JAPAN INCORPORATED?

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JAPAN INCORPORATED?
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Relative Growth
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Domestic Investment
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Will Japan Crash?

• Slow growth, 1.3 per annum since 1992
• NNP 25 smaller than if economy had continued to
  grow at 5
• Hammered by increase in Sales Tax
• By decrease in exports to East Asia
• Inability to put together an adequate stimulus
  package
• 78 Trillion Yen 1998 Budget Marks First Outlay
  Cut in 11 Years

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Why? Why Now?

• Bureaucracy influential, but lacks technical
  expertise
• Consensus decision making