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Nanako Fuku, a Japanese native who currently [May 2012] 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:
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, 2012. Used herein with permission]
To read a disclaimer about the analysis in this file, scroll to the bottom of the file.
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JAPAN - Nanako Fuku
Comparison of Japan's economic policies to MIEPA criteria as prepared by native student of Japan, Ms. Nanako Fuku, studying in the US in May of 2012.
RATING SUMMARY POLICY NUMBER RAW SCORE ADJUSTED SCORE POSSIBLE PERCENTAGE 1 5.0 15.0 15.0 100 % 2 3.0 9.0 15.0 60 3 3.0 9.0 15.0 60 4 5.0 15.0 15.0 100 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 4.0 12.0 15.0 80 9 3.0 9.0 15.0 60 10 5.0 15.0 15.0 100 11 2.0 6.0 15.0 40 12 5.0 15.0 15.0 100 13 3.0 6.0 10.0 60 14 5.0 10.0 10.0 100 15 5.0 10.0 10.0 100 16 3.0 6.0 10.0 60 17 5.0 10.0 10.0 100 18 3.0 6.0 10.0 60 19 4.0 8.0 10.0 80 20 5.0 10.0 10.0 100 21 1.0 2.0 10.0 20 22 1.5 3.0 10.0 30 23 5.0 10.0 10.0 100 24 3.0 6.0 10.0 60 25 5.0 10.0 10.0 100 26 3.0 6.0 10.0 60 27 4.0 8.0 10.0 80 28 4.0 8.0 10.0 80 29 3.5 3.5 5.0 70 30 4.0 4.0 5.0 80 31 5.0 5.0 5.0 100 32 3.0 3.0 5.0 60 33 5.0 5.0 5.0 100 34 3.0 3.0 5.0 60 TOTAL 131.5 288.0 365.0 78.9% ===== ====== ===== =====Return to MIEPA's Home Page
INDIVIDUAL POLICIES - NANAKO FUKU
1. Freedom from internal control: 5.0
Citizens in Japan are free to move and to live, and they can choose what they do on businesses and where they start businesses. Restaurants need permission to open for health and public peace but it will not be interference from government.
http://softget.com/2009/05/post-77.html ; http://law.e-gov.go.jp/cgi-bin/idxsearch.cgi
2. Freedom of speech : 3.0
Freedom of assembly and association as well as speech, press and all other forms of expression are guaranteed by Article 21, constitution of Japan, which publishes mainly a meeting, an association, speech, publication as a form of the expression. However, today, Freedom of speech is threatened by“The Computer Network Monitoring Law” which the Japanese Parliament passed on June 17, 2011. Prof. Ibusuki of Seijo Univ. Law Dept. comments that “The Computer Network Monitoring Law will enable the police to monitor anyone’s internet activity without restriction.” Although this appears, on the surface, to be beneficial when targeting cyber-attacks, some Japanese commentators are suggesting that the law is un-Constitutional.
http://www.kantei.go.jp/foreign/constitution_and_government_of_japan/constitution_e.html ; http://seetell.jp/en/16440 ; http://www.news-postseven.com/archives/20110418_17854.html
3. Effective, fair police force: 3.0
The Japanese police performs activities of protection of an individual life and property, criminal prevention and public peace maintenance under the Police Act. However, a clearance rate in 2011 is 31% and is lower than ten-year before. Although the reliability to the police was the 1st in the world in 1995, it became low because of the successive scandal. Some people think that police needs more efforts for reliance.
http://www.npa.go.jp/hakusyo/h18/honbun/hakusho/h18/html/i6100000.html ; http://www.crs.or.jp/data/pdf/trust09.pdf ; http://www.crs.or.jp/backno/old/No561/5612.htm
4. Private property: 5.0
The Constitution of Japan adopts capitalism and Private property is protected by Article 29, constitution of Japan. The private property right is not always accepted unconditionally but property right is required "in conformity with the public welfare." especially, the law tend to demand publicness to private property of land.
