International Business and Trade

JAPAN; MODEL FOR THE FREE DEVELOPING WORLD

The Asian Challenge

         Japan is now a highly developed

country. Its people enjoy a high standard
of living. Several factors contributed to
its rapid economic growth. Of course,
the principal key factors is the quality of
its people.
         Aside from the farmers of Japan who
had helped the early industrialization of
their country, family business houses
called Zaibatsu played a vital role in the
economic development of the country.
These controlled the nation's economy
during the early 1900's. They were extensively engaged in coal mining, and
eventually in textile, paper, metal, sugar, and shipping industries. In the
1920’s, some of the big business houses provided credit and technical
assistance to small producers. Their business expanded and this included
banks, insurance, and mining industries.
      The growth Zaibatzu was the product of the government's policy of
encouraging free enterprises. Even until now, this is still the fundamental
policy of the Japanese government. It encourages the private firms to act
freely and independently. Nevertheless, Japan seeks to strike a new balance
between government intervention and freedom in view of the increasing role of
the state in promoting the welfare of the Japanese people.
       Japan, being a rich country, has a responsibility to the less developed
countries, especially in the Asian region. Former Prime Minister Zenlo Suzuki
of Japan said that the national security his country is predicted on the stability
and prosperity of East Asia, and Japan being the sole western industrial
country in Asia has the major responsibility to work for that stability and
prosperity. He noted three areas where Japan's efforts could be utilized:
Japan is limited to peaceful means. It cannot cooperate militarily with other
countries. Such policy is in line with the unfortunate events in the past.
The greatest contribution that Japan could make is towards Asian countries'
nation building which is linked to economic and social development, and
stabilization of national livelihood.
Japan is now called to play a political role in the peace stability of the region.
Real Assistance, not self-interest
        Japan has been extending assistance to the less developed countries in
the form of money, materials, and technology. However, these have been
given to countries which supply raw materials and oil to Japan. For example,
Japan is giving technical assistance to Philippine agriculture. In return, we are
using farm tools and machines made from Japan. The Philippine-Japan
Friendship Highway--- a network of roads from northernmost province of
Luzon to the southernmost part of Mindanao---has been substantially funded
by Japan. This increases the use of transportation and communication
facilities which come from Japan.
      Japan is interested in the Asian market which has a very large population.
If the peoples of the region could increase their purchasing power, it would be
a huge foreign market for the industrial countries like Japan. The United
States and European markets ate already with industrial goods, and the
competition is very keen. And so the best market could be Asia. In fact, the
multinational corporations get most of their profits in Asia.
      Japan has doubled its foreign assistance program, and most of it goes to
Asia. This is very wise economic strategy. Once economic and social
conditions have improved in the region, people could buy more goods. This
means Japan could sell more cars, motorcycles, radios, televisions sets,
computers, etc. When a rich country helps a poor country, it is always for self-
interest.
 The challenge is to strive in keeping pace with Asian markets by forging
strong connections with them. Japan — whose economy and government
budget have increased at a paltry pace — has shown its continued interest in
the Asian markets by providing a steady amount of assistance, even in the
face of increasing demands from other parts of the world. However, due to
limited financial resources and limited structural and technological capability,
the Asian markets are unable to adopt this seemingly clear and obvious
solution to growth without the assistance of the international community, and
that is where initiatives such as Japan’s become relevant. However, the
approach of Japan’s aid has been to support self-help. Being self-interested
clearly means that Japan are after their own personal benefit. They
concentrate mostly on countries from which they foresee the most
underdevelopment spillovers: those that are weak, proximate, and populated.
They also prefer countries which give them higher numbers of migrants and
imports. Financial assistance – despite its positive intentions – does not often
have the desired effect; however, it acts as a weapon to coerce nations and
achieve outcomes that mostly favor the donor. Help agencies are also closely
connected to political institutions that represent the geopolitical and economic
needs of the country, prioritizing infrastructure and energy programs over
resources that encourage long-term growth. Self-interest is the motivator of
economic activity. However, the irony of self-interested development is that
while responding to the more immediate concerns of high-income states
today, it may be exacerbating the problems that will confront them in the
future. Aid initiatives aims to solve huge long-term targets that are so
stupendously difficult that they set themselves to fail. This is too costly and
therefore struggles to make substantive contributions to poor areas. Poverty
alleviation should not be in the possession of those outside of the country, but
rather of the same individuals living within it. The people who know best are
the poor themselves, who deserve to be a part of the decision-making
process. Aid assistance must consider the ability of local people; empowering
them to follow their own idea of growth is far more likely to contribute to
meaningful social change than enabling those with the power to operate within
their own self-interest.