THE
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Yuri Kanai, a Japanese native who currently [May 2009] lives in San Francisco, completed a study of her home country government's economic policies as compared to the MIEPA list of policies as outlined above. The studies on Japan are shown below. The ratings herein are based on the following rating scale:
RATING SCALE
5.0 Perfect Facilitation of Wealth Creation
4.0 Midway between Perfect and Neutral
3.0 Neutral Effect on Wealth Creation
2.0 Midway between Neutral and Obstructionist
1.0 Perfectly Obstructionist to Wealth Creation
[Rating scale copyright Mike P. McKeever, 2009. Used herein with permission]
To read a disclaimer about the analysis in this file, scroll to the bottom of the file.
JAPAN - Yuri Kanai
Comparison of Japan's economic policies to MIEPA criteria as prepared by native student of Japan, Ms. Yuri Kanai, studying in the US in May of 2009.
RATING SUMMARY
POLICY NUMBER RAW SCORE ADJUSTED SCORE POSSIBLE PERCENTAGE
1 5.0 15.0 15.0 100 %
2 3.5 10.5 15.0 70
3 4.0 12.0 15.0 80
4 4.0 12.0 15.0 80
5 3.5 10.5 15.0 70
6 5.0 15.0 15.0 100
7 5.0 15.0 15.0 100
8 4.5 13.5 15.0 90
9 4.0 12.0 15.0 80
10 4.5 13.5 15.0 90
11 5.0 15.0 15.0 100
12 4.0 8.0 10.0 80
13 5.0 10.0 10.0 100
14 5.0 10.0 10.0 100
15 4.5 9.0 10.0 90
16 5.0 10.0 10.0 100
17 3.5 7.0 10.0 70
18 4.5 9.0 10.0 90
19 4.5 9.0 10.0 90
20 2.0 4.0 10.0 40
21 2.0 4.0 10.0 40
22 5.0 10.0 10.0 100
23 4.0 8.0 10.0 80
24 4.5 9.0 10.0 90
25 5.0 10.0 10.0 100
26 4.0 8.0 10.0 80
27 5.0 10.0 10.0 100
28 2.5 5.0 10.0 50
29 4.0 4.0 5.0 80
30 4.0 4.0 5.0 80
31 4.5 4.5 5.0 90
32 5.0 5.0 5.0 100
33 4.5 4.5 5.0 90
34 2.5 2.5 5.0 50
TOTAL 142.5 308.5 375.0 82.3%
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INDIVIDUAL POLICIES
1. Freedom from Internal Control: 5.0
Freedom of move is guaranteed by the article 22 of the constitution, as follows.
Every person shall have freedom to choose and change his residence and to choose his occupation to the extent that it does not interfere with the public welfare.
2) Freedom of all persons to move to a foreign country and to divest themselves of their nationality shall be inviolate.
People can move freely anywhere in Japan. As long as people do not act in violation of the law, the government does not control the lives of its citizens.
Source:
Constitution of Japan http://www.solon.org/Constitutions/Japan/English/english-Constitution.html
Personal experience
2. Freedom of Speech: 3.5
Freedom of speech is guaranteed by the article 21 of the constitution, as follows.
Freedom of assembly and association as well as speech, press and all other forms of expression are guaranteed. 2) No censorship shall be maintained, nor shall the secrecy of any means of communication be violated.
However, according to press freedom ranking by reporters without borders, Japan ranked 37th in the world, which means Japan need greater freedom of expression.
Source:
Constitution of Japan http://www.solon.org/Constitutions/Japan/English/english-Constitution.html
Reporters without borders http://www.rsf.org/rubrique.php3?id_rubrique=554
Chosun online http://www.chosunonline.com/article/20061024000007
3. Effective, Fair Police Force: 4.0
Japan’s number of crimes per capita was 19.177 per 1,000 people, which ranked 34th in the world. The United States ranked 8th, which was 85.5517 per 1,000 people. Most popular crime in Japan is burglary. Japan’s arrest rate for serious crimes such as murder, robbery, arson, kidnaps and rape, was 60.2% in 2007. 231,700 police officers work in Japan, which is 6th in the world. Police work well and people trust them. Japan is fairly safe country. People can walk in the dark without fear.