http://www.shugiin.go.jp/index.nsf/html/index_e_laws.htm ; http://www.hrr.mlit.go.jp/youchi/koukyo.html
5. Commercial banks: 3.5
Banks in Japan take deposit and make loan business. Funds circulate by savings and loan to stimulate business. Banks obtain interest by employing the money saved by their visitors. Moreover, the banks pay the visitor interest on deposit out of the return. The interest rate on loans of a bank is falling by the fund supply measure which the government and the Bank of Japan took but the measure might worsen the profit of banks.
http://dailynews.yahoo.co.jp/fc/economy/banking/ ; http://www.j-cast.com/2010/03/05061703.html ; http://www.zenginkyo.or.jp/service/bank/part/
6. Communication systems: 5.0
Japan has a large network of communication facilities, and communication facilities are indispensable for businesses. In the survey of portable diffusion by Ministry of Internal Affairs and Communications in 2011, its rate exceeded 101%, which shows that people who use 2 cellphones has increased. 77% of households have internet access.
http://www.soumu.go.jp/johotsusintokei/new/ ; http://www.nri.co.jp/opinion/it_solution/2011/pdf/ITSF110802.pdf#search='?????? ??' ; http://www.garbagenews.net/archives/1805400.html
7. Transportation: 5.0
Japanese transport network and infrastructures are well developed. There are four major transport systems; the Railway, Road, Air and Marine transportation. There are three types of railways; JR lines, private railways and subways. Railways are the primary means of transportation. Many people living in large cities use trains instead of cars Japan has almost five kinds of roads that come under different agencies. They are City, town and village roads, Perfectural roads, general national highways and National expressways. The roads of Japan cover almost 1,203,600 km in Japan.
http://www.mlit.go.jp/en/index.html ; http://www.bite-japan.com/eng/transport.2-e.html ; http://www.bite-japan.com/eng/transport.2-e.html ; http://loonybg.hubpages.com/hub/Facts-of-Japan-Transportation
8. Education: 4.0
Education in Japan is compulsory education, which includes elementary school and junior high school. The compulsory education in Japan starts age six and ends age 15. Elementary school covers grades 1 to 6 children between the ages of 6 and 12 and junior high school covers grades 7 to 9 children between the ages of 12 and 15. In current Japan, not only the rate of child belonging to the school in the compulsory education is high, but also the rate of child attending at elementary school and junior high school is approximately 100%. The percentage of who go on to high school is 58.2% and the percentage of who go on to university exceeded 59%. According to UNESCO institute, the percentage of who go on to university in the U.S in 2009 was 89.08% and ranked at 5th . On the other hand, Japan was 59% and ranked at 39th.
http://stats.uis.unesco.org/unesco/TableViewer/document.aspx?ReportId=125&IF_Language=eng&BR_Fact=NEFST&B http://www.mext.go.jp/component/a_menu/education/detail/__icsFiles/afieldfile/2011/09/27/1299178_01.pdfR_Region=40510http://www.japan-guide.com/e/e2150.html ; http://www.uis.unesco.org/Education/Pages/default.aspx
9. Social Mobility: 3.0
Japanese society separates into merit society and an academic career-oriented society. The Japanese society in 90s had the high possibility of social movement, and children were able to work for what they want regardless of their parents' jobs. However, today, unless parents are the management and professionals, it tends to be difficult for a child to take the post of the same occupation. Children who attach to a status higher than their parents have decreased.
http://www.jil.go.jp/kokunai/statistics/saikin/2011/201112.html ; http://allabout.co.jp/gm/gc/178113/ ; http://www.jil.go.jp/kokunai/statistics/kako/documents/21_p239-277.pdfhttp://www.jil.go.jp/institute/zassi/backnumber/2007/06/pdf/075-083.pdf#
10. Freedom from outside control: 5.0
Japan is an independent country and has a diplomatic right. Japanese citizens are protected by the government from outside control. Japan has embassies in foreign countries in order to protect Japanese from troubles and offer safety information.
