has been more than
living under one roof. These families were
double the total population. Although
also very patrilineal meaning that all
religion is very much separated from
property, wealth, occupation and even social
government, it is deeply imbedded in society.
standing going strictly from father to son.
Religion in Japan is a moral code and a way
One surviving tradition is the idea of the
of life whose values often coincide with
male as the “breadwinner” who goes out of
cultural values. Luck, fate, and superstition
the house to work and has a limited role in
are all important aspects of Japanese
the children’s upbringing. Today, Japanese
societies. Lucky charms that each have a
men feel large burdens and responsibilities
specific type of luck (for example, good
from their jobs and as a result remain very
fortune or fertility) are often bought at
separated from their children’s lives, leaving
Shinto shrines or Buddhist temples and
Japanese women to stay at home and raise
prayers are frequently written on wooden
the children.
boards knowns as ema which are hung on
Japanese education is very competitive by
temple grounds. Though certain aspects of
nature. Because of the management of
religion, particularly Shinto and Buddhism,
children’s education usually falls on the
are present in daily society, religion itself is a
mother of the household, it is her job to
very private and personal family matter, and
ensure that her children receive a good
rituals are often only practiced at ceremonies
education. This generally means, starting
and celebrations. This opposition of religion
children at preschool age at a cram school.
9
the
family
nuclear
units.
families
of
Traditionally,
nyu mu n c viii
This helps children later get into a good
Japanese often take on an impassive
elementary school, then middle school, and
expression and avoid eye contact in order to
finally an equally good high school. By
maintain privacy. All of these things add up
starting off at such a young age, the mother
to create an intricate etiquette and culture
reduces the pressure of examinations that
system.
come at a later age, due to the highly
Japanese society and culture is steeped in
competitive nature of Japanese education.
tradition in many ways, from the dynamics of
Children in Japan spend much more time
historical family life to the traditions of
studying and preparing for examinations at
religion and etiquette. However, they are
every level in the education system, than
also very much with the trends of the time,
many other places in the world, including the
especially in regards to education and the
United States. Despite this competitiveness,
more modern family unit. Overall, Japanese
or perhaps in part, due to it, Japan remains
society and culture is a complex system with
one of the most educated countries in the
varying levels of rigidity.
world.
Demographics
Social conventions and etiquette in Japan are
huge aspects of Japanese culture and society,
Japan experienced a population boom near
however it is often the subtle cues rather than
the end of the 19th century and the early 20th
big gestures that are important. Preserving
century. As a result of the high growth rates
dignity and showing respect are two of the
experienced during this period of time,
most important facets of etiquette in Japan
Japan, as recently as 2015, was the tenth
when interacting with others. There is a very
most populous country in the world,
strict sense of hierarchy within Japanese
followed closely by Mexico. However, since
society,
show
2010, Japan has had to deal with an aging
appropriate levels of respect to those higher
population. Having the world’s longest life
up on the ladder. Often times, respect is
expectancy at 81.25 years old (2006),
shown through bowing or gift giving. Finally,
combined with falling birth rates and
Japanese
nonverbal
virtually zero immigration, is not a healthy
communication. Because Japan stresses the
balance. According to research conducted by
importance of harmony, people often trust
the National Institute of Population and
facial expressions and other non-spoke
Social Security, Japan will continue to deal
messages rather than the verbal word, as it is
with the consequences of its declining
considered more trustworthy and having
population; the country is on track to lose
only one meaning. However, because of this,
one million people per year in the coming
so
it
is
society
important
relies
on
to
10
nyu mu n c viii
government invested resources to try and
improve
infrastructure,
education,
and
industry but the hustle and bustle of
cosmopolitan cities has been too difficult to
overcome for young people seeking both
education and jobs. Much of Japan’s
population is concentrated on urban plain
areas because approximately three-fourths
of Japan’s land area is mountainous. It is also
one of the top three countries with high
decades. In a little less than 50 years, almost
forest cover percentage, sitting at 68.5%. In
half of Japan’s population (40%) will be aged
addition, nearly all (90.7%) of Japanese live
65 or older (2060).
in cities. Japanese society is incredibly
The Japanese population is surveyed by
urban, with only five percent of the labor
census every five years. According to the UN
World
Populations
Prospects
force working in agriculture. Even farmers
(2005),
have chosen to take up part-time city-work.