Source:
Hokkaido Prefecture http://www.pref.hokkaido.lg.jp/NR/rdonlyres/3B142E95-2243-40B9-92C1-AC08C88A97D7/0/i2201011kenkyoritsu.pdf
OECD http://puck.sourceoecd.org/vl=12723661/cl=15/nw=1/rpsv/factbook2009/11/04/01/index.htm
Nation Master http://www.nationmaster.com/cat/cri-crime
4. Private Property: 4.0
Private property is guaranteed by the constitution. Chapter3 of Article 29 of the constitution defines right and duties of the people as follows.
1. The right to own or to hold property is inviolable.
2. Property rights shall be defined by law, in conformity with the public welfare.
3. Private property may be taken for public use upon just compensation therefore.
The constitution and laws are clear for tangible assets, but for intangible assets, such as intellectual property, Japan need to develop of legal system to protect intellectual property rights.
Source:
Houko.com http://www.houko.com/00/01/S21/000.HTM#s3
Wikipedia http://ja.wikipedia.org/wiki/%E6%97%A5%E6%9C%AC%E5%9B%BD%E6%86%B2%E6%B3%95%E7%AC%AC29%E6%9D%A1
5. Commercial banks 3.5
Typical Japanese commercial banks’ businesses are taking deposits, lending money and transferring funds. They play an important and indispensable role for Japanese economy. However, due to the recent financial crisis, these circumstances made banks reluctant to extend loans and companies therefore found it hard to secure the funds they needed for investment in new facilities and businesses. A vicious cycle of business failures and economic stagnation ensued.
Source:
Japanese bankers association http://www.zenginkyo.or.jp/en/banks/banking_businesses
J-Cast News http://www.j-cast.com/2008/08/06024550.html
6. Communication Systems: 5.0
Japanese communication facilities are well developed and spread all over the country. As of 2007, the penetration rate of the personal computer is 85.0% of the Japanese population, internet is 73.6%, cell phone is 95.0%, TV is 99.4% and broadband is 22.1%. People can watch TV, listen radio and use internet everywhere in the country.
Source:
Honkawa Data Tribune http://www2.ttcn.ne.jp/honkawa/index_list.html
Ministry of internal affairs and communications http://www.stat.go.jp/data/joukyou/12.htm
7. Transportation: 5.0
Japan has the world best efficient public transportation network, especially within metropolitan areas and between the large cities. Japanese public transportation is characterized by its punctuality, its superb service, and the large crowds of people using it. Railways are most common, convenient and efficient way of transportation. Dozens of Japanese railway companies compete in regional and local passenger transportation markets. There are 173 airports in Japan and flying is a popular way to travel between cities. The main international gateways are Narita International Airport, Kansai International Airport and Ch?bu Centrair International Airport. The main domestic hub is Haneda Airport, which is Asia's busiest airport. Japan has 1,152,207 km of highways with 863,003 km paved and 289,204 km of unpaved ways, and also there are 1770 km of Waterways and twenty-two major seaports. People can get goods easily and fast.
Source:
Ministry of Land, Infrastructure, Transport and Tourism http://www.mlit.go.jp/index_e.html
Wikipedia http://en.wikipedia.org/wiki/Transport_in_Japan
8. Education: 4.5
In 2006, the attendance rate at elementary and junior high schools (compulsory education) was 100%. Of those graduating from junior high school, 97.6% continued on to senior high school, while 51.5% of senior high school graduates continued on to junior college or university and 12.0% of university graduates continued on to graduate studies. In the U.S. 66.7% of high school graduate continued on to junior college or university in 2004. Japanese advancement rate is lower than U.S.
According to OECD Program for International Student Assessment (PISA), Japan ranked 4th in mathematics, 2nd in Science, and 9th in reading of 67 PISA participating countries. Japan is one of the highest educational performance countries.
