Background

According to US news, Japan is one of the world’s most literate and technically advanced
nations, is an East Asian archipelago country made up of four primary islands and more than
6,800 others. Most of Japan'S areas is covered by mountains and heavily wooded areas, the
country’s people lead a distinctly urban lifestyle. Culturally it influenced by its neighbors, today
the country blends its ancient traditions with aspects of Western life. Japan is a parliamentary
government with a constitutional monarchy. The emperor holds his title as a symbol of national
unity, but they elected politicians to hold the actual decision-making power.

Japan has made enormous efforts in order to modernize its economy, society, and
industrialization on its path to modern economic development, after 300 years of isolation. The
country owes its success to a high rate of capital investments, as well as low wages, forced
export of its products and lack of large military expenditures. In addition, the close relationship
between manufacturers, suppliers, and distributors, and also the guarantee of lifetime
employment for a significant portion of the urban population have made a positive contribution.
Recently Japan’s economy is one of the most developed economies in the world. It ranks third
place among the countries in the world ( after the US and China ). With GDP 1.5, 6 times that of
China, Japan remains the high-tech powerhouse economy of Asia. Japanese companies remain
amongst the most valuable and technologically advanced in the world, with the second-highest
spending worldwide on R&D, a hunger for IP and new trends, and an increasingly globalized
outlook. Apart from that, Yen is the Japanese legal tender. Japan obtained various sources such
as petroleum, nourishments, crops, element, yard goods, unprocessed supplies and many more
from a range of countries' industrial regions because Japan has the deficiency and native wealth.
((Julia 2016)

According to OECD ( 2016), economic growth is projected to reach 1.0% in 2017 before
slowing to 0.8% in 2008, boosting headline inflation one and one-fourth percent by the end of
2018. With three supplementary budgets in 2016, fiscal consolidation is a temporary stop to help
Japan in coping with the impact of the yen appreciation. Private consumption is projected to
continue rising in the context of labor shortages and the historically high level of corporate
profits. Faster growth this critical to stopping and reversing run-up in public debt, which is
projected to reach 240% of GDP by 2018.
 Chapter 1

Poverty, Inequality and Developmen

1.1 Japan Poverty Rate

Figure 1: Japan’s Relative Poverty Rate, 1985-2009

Source: Ministry of Health, Labor, and Welfare. Comprehensive survey of Living Conditions,
2013.

The green line on the graph indicates the poverty rate of children ages tfrom 17 years old
and below from 11%-15%. Poverty on children is poverty on health and education that somehow
leads to poor grades and poor college endorsement that goes to the next generation, it will
become a cycle. The increase in poverty between ages of 17 and below is due to household
structures the one in red lines ages from 18 to 65 years old and this is due to unmarried parent/s
or single moms where income is not enough to support every child. The reason of increased in
the rate of ages from 18 to 65 years old or the adults from 10%-14% is somehow because of
temporary, part-time, and short-term contract labor—known as nonregular employment or those
adults with no permanent job that affects the economic status of Japan. Employment Status
Survey, conducted by the Ministry of Internal Affairs and Communications, and found that the
main cause of the risining equality, particularly among young people, is due to an increase of
non-regular workers. On the other hand 66 year old and above decreases from 24%-19%, though
there is a decrease in poverty, poverty on 66 year old and above still visible due to income
inequality and poverty in the elderly is inadequate according to an article on nippon, pension
benefits under Japan’s National Pension System, “Basic Pension benefits” average only ¥55,000
per month, substantially below the livelihood protection poverty line. On the over all population
rate of Japan there is a movement but only a little, this is perhaps even though poverty is still
evident on the over all poverty rate it just makes a little changes.

1.2 Inequality and Growth

One of the causes of relative poverty rate is because of the rising income inequality rate
that follows: household structure, changes in wages or perhaps due to aging population.
According to Takanami (2010). That the causes of the rising income inequality is "The main
finding was that the degree of income inequality within every age group besides older age groups
has not relatively increased, while the degree of income inequality among the higher age groups
has widened greatly. Around half of the increased income gap is due to the population aging.”
Increased of non-regular employees or also known as Changes in Household structures helps
boost Japan's income inequality as the non-working population affects the economic status of the
country and some of these non-working population are still living on the household of their
parents or gurdian which the government have difficulties in locating correct information about
them according to Takanami (2010), that those young part-timers, often called freeters, have not
appeared in government income statistics because many of them live with their parents.

Aging Population is the increased on in income inequality on adults aging to 66 years old
and above. They experience inequality due to living in a simplier life where they would not
somehow have an effect to the economic status of Japan but considered as burden as they no
longer have Jobs and depends on government fundings and their pensions. In fact, many of those
left behind in rural areas are already struggling. Towns that replied to an agriculture ministry
survey last year said "they need to take steps to help residents who find it difficult to obtain
groceries, with almost all citing aging as a reason."

While income inequality in Japan is evident there is still a growth in Japan such as even if
the population is aging and young population are shrinking there are still hopes that these income
inequalities will not affect somehow the economic performance of Japan that much. Based on
Dooley's statement "Japan still has significant strengths despite a worsening global situation. Its
consumers are spending and its businesses are investing, both healthy signs for a country with a
population that is aging and whose numbers are shrinking. The judiciary of Japan is independent
and fair. It enforces contracts and provides adequate protection of intellectual and real properties.
The levels of corruption are low, however relationships among companies, and government
agencies adapt an inwardly cooperative business climate conducive to corruption.