Japan’s population density was 336 people
Japan also boasts the world’s most populous
per km^2. Land prices have shot up in the
city in Tokyo-Yokohama. One of the most
country’s six largest cities by over 15,000%,
pressing issues facing Japan today is the
all within the timespan of 1955 – 1987. Urban
dramatic aging of the population. The
land prices have gone too high; the price of
percentage of the population aged 65 or older
land actually doubled in that period alone
doubled from 7.1% to 14.1% in a mere 24
and forced many families to move out of
years (1970-1994). Many Japanese have
central city housing. Because workers were
been worried by this emerging trend, and
forced to live far away from the cities, they
have raised concerns about the country’s
now had to deal with the troubles of
economic future and the viability of its
commuting. It wasn’t uncommon to see a
welfare state.
two-hour commute (one-way) for workers in
Japan has high population density, including
the Tokyo area. The crash of the bubble
both total landmass, as well as habitable
economy in 1991 led to a major decline in
land. Per km^2 of total area, the population
land prices, and families gradually moved
back
into
the
cities.
However,
density is about 330 people, per km^2 of
the
livable land, the density skyrockets to 1,523
government has tried its best to increase the
persons. Not surprisingly for this island
attractiveness of regional cities and rural
areas to no avail. The national and regional
11
nyu mu n c viii
country, over half of the entire population
city. In 1990, the government teamed up
lives on a miniscule 2 percent of the land.
with private corporations to encourage
The Japanese have a unique definition of
internationalization,
breaking
ethnicity. In their census, respondents are
historically
tendencies.
asked
Other
200,000 Japanese emigrated from the island
ask
nation, mostly for extended periods of
ethnic
research, study, or business, but many
background, irrespective of their nationality.
children returned only to be bullied. Japan
Because of this disparity, the Japanese
has had a steadily increasing immigrant
census isn’t very informative of Japan’s
population, but it isn’t very diverse. About 70
ethnic composition. There is only a slight
percent
distinction made between Jomon and Yayoi
Brazilians, Chinese, or Koreans. Foreign
peoples (dark skin vs light skin and rounder
labor has seen an increase in demand, due in
eyes vs narrower eyes).
large part to the shrinking workforce. The
Over half of females aged 25 to 29 aren’t
government has taken steps to attract foreign
married (54%); nearly 70 percent of men in
labor (notably, loosening visa requirements
this age group aren’t married either. In 2012,
for “Highly Skilled Foreign Professionals”),
Japan’s TFR (total fertility rate) was about
but Prime Minister Abe still insists on not
1.41 children / woman. This was lowest in the
relaxing his restrictive immigration policies.
capital Tokyo (1.09) and highest in Okinawa
According to him, technology is the solution
(1.90). During the 1950s and 1960s, a period
to Japan’s labor shortage along with slightly
of
internal
upping fertility rates to 1.8 per woman.
migration was dominated by urbanization.
Linguistically speaking, Japanese society
However, in the 1980s, due to a government
(Yamato people) is relatively homogenous.
push, some young people returned to
Even Japan’s two major indigenous people,
regional cities. A U-turn migration was when
the Ainu and Ryukyuans speak Japanese.
the younger generation returned to regional
Citizenship is transferred via jus sanguinis,
cities from large cities, a J-turn migration
which just means that citizenship isn’t
was when the younger generation returned
dependent on birthplace, but on having at
to their prefecture of origin. Additionally, the
least one parent who holds citizenship.