Source:
Ministry of Education, Culture, Sports, Science and Technology http://www.mext.go.jp/b_menu/shuppan/toukei/06122122/001.pdf
PISA http://www.oecd.org/pages/0,3417,en_32252351_32235731_1_1_1_1_1,00.html
The National Center for Education Statistics http://www.nces.ed.gov/
9. Social Mobility: 4.0
Japan has been introducing a merit system which is one’s ability is more important than one’s education, family history or connection. However, in Japanese society, it is still believed that going to a good school ensures entrance into a good company and a good life. And also, a person who has backroom influence, such as family connection can sometimes take advantage. However, the background influence is small and diminishing nowadays.
Source:
Infoseek blog http://drhnakai.hp.infoseek.co.jp/sub2-3.html?sess=d8c26bdba9a1e61d338f72faecdf5903
Personal Experience
10. Freedom from Outside Control: 4.5
One of the biggest issues of foreign affairs of Japan is North Korean abductions. The North Korean abductions of Japanese citizens from Japan by agents of the North Korean government happened during a period of six years from 1977 to 1983. Although only sixteen are officially recognized by the Japanese government, there may have been as many as 70 to 80 Japanese abducted. The North Korean government has officially admitted kidnapping thirteen citizens.
However, most Japanese citizens feel secure in Japan now.
Source:
Personal experience
wikipedia http://ja.wikipedia.org/wiki/%E5%8C%97%E6%9C%9D%E9%AE%AE%E3%81%AB%E3%82%88%E3%82%8B%E6%97%A5%E6%9C%AC%E4%BA%BA%E6%8B%89%E8%87%B4%E5%95%8F%E9%A1%8C
11. Foreign Currency Transactions: 5.0
Yen is only one currency is used as money in Japan. All foreign currencies must change to Japanese yen.
Source:
Bank of Japan http://www.boj.or.jp/type/list/yuko/okane.htm
Wikipedia http://ja.wikipedia.org/wiki/%E5%86%86_(%E9%80%9A%E8%B2%A8)
12. Border Control: 4.0
On November 2007, a new law amending parts of the Immigration Control and Refugee Recognition Act was promulgated. The revised law contains new provisions for the establishment of a framework for preventative measures against acts of terrorism. Under the new immigration procedures, when foreign nationals are applying for landing, fingerprints and a facial photograph will be taken after which an immigration control officer shall conduct an examination for landing. After the law amending, number of illegal alien has been decreasing. As of 2009, illegal immigrant from Korea is the largest, 24,198 people, and followed by China and Philippine.
However, number of smuggling is growing and illegal drugs are most popular smuggling items. In 2008, 180 of drug smuggling were exposed by Tokyo customs.
Source:
Ministry of Justice Japan http://www.moj.go.jp/NYUKAN/nyukan65.html
Tokyo Customs http://www.customs.go.jp/tokyo/yun/img/mituyugaikyo-tokyo.H19.pdf
wikipedia http://ja.wikipedia.org/wiki/%E4%B8%8D%E6%B3%95%E5%85%A5%E5%9B%BD
13. Currency 5.0
There is only one currency, Yen in Japan. The yen has been using since 1871. As of 2009, six kinds of coins and four kinds of banknotes are issuing. The yen is the third most-traded currency in the foreign exchange market after the euro and the United States dollar.
Source:
Bank of Japan http://www.boj.or.jp/type/list/yuko/okane.htm
Wikipedia http://ja.wikipedia.org/wiki/%E5%86%86_(%E9%80%9A%E8%B2%A8)
14. Cultural, Language Homogeneity: 5.0
Japan is a homogeneous country. People speak Japanese and have Japanese culture. There are 16 broad categories of dialects in Japan, but people can write, read and understand Standard Japanese. In the recent two decades, number of foreigners is increasing, but the rate of foreigners is only 1.69% of total population in 2008.
Source:
Business Labor Trend 2008.5 http://www.moj.go.jp/PRESS/080601-1.pdf
Yahoo Japan http://detail.chiebukuro.yahoo.co.jp/qa/question_detail/q119120256
15. Political Effectiveness: 4.5
Japan is located in an area where several continental and oceanic plates meet. This is the cause for frequent earthquakes and the presence of many volcanoes. Over 1,000 times earthquakes happen in one year. Additionally, many typhoons make landfall every year because Japan is located in the temperate zone. So government needs to secure a reliable crisis management system. The Great Hanshin Earthquake of 1995 was big turning point in the development of contingency planning. 6,400 people died and 43,792 people injured over the disaster. After the earthquake, 16 laws are established or revised based on the lessons and reflections from this incident and Japanese crisis management system had been improved a lot.