1.3 Economic Characteristics of High Poverty Groups: Rural Poverty, Women and Poverty,
Ethnic Minorities, and indigenous populations
Rural Poverty
Rural Poverty of Japan has been one of the major problems of the country. Most of rural
populations migrates to Urban areas such as tokyo to earn bigger wagesas the economy is
boosting the increased in goods are also visible in other parts of the country, to attain education
from prestigious schools or universityto aim a higher background that can be an advantage when
applying to work or only to settle in a more stable location and lives in an industrialized city
where opportunities are higher in urban areas it is why many Japanesse wishes to be in the Urban
areas. A blog post in Tofugo emphasizes that, "Outside of this veneer, the Japan beyond the main
cities has started to drift into population decline" for tge reason of population in rural areas
mostly are the adult or 66 and above that manages their farm as a "pass time" or a way to sustain
their daily needs in the community.
Women and Poverty
Poverty in women affects so many things for instance it affects a womens child, opportunities
and a stable job. Poverty in Women composed of non-permanent work or contract based work as
it's cheaper to hire in agency with less benefits and less wages. Especially that women have
smaller wages compared to men. Most women included in the poverty are those single moms or
living ina rental place. Why? It is because a single mom can not afford to sustain for her and for
her children without having a temporary job. Even college degree holder women are hired in a
contractual job. According to Aya Abe “At a time when even female university graduates can
only find jobs as nonregular employees, it’s really hard for those living in poverty to earn salaries
above the poverty line because many of them have dropped out of education at an earlier stage."
Ethnic Minorities
There are three Major Minorities residence in Japan. Firstly, Hisabetsu Buraku this are the ethnic
groups that belongs to the population of leatherworkers, butchers, funeral directors, and certain
entertainers that gets a lower wage comapred to workinbg in a higher position. Discriminatio of
these groups somehow has to do with their religion according to the demographics of Japan, that
“discrimination against these occupational groups arose historically because of Buddhist
prohibitions against killing and Shinto notions of pollution, as well as governmental attempts at
social control”. They are also know as Buraku or the “discriminated Communities” members of
ethnic minorities mostly stays in urban areas and some that are in rural areas trying to pass as a
“normal” japanese however, they still can’t deny their status in doing marriage or passing legal
papers such as Birth Certificate. Secondly, Ryukyuans they are the second largest minorities in
Japan and Ryukyuans is also thier common identity as it is their language though in todays time
they are not that visible demographics of Japan explains that “The Ryukyuan people and
language originated in the Ryukyu Islands, which are in Okinawa prefecture. Though similar to
Japanese culture in many ways, the Ryukyuan culture has had a much larger influence from
China than other parts of Japan, due to its geographical position in relation to the east coast of
China and the island of Taiwan.” Thirdly Ainu they are the population that Japan transferred to
Hokkaidō due to reservation of places for the native americans. According to Demographics of
Japan “As Japanese settlement expanded, the Ainu were pushed northward, until by the Meiji
period they were confined by the government to a small area in Hokkaidō, in a manner similar to
the placing of Native Americans on reservations.” Due to diseases and low child birth their
population goes smaller as the years go by. Though their language were still present on some
literature such as poems, songs, and stories.

Ethnic Minorities suffers from Poverty is because of the reason they are not given the same
treatment to the ones living in urban ares. In a simple way they are not the priority of their
country.

Indigenous Population

The Ainu people are one of the indigenous people of Japan they belong to the oldest to live in
Japan with currently low population rate. A major issue is the recognition of indigenous rights
and the preservation of indigenous peoples’ unique cultures. Though Ainu people experience
poverty and inequality in their country as of today they are being recognize for the first time.
According to a news from Aljazeera with a headline “Japan to recognise Ainu as 'indigenous
people' for first time.” in there article theymentioned that “The bill is the first to recognise the
Ainu as "indigenous people" and calls for the government to make "forward-looking policies",
including measures to support communities and boost local economies and tourism following a
long history of exploitation and cultural suppression.” though there hasn’t been an approve bill
yet it is a good sign for the Ainu to break discrimination and somehow will experience low
poverty rate.

Policy Implemented

Social Security System

Social Security System is a very adequate policy that will cater the aging population in having a
job even though the age makes it a burden. Pension System where the Aging population will be
granted an amount that the government implemented which is ¥240 ,000 per month at present
prices. According to The Ministry of Foreign Affairs of Japan. Health services so the taxes will
not go to waste in this Social Security System. As this Policies shoulders alot of benefits. Family
Policy that would helps single parents finance the needs of their children.

Chapter 2

Population Growth and Economic Development

2.1 Population

The population in a country is a source of vitality, and it is involved in a variety of costs to

maintain a reasonable standard of living. Particularly for a resource-poor island nation like
Japan, which has a population of very large or excessively small is a serious problem (Mustafa
Ameen, 2013).
Figure 2.1 Total Population and births in Japan from 2009-2018

Source: CEICDATA

The figure shows the total population in Japan from 2009-2018. The total population in
Japan is declining, but that doesn't mean the death rate is increasing. Absolutely, Japanese people
are living longer, healthier lives than ever before. This is a better thing under normal
circumstances, but pair it with a declining birth rate and problems begin to emerge. In 2010 there
is an increase in population because of migration. According to the result in the 2010 census,
Japan had approximately 128 million people. United Nations predicted that by 2050, Japan's
population will fall to 102 million. Although the extent of urbanization is expected to increase
from 68 percent to 80 percent, the overall urban population is expected to decline. From 2017-
2018, the number of the population fell to its lowest records due mainly to a very rapid decline in
the childhood and working-age populations. According to Sasakawa Peace Foundations USA,
Japan is experiencing a twin phenomenon “birth rate shrinks and aging population”. As the
number of older people increases, the number of birth rate decreases because people in Japan
choose career over people.

According to Chris McGrath, this actually happened because there are fewer good
opportunities for young people, and especially men, in the country’s economy. In a country
where men expected to act as breadwinners and support families, a lack of good jobs may decide
men not to engage in married life and have children because they know that they can’t afford to.

The developed country, like Japan, has a birthrate about 1.4 births per woman, one of the
lowest in the World, and its population is officially declining. Japan’s demographics referred to
as a national crisis that's why Prime Minister Shinzo Abe promises to increase childcare places to
encourage couples to have more children.

2.2 Demographic Transition Data

Demographic data shifts are a phenomenon from generation to generations. It causes and
create new decisions of the government that may change the economic growth of a certain
country.

Japan’s demographics has suffered a great decrease in fertility for decades up until now.
According to Faruqee and Mühleisen (2001), the total fertility rate–defined as the number of
births per woman–experienced a severe decrease in a single ten-year span in 1950 to 1960
(Faruqee & Mühleisen, 2001, p. 4). There are multiple agents of this phenomenon since this can
be approached in many aspects such as decreasing birthrates, child employability, and decrease
in salary gap between men and women.

Figure 1. Japan: Demographic Transition Data

As seen in Figure 1, the severe drop in 1966 was because of it being a “Hinoe uma” year
which is a Japanese belief that people born that year have a bad personality. This belief signifies
the stigma against the Fire Horse Lady who was strong enough to reduce the female birthrate in
Japan in 1966 by 500,000 compared with the previous and following years. Most parents decided
not to try and get pregnant because they are afraid that the daughter they’re about to born would
have a hard time to find or staying with a husband or at least the husband might lucky enough to
get her, will die. That’s why there is a severe drop in population during this year.

In the mid-1970s, Japan’s fertility rate has decreased to below replacement level. Since
then, the Total Fertility Rate has never recovered and has decreased further to 1.3 to 1.4 children
per woman–the ‘lowest-low’ level according to Kohler, Billari, and Ortega (2002).

From the data, we can deduce that Japan is an aging country and have multiple
responsibilities for the coming years in the future with regards to the bad phenomenon it has
been suffering for decades.

