CHAPTER 14
JAPAN: MODEL FOR FREE DEVELOPING WORLD
This chapter presents comprehensive coverage of the Japanese economy, such as land, people,
government, agriculture, industry, science and technology, education, and other non-economic
factors. Institutional reforms, economic system, and business and management style are briefly
explain
1. THE LAND
-Japan has four main islands: Hokkaido,
Honshu, Shikoku, and Kyushu.
-Largest island is Honshu (Tokyo,
Yokohama, Kyoto, and Osaka-Kobe are
located).
-Total land area is 377,708 square
kilometers.
-The country has few resources; it imports
large quantities of oil, coal, iron, ore, cotton,
wool, wheat and other foodstuffs.
2. THE PEOPLE
- Aborigines of Japan were the Ainu Tribes.
-They began to trade with the foreigners.
-They had a primitive form of government.
-Early ancestors of Japanese people came
from China, Manchuria and Korea.
-The population of Japan as of 2019 is
-Japan has an urban population and is one of
the, most crowded countries in the world.
-About 99% of the Japanese have modern
household.
3. FEUDAL JAPAN
-Before the Meiji Restoration in 1868, Japan
was divided into 250 fiefs for 300 years.
- The highest ruler was the emperor,
however real power emanated from the
shogun (military governor).
- Next to the emperor were the daimyo
(feudal lords) which were assisted by the
samurai (the armed retainers).
- Peasants were given the right to carry
firearms and they served the feudal lord in
times of war.
- Lands were owned by feudal lords and
occupation is determined by birth.
- They treated peasants like their slaves.
- The shogunate did not remain long in
power due to unfriendly landlords, clans and
peasants.
- The country had a self- contained
economy in the year 1600.
4. INSTITUTIONAL REFORMS
- Small farm units and labor-intensive
technology were practiced.
-Emperor Meiji started the modernization
of Japan through the Meiji Restoration in
1868.
-The goal of Meiji Restoration was to equal
the economic and military strength through;
a.) Development of industries b.) Promotion
of Free Enterprise c.) Establishment of
private property rights and free contract
d.) Feudal constraints were removed.
5. ADOPTION OF WESTERN
TECHNOLOGY
- Transplant of Western Technology in
Japan was a failure.
- Such technology was not suitable to the
small farm units of Japan.
- Rural institutions were developed;
extension works and experienced farms
were promoted.
- Farm Lecturers were introduced.
6. LAND REFORM AFTER
WORLD WAR II
-50% of farm land was owned by less than
10% of landlords before WWII.
-General Douglas MacArthur introduced a
radical land reform in 1946.
-The law requires absentee landlords to sell
all their farm lands.
- Agricultural productivity increased, social
position of farmers was elevated.
7. MULTI- PURPOSE
COOPERATIVE
- Agricultural cooperatives were reorganized
to compliment land reform program.
- Multi-Purpose Cooperatives cover all
activities and needs of the farmers like
credit, farm management and marketing,
purchasing, medical services and mutual
reliefs.
8. AGRICULTURAL
DEVELOPMENT
- Most vital elements responsible for the
high level of agricultural productivity were
land reform and cooperatives.
- Farming is an important component of
Japan's economy.
- They employ the most modern method of
farm production like the use of commercial
fertilizers and small-sized machinery.
- Rice is the main crop of Japan and has the
highest rice production per acre in the world.
9. INDUSTRIAL DEVELOPMENT
- Industrialization started under the Meiji
Restoration.
- Farmers financed the industrialization of
their own country.
- Land Tax and Foreign exchange
earnings are the major source of
governmentin income.
-Government established technical schools
and introduced the teaching of modern
science.
- Development of technocrats and
technicians was useful for the growing
industries.
- Transportation and communication
facilities were constructed.
10. JAPAN AT PRESENT
- Institutional nation
- Automobile industry
- World's leading shipbuilding nation since
1959.
11. TECHNOLOGY
DEVELOPMENT
- Japan is now an innovator; it wiped out
international competition in consumer
electronics.
- The country leads in robotics and optical
electronics.
- Japanese firms are now the undisputed
makers of manufacturing technology.
- Educational system is very supportive by
producing more scientists and engineers.
12. EDUCATION AND HEALTH
- children of Japan get free education for the
first nine years.
- Practically, every Japanese can read and
write.
-Japan achieved a notable progress in
Medical science and medicare.
- Number of medical personnel and facilities
is about the same in proportion to the
population.
-Free medical services for the old people.
- Helpers are sent to the houses of those who
are bed-ridden.
- Telephones are lent free to the aged who
live alone.
13. JAPANESE STYLE OF
MANAGEMENT
- Employee-oriented
- Two aspects of Japanese style of
management:
1. Lifetime Employment System
2. Company-Based Unions
- Process of decision-making is from
bottom-up.
- They work towards the same objective.
- Most outstanding feature of Japanese style
of management is the importance of the
members of organization.

14. KEY TO JAPAN'S SUCCESS

- Principal key to Japan's success is
cooperation through teamwork.
- Teamwork and good management have
sustained the phenominal economic growth
of Japan.
- For many Japanese, “work is play and play
is work", they love their work.
- They have a great sense of pride in what
they and their country produce.

15. ASSISTANCE TO
DEVELOPING COUNTRIES

16. THE ASIAN CHALLENGE

- principal key factor to rapid growth is the
quality of its people.
- Zaibatsu (Family business houses)
- Japanese government encourages private
firms to act freely and independently.