Source:
Kobe kizuna. net http://www.kobe-kizuna.net/seido.html
NTT DATA CORPORATION http://e-public.nttdata.co.jp/f/repo/420_t0611/t0611.aspx
Seismological Society of Japan http://wwwsoc.nii.ac.jp/ssj/FAQ/FAQ1.html
16. Institutional Stability: 5.0
Japanese public organizations are pretty stable. Current government administrative system consists based on National Government Organization Law, which was established in 1948 and judicial system is based on the Law of Judicial System, which was established in 1890. Current law enforcement organization has not been changed since 1954, and number of schools is quite stable in recent 20 years.
Source:
Supreme Court of Japan http://www.courts.go.jp/about/kaikaku/sihou_21.html
Matsuyama University http://www.cc.matsuyama-u.ac.jp/~tamura/keisatuseido.htm
TOKYO METROPOLITAN GOVERNMENT BUREAU OF GENERAL AFFAIRS http://www.toukei.metro.tokyo.jp/gakkou/2008/gk08pkekka.pdf
Wikipedia http://ja.wikipedia.org/wiki/%E5%9B%BD%E5%AE%B6%E8%A1%8C%E6%94%BF%E7%B5%84%E7%B9%94%E6%B3%95
17. Honest Government: 3.5
According to the Corruption Perceptions Index 2008, Japan ranked 18th in the world, which was tie to the U.S. Corruption in the Japanese political world is not a surprising thing to people. Most of the corruptions are bribery scandals. To prevent illegal diversion of the political fund, the Political Funds Control Law was revised many times. The law prohibits donations to individual politicians from company and individual. However, they can contribute thorough political fund-managing organizations so, the law is not effective.
Source:
The Transparency International http://www.transparency.org/policy_research/surveys_indices/cpi
Wikipedia http://ja.wikipedia.org/wiki/%E6%B1%9A%E8%81%B7
Ministry of Internal Affairs http://www.soumu.go.jp/senkyo/seiji_s/naruhodo01.html
Japan Communist Party http://www.jcp.or.jp/akahata/aik07/2008-09-13/2008091325_01_0.html
18. Common Laws: 4.5
Japan has three Branches of Government system that is each Legislative Branch, Executive Branch and Judicial Branch, has separation power and they never conflict each other. The main body of Japanese statutory law is a collection called the Six Codes. The six codes are the Constitution of Japan, the Civil Code, the Penal Code, the Commercial Code, the Code of Civil Procedure and the Code of Criminal Procedure. Article 14 of The Constitution of Japan states that all of the people are equal under the law and there shall be no discrimination in political, economic or social relations because of race, creed, sex, social status or family origin. Japanese people feel the legal system is effective and equally fair.
Source:
Houko.com http://www.houko.com/00/01/S21/000.HTM
Wikipedia http://ja.wikipedia.org/wiki/%E6%A8%A9%E5%8A%9B%E5%88%86%E7%AB%8B
http://ja.wikipedia.org/wiki/%E6%97%A5%E6%9C%AC%E3%81%AE%E6%B3%95%E5%BE%8B%E4%B8%80%E8%A6%A7
19. Central Bank: 4.5
Japanese central bank is “Bank of Japan.” It is independent of political control. Bank of Japan has three functions, which are the issue bank of Japanese banknotes, the bank of banks, and the bank of the government. The Bank of Japan's missions are to maintain price stability and to ensure the stability of the financial system, thereby laying the foundations for sound economic development. To fulfill these two missions, the Bank conducts monetary policy, issuance and management of Banknotes, and treasury and government securities-related operations. Their system works well, but monetary policy instruments are usually be criticized because Japan still has been struggle with lengthy recession since 1991.