2.3 Age
stucture
S

OURCE: World Bank

The graph shows that Japan is literally one of the world's "oldest country". With a large
average population consisting of 15-64 years old. This is because of the Child Policy that the
Japanese government approved to control the rapid growth of the populations' percentage.
According to H. Plecher (2019) that with almost 30 percent of its population being elderly
inhabitants, Japan is considered the “oldest” country in the world today. The Japanese were
inclined to live longer than average humans worldwide. I n fact, the increase in the aging
population is accompanied by a decrease in the total population caused by a sinking birth rate.
Where on 2017 there is a huge difference in the age distribution such as the 0-14 years old has
12.89% while the 65-year-old and above haThe graph shows that Japan is literally one of the
world's "oldest country". With a large average population consisting of 15-64 years old. This is
because of the Child Policy that the Japanese government approved to control the rapid growth
of the populations' percentage. According to H. Plecher (2019) that with almost 30 percent of its
population being elderly inhabitants, Japan is considered the “oldest” country in the world today.
The Japanese were inclined to live longer than average humans worldwide. I n fact, the increase
in the aging population is accompanied by a decrease in the total population caused by a sinking
birth rate. Where on 2017 there is a huge difference in the age distribution such as the 0-14 years
old has 12.89% while the 65-year-old and above has 27.05% however, 15-64-year-old has
significantly is the largest percentage among the three it is 60.06% percent of the total
population.s 27.05% however, 15-64-year-old has significantly is the largest percentage among
the three it is 60.06% percent of the total population.

2.4 Dependency Burden

According to World Bank (2019), age dependency ratio is the ratio of dependents--people
younger than 15 or older than 64--to the working-age population. Data are shown as the
proportion of dependents per 100 working-age population.

Age dependency ratio (% of working-age population)

 The

Source : Worldbank

This figure indicates the the dependency burden in Japan. As you can see the dependency burden
of Japan increases due to the increase number of old age. The UN predicts that in 2030 the ratio
of population age 65 and over to the working age population age 20-64 will average 36% across
the more developed countries.

Policies Implemented

 Population Policy
According to Claudia Irigoyen (2017), tackling the declining birth rate in Japan, over the past
few decades, Japan has faced a dual challenge of decreasing birth rates and an ageing population.
To address this, the government has launched several major initiatives since the 1990s to tackle
the problem, including the Angel Plan, the New Angel Plan and the Plus One Policy. However,
these have had a minimal effect – mainly due to limited resources and a lack of social alignment
with the government's priorities.
Although mainly, the initiative of this is to encourage more births; the Japanese government
has introduced a series of measures over the years, which includes the Angel Plan, a five-year
plan in 1994 to assist couples in raising children, the New Angel Plan in 1999, followed by the
Plus One Policy in 2009. The Angel Plan and the New Angel Plan were both designed to make
having children an easier and more attractive option. It aimed to achieve its goal by addressing a
few related challenges like these things, Improve the employment environment to reconcile work
and family responsibilities, Enhance childcare services, Strengthen maternal and child health
facilities, Improve housing and public facilities for families with children, Promote child
development, Improve the educational environment for children, Ease the economic cost
associated with child rearing.
The most recent idea, the Plus One Proposal, was intended to encourage families to grow by
"plus one". It aimed to create parent-friendly working conditions, with funds allocated for the
construction of 50,000 new day-care facilities.
Furthermore, its public impact so far that the results have been very limited that, there has
been a small increase in the TFR, reaching 1.37 in 2008. Birth rates have risen slightly for all in
the childbearing ages, although somewhat faster for women aged 35 to 39. From 2008 to 2014,
TFR continued to grow but still at a slow pace – reaching 1.42 in 2014, which is significantly
below the OECD average of 1.74. In 2008, women's labour force participation dropped to 76%
for those aged 25 to 29 and to 65% for those in their 30s. And lastly, as a result of efforts to
increase access to day-care, the number of children on day-care waiting lists decreased from
26,383 in 2003 to 23,338 in 2005. "However, day-care service is still less available in Japan for
very early childhood. Of the 23,338 children on the waiting list, 15,831 (67.8%) were under two
years old.

 Economic Policy
Recent macroeconomic developments have been mixed. The seven quarters through the
end of September 2017 have been a period of continuous growth, the longest such stretch of
unbroken expansion since 2001. While this is a notable achievement, annualized growth rates
have remained relatively modest, and structural constraints in terms of demography and labour-
market rigidities continue to cast a shadow on future growth prospects. The real growth rate in
fiscal year 2016 – 2017 was 1.2%. The goals of a 2% annual inflation rate and concomitant
increases in inflation expectations have not been achieved. In mid-2017, the Bank of Japan
postponed the forecasted achievement of its 2% inflation objective for a sixth time, with the
target date now fiscal year 2019 – 2020. The achievement of higher consumption and inflation
rates has also been made difficult in the face of resistance by large enterprises to raise wages
significantly (in spite of government pressure to do so).
In August 2016, the government announced a new multiyear JPY 28.1 trillion (€245
billion) stimulus program. In parallel with the October 2017 snap election, Prime Minister Abe
announced yet another JPY 2 trillion (€15 billion) stimulus package for the end of the year,
raising further fiscal-consolidation concerns.
Despite this consistent government and central-bank activity, and despite the presence of
significant company cash holdings from retained profits, consumption and domestic investment
levels remain weak, as optimism about the economic future has remained at a low ebb.
In terms of trade policy, the Japanese government was able to achieve significant
progress in 2017 by leading efforts to conclude a revised trans-Pacific free-trade agreement
(dubbed the Comprehensive and Progressive Agreement for Trans- Pacific Partnership, CPTPP)
without the United States, and including exemptions in some controversial areas, as well as by
finally reaching agreement with the European Union to conclude a bilateral FTA, which had been
in the making for four years and might take effect in 2019. (Sustainable Governance Indicators,
2017)

CHAPTER 3

Population Growth and Economic Development

3.1 Japan: Distribution of the workforce across economic sectors from 2008 to 2018

Source: World Bank

The figure above shows the distribution of the workforce across economic sectors in
Japan from 2008 to 2018. In 2018, 3.41 percent of the workforce was employed in agriculture,
24.5 percent in industry and 72.09 percent in services. As we observe, majority of Japan’s GDP
is generated by the services sector. The majority of Japan’s workforce is employed in this sector,
which typically includes tourism, sales and teaching, among other professions - most of which
are available in the cities with less than a third working in industry and only a little more than 1
percent working in agriculture. According to H. Plecher, only a tiny share of Japan’s GDP is thus
generated in the agricultural sector, the vast majority of the Japanese workforce is employed in
the services sector due to migration in urban areas. And in terms in industry sector, Japan’s
industries are still among the most highly advanced and innovative in the world. Japanese
manufacturing products, particularly in electronics and automobiles, are the world leaders in both
production and technological advancements in their respective fields.
3.2 Relationship of Urbanization and Economic Development