1980s were times of suburbanization. People
Japan doesn’t recognize dual citizenship
discovered that the suburbs had the benefit
either. Japan also requires all foreigners
of affordable housing, while still being
obtaining Japanese citizenship to take on a
commuting distance of work in the central
Japanese name using one-character set.
about
countries
their
like
respondents
for
economics
the
nationality.
UK
their
typically
racial
development,
/
12
of
insular
immigrants
are
Japan’s
Over
Filipinos,
nyu mu n c viii
Japanese people are able to enjoy a
And, after finishing their studying or
comfortable standard of living that is high in
training, they usually select to return to their
comparison to the rest of the world. 90% of
home nation. In November of 2007, Japan
the population considers themselves to be
enacted a rule mandating that all foreigners
middle class. Despite this, people are not as
be photographed and fingerprinted upon
happy and satisfied as you would expect. On
arrival in Japan.
average, they have relatively low levels of
both
satisfaction,
satisfaction,
and
especially
happiness
Automotive Industry
financial
even
in
The
largest
portion
of
the
Japanese
sector
is
the
transport
comparison to other developed countries.
manufacturing
As of 2005, 1.22% of the Japanese population
machinery industry, and 89% of the industry
was comprised of foreign residents. There
is dedicated to manufacturing automobiles
are also a large number of Koreans living in
and their associated parts. This automobile
Japan whose ancestors either previously
industry is so large it employs 8.7%” of
immigrated to Japan or were forcibly
Japan’s entire workforce with “600,000 jobs
relocated during the Japanese occupation of
coming from manufacturing parts and
Korea. A treaty between Japan and South
390,000 from raw materials production
Korea has granted these Korean residents in
needed for automobile production. This is
Japan “Special Permanent Resident” status.
therefore a key area in Japan’s economic
Through this policy, they can easily obtain
well-being and the well-being of many
automatic citizenship but a majority of them
citizens, who rely on the industry directly
have chosen to not take advantage of this
and indirectly as a source of income.
process. The Japanese government also
The automobile industry in Japan is home to
requires that non- Japanese nationals who
eight automobile companies including the
do not hold special registration status carry
sales leaders Toyota, Honda and Nissan. The
alien registration cards and fingerprint. This
economy is worth 500 trillion yen and the
system of classification didn’t go over too
nation is Asia’s second largest car producer.
well with everybody and in the 1980s there
The
was a civil disobedience protest movement.
consolidate though and in January 2016
Recently, Japan has been hit with a wave of
Toyota signed a deal to purchase the
immigration, but it has come mostly from
Daihatsu Motor Company for $3.2 billion in
students (trainees). Practically all of them
stock. The reduces the costs and risks
come under student visas or trainee visas
associated with competition, as well as the
and reside with student residency status.
diversity of manufacturing jobs available.
13
manufacturers
are
beginning
to
nyu mu n c viii
However, consolidation of competition may
As global sales suffer, so do domestic ones.
reduce the size of workforce needed as two
Toyota’s financial results for the first quarter
roles for separate organizations may merge
of the 2017 fiscal year posted a decline of
into one. Manufacturers such as Ford are
2.5% in earnings per share on a revenue
now intending to move out of Japan, again
decline of 4.4% - Nissan’s sales plunged
reducing the job market in this sector.
24.6%.
This very risk of competition, mentioned
However, some areas of the automobile
previously, is affecting the success of the
industry are set to grow as time continues,
Japanese automobile industry on the global
most notably as Japan tries to take on US
stage. China is the world’s largest automobile
based brand Tesla and bring developing
market, but Japan’s share of the market
electric cars. The company GLM, hopes to
decreased to only 16.6% from 2012-2015.
launch an IPO in the next year and begin the
European companies, such as Volkswagen
first Japanese car maker to go public in 30
now have the dominant portion of the
years. This may create a new job market to
market in China, accounting for 22.3%.
combat the potential loss of employment in
Outside
of
manufacturers
Asia
Japan’s
automobile
the traditional manufacturing sector and
also
struggling.