Source:
Bank of Japan http://www.boj.or.jp/en/about/index.htm
All About http://allabout.co.jp/career/economyabc/closeup/CU20021221B/
20. Domestic Budget Management: 2.0
As of 2008, annual tax revenue was 53 trillion yen, which was about 590 billion dollar. On the other hand, annual expenditure was 83 trillion yen, which was about 820 billion dollar. There was about 25 trillion yen gap between annual revenue and expenditure that was filled by government debt. Japan’s tax revenue was only 60% of the expenditure. Since 1991, which is after the collapse of the Japanese bubble economy, the gap between tax revenue and expenditure has been bigger and bigger.
Source:
Ministry of Finance http://www.mof.go.jp/zaisei/con_02_g01.html
http://www.mof.go.jp/zaisei/con_03_g03.html
Wikipedia http://ja.wikipedia.org/wiki/%E3%83%90%E3%83%96%E3%83%AB%E6%99%AF%E6%B0%97
21. Government Debt: 2.0
As of December 2008, Japanese government had 846 trillion yen total debt, which was about 9.4 trillion dollar. Most of the debt consists of government bonds, which is 681 trillion yen that accounts for 80% of total debt. The rest of 20% are T-bill and loans. Over 95% of government bonds are internal debt. Government bonds owed to foreign entities are only 3.2%. Compare with 2008 GDP, which was 511 trillion yen, government debt accounts for 160% of GDP. Annual payment in 2008 was 20 trillion yen, which accounts for 25% of GDP.
Source:
Real Time Government Deficit Counter http://www.kh-web.org/fin/
Ministry of Finance http://www.mof.go.jp/gbb/2012.htm
http://www.mof.go.jp/singikai/saimukanri/tosin/ksk151125_s07.pdf
22. Economic Statistics: 5.0
The Japanese statistical system, which was gradually developed since 1870's, was severely damaged by the World War II. However, after the war, Japan succeeded in the postwar reconstruction of statistical institution in short period of time. Statistics of Japan is Japanese statistical system has decentralized structure, which is each administrative division does statistical survey which directly related with the each division and Ministry of Internal Affairs and Communications Statistics Bureau is responsible for nation wide statistical survey. There are 7 administrative divisions in central government and each division has a statistical department. About 5,000 central and local government officers are occupied in statistics job.
Source:
Ministry of Internal Affairs and Communications, Statistics Bureau http://www.stat.go.jp/english/index.htm
Toukei Center http://www.e-stat.go.jp/SG1/estat/eStatTopPortal.do
23. Protection of Public Health and Safety: 4.0
Japan is one of the lowest infant mortality rate countries. It was 2.8 per 1,000 live births in 2008, which was the 3rd lowest rate country in the world. TB Prevalence in 2006 was 29(all cases/100 000 pop/yr) and mortality was 2.7 (deaths/100 000 pop/yr), which is higher rate than other advanced countries. In Japan there are 517 public health centers that have responsibility for public health matters. However, in recent years, food safety is threatened. It was found that many food venders produced products with out-of-date material and falsified labels of products. Also, it was detected that many imported food from China were contained high level of pesticide and some people got sick. Japanese consumers really need food safety and Japanese government strengthened regulations.
Source:
Japan Public Health Association http://www.jpha.or.jp/index.html
Central Intelligence Agency https://www.cia.gov/library/publications/the-world-factbook/rankorder/2091rank.html
WHO http://www.who.int/globalatlas/predefinedreports/tb/PDF_Files/jpn.pdf
24. High Wage Policies: 4.5
Japanese average annual income in 2007 is about 4.37 million yen for one person, and 6.36 million yen for total house hold, which is about 48 thousand dollars and 70 thousand dollars, respectively. On the other hand, average expenditures are 2 million yen for single-person household, 3.5 million yen for two-or-more-person households, 3.06 million yen for total household, which is 22 thousand dollars, 38 thousand dollars and 34 thousand dollars, respectively. Most people can afford common consumer durable goods. In 2008, penetration rate of TV was 99.7%, computer was 73.1%, cell phone was 90.5% and automobile was 85.1%.
Source:
National Tax Agency http://www.nta.go.jp/kohyo/tokei/kokuzeicho/minkan2007/pdf/001.pdf
Ministry of International Affairs and Communications http://www.stat.go.jp/english/data/kakei/index.htm
Cabinet Office, Government of Japan http://www.esri.cao.go.jp/jp/stat/shouhi/2008/0803fukyuritsu.xls
25. Environmental Protection: 5.0
Japan is one of the active countries to protect environment. Japanese government established over 50 laws and 8 standard for water, air, soil, noise, nature, chemical, health and waste, and the government force companies, organization or local government to report the environmental data. If they act against law or standard, government will penalize them. Those laws are effective.
