You will learn … Reason’s for Japan’s industrialisation Factors affecting JID JID : Japan’s...

transcript

You will learn …Reason’s for Japan’s industrialisationFactors affecting JID

JID : Japan’s Industrial DevelopmentJID : Japan’s Industrial Development

Japan’s Industrial Development

1. Need to Industrialise2. Reasons for Japan’s Rapid

Industrial Development3. Japan’s Industrial Slowdown4. Future of Japan’s Manufacturing

Industry5. Conclusion

1. Need to IndustrialiseMountainous country; 13% arable landIndustrialisation

Creates jobs for peopleFactories need raw materials and energy to produce goodsJapan has few natural resourcesNeed to import large amounts of raw materials, mineral fuels and food – one reason for WWII

1. Need to IndustrialiseIndustrialisation

Pay for imports by exporting manufactured goodsManufacturing – main means of producing goods for export

2. Reasons for Japan’s Rapid Industrial Development

1945 (end of WWII) to 1973, Japan’s manufacturing sector grew rapidly1968 : 2nd largest industrial power after the USLargest producer of steel, ships, motorcycles and cameras

American AidKorean War (1950-53)Government SupportInitiative of Japanese Private CompaniesQualities of the JapaneseGood Labour-Management Relations

American AidAmerican Aid1945-52 : US Occupation of Japan – US aided the recovery of Japan’s mnfg indGave $ and machineryTrained Japanese workersOpened US market to Japanese exportsSupported Japan’s membership in OECD

Opportunity to sell mnf goods to more countries

Japan’s Industrial Development2. Reasons for Japan’s Rapid

Industrial DevelopmentKorean WarKorean War

Japanese industries supplied billions of dollars of goods to UN forces in South KoreaEnd of war – Jap industries continued supplying materials to rebuild South KoreaWith this $ earned, J able to import raw materials and technology to rebuild its mnfg industry

Government Support Government Support ECONOMICECONOMIC

Set up MITI in 1949 to promote JIDMITI works closely with pte companies to draw up Japan’s ind policiesEvery few years, ind policy is changes to reflect local and global needsGovt officials analyse ec info collected from all over the world

Government Support Government Support ECONOMICECONOMIC

Results of research given to pte companies to help them decide on new products to developGovt’s aim : Japanese ind to compete successfully in int’l market

Government Support Government Support DEFENCEDEFENCE

1947 Constitution : Forbids Japan to declare war on another countryThus Japan’s defence expd considerably less

Government Support Government Support DEFENCEDEFENCE

Money channeled to stimulate ind growthInitially gave out low-interest loansUsed to rebuild factories destroyed in the warFunds to vital ind such as steel and coal indLater, loans given to

Encourage firms to use modern machinerySet up knowledge-intensive indCarry out R&D projects

Government Support Government Support EDUCATIONEDUCATION

Govt invested heavily in education (edn)1947 : Edn system revisedCompulsory edn extended to 9 yearsSpecial attention : Mathematics & ScienceEquip workforce to meet needs of mnfg indResult : 1955 – 38% beyond sec edn1971 : 91%

Government Support Government Support INFRASTRUCTUREINFRASTRUCTURE

Improved transport and communications systemRoad & railway systemsTelephone servicesPort facilities

Initiative of Jap Pte CompaniesInitiative of Jap Pte Companies1. Willingness to invest in new technology2. Adapting to changes in world market demands3. Overseas Investments4. Company Rivalry5. Co-operation Among Jap Companies

Initiative of Jap Pte CompaniesInitiative of Jap Pte Companies1. Willingness to invest in new technology

Before WWII, Jap products were imitations of Western productsAfter WWII, invested in R&D, product design and market researchImproved on borrowed ideas to make better productsInvented new productsInvestment in new products helped Japan survived two oil crises in the 1970s

Initiative of Jap Pte CompaniesInitiative of Jap Pte Companies1. Willingness to invest in new technology

Turned situation around to profit from itCaptured a large portion of world car market by producing fuel-efficient carsRobots : 1980 – 75,000 robots in Japanie 75% of world robots at work on production linesLower cost, increase productivity – successful competition

Initiative of Jap Pte CompaniesInitiative of Jap Pte Companies2. Adapting to changes in world market demands

Jap companies : Adaptable & flexibleIn shipbuilding and steel industriesStiff competition from South Korea and Brazil

Initiative of Jap Pte CompaniesInitiative of Jap Pte Companies3. Overseas Investments

Help to lower cost of productionLower costs of labourAvailability of raw materials

Keep prices of Jap products making them competitive

Also help to find market for Jap productsEg setting up factories in US and China helps Jap sell their products in these densely populated areas

IncentivesIncentives offered makes foreign countries attractive and profitable to invest in

Overcome trade barriers imposed by some countriesProtectionism : limiting importsSee p 164Jap investments accepted because it creates jobsTransfer of skills and technology

Initiative of Jap Pte CompaniesInitiative of Jap Pte Companies4. Company Rivalry

Key factor in Japan’s industrial successKeen competition to serve increasingly demanding consumersResulted in rich variety of Jap manufactured goods

Initiative of Jap Pte CompaniesInitiative of Jap Pte Companies4. Co-operation among Japanese Companies

Despite competition, they also exchange ideas and plan common strategiesEg Joint research projectsIn Japan, 2/3 of SMEs are sub-contractors of big companiesEg car ind – 65%-70% of parts produced by sub-con

Initiative of Jap Pte CompaniesInitiative of Jap Pte Companies4. Co-operation among Japanese Companies

As quality of finished products depended on parts made by sub-con, big companies work closely with themClose consultation and loyalty help churn out high-quality products

Qualities of the JapaneseQualities of the Japanese1. A Thifty People2. Positive Work Attitude

Qualities of the JapaneseQualities of the Japanese1. A Thifty People

Japan – highest personal savings rate in the worldMost Japs put their $ in banksWith so much savings, banks could easily lend money to Jap inds for expansion projects1955-70, many inds borrowed $ to invest in new machinery and research for new products

Qualities of the JapaneseQualities of the Japanese2. Positive Work Attitude

Japanese people generally hard-workingMany do not take complete entitlement of leaveTake pride in what they doWilling to learn new skillsIdentify themselves with their company, taking pride in its efficiency and products

Many Japs involved in QCCsQCC : Small group of workers meeting regularly to solve problems at workMotivates workers, develops pride in work and foster team spiritResults : Many Jap products superior to competitors

Improving their work cuts the time for productionJap companies often the first to introduce new productsEg correction pen and cutter knives

Good Labour-Management Good Labour-Management RelationsRelations

Being employed in a big Jap company is like being part of the familyManagers listen to workers’ problemsWorkers made to feel as important as managersBoth wear same factory uniform in some casesCompany provides job security, training, medical care, housing loans, subsidised holidays and pay increasesIn return, workers stay committed and loyal

Good Labour-Management Good Labour-Management RelationsRelations

Close relationship between workers’ union and the companyStrikes are rareThus few workdays are lost, productivity remains high and goods delivered on time

You will learn … Reason’s for Japan’s industrialisation Factors affecting JID JID : Japan’s...

Documents