11. Protection of Domestic Enterprises: 2.0
Japan performs international negotiation frequently by raising a customs duty, cutting a customs duty or tax-free. In 2011, the trade balance went into the red because of influence of a strong yen and the Tohoku Earthquake although export value had exceeded the amount of import for the past 30 years. Trade Statistics of Japan shows that total export was 65,554,700,000,000 JPY ($806,132,514,816) and total import was 68,047,400,000,000 JPY ($836,785,537,024). A loss of about 4 trillion yen was recorded. Moreover, in April, 2012, The deficit became about 6 trillion yen.
12. Foreign currency transactions: 5.0
Most of businesses in Japan do not accept currency other than Japanese yen. However, Traveler's checks and Credit cards can be used as a means of payment at some businesses. Most large hotels and duty-free shops allow Traveler's checks, Credit cards and foreign currency. http://gojapan.about.com/cs/japantravelhelp/a/japanesemoney.htm ; http://www.gov-online.go.jp/useful/article/200806/2.html
13. Border control: 3.0
Japan performs immigration control for prevention of epidemics, crime prevention, and economic safeguard by the law of the Immigration Control and Refugee Recognition. In 2007, Advance Passenger Information System and e-Passport Authentication System were made compulsory. In spite of these securities strengthening, the smuggling case of the psycho-stimulant was 186 cases which is an increase of 40.9% compared with last year.
http://www.immi-moj.go.jp/hourei/index.html ; http://www.npa.go.jp/archive/keibi/syouten/syouten279/p19.html ; http://www.jiji.com/jc/v?p=ve_soc_tyosa-jikenhanzai-kakuseizaimitsuyu
14. Currency: 5.0
Japanese Yen is the only acceptable currency in Japan. The yen is the official currency of Japan and is denoted with the symbol \. There are 4 kinds of bills (10,000 yen, 5,000yen, 2,000yen and 1,000 yen) and 6 kinds of coins (500 yen, 100 yen, 50yen, 10yen, 5yen and 1yen). The Bank of Japan publishes the bill and the Ministry of Finance publishes the coin.
15. Cultural, language homogeneity: 5.0
Japan is an ethnically homogeneous society and the Japanese race has a large majority of population. Almost all people grown-up in Japan speak Japanese as a native language. Many foreigners who reside permanently in Japan understand Japanese.
16. Political effectiveness: 3.0
Cabinet Office has jurisdiction over three disaster prevention institutions in preparation for earthquake and disasters. Disaster-prone Japan strives for the measure. Since Japan is located in four plates and also it is located in the monsoon region in Asia, there are many earthquakes and typhoons. Japan specifies the Disaster Measures Basic Law and 22 countermeasure laws. By considering Han-Shin Awaji Earthquake disaster in 1995, Disaster Medical Assistance Team was inaugurated and the Building Standard Law was revised for earthquake-proof strengthening. Additionally, Japan adapts the disaster prevention system to suppress damage in case of an earthquake by alarming to an individual or a company. Although there were many measures, 15,854 were killed by Tohoku earthquake and tsunami in March 11, 2011. This earthquake was larger than government assumption. Countermeasures against calamities need to be improved. http://www.biodic.go.jp/biodiversity/shiraberu/policy/kyosei/23-1/files/3-1-1 ; http://www.jma.go.jp/jma/menu/jishin-portal.html
17. Institutional stability: 5.0
After the Constitution of Japan was enforced in 1947, it has never revised. Under the constitution, government system continues Separation-of-power organization which is the cabinet, court and parliament, and educational administration has not changed.
18. Honest government: 3.0
Japan was ranked 14th with 8 points of 10 by The Corruption Perceptions Index ranks countries/territories in 2011. Even though the point became higher than last year, Japanese government still needs to improve for public confidence. The number of the corruption cases revealed in 2010 to 2011 was 108 cases. Many of the incidents were embezzlement and bribery cases.
http://cpi.transparency.org/cpi2011/results/ ; http://www.soumu.go.jp/main_content/000095912.pdf
19. Common laws: 4.0
The law of Japan consists of the principle of the statute law. There are six kinds of statute laws which are the Civil Code, the Commercial Code, the Criminal Code, the Constitution of Japan, the Code of Criminal Procedure and the Code of Civil Procedure. In order to prevent both statute laws being contradictory, there are some principles. Article 14 of the constitution 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.