Table 1: Japan: Degree of Urbanization from 2007-2017

Source: Population Estimates and Projections

This statistic shows the degree of urbanization in Japan from 2007-2017 and details the
percentage of the entire population, living in urban areas. Urban population of Japan increased
from 88.15% in 2007 to 91.54 % in 2017 growing at an average annual rate of 0.54 %.
According to Tatsuo Tanaka, (2016) the change of urban population in Japan is influenced by
five factors: aging, migration, administrative reforms, birth and mortality rate. As of 2017,
91.54% of the population in Japan lives in urban areas due to agricultural benefits. According to
2010 data from the Ministry of Agriculture, Forestry and Fisheries (MAFF), urban fields are the
most productive kind of agriculture in terms of economic value of production per area — 3%
more productive than the national average. In terms of revenue per farmer, urban agriculture is
two times more profitable than inter-mountainous agriculture and around 10% more than
agriculture in rural plain areas. Even in Tokyo, one of the largest and most congested cities in the
world, among the intricate networks of railways, roads, buildings and power wires, local
agriculture produces enough vegetables to potentially feed almost 700,000 city dwellers. That’s
why the urban population will rise up to 90 percent from the total population in Japan.

Source: TradingEconomics.com/Cabinet office JAPAN

Table 2: Japan Economic Growth Rate from 2007-2017

Japan's quarterly economic growth was revised lower to 0.3 percent in the second quarter
of 2019 from a preliminary estimate of 0.4 percent and compared to the previous period's 0.5
percent growth. There was a sharp downward revision of capital expenditure amid weakness in
the global economy and worsening trade protectionism. In the July quarter, positive contributions
came from private demand (0.3 percentage points), while changes in private inventories were
neutral. On the other hand, net exports contributed negatively to the GDP.
Capital spending rose just 0.2 percent in the second quarter, much lower than a preliminary 1.5
percent rise and compared to a 0.2 percent contraction in the previous three-month period.
Private consumption, which accounts for some 60 percent of GDP, increased 0.6 percent, the
most in two years, after showing no growth in the first quarter. Also, public investment rose 1.8
percent, the most since Q2 2017 and faster than a preliminary 1 percent. Exports of goods and
services were flat (vs -2 percent in Q1), while imports jumped 1.7 percent (vs -4.3 percent in
Q1). On an annualized basis, the economy grew 1.3 percent in the second quarter, weaker than
the preliminary reading of 1.8 percent and after a revised 2.2 percent expansion in the previous
quarter. (Cabinetoffice/HUSNA-TRADING.ecomocs,com)
In the second quater in January 2018 the economic growth deflated maybe because of
chronically low-interest rates and huge monetary expansions have failed to promote real
economic growth. According to Sean Ross, negative interest rates were announced by the BOJ in
January 2016 as the latest iteration in monetary experimentation. Six months later, the Japanese
economy showed no growth, and it's bond market was a mess. Conditions have deteriorated so
far that the Bank of Tokyo-Mitsubishi UFJ Ltd., Japan's largest private bank, announced in June
2016 that it wanted to leave the Japanese bond markets because BOJ interventions had made
them unstable. But it inflated on January 2018 maybe due to faster-than-expected gains in capital
expenditure which will stimulate consumer spending, which will in turn boost business
investment and accelerate inflation. According to world economy, Japan’s economy expanded at
an annualised rate of 1.6 percent in the last quarter of 2017 due to an upward revision of capital
expenditure and inventory data.

3.3 URBAN VS. RURAL POPULATION

Urban to Rural Population (2008-2018)

SOURCE: Statista Research Department

In the Year 2008 to 2018 Urban migration has significantly increased its percentage with
a current percentage of urban and rural16.69 and 10.75 respectively as of the year 2018. There
are three reasons why the percentage of urban migration has increased according to Tofugo 2015,
one of the reasons of a rapid increased in urbanization in Japan is Caused by higher wages,
Education, and a more comfortable homes around the city. In connection to the Table 1 above the
immigrants ages to 15-64 years old are the population that goes under the reason of higher wages
and the education as well as the more comfortable living in the city.

In conclusion, Urban population had significantly increased until at present time, with its
rapid growth many establishments were left abandoned in rural areas of japan, and the rural areas
become more isolated. Majority of the population are the seniors as shown in figure 1, mostly are
the 65-year old and above. According to The Economist 2019, On a pleasant spring day the
streets are almost empty; many buildings are disused. A big pachinko parlor at the entrance to the
town lies in ruin. Villages and towns across Japan have been shrinking for decades because of
migration to big cities.

3.4 Urban Unemployment

Unemployment rate is an important indicator to determine the health and growth of the
economy of a certain country when setting a monetary policy.

Japan’s urban unemployment rate has experienced an economic stagnation or a long-term

recession or more than a decade from 1991 to 2000. The phenomenon was reffered to as “The
Lost Decade” then eventually included another decade from 2001 to 2010 and later on reffered as
“The Lost Score”. According to Agnese and Sala (2008), the long-term recession started in 1991
with an unemployment rate at 2.1%, and ended in 2002 with a historical maximum of 5.5%
(Agnese & Sala, 2008, p. 2). Since then, market values have continued to stagnate up until the
first decade of the 21st century.
Figure 1. Japan: Urban Unemployment Rate

Source: The GobalEconomy,com, The World Bank

As seen in Figure 1, the unemployment rate of Japan has been escalating from the year
1991 to 2002 and did not experience a drop from the data. There are a number of reasons from
this phenomenon but what emerged to be an issue is the asset price bubble burst, liquidity trap,
and over-investment of Japan in private investments. In 1986 to 1991, Japanese Financial
Ministry raised interest rates, real estate and stock market prices were greatly inflated and
continued to rise five times its level and caused the bubble burst in 1992. In 1993, consumers
were holding into their savings for they feared that the economy was about to get worse
(Krugman, 1998). The situation became worse as the Japan had over-investments that caused a
decline of its innovation process.

From the reasons stated, we can speculate that Japan has built massive levels of debt and
spending on projects weren’t successful in helping the country recover from its economic
depression and was responsible for its lost decade.