open possibilities for further innovation in
are
Collectively Toyota and Honda alone have
clean energy motor vehicles.
invested $2.2 billion into manufacturing in
Toyota is also attempting to revive their sales
the UK over time. This investment and their
by signing a ten-year sponsorship deal with
success in the UK and EU market is now in
the International Olympic Committee (IOC)
jeopardy following the ‘Brexit’ vote on the
for the upcoming 2020 Tokyo Olympics to
24th of June 2016. On this day Nissan and
expose their brand to the global Olympic
Toyota’s shares in Tokyo dropped by 10%.
audience. In similar moves Nissan have
They did recover but both corporation’s
sponsored City Football Group and Honda
shares declined by smaller amounts of
have partnered with Mclaren in Formula One
around 2% the following Monday. The big
- all attempts to push their brands and
three - Toyota, Honda and Nissan - produce
improve sales. These promotional activities
50% of the cars manufactured in the UK, but
are intended to keep this sector as large and
following the Brexit vote, should the EU
influential as it was and is today. Japan’s big
impose levies on trade with the UK, the is a
three
75% chance that Toyota and Honda may pull
searching for the next step to grow the
out of the UK completely.
success and size of their industries -
automobile
particularly
14
in
corporations
the
wake
of
are
all
falling
nyu mu n c viii
international
sales
and
mergers
and
renewable energy sources, however this does
mechanization limiting the jobs available.
not yet make up a huge portion of where
Energy
Japan’s energy comes from. While the table
Following World War II, Japan’s energy
does show an accurate general shift in the
consumption
types of energy sources used by Japan.
skyrocketed
below does not show the previous 15 years, it
as
industrial
growth rapidly increased. In fact, up until the
Japan - Primary Energy Use
1990s, energy consumption doubled every
five years. Recently however, the cost of
electricity has been on the rise, due to
Fuel Type
1950
1988
2001
Coal
50%
18.1%
16.8%
Hydro
33%
4.6%
4.0%
Oil
17%
57.3%
50.2%
Natural Gas
-
10.1%
13.6%
Nuclear
-
9.0%
14.4%
Other
-
1.3%
1.0%
multiple contributing factors, including lack
of natural resources and a decline in nuclear
power usage.
Aside from coal, Japan has very few natural
resources of its own. As a result, the majority
of its energy sources are imported. Some of
these substantial imports include crude oil,
natural
gas,
and
other
less
common
resources like uranium. In 2010, 84% of
Japan’s
energy
from
In the early 2000s, nuclear power became a
imports. This reliance on foreign energy
much bigger part of Japan’s energy sources.
supplies makes international cooperation
At its peak, nuclear power was producing up
and
positive
to 30% of Japan’s total energy consumption.
international relations with countries like,
However, following the 2011 Fukushima
the United Arab Emirates, Iraq, Saudi
Daiichi nuclear disaster, all nuclear power
Arabia, Qatar, and Kuwait, a necessity for
plants were shut down for safety precautions.
Japan. This non-domestic violence has led to
From July 2012 to September 2013 Ōi
recent efforts to look into alternative energy
Nuclear Power Plant’s number 3 reactor was
sources that may be found within Japan
restarted, but it was shut down once more in
itself.
order to complete compulsory safety checks.
In the last two decades, coal as a primary
Currently, only two nuclear reactors - opened
energy source has decreased, while natural
August 11 and November 1, 2015 - are in
gas, nuclear energy, and other sources have
operation at the Sendai Nuclear Power Plant.
increased. Japan is also looking into
However, public opinion on the continued
the
resources
maintenance
came
of
15
nyu mu n c viii
usage of nuclear power in the wake of
remained roughly the same. On 2012, Prime
Fukushima has been resoundingly negative.