There is difference between rich people and poor people for a judge. The Criminal Procedure Code states that the defendant can choose a counsel. There are private defense counsels and court-appointed defense counsels. Rich people can choose better private defense counsels.
http://www.gcnet.at/japan/con-1946-e.htm ; http://www.metinunsal.com/ ; http://www.claircrd.jp/role.html
20. Central bank: 5.0
The Bank of Japan is the central bank of Japan. It is a juridical person established based on the Bank of Japan Act, and is not a government agency or a private corporation. The Act sets the Bank's objectives "to issue banknotes and to carry out currency and monetary control" and "to ensure smooth settlement of funds among banks and other financial institutions, thereby contributing to the maintenance of stability of the financial system." The bank adjusts the total amount of the fund in a short-term money market by using open market operations to affect money market. The Act also stipulates the Bank's principle of currency and monetary control as follows: "currency and monetary control by the Bank of Japan shall be aimed at achieving price stability, thereby contributing to the sound development of the national economy." The bank of Japan analyzes Japanese economy by information of each area in Japan.
http://www.imasara-keizai.com/nichigin.html ; http://www.boj.or.jp/en/about/outline/index.htm/
21. Domestic budget management: 1.0
National tax revenue is only about 40 percent of national annual revenue, and national annual revenue depends on flotation of government bond 50 percent. Finances of Japan continue budget deficit that annual expenditure exceeds tax revenues
Year: National Tax Revenue: national expenditure: The rate of tax revenues to expenditure
2009: 38.7 trillion JPY(366 billion USD): 101 trillion(1.2trillion USD): 38.4%
2010: 41.5 trillion JPY(493 billion USD): 95.3 trillion(1.1trillion USD): 43.5%
2011: 40.9 trillion JPY(486 billion USD): 94.7 trillion(1.1 trillion USD): 43.2%
http://www.mof.go.jp/tax_policy/summary/condition/003.htm ; http://www.mof.go.jp/budget/budger_workflow/account/fy2010/ke230729ipan.htm
22. Government debt: 1.5
In December 2011, GDP was 506.8 trillion Government debt accounts for 195% of GDP. Japanese government total debt was 985 trillion JPY (about 1.1 trillion USD). 85% of the total debt was government bond. Moreover, 90% of the government bond was internal debt. Japanese Gross external debt was 5% of total debt. The government publishes the Public Loan and borrows funds from the private sector.
23. Economic statistics: 5.0
Various statistics are created by the Statistics Bureau and the Director-General for Policy Planning. The Economic Statistics is in charge of executing and tabulating statistical surveys pertaining to establishments and enterprises. The surveys are the Economic Census for Business Activity, the Survey of Research and Development, the Monthly Survey on Service Industries, and the Survey on Service Industries. Statistics created are promptly released in the Internet or booklet. These statistics are intelligence infrastructure used not only by administration use but by a society as a whole.
http://www.stat.go.jp/english/info/guide/2011ver/03.htm#cha2_2 ; http://www.toukei.metro.tokyo.jp/shakaichou/sh-index.htm
24. Protection of public health and safety: 3.0
Ministry of Health, Labour and Welfare performs a measure for the development of various standards such as the pesticide remaining standards of food to secure safety of the food and offers a compulsory insurance system for medical care. All those living in Japan must be covered by some form of insurance, which are Social Insurance System for workers and National Health Insurance System for uncovered by the Social Insurance System.
The infant mortality rate in 2010 was 2.40 per 1,000 live births which was the 140th in the world infant mortality. In addition, TB Prevalence rate in 2010 was higher than the U.S.A. The rate in Japan was 18.2% per 100,000 population (23,261 cases) The rate in the United states was 3.6%(11,181 cases)
Recently, food safety became a problem because of the accident at the Tokyo Electric Power Company's Fukushima Daiichi Nuclear Power Plant which occurred on March 11, 2011. Ministry of Health, Labour and Welfare established a provisional regulation level in the food hygiene law.
