Japanese Society, Policy and Economicsby Steve McCarty

Professor, Osaka Jogakuin College & University

For the Pacific Resources Exchange Center (PREX)Training for Planners to Promote Photovoltaic Power Generation (A)

at Osaka University Nakanoshima Center, Room 404, on September 7, 2013公益財団法人 太平洋人材交流センター (PREX)

2013 年度太陽光発電普及のための計画担当者研修 (A)講義：日本の社会と政治経済、 大阪大学中之島センターにて

Population trends and foreigners in Japan Japanese history, culture, and society today Government policies and politics in Japan Relations with other countries in the world Threats of fossil fuel dependence and disasters Energy efficiency and renewable energy

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

Conclusion: Japan’s lessons for developing countries / Q&A Discussion: Analyze your nation’s energy, etc. policy options

Outline

People Issues

Population trends Foreigners in JapanHistory & culture

Society today

Demographic shift, its reasons, and difficulty of solutions“Six 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 and 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

Political Issues

Japanese governmentPolitical systemPolicy making

International relationsFor details see the Ministry of Foreign Affairs Website:

http://www.mofa.go.jp

Japanese government structure, from the Ministry of Finance:http://www.mof.go.jp/english/budget/budget/fy2004/brief/images/p120.gif

Energy Issues

Dependence on imported fossil fuels that emit CO2

Disasters and threatsEnergy efficiency

Renewable energy

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

Economic Issues

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Japan and the global economy Stable cost of living, saving vs. consuming Nearly full employment society, but part-timers increasing International trade, exports vs. imports Distribution of wealth, social safety net, taxes

Inflation policy and planned 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

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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

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Recent news on the weakened yen “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?

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Conclusion / Q&A

Japan’s lessons for developing countries:ethics, hard work, education, democracy

Do you have any questions about Japanesepeople? society? government? economics?

Discussion

SWOT Analysis of your country’s energyand other policy options – to clarify the

issues and prospects to achieve your goals

Strengths Weaknesses

Opportunities Threats

The SWOT Analysis worksheet handout is from:http://www.yourmomhatesthis.com/swot-analysis-a-useful-technique/001a8-swot-analysis-template