Minister Abe ran for reelection on the bases
As part of Japan’s initiative to reduce
of a new monetary package that is now
reliance on foreign energy sources, the
commonly referred to as Abenomics whose
Japanese
proposed
overall target was to end the stagnation and
reintroducing more nuclear power plants,
restart the nation’s economic engine. The
with the hopes of increasing total energy
plan has three main goals, or arrows as Abe
derived from nuclear power up to 20% by
has called them: monetary easing, fiscal
2030.
pragmatism, and structural reform.
government
has
As Japan shifts back to nuclear power, it also
Monetary Easing
looks to renewable energy to decrease
The whole purpose of the monetary easing is
foreign reliance, as well as work towards
to redirect inflation rate in Japan above 2%.
environmental
Currently,
The monetary easing consists of two policies.
Japan derives about 10% of its energy from
First of all, the government is attempting to
renewable sources. These sources include:
inject liquidity into the economy. In other
hydroelectric,
photovoltaic,
words, Japan is printing more currency
wind energy, and waste and biomass energy,
(Yen) in order to increase the flow of cash
with plans to extend these energy sources to
through the economy. They way that they do
include ocean energy. A new initiative, the
this is through the central bank. The Bank of
Four Strategic Energy Plan. hopes to
Japan (BOJ) prints money and uses the
increase the 10% to 24% by the year 2030.
money it has printed to buy government
This will partially be done with an intended
bonds. In essence, government bonds are
$700 billion investment.
loan of money that the government has taken
sustainability.
geothermal,
Abenomics
from mostly financial institutions and by
Between 1986 and 1991 Japan experienced
is doing is that instead of the government
an extremely fast period of economic growth
owing money to the bank it borrowed money
due mostly to the automation of Japanese
from, the BOJ pays the bank the amount
industry and manufacture and the increasing
borrowed by the government and now the
international
nation’s
government owes the BOJ money instead of
products. Nevertheless, since 1991, the
the original bank. When the BOJ buys this
economy has experienced a period of
bonds, it is using the money they printed and
stagnation. While the United States GDP
they increase the stock of money held by
grew by almost 130%, Japanese GDP
financial institutions. The BOJ already owns
demand
for
the
buying the government bond, what the BOJ
16
nyu mu n c viii
33% of all government bonds and it’s
years as the government struggles to achieve
expected to own around 55% by December of
an inflation rate even above 1%.
Fiscal Stimulus
2018.
The second policy implies “a gigantic
“Fiscal policy refers to a government’s use of
experiment in monetary policy.” Japan was
policy to influence the economy, primarily
one of the first nations to implement
through
negative interest rates. What these negative
taxation.” Perhaps the most important of
interest rates mean is that, instead of your
these two is the spending. Japan government
money growing the longer you keep it in a
approved a budget of 10.3 trillion Yen ($116
bank in a savings account, the banks now
billion). Of those, about 3.8 trillion are
start taking away a portion of your money
destined
saved with time. The BOJ has set an inflation
reconstruction, 3.1 trillion Yen directed to
rate of -0.1%. The ultimate purpose of this is
stimulating private investment and other
to keep people from saving their money and
measures, and the last 3.4 trillion Yen for
rather encourage them to take them out of
social and regional expenditures such as
the banks and invest it. The whole monetary
medical care. The second policy involved a
easing arrow runs on the assumption that the
two step rise in consumption taxes. The first
world
Keynesian
rise was planned and executed in April of
economics, that is, economic growth will
2014 with an increase from 5% to 8%. The
come as a result of an increase of aggregate
second increase from 8% to 10% was
demand. The BOJ and the government
supposed to happen in 2015. However,
delivered a joint statement on December of
Prime Minister Abe delayed the increase
2013 setting a price stability and target
fearing that it could interfere with the
inflation point at 2%. Nevertheless, the
momentum that inflation was having at the
inflation target has been pushed back a few
time.