http://www.mhlw.go.jp/english/topics/foodsafety/administration/index.html ; http://www.mhlw.go.jp/english/topics/2011eq/index.html
25. High wage policies: 5.0
The laws and regulations related to the Minimum Wages Law apply to workers in Japan. An employer shall pay workers wages an amount no less than the minimum wage. Even if a labor contract is entered into between an employer and its employee specifying a commitment to pay a wage in an amount less than the minimum wage, such committed amount of wage shall be invalid and a labor contract providing for a wage in the same amount as the minimum wage shall be deemed to have been entered into between both parties. Average annual income in Japan is around 3,613,428 JPY (46,800 USD), according to 2011/2012 salary survey. Most people can afford the necessary to live comfortable.
http://www.averagesalarysurvey.com/article/average-salary-in-japan/15224137.aspx ; http://www.mhlw.go.jp/new-info/kobetu/roudou/gyousei/kantoku/dl/040330-3.pdf
26. Environmental protection: 3.0
Japan holds the rules such as the natural environmental laws and antipollution measure today. Environment Management Bureau performs discharge rule of factories and life drainage measures based on “ Water Pollution Control Law" for maintenance of water environment. Additionally, for protection of clean air, it conducts various measure, such as discharge restraint of the pollution from factories based on "Air Pollution Control Act" and the car exhaust measure based on "Law Concerning Special Mesures for Total Emission Reduction of Nitrogen Oxides and Particulate Matte". According to "the Kyoto Protocol", it is a GOAL to reduce a greenhouse gas discharge 6% in comparison with 1990. However, it is the present conditions that the total exceeds 6.2% adversely in comparison with 1990. The budget for Ministry of the Environment in 2012 is approximately 10 billion dollars. It is fivefold as much as the budget in 2011 because some of the budget is included to dispose of debris in stricken area of the Touhoku earthquake and decontaminate the polluted soil by radioactivity from Hukushima nuclear power plant.
http://www.team-6.jp/english/about.html ; http://g8-summit.town.toyako.hokkaido.jp/eng/eco/actionpolicy/index.html ; http://www.env.go.jp/annai/soshiki/bukyoku.html ; http://www.asahi.com/politics/update/1224/TKY201112240383.html
27. Strong army: 4.0
Japan has the Self-Defense Forces which are a defense organization instead of the armed forces based on Constitution of Japan Article 9 Clause 2. The Self-Defense Forces are organized in Ground, Maritime, and Air Self-defense Official mainly. They work on disaster dispatch and international peacekeeping operations in others of the defense activity of the country. Ministry of Defense budget of 2012 is 59,886,796,800 dollars. The Ministry of Defense budget tends to decrease except the budget for Touhoku earthquake disaster revival year by year.
http://ja.wikipedia.org/wiki/%E8%BB%8D%E9%9A%8A ; http://www.mod.go.jp/j/kids/understand/history.html
28. Foreign trade impact: 4.0
In 2011, Total export was 65,554,700,000,000 JPY ($806,132,514,816)
Total import was 68,047,400,000,000 JPY ($836,785,537,024)
GDP was 506,800,000,000,000 JPY ($6,233,702,531,072)
Total Export + Total Import / GDP = Percentage of Total trade 65,554,700,000,000+68,047,400,000,000 / 506,800,000,000,000 =26%
26% of GDP for 2011 was export of goods and service, and import. It is close to one-third of GDP.
http://www.esri.cao.go.jp/jp/sna/menu.html ; http://www.customs.go.jp/toukei/shinbun/trade-st/gaiyo2011.pdf
29. Management of foreign currency budget : 3.5
Total Export – Total import
65,554,700,000,000 - 68,047,400,000,000= - 2,492,700,000,000
In the year 2011, GDP of Japan was 506.8 trillion JPY (6.23 trillion USD). Total export of goods and service was about 65,554,700,000,000 JPY. About 13% of GDP is export. Total import was 68,047,400,000,000 JPY and 13.5% of GDP. The combined balance of payments for goods, services and real capital transfers is deficit. The export largely decreased by historic strong yen and the overseas economic deterioration by the debt crisis in Europe.