Policies Implemented

 Japan-OECD Policy Forum on Urban Development and Green Growth

Cities have a unique role to play in creating synergies between environmental and economic
objectives, which is essential to advancing “green growth” at national and global levels. Asian
cities in particular are at the center of this urban green growth challenge. Their development is
characterized by rapid and continuous urbanization on an unprecedented scale, with rapid
economic growth led in most places by the manufacturing industry and rapidly increasing
motorization. The result has been escalating greenhouse gas emissions, sprawling urban
development, inadequate infrastructure and local environmental impacts, as well as disparities in
income, education levels and job opportunities in urban populations. This calls for urban green
growth approaches that can take into account the specific and very diverse circumstances of
Asian Cities I there are lessons that we can learn from across the OECD. Cities in Japan, in
particular, have experienced rapid urbanization and economic growth in the past and have ere.
The Japan-OECD Policy Forum on Urban Development and Green Growth (14-16 October
2014, Tokyo, Japan) provides an opportunity to discuss policy options among Asian city leaders,
government officials, international agencies and the business community.

This policy is effective since it it is essential in advancing green growth in the country
and it can promote sustainable urban growth, this policy accumulate experience in technologies
that could be useful elsewhere.

Chapter 4

THE ENVIRONMENT AND DEVELOPMENT

Policies Implemented

 The Ozone Layer Protection Act

The Ozone Layer Protection Act obligates persons who use specified substances to
endeavour to reduce their emissions and rationalize the use of specified substances. The
Minister of METI and the Minister of the Environment have issued guidelines for reducing
emissions and rationalizing the use of specified substances. The guidelines suggest that persons
who use the specified substances make their facility a sealed structure, add cooling and steam
condensation functions for the specified substances, introduce substitute substances, and recycle
the specified substances that are used for cleaning solutions, among other things.

 Air Pollution Control Act

According to the Ministry of the Environment, as the aim is to protect the nation's health
and to conserve the human environment: regulation for smoke and soot, as well as dust from
factories and business establishments. Implementation of countermeasures for hazardous air
pollutants. Stipulating allowable limit of automobile exhaust gas, and so on. Additionally, it
provides liability in damages to protect victims with impeccability from business establishments.

 The Water Pollution Control Law

To prevent the pollution of water in public water areas by regulating effluent discharged
from factories or business establishments into public water areas. In addition, it promotes
measures against domestic effluents. It aims to protect the nation's health and to conserve the
human environment.

 Waste Management Policy

Japan has of recent taken a much more proactive approach to waste management. In
particular, Japanese city and prefectural authorities have focused on the reduction of solid waste
going to landfill. This of course is in response to the lack of affordable space available for
landfill sites. Their approach relies heavily on four major factors and these factors are the
technological advancements in incineration, technological advancements in plastics recycling,
comprehensive production-side recycle stream package labelling and wide consumer-
side/household participation in recycling and waste material separation.

This policies has a significant impact to environmental progress because it could reduce
air emmissions, water usage znd munipal waste generation. It supports the ecological protection,
economic growth and social values with respects to natural resources.
 Chapter 5

Balance of Payments and Debt Condition

5.1 Balance of Payments

Source: Japan Macro Advisors

The figure above shows that there is inconsistency on Japans Balance of Payments. This
is due to the income account surplus. Through out the years many aspects had affect the BOP
including Tourist, services, and many more.

According to JMO (2019), Japan has consistently recorded a surplus in its current
account since 1981. The surplus consisted mostly of trade account surplus until the mid-2000s.
In recent years, the income account surplus has increasingly become a dominant source of the
surplus, while Japan’s trade surplus diminished, even falling to a deficit between 2011 to 2015.
While the fall in energy prices helped return the trade balance back to surplus in 2016, it is
uncertain if the trade surplus would persist.

According to Noritaka Fukuma, Kentaro Morishita (2016)The expansion in the primary

income surplus is due to an increase in both the amount of external assets and the share of direct
investment, which generates a higher rate of return. This can be seen by looking at developments
in external assets in more detail. While movements in foreign exchange rates as well as stock and
bond prices somewhat obscure overall trends, direct investment has grown faster than portfolio
investment, so that its share in total external assets has increased.
5.2 Debt Condition

Japan: National debt from 2014 to 2024 (in billion U.S. dollar)

Source:
IMF

The statistic shows the national debt of Japan from 2014 to 2017, with projections up
until 2024. The amount of Japan's national debt in 2017 amounted to about 11.64 trillion U.S.
dollar. In a ranking of debt to GDP per country, Japan is thus currently ranked first. According to
H. Plecher(2019), Japan is among the largest economies in the world with one of the largest
gross domestic products (GDP). However, ever since the global financial crisis, Japan's GDP -
like many others - has been slightly unstable; Japan even reported a negative GDP Growth in
comparison to the previous year in 2011 and in 2014. Still, it is estimated that gross domestic
product in Japan will continue to thrive over the next decade. One indicator is Japan's inflation
rate: Despite the aforementioned economic slumps, Japan has managed to maintain one of the
lowest inflation rates in the world, and it also reduced its unemployment rate. Recently, Japan
has been reporting a trade deficit, meaning the value of its imports exceeds the value of its
exports. Most of these imports have come from China and the United States. The trade deficit is
one of the causes for in an increase of the national debt. It is estimated that the national debt in
relation to the GDP will increase further until 2020.
POLICIES IMPLEMENTED

Fiscal Policy

According to Kansho Piotr OtsuboIf (2018), if the Japanese government wants to

strongly boost GDP alone, it should use fiscal policy alongside monetary policy because
fiscal policy can immediately raise GDP or if the Japanese government seeks moderate
increases in both GDP and prices, it is more effective to use monetary policy alone without
increasing fiscal expenditure. He stated that, between the policies’ results, there has been an
indication made that has led to four points, first, fiscal policy can impact GDP faster than
monetary policy. Second, fiscal policy has lowered prices. Third, monetary policy can
increase GDP more persistently than the fiscal policy during unconventional monetary policy
periods. Finally, monetary policy has raised prices.