After the government formulated a Kyoto Protocol Target Achievement Plan in 1997, they are accelerated efforts to protect environment and achieve the target. In 2005, Team Minus 6% was established with the prime minister as a leader. Over 2 millions individuals and companies participate in the Team Minus 6% and they are engaged in environmental protection and reducing CO2.
Source:
Ministry of Environment http://www.env.go.jp/en/standards/
Team Minus 6% http://www.team-6.jp/english/about.html
26. Strong Army: 4.0
After World War II, the constitution prohibits Japan to maintain military forces however, Japanese government established Self Defense Force (SDF). The SDF's purpose is to preserve peace, public order and Japan's independence and safety. SDF consists of three branches that are Ground Self Defense Force, Maritime Self Defense Force and Air Self Defense Force. The number of SDF member is 240,970 in 2007. 47 billion yen, which is about 9% of the national budget, is spent on national defense in 2008. The biggest concern for Japan is North Korea. North Korea's military called the Korean People's Army, is made up of 1.2 million troops, making it the fourth-largest military in the world.
Source:
Ministry of Defense http://www.mod.go.jp/j/defense/mod-sdf/kousei/index.html
Ministry of Finance Japan http://www.mof.go.jp/seifuan21/yosan003.pdf
CBC http://www.cbc.ca/news/background/northkorea/
27. Foreign Trade Impact: 5.0
As of 2008, Japan's GDP was 526 trillion yen, which is about 5.8 trillion US dollar. Total export was 85.4 trillion yen and total import was 72.1 trillion yen. Total amount of import and export was 157.5 trillion yen, which accounts for 29.9% of GDP. This percentage shows that Japan relies on foreign markets for a manageable share of their economic output
Source:
Ministry of Finance Japan http://www.mof.go.jp/kankou/hyou/g672/672_11.xls
Trade Statistics of Japan http://www.customs.go.jp/toukei/suii/html/nenbet.htm
28. Protection of Foreign Currency Earning Enterprises: 2.5
In 2007, total export was 713 billion dollars, of which 177 billion dollars was by automobile and 143 billon dollars was by electronic equipment that accounts for 24.8% and 20.1% of total export, respectively. Japanese government dose not have any official protection for the automobile and electronics industry. However in 1995, Japan and U.S release a joint declaration about automobile and automobile parts. In the declaration, Japanese government promise to help exploitation and marketing for imported automobiles for fair-trading.
Source:
JETRO http://www.jetro.go.jp/world/japan/stats/trade/excel/gaikyo2007.xls
Ministry of Foreign Affairs http://www.mofa.go.jp/mofaj/area/usa/keizai/framework/pdfs/auto_9508_j.pdf
29. Management of Foreign Currency Budget: 4.0
As of 2008, Japan's GDP was 526 trillion yen, which is about 5.8 trillion U.S. dollar and net export was 26.1 trillion yen, which is about 290 billion U.S. dollar. The net export accounts for 4.9% of GDP, which is not too big, but Japan is quite dependent upon foreign currency. However since June 2008, the net export has been declining because export decreases a lot due to worldwide financial crisis.
Source:
Ministry of Finance Japan http://www.mof.go.jp/kankou/hyou/g672/672_11.xls
Nikkei Net http://www.nikkei.co.jp/keiki/boueki/
30. Layers of Collective Action: 4.0
As of 2009, there are 1,781 cities in 47 prefectures in Japan. Each city has a mayor and city council members and each prefecture has a governor and prefectural assembly members. All of them are chosen by direct election. When it comes nation level, there is the National Diet of Japan, which is composed of a lower house and an upper house. Both houses of the Diet are directly elected under a parallel voting system. However, prime minister is not directly elected by citizen, but by houses of the Diet.
Since 1999, number of merger of municipalities has been glowing. 40% of Japan's GDP consisted of debts from local governments so, Japanese government encourage to strengthen local government's finance by using decentralization of power.