http://www.esri.cao.go.jp/jp/sna/menu.html ; http://www.customs.go.jp/toukei/info/ ; http://www.yomiuri.co.jp/editorial/news/20120213-OYT1T01097.htm ; http://www.customs.go.jp/toukei/shinbun/trade-st/gaiyo2011.pdf
30. Layers of collective action: 4.0
Based on a principle of separation of powers, the activity of the government is divided between the legislation, the judiciary, and the executive. The prime minister is elected by Diet member and The Diet is formed member by Japanese citizens. There is a governor in each place. Prefectural governors are chosen by a direct election by the inhabitants. Japanese citizens who are over 20 years old have the right to vote for these elections. The national turnout of the Diet member election in 2010 was 57.92%. The turnout in twenties was less than 40% of the whole. the turnout improvement of the youth is needed.
http://web-japan.org/factsheet/archives/ja/pdf/J08_govstr.pdf ; http://www.takeda-n.com/blog/election/5111.html
31. Pro business climate : 5.0
Japan is a capitalist country that encourages individual’s success on Business so People can do business freely. The professionals whom Japan recognizes officially are certified public accountants ,doctors ,dentist ,veterinarians ,lawyers ,first class authorized architects ,pharmacists , real estate appraisers ,patent attorneys ,professional engineers , social insurance consultants and licensed tax accountants . System consultants with higher income who has worked for 5 years as system engineers are also recognized as professionals. A person with high income tends to be recognized as the successful person.
http://ja.wikipedia.org/wiki/%E8%B5%B7%E6%A5%AD ; http://www.chugoku-np.co.jp/News/Sp201202160059.html ; http://www.jfc.go.jp/k/sinkikaigyou/index.html ; http://www.wadaoffice.jp/entrepreneur/
32. Government enterprises: 3.0
Currently, Japan has 33 special companies, which are established in a special law and needed the special protection and supervision by the nation, because of a serious relation to the public interest. Basically, the special companies are contained in jurisdiction of each ministry. The major companies are Nippon Telegraph and Telephone Corporation (NTT), Japan Post Holdings, Japan Tobacco INC(JT), Japan Railways(JR) and International Airports.
About 20% of GDP was government purchases.
The public opinion evaluation for special corporations was severe because they were used as places where retiring high-ranking government officials can be executives easily for connection. The cabinet meeting decided a policy to reduce the number of the public employee alumnus of parachuting.
http://ja.wikipedia.org/wiki/%E7%89%B9%E6%AE%8A%E4%BC%9A%E7%A4%BE http://www.soumu.go.jp/main_sosiki/gyoukan/kanri/pdf/satei2_10_01.pdf#search ;http://dailynews.yahoo.co.jp/fc/domestic/independent_administrative_agency/
33. International security agreements: 5.0
Japan joins in United Nations since 1956 and contracts Japan-US Security Treaty since 1960.
As follow Article 9 of the constitution, the self-defense capability to be possessed and maintained by Japan under the Constitution is limited to the minimum necessary for self-defense. It is not allowed to hold offensive weapons, such as ICBMs, long-range strategic bombers or offensive aircraft carriers, under any circumstance to in this way surpass a minimum range for self-defense. A specific limit has a different relative aspect by the international situation; level of a military technology and various other situation.
http://www.mofa.go.jp/mofaj/gaiko/terro/index.html ; http://www.mofa.go.jp/mofaj/gaiko/hanzai.html ; http://www.mext.go.jp/b_menu/shingi/chukyo/chukyo10/shiryo/__icsFiles/afieldfile/2010/12/15/1299347_3.pdf#search='GDP ??'
34. Protection of Domestic Enterprises from Government Mandated Costs: 3.0
The corporate tax in Japan is 39.54% and it is higher than foreign countries. In tax reform in 2011, a reduction in 5% corporate tax rate was agreed in order for strength international competitiveness. However, it is still higher tax than other countries.
Moreover, The government supports Japanese enterprises for the economic activated promotion in the area, the competition promotion in the market and the increase of the opportunity of the company.
http://business.nikkeibp.co.jp/article/topics/20101227/217754/ ; http://www.jfc.go.jp/k/sinkikaigyou/index.html
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