Fiscal Policy is effective because it increases the GDP of one’s country and it could meet
the economic goal. Moreover, it controls inflation, predicts mistakes and stimulates the
economy.
 Chapter 6

Finance and Fiscal Policy for Development

6.1 Japans Inflation Rate

Figure 1
Source: Ministry and Internal Affairs and Communications
 On the month of October inflation rate increases to 1.4% this is perhaps due to the
summer typhoons that erupts that causes vegetables prices pushed to increased in order to gain
income for the damaged crops. According to an economist Taro Saito that “prices will continue
to be swayed by external factors like currency and oil moves.” On his statement he perhaps
deemed that inflation rate can be swayed because oil price and the current stand or ratio of
Japan’s currency. On the other hand Japan’s inflation rate fell to 0.3% yearly in August 2019 this
is perhaps due to the festive activities in Japan that causes tourist rate to increased from 0.5% in
the previous month and well under market expectations of 0.6%. It was the lowest amount being
recorded of inflation rate with in six months, raising the chances of further boosts after the Bank
of Japan decided to leave policy unchanged.
The decreased in inflation rate is caused by several factors which includes; the food industries
which Japan is most known of street foods especially sea foods, pastries and the prices for
furniture and utensils increased which perhaps some of the reasons that significantly took effect
in the current status of Japan’s Inflation rate.
According to Trading economics authored by Mario. “Food prices edged up to 0.1
percent in August, slowing from a 0.9 percent gain in the previous month, fresh food prices fell
at a faster pace (-4.9 percent vs -0.7 percent). Other price declines were seen for fish & seafood
(-0.5 percent vs 1.5 percent) and vegetables & seaweeds (-6.4 percent vs -1.9 percent).
Meanwhile, upward pressure came from: cereals (1 percent vs 1.2 percent); meats (1.3 percent,
the same as in July); cakes & candies (3.0 percent vs 2.8 percent); cooked food (0.6 percent vs
0.8 percent); and meals outside the home (0.9 percent, the same as in July). Inflation was
unchanged for housing (at 0.2 percent), culture & recreation (at 1.1 percent) and miscellaneous
(at 1.0 percent), while prices dropped for transportation & communication (-1.2 percent, the
same as in July) and medical care (-0.2 percent vs 0.6 percent). In contrast, prices rose faster for
furniture & household utensils (2.3 percent vs 1.7 percent); clothes & footwear (0.6 percent vs
0.4 percent). Annual core consumer inflation, which excludes fresh food, was at 0.5 percent in
August, down from 0.6 percent in the previous month and in line with market expectations. The
latest reading remained well below the Bank of Japan's 2 percent target and was at over a 2-year
low. Stripping away the effect of fresh food and energy, consumer prices rose 0.6 percent in
August, the same pace as in the previous month and slightly above expectations of 0.5 percent.
On a seasonally adjusted monthly basis, consumer prices were unchanged in August, following a
0.1 percent increase in the previous month. The core CPI was up 0.1 percent.

6.2 Tax Revenue Collection

Source: ceicdata.com/Japan

The figure shows the tax revenue collection of Japan. As we can see on the graph, it
shows an alternative increase and decrease throughout the years. It might mean that, the country
has been facing problems through the years based on the showed statistics above. Although, we
know that Japan has been progressive throughout the way till now. And recently, based on
Japan’s tax revenue report, there has been an increase in Aug. 2019 at 44.655 USD. In 2013, the
total tax revenue decreases beacuse of the following: expenditures and social security system.
Currently, the total expenditure comprises 60% only financed by tax and non-tax revenues.
Therefore, about 40% depends on the government bond issues (debts) which will be the burden
for future generations. All the revenues from the consumption tax shall be used for the financial
resources for social security. The natural growth in social security spending associated with
medical fees and pensions from Japan's aging society which will be limited to 500 billion.
According to Masaki Kuwahara, the projection for this will rise 500 billion yen in the next fiscal
year. In year 2014 there is an increase of tax revenue collections because of the healthy growth in
the economy such as the increases in company profits, number in people in work wages and
household consumption. Tax revenues have surged in recent years due to healty economy and
they now standat the highest level.

According to Cory Baird, there is a new government data which shows a surge in tax
revenue in fiscal 2017, to ¥58.7 trillion, the result of strong economic growth. Yet with tax rises
on the horizon, increased revenues could be under threat as history has shown that tax hauls are
especially vulnerable to economic conditions, a fact that makes some experts wary. The Finance
Ministry announces that the revenue in that fiscal year as increases because of the economic
growth and corporate profits. According to a spending and expenditure report for fiscal 2017,
published by the Ministry of Finance, government spending in the year reached ¥97 trillion, ¥32
trillion of which went to pay for social security while ¥23 trillion was used simply to pay back
interest on the growing burden of existing debt. Masahiro Nikashawa stated the projection for tax
revenue for 2028 reaching to 86.4 trillion. Japan’s plan is to raise the consumption tax rate to 8%
to provide an extra 5.7 trillion yen annually. The cabinet in Japan also projected that Japan would
achieve 2% inflation after fiscal 2020 which means the governments choice is to patronize the
economy over inflation.
 Chapter 7

Comparative Economic Development

Basic Indicators of Development in Japan

7.1 Real Income

Source: www. CECDATA.Com

The figure above shows the household income pay per capita of Japan. Japan was hit hard
by the global financial crisis from 2008 and keeps on contracting sharply in 2009. According to
the most recent World Economic Outlook (IMF, 2009), the financial compression in Japan was
unfavourably influenced by the huge negative terms of exchange stun 2008, with a sharp
increment in vitality and other commodity costs, however despite everything it kept up positive
development in real gross domestic product (GDP) and private fixed investment. At the point
when Japan was at long last hit, the effect was to be sure exceptionally serious. In 2002, the
salary per capita diminishes in view of the descending development of industrial production
intently pursued the descending development of exports. Despite the fact that the central point
behind the breakdown of Japanese exports was an overall shrinkage of interest and exchange
following the Lehman shock, the sharp valuation for the yen was an extra hit to Japan's export
oriented firms. The all out estimation of exports, which remained at 7,360 billion yen (¥) in
September 2008, declined respectably to ¥6,915 billion in October and fallen from that point.
Exports in January 2009, at ¥3,480 billion, were under half of the previous top in September
2008. The decline was across the board, yet most articulated in the export of industrial supplies,
capital equipment, and consumer durables, Japan's three primary classifications of export items
(which together record for over 90% of Japan's all out exports). The decrease was additionally
enlisted not just for exports to the US and Western Europe (which together record for over 40%
of Japan's all out exports), where the financial crisis originated, yet in addition for exports to
emerging and developing Asia. From 2010-2012 there is an expansion in household income per
capital because of the quantity of one-individual families in Japan. According to Masahiro Kawai
and Shinji Takagi (2009), the ascent of single households play an important role since it will
grow the potential market for household goods. In addition they can prompt less expendable
earnings, particularly for older individuals living alone. The purchasing power of single
households comprising of experts can still remain high owing to steady sources of income and no
family responsibilities.The figure above shows the household income pay per capita of Japan.
Japan was hit hard by the global financial crisis from 2008 and keeps on contracting sharply in
2009. According to the most recent World Economic Outlook (IMF, 2009), the financial
compression in Japan was unfavourably influenced by the huge negative terms of exchange stun
2008, with a sharp increment in vitality and other commodity costs, however despite everything
it kept up positive development in real gross domestic product (GDP) and private fixed
investment. At the point when Japan was at long last hit, the effect was to be sure exceptionally
serious. In 2002, the salary per capita diminishes in view of the descending development of
industrial production intently pursued the descending development of exports. Despite the fact
that the central point behind the breakdown of Japanese exports was an overall shrinkage of
interest and exchange following the Lehman shock, the sharp valuation for the yen was an extra
hit to Japan's export oriented firms. The all out estimation of exports, which remained at 7,360
billion yen (¥) in September 2008, declined respectably to ¥6,915 billion in October and fallen
from that point. Exports in January 2009, at ¥3,480 billion, were under half of the previous top in
September 2008. The decline was across the board, yet most articulated in the export of
industrial supplies, capital equipment, and consumer durables, Japan's three primary
classifications of export items (which together record for over 90% of Japan's all out exports).
The decrease was additionally enlisted not just for exports to the US and Western Europe (which
together record for over 40% of Japan's all out exports), where the financial crisis originated, yet
in addition for exports to emerging and developing Asia. From 2010-2012 there is an expansion
in household income per capital because of the quantity of one-individual families in Japan.
According to Masahiro Kawai and Shinji Takagi (2009), the ascent of single households play an
important role since it will grow the potential market for household goods. In addition they can
prompt less expendable earnings, particularly for older individuals living alone. The purchasing
power of single households comprising of experts can still remain high owing to steady sources
of income and no family responsibilities.
Health