Source:
Ministry of Internal Affairs and Communications http://www.soumu.go.jp/gapei/gapei.html
Osaka Prefecture http://www.pref.osaka.jp/senkan/seido/seido.html
City of Suzuka http://www.city.suzuka.mie.jp/gyosei/plan/gappei/index3.html
31. Pro-business Climate: 4.5
Japanese society places high value on business and Japanese government encourages creating jobs and new businesses. In recent years, the word "professionalism" became quite popular in business world. Formerly, "professionalism" is used only for specific occupational persons, such as doctors, lawyers and sports players. However recently, it is used even for back-office employees or part-time waiters, pretty much everyone in business world. That means most people have high career motivation and it is necessary in Japanese society.
Japan has a strong technology-based industry, which comes from "professionalism", and Japanese companies of all sizes (from small ventures to major multinationals) produce unique and innovative products and services. Many of Japanese companies expand their business overseas and some of them are leading companies in the world.
Source:
Soft Bank Human Capital http://www.softbankhc.co.jp/press/release/fy2008/20080519/130000.html
JETRO http://www.jetro.go.jp/en/invest/whyjapan/10a_3.html
32. Government Enterprises: 5.0
In the mid-1980s, a number of large government corporations were privatized in Japan such as, Japan Railways Group (JR), Nippon Telegraph and Telephone (NTT) and Japan Tobacco (JT). Japan Post was reorganized into Japan Post Group in 2007 as a material step of the postal privatization. It is currently wholly owned by the government, but is planned to be sold into private ownership. As of October 2008, there are 31 government enterprises. Most of them are profitable organizations.
Source:
Economic Expert.com http://www.economicexpert.com/a/Public:corporation.htm
Japan Post http://www.japanpost.jp/privatization/
Ministry of Internal Affairs and Communications Japan http://www.soumu.go.jp/gyoukan/kanri/satei2_f.html
http://www.soumu.go.jp/gyoukan/kanri/pdf/satei2_10_01.pdf
33. International Security Agreements: 4.5
Japan's national defense policy has been based on maintaining the 1960 Treaty of Mutual Cooperation and Security with the United States, under which Japan assumed unilateral responsibility for its own internal security and the United States agreed to join in Japan's defense in the event that Japan or its territories were attacked.
Japan is resisting the development of strong armed forces but they have Self-Defense Forces (SDF). The Japanese Self-Defense Forces is currently one of the most powerful and most technologically advanced military in the world. According to the World Military Strength Rankings, Japan is ranked 7th and United States is ranked 1st.
However, recently, the security environment of Japan grows in severity because of nuclear of North Korea, Chinese beefed up military or activation of Russian military.
Source:
Japan Ministry of Defense http://www.mod.go.jp/index.html
GlobalFirepower.com http://www.globalfirepower.com/
The Daily Yomiuri http://www.yomiuri.co.jp/editorial/news/20090119-OYT1T01028.htm
Global Security Org http://www.globalsecurity.org/military/world/japan/intro.htm
34. Protection of Domestic Enterprises From Government Mandated Costs: 2.5
Compare to leading industrially advanced countries, number of new established companies is quite low in Japan because their initial cost of business is expensive and number of procedure of starting business is a lot. Japanese government has been encouraging new businesses and in 2005, the government enacted Corporation Law, a comprehensive piece of legislation that is a landmark in Japanese business law. The law frees entrepreneurs from Japan's strict capital regulations and makes it possible to start a company with capital of only one yen (about 1 cent). However, it still costs at least 250 thousand-yen, which is 2500 dollar for registration fees and taxes. According to "ease of starting business ranking" by Doing Business 2008, Japan is ranked 44th and United States is ranked 4th. It will be shown that Japan is still tough country for entrepreneurs.
Source:
Doing Business http://www.doingbusiness.org/documents/FullReport/2008/DB08_Full_Report.pdf
Ministry of Economy, Trade and Industry Japan http://www.meti.go.jp/report/downloadfiles/g20729b033j.pdf
77Business Support Foundation http://www.77bsf.or.jp/business/quarterly/no30/london.htm
Kaisyasetsuritsu.com http://www.kaishaseturitu.com/cost/
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