Japan Inc.• A Miracle• A Model: The East Asian Strategy

• From: http://benmuse.typepad.com/ben_muse/2005/11/changes_in_inco.html

Economic Philosophy• Nationalism/Protectionism • Exports

Rich Nation, Poor People“Salaryman” Capsule Hotels

What is Japan Inc.?1. Business-Government relations2. Industry-Industry relations3. Labor-Management relations

Business-Government relations

• Partnership• Yoshida Doctrine• “GNPism”

• Yoshida Shigeru• PM 1946-7, 1948-54

Administrative GuidanceMinistry of Economy, Trade, and Industryformerly Ministry of International Trade and Industry (MITI)•The Visible Hand?

2. Industry-Industry relationsPre-war Zaibatsu• Mitsui• Mitsubishi• Sumitomo (Mazda, NEC)• Yasuda (dismantled post-WW II)

Post-War Keiretsu

From: http://www.wtec.org/loyola/polymers/c7_s7.htm

3. Labor-Management Relations

• 1950s: the end of independent unions• Company Unions• Lifetime Employment

Dilemmas• Inflexibility• Protectionism and competition• Innovation?

Collapse of Bubble Economy, 1990

Pay back loans

Build factories Loans Hire people

Buy land Build offices

Pay back Loans

Banks

Government

Companies

GDP Growth in Japan1956-2008

Japanese GDP

From Sian Fenner, The Japanese economy and future growth prospects, Department of the Treasury, Australia, http://www.treasury.gov.au/documents/817/HTML/docshell.asp?URL=05_article_4.asp

Another Look

From: http://japanjapan.blogspot.com/2008/02/japan-q4-2007-gdp.html

GDP Growth 1980-2013