Source:
Nippon.com

The figure above indicates the average life expectancy in Japan, there was 81.25% of
men are relied upon to arrive at the age of 82 and about 87.32% of ladies are required to live to
age 88 which means the most noteworthy figures at any point recorded. Analysing year-on-year
changes in normal life expectancy by reason for death uncovers that the two people at last kicked
the bucket as a result of malignant growth, coronary illness, strokes, and pneumonia. The MHLW
gauges that 28.72% of men and 20.01% of ladies conceived in Japan in 2018 will bite the dust on
account of disease. Despite the fact that it is never again a serious sickness, it remains the top
reason for death among the two people. In the event that it could be disposed of by decreasing
the quantity of malignancy passing to zero, it is evaluated that men would live 3.54 years, and
ladies 2.84 years, longer. Since at that point, colossal advances in treating infection, alongside
the open's rising wellbeing mindfulness, have added to the populace's consistently extending life
expectancy.

All inclusive Health Insurance was actualized in Japan for accomplishing the world's
most elevated anticipation, control, and destruction of irresistible ailments. Japan's Health care
framework furnishes a decent nature of consideration with an equivalently low cost. As per
Shiozaki, the objective of Japan is to assemble an economical human services framework that
conveys better wellbeing results through consideration that is responsive and even handed to
every individual from the general public and that will contribute flourishing to the nation. In
spite of these accomplishments, the nation faces numerous difficulties including a negative
populace development with a low richness rate, a maturing populace, a contracting economy, and
an expanding joblessness rate. Be that as it may, Japan's arrangement of tight control of social
insurance cost and a free enterprise way to deal with administration conveyance, with deficient
administration of supplier associations, made a difference among need and supply of human
services assets and upset responsibility for consideration quality. Japan's economy dropped-off
on account of high future, and the developing utilization of costly advances have that prompted a
regularly expanding pace of medicinal services consumption. This statistic issue requires a
radical change in human services and long haul care frameworks. Expanding on the hearty usage
of an all-inclusive medical coverage framework, a few changes have been embraced in the
previous two decades to address the difficulties presented by statistic changes. Long haul care
protection framework (2000): social protection plot for older matured 65 years or more who
require long haul care or social xvi administrations. This is looked into and amended like
clockwork to look after manageability. Incorporated Community Care framework (2006): a far
reaching framework at the network level that coordinates counteractive action, therapeutic
administrations, and long-term care and gives living courses of action of social consideration.
The Comprehensive Reform of Social Security and assessment (2010): a joint change for the
government managed savings framework and tax assessment framework that ought to improve
financial manageability for the Japanese standardized savings framework in Japan. In a long time
since its beginning, a few related laws have effectively been ordered or altered under this change
plan and this plays the focal strategy for medicinal services and long haul care. Need regions are
measures for the help of kids and kid raising, work of youngsters, change of restorative and long
haul care administrations, annuity change, measures against destitution and pay disparity and
measures for low-salary workers as a cross-framework issue. Territorial Healthcare Vision
(2014): The Ministry of Health, Labor and Welfare has requested that each prefectural
government make an area explicit vision, explicitly mentioning that prefectures gauge the future
market interest for medicinal services and make locale explicit human services frameworks by
2025. Together with ICCS, this vision intends to give consistent help to the older (from sickness
counteractive action to long haul care) in their individual networks.

Education

Source: World bank

 rom 1990 - 2015 adult (15 years or more) education rate for Japan who can both read and
write was 99%, the information uncovers that throughout the years the quantity of adult
proficiency rates stays steady. It implies that education has consistently been the priority of
Japan. There is no uncertainty that the nation has prided itself on being exceptionally populist.

Japan advanced the possibility of an "all middle-class society" where access to circumstance is
an element of legitimacy, and legitimacy is dictated by accomplishment in school as recorded by
execution on tests. That accomplishment is seen by the Japanese as the aftereffect of exertion not
as the consequence of acquired and unalterable insight. Access to training at more significant
levels was exceptionally particular and saved for the elites. After World War II, the Japanese
training framework turned out to be more democratized with mandatory school reached out to
nine years (six years of essential in addition to three years of lower optional school) and
advanced education extended. Every single Japanese understudy are supported fairly, have a
similar educational plan and face similar desires. Understudies in Japanese schools don't skip
grades nor are they kept down. There is no following or gushing during obligatory training.
Because of these strategies, Japan has had achievement in furnishing understudies from low-
salary foundations with equivalent instructive chances. On PISA 2015, just around 10 percent of
the variety in understudy science execution in Japan was clarified by understudies' financial
foundations. The OECD normal was 13 percent.

7.2 Holistic Measure of Living Levels and Capabilities

So

Figure 1 shows trends of both GDP and life fulfilment reviewed in Japan from 1978 to 1999
(Kusago 2008). Gross domestic product expanded after some time while life fulfilment was
level, and the latter seems even declining after 1990. In the review, the quantity of individuals
who revealed "to some degree happy with Life" or "happy with life" has declined after some
time from 64.2% in 1984 to 39.4% in 2005, while the individuals who detailed "to some degree
unsatisfied with life" or "unsatisfied with life" expanded from 37.9% in 1978 to 53% in 2005. It
is critical to take note of that short of what one of every twenty-five (3.6%) Japanese revealed
feeling happy with life in 2005, which had created in 1984 with the pace of 13.7%. The hole
between the two lines (GDP and life fulfilment) has augmented after some time. This implies
more individuals have less happy with their general lives in spite of the fact that the normal of
salary level has been on the expansion. This finding can be comprehended as a proof of the
Easterlin Paradox in the profoundly industrialized countries.

