1

Geography & climate Regions of Japan (photos)

Population (demographics) & foreigners in Japan Family structure & religions

Economic issues: The yen, cost of living, saving vs. consuming International trade, exports vs. imports Taxes and distribution of wealth Deflation vs. inflation expectations Abenomics: monetary, fiscal, structural policies Energy issues

More deeply into Japanese societyWays of thinking Social behavior & relationships

Conclusion: Japan’s lessons for developing countries / Q&A

Geography and Climate

KYOTO spring:Kiyomizu Temple

Summer: Gion Festival

KYOTO fall

OSAKA

Big Issue Stall – Osaka Station by GanMed64,

2011, CC BY 2.0 https://flic.kr/p/aGkhiz

HIROSHIMA: Peace Memorial by

Stripy T-Shirt, 2004, CC BY-SA 2.0

https://flic.kr/p/2fuzj

NORTHEAST JAPAN

earthquake/tsunami:

Volunteer at Kesencho,

Rikuzentakata by Hajime

Nakano, 2011, CC BY 2.0

https://flic.kr/p/aGC8ia

SHIKOKU island

DSCF0752.JPG by Kazu Letokyoite, 2007,

CC BY 2.0 https://flic.kr/p/LcWcC

Japanese Society - 1

• Population structure

• Family structure

• Religions

Demographic shift, its reasons, & difficulty of solutions

“6 out of 10 respondents said the biggest reason for having fewer children than they really want is that

‘it costs too much money to raise & educate children’.” From https://japanforum.nbr.org/scripts/wa.exe?A2=ind1307&L=list&F=&S=&P=70494

Attitudes and policies concerning immigration and foreigners in Japan

伊勢神宮外宮別宮月讀宮 - Tsukiyomi no miya (Geku of Ise Grand Shrine) by Tamago Moffle, 2010, CC BY-SA 2.0 https://flic.kr/p/7QLJKP

NARA: 法隆寺 Horyuji temple by ume-y, 2013, CC BY 2.0 https://flic.kr/p/eSekCB

Japan and the global economy Stable cost of living, saving vs. consuming Employment, working conditions, part-timers increasing International trade, exports vs. imports Distribution of wealth, social safety net, taxes

Inflation policy and consumption tax increase discussed at:http://www.etftrends.com/2013/08/wisdomtree-japanese-inflation-the-yen-and-tax-policies

Deflation vs. inflation expectations. Who benefits from which?

Low interest rate policy, yen carry trade, investing abroad Overseas Development Assistance (ODA): http://www.mofa.go.jp/policy/oda

Next slides: What is the role of the yen in the world money supply?

Is Japan a huge debtor or a huge creditor nation?

Does weakening the yen help the overall economy?

Abenomics: financialization of the Japanese economy?

The total amount of Japanese yen in the world money supply is nearly as much as the US dollar or the euro, so yen flows have a major impact on the global economy. See the chart at:

http://dollardaze.org/blog/?page_id=00023

Although Japan’s national debt is the world’s largest, very littleof it is owed to the outside world. Japan continues to be theworld’s largest creditor country, earning steady income. From:

http://blogs.wsj.com/japanrealtime/2013/05/28/japan-worlds-largest-creditor-nation-for-22nd-straight-year

Weakened yen & purchasing power“The yen has fallen nearly 25% against the US dollar since

November 2012, as policymakers unveiled a series of aggressive measures to revive growth.”

“A weak yen has its advantages as well, the biggest one being that it makes Japanese goods cheaper for foreign buyers. That helps to boost exports - one of the key drivers of Japan's economic growth.”

“… shipments from Japan rose 12.2% in July, from a year ago, the fastest pace of growth since December 2010.”

“Exports to China, Japan's biggest trading partner, rose by 9.5% from a year earlier, compared with 4.7% growth in June.”

“Meanwhile shipments to the US jumped by 18.5% from a year ago, up from a 14.6% rise in the previous month.”

BBC News, 19 August 2013, from:http://www.bbc.co.uk/news/business-23751029

Abenomics: 3 arrows of monetary, fiscal, and structural policy.It has started mostly by having the central Bank of Japan printmore money, weakening the yen. Are leaders giving up on thereal economy in favor of financialization, or will fiscal stimuluswork, and will structural reforms overcome special interests?

Japan still depends on imported non-renewable energy.Increased fossil fuel consumption since 2011 nuclear shutdowns.

Japan has avoided energy shortages even after 2011, but its energy efficiency ranking has dropped to 4th: http://japanfocus.org/data/scorecard_dewit.JPG

Can government policy successfully promote renewable energy?

Source: Ministry of Economy, Trade & Industryhttp://www.meti.go.jp/english/policy/energy_environment/renewable/ref1002.html

Japanese Society

• Traditions & new attractions

• Gradually changing values

• The Lonely Crowd

–Difficult to meet strangers

Japanese ways of thinking• Other-oriented values

• Individual and peer group

• Concept of time

• Environment and nature

• Status and hierarchy

• Male-female differences

• Importance of age

• Reasons for many suicides

• Human relations most important

Social behavior & relationships

• Levels of social distance– Intimate circle, face relations, strangers

• Politeness, indirectness, formality– Avoiding confrontation

• Inside and Outside – uchi & soto, honne & tatemae– Private self (reserve) & public self (restraint)

• Many Obligations: gimu, on, giri• Balancing give & take of gifts & favors

– Symbolism of gifts and objects