functions
through
decisions
for
on
disaster
spending
prevention
and
and
Structural Reform
This is the most crucial of the three arrows
yet the most difficult to implement. When
the stimulus package was first announced it
didn’t lay out specific examples of what
Japan would reform. What was said is that
Abe would look for a series of small reforms
that would boost certain industries both
nationally and internationally by making
17
nyu mu n c viii
them more competitive. While the last two
Even though the government has achieved
arrows sought to cause immediate results,
some reforms in some industries and sectors
they are not considerable in the long term.
of
This arrow however is the basis for what
desperately needed. Japan’s labor laws still
should come next after the economy is back
limit the companies’ abilities to grow and
on track.
expand. While unemployment level is at its
Agriculture was one of the industries affected
lowest point, it’s urgent that the burdens on
by this arrow. Through a reform of
hiring and terminating employees are
agricultural cooperatives in Japan, the
addressed as well as other aspects that are
government sought to decrease the central
limiting the wages of workers.
power that the Central Union of Agricultural
the
economy,
other
reforms
are
Female Poverty
Cooperatives, better known as JA-Zenchu,
held over the farmers and give more
Despite being the world’s third largest
autonomy to local cooperatives. The reform
economy,
also sought to lower the cost on agricultural
growing issue of poverty. There, poverty is
production such as fertilizers and pesticides
defined as when the income of a household is
whose distribution was under the Central
at or below the mean household income of
Federation
Cooperative
$27,323. Poverty is especially affecting
Associations, responsible for having costs of
women living on their own. Single mothers
agricultural production almost double what
make up the majority of single parent
they were in South Korea. The reform to
households in Japan, half of which are living
corporate government has been the most
in poverty.
successful one inside the third arrow
As divorce is becoming more and more
objective. The government passed a law on
socially acceptable in Japan, more couples
June of 2015 with the aim of shaking up
find themselves going down that path.
companies’ slothful boards by, for instance,
However, the women face many instances of
calling on them to appoint outsiders. What
discrimination and harassment based on
the law attempts to achieve is to pressure the
their marital status after getting divorced
CEO’s and leaders of Japanese companies,
and becoming a single parent. Most women
who currently comfortably sit on 231 trillion
don’t end up getting child support, and often
Yen which amounts for almost half of the
times end up relying on welfare as one of
country’s GDP, to continue to evolve their
their main sources of income. Aside from
business models and grow their return on
divorced mothers, widows - especially older
equities.
ones - receive distinctively low incomes
of
Agricultural
18
Japan
faces
a
continuously
nyu mu n c viii
because they receive very little benefits from
To
pension. Aside from divorce, marriage to
government must implement stricter laws to
begin with just isn’t happening in Japan. 15%
prevent
of women aged 18-34 consider themselves
applicants and closing the wage gap between
“lifetime
aren’t
men and women to prevent female poverty
interested in men who hold part time jobs,
from happening in the first place, as well as
which make up 40% of all jobs.
providing resources that more women feel
With Japan being a mostly democratic
comfortable seeking as they look for help
country,
getting out of poverty.
singles.”
it
would
Most
be
women
assumed
that
opportunity equality is one of the country’s
main values. However, in the workplace,
discrimination against women is highly
visible. It is difficult for women to find
sustainable jobs in Japan, never mind the
fact that they get paid lower wages than their
male
counterparts
because
their
job
performance levels are considered to be
worth less than the men’s. Though it is a nice
idea for the women to find work abroad or
even start their own businesses, it is
extremely difficult to do so in Japan’s
economy. Thus, 1 in 3 Japanese women who
live alone between the ages of 20-64 are
living in poverty.
2010 studies show that women aged 20-63
who were living on their own was 32%, put in
perspective next to their male counterpart of
25%. Of women aged 65 and over who were
living alone, 50% lived in poverty. It is
difficult to raise awareness about this issue,
especially in Japan, because women living in
poverty rarely seek help. They tend to try to
stay in their homes as opposed to living in
shelters because they feel a lack of security.
19
combat
this
gender
issue,
bias
in
the
Japanese
selecting
job
nyu mu n c viii
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