7.3 Characteristics of Developing World

Source: https://www.heritage.org/index/visualize
Quick facts on Japan’s situation compiled data as of 2018. It has a population of 126.7
million as of that year. And the country has made a GDP (PPP) of $5.4 trillion and a growth of
1.7% with a 5-year compound annual growth of 1.3% and made a reach of $42,832 per capita. Its
unemployment rate was at 2.8% and an inflation rate (CPI) of 0.5% alongside with a public debt
of 236.4% of GDP in the year 2018. (The Heritage Foundation, 2018)

Mainly today, the current population of Japan is 126,761,191 as of this day, based on the
latest World Population Prospects data estimates. Japan’s population is equivalent to 1.64% of
the total world population but has an estimation growth rate of -0.27%. Japan ranks number 11 in
the list of countries (and dependencies) by population. (Japan Population, 2019)

The figure above shows a statistical data of Japan of its overall economic freedom score
currently in 2019. As you can see on the graph, comparing the year 2018 and 2019, Japan made a
score of 72.1% as of today. It was decreased by 0.2% from 2018 to current time. So, that means
there has been a slight decrease of its score during last year and now. The scores are based
according to the aspects of economic freedom that are shown above in the graph which made
Japan a developed country throughout the years since 1980s. Japan was ranked at 30 th based on
the world data.

However, we noticed in the graph that there’s a major decrease of score in the year 2017
that made Japan’s rank go down for sure. The recorded data was at 69.6% only of that year.
There must have been a great decline on one of these certain aspects that made Japan’s score
went down.

In relation to the declining of aspects as of 2017, according to The Heritage Foundation

(2018), a long-term worldwide monetary power and Western partner, Japan has had a history of
revolving-door leadership in recent years. Leader Shinzo Abe, in office since 2012 and chose for
a notable third term in October 2017, has given truly necessary political stability however has
been hampered by political scandals. The people needs further reforms to cure Japan's endemic
economic issues yet fears the change that such measures would cause. The administration's
"Abenomics" policy has made a mark in deflation, it has contributed to a mild economic
recovery, however statistic decay brought about by a low birth rate and an aging, shrinking
population poses a major long haul economic challenge. Security concerns involve North Korea's
nuclear and missle threats, what's more, China's cases of sovereignty in the East and South China
Seas.

General Conclusions
 By analysing the levels and trends in income distribution in Japan, the Gini coefficient
has greatly increased over the last thirty years and reached the highest rate in 2005. In
comparison with OECD countries, Japan’s Gini coefficient is relatively high. Although Japan’s
social security benefits largely contributed to the decline of the Gini coefficient, income
inequality among elderly households is still higher than among other households. Also, younger
household and single mother households receive a relative small amount of social security
benefits. As Gini coefficient increases, Japan is facing a serious situation of poverty.

The Japanese government presents Japan’s poverty rates increases. In particular, child
poverty is serious, and Japan’s poverty rates among single parent families and among working
single parent families are the highest among OECD member. The population aging and declines
of fertility rate clearly leads to the increase of poverty rates as the burden for social security and
taxes increase. As the number of elderly people has grown, the number of poor will increase
because older people are likely to have a lower income even though they receive the social
security benefits.

Moreover, raising children is very expensive in Japan, thus many couple tend not to have
a child which declines the fertility rates. In 2008-2019, the urban migration has significantly
increases that were lead to severe cases of rural depopulation in the time. Most people migrated
to urban areas because of the higher wages that they’ll gained, the education that they want to
attain and a living in a more comfortable homes around the city. Japan’s unemployment rate has
been escalating from the year 1991 to 2002 and did not experience drop because of the asset
price bubble first, liquidity and over-statement in Japan. This situation, we can speculate that
Japan has built massive levels of debt on spending on projects that weren’t successful in helping
the country recover from its economic depression and was responsible for its lost decade.
Therefore, Japan economics growths deflated due to capital expenditure and amid weaknesses in
economy.

The two important policies that have been implement are the fiscal and monetary. The
fiscal policy analysis finds that there were a series of fiscal stimulus spending initiatives in the
last decade accompanied by a consumption tax hike in the latter half of the decade in 1997. We
conclude that Japan was not responding effectively to the fiscal policies during this period is due
to the inconsistent and diluted implementation of the policies. We evaluate this and find that the
spending was in bursts over the time period accompanied by targeting projects which had no
long term growth prospects for the economy.

In addition to this, trying to balance the budget due to the fear of growing deficits seemed
to contradict and negate the fiscal spending in the same period. The GDP growth fluctuated and
the economy did not recover. Hence it helped form the overall perception that fiscal policy failed
to help Japan’s fight against recession.
 The monetary policy includes reducing the nominal interest rates to near zero to allow
borrowing and spending. However, this policy applies a select period within the recession era in
Japan, towards the middle of the 1990 decade. Finally, to lift an economy out of recession, both
expansionary fiscal and expansionary monetary policies are required. It is necessary that these
are managed in time and enacted in a manner to complement each other producing a combined
positive effect on the economy. Japan has consistently recorded a surplus which consisted of
trade account surplus, we can connote that this type of surplus would be source of the increasing
surplus. Japan experienced the global financial crises since it has a negative GDP growth, the
trade deficit is one of the causes of the national debt since it exceeds the value of exports.

Universal Health Insurance was implemented in Japan for achieving the world’s highest
expectancy, control, and eradication of infectious diseases. We conclude that this provides a
good quality of care with a comparably low price. However, Japan’s policy of tight control of
health-care cost and a laissez-faire approach to service delivery, with inadequate governance of
provider organizations, created a disparity between need and supply of health-care resources and
disrupt accountability for care quality. As we can see, Japan’s economy dropped-off because of
high life expectancy, and the growing use of expensive. Access to education at higher levels was
highly selective and reserved for the elites. After World War II, the Japanese education system
became more democratized with compulsory school extended to nine years (six years of primary
plus three years of lower secondary school) and higher education expanded. Therefore, all
Japanese students are funded equitably, have the same curriculum and face the same
expectations.

The house income per capita in Japan was mainly contributed by the young professional
who has a stable job because thay no family responsiblities at all. But the financial income in
Japan was hit hard by the global financial crises because of the economic contraction in Japan.
We conclude that the income per capita decreseases due to the downward movement in industrial
production. The GDP increseases over time while the life satisfaction was flat. This means that
the more people have a higher net income but lhaving a low population.
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