You will learn …

2. You will learn … • Reason’s for Japan’s industrialisation • Factors affecting JID JID : Japan’s Industrial Development

3. Japan’s Industrial Development • Need to Industrialise • Reasons for Japan’s Rapid Industrial Development • Japan’s Industrial Slowdown • Future of Japan’s Manufacturing Industry • Conclusion

4. Japan’s Industrial Development • Need to Industrialise • Mountainous country; 13% arable land • Industrialisation • Creates jobs for people • Factories need raw materials and energy to produce goods • Japan has few natural resources • Need to import large amounts of raw materials, mineral fuels and food – one reason for WWII

5. Japan’s Industrial Development • Need to Industrialise • Industrialisation • Pay for imports by exporting manufactured goods • Manufacturing – main means of producing goods for export

6. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • 1945 (end of WWII) to 1973, Japan’s manufacturing sector grew rapidly • 1968 : 2nd largest industrial power after the US • Largest producer of steel, ships, motorcycles and cameras

7. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • American Aid • Korean War (1950-53) • Government Support • Initiative of Japanese Private Companies • Qualities of the Japanese • Good Labour-Management Relations

8. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • American Aid • 1945-52 : US Occupation of Japan – US aided the recovery of Japan’s mnfg ind • Gave $ and machinery • Trained Japanese workers • Opened US market to Japanese exports • Supported Japan’s membership in OECD • Opportunity to sell mnf goods to more countries

9. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Korean War • Japanese industries supplied billions of dollars of goods to UN forces in South Korea • End of war – Jap industries continued supplying materials to rebuild South Korea • With this $ earned, J able to import raw materials and technology to rebuild its mnfg industry

10. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Government Support ECONOMIC • Set up MITI in 1949 to promote JID • MITI works closely with pte companies to draw up Japan’s ind policies • Every few years, ind policy is changes to reflect local and global needs • Govt officials analyse ec info collected from all over the world

11. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Government Support ECONOMIC • Results of research given to pte companies to help them decide on new products to develop • Govt’s aim : Japanese ind to compete successfully in int’l market

13. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Government Support DEFENCE • 1947 Constitution : Forbids Japan to declare war on another country • Thus Japan’s defence expd considerably less

15. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Government Support DEFENCE • Money channeled to stimulate ind growth • Initially gave out low-interest loans • Used to rebuild factories destroyed in the war • Funds to vital ind such as steel and coal ind • Later, loans given to • Encourage firms to use modern machinery • Set up knowledge-intensive ind • Carry out R&D projects

16. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Government Support EDUCATION • Govt invested heavily in education (edn) • 1947 : Edn system revised • Compulsory edn extended to 9 years • Special attention : Mathematics & Science • Equip workforce to meet needs of mnfg ind • Result : 1955 – 38% beyond sec edn • 1971 : 91%

17. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Government Support INFRASTRUCTURE • Improved transport and communications system • Road & railway systems • Telephone services • Port facilities

18. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Initiative of Jap Pte Companies • Willingness to invest in new technology • Adapting to changes in world market demands • Overseas Investments • Company Rivalry • Co-operation Among Jap Companies

19. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Initiative of Jap Pte Companies • Willingness to invest in new technology • Before WWII, Jap products were imitations of Western products • After WWII, invested in R&D, product design and market research • Improved on borrowed ideas to make better products • Invented new products • Investment in new products helped Japan survived two oil crises in the 1970s

20. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Initiative of Jap Pte Companies • Willingness to invest in new technology • Turned situation around to profit from it • Captured a large portion of world car market by producing fuel-efficient cars • Robots : 1980 – 75,000 robots in Japan • ie 75% of world robots at work on production lines • Lower cost, increase productivity – successful competition

21. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Initiative of Jap Pte Companies • Adapting to changes in world market demands • Jap companies : Adaptable & flexible • In shipbuilding and steel industries • Stiff competition from South Korea and Brazil

23. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Initiative of Jap Pte Companies • Overseas Investments • Help to lower cost of production • Lower costs of labour • Availability of raw materials • Keep prices of Jap products making them competitive

24. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Initiative of Jap Pte Companies • Overseas Investments • Also help to find market for Jap products • Eg setting up factories in US and China helps Jap sell their products in these densely populated areas • Incentives offered makes foreign countries attractive and profitable to invest in

25. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Initiative of Jap Pte Companies • Overseas Investments • Overcome trade barriers imposed by some countries • Protectionism : limiting imports • See p 164 • Jap investments accepted because it creates jobs • Transfer of skills and technology

26. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Initiative of Jap Pte Companies • Company Rivalry • Key factor in Japan’s industrial success • Keen competition to serve increasingly demanding consumers • Resulted in rich variety of Jap manufactured goods

27. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Initiative of Jap Pte Companies • Co-operation among Japanese Companies • Despite competition, they also exchange ideas and plan common strategies • Eg Joint research projects • In Japan, 2/3 of SMEs are sub-contractors of big companies • Eg car ind – 65%-70% of parts produced by sub-con

28. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Initiative of Jap Pte Companies • Co-operation among Japanese Companies • As quality of finished products depended on parts made by sub-con, big companies work closely with them • Close consultation and loyalty help churn out high-quality products

29. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Qualities of the Japanese • A Thifty People • Positive Work Attitude

30. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Qualities of the Japanese • A Thifty People • Japan – highest personal savings rate in the world • Most Japs put their $ in banks • With so much savings, banks could easily lend money to Jap inds for expansion projects • 1955-70, many inds borrowed $ to invest in new machinery and research for new products

31. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Qualities of the Japanese • Positive Work Attitude • Japanese people generally hard-working • Many do not take complete entitlement of leave • Take pride in what they do • Willing to learn new skills • Identify themselves with their company, taking pride in its efficiency and products

32. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Qualities of the Japanese • Positive Work Attitude • Many Japs involved in QCCs • QCC : Small group of workers meeting regularly to solve problems at work • Motivates workers, develops pride in work and foster team spirit • Results : Many Jap products superior to competitors

33. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Qualities of the Japanese • Positive Work Attitude • Improving their work cuts the time for production • Jap companies often the first to introduce new products • Eg correction pen and cutter knives

34. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Good Labour-Management Relations • Being employed in a big Jap company is like being part of the family • Managers listen to workers’ problems • Workers made to feel as important as managers • Both wear same factory uniform in some cases • Company provides job security, training, medical care, housing loans, subsidised holidays and pay increases • In return, workers stay committed and loyal

35. Japan’s Industrial Development 2. Reasons for Japan’s Rapid Industrial Development • Good Labour-Management Relations • Close relationship between workers’ union and the company • Strikes are rare • Thus few workdays are lost, productivity remains high and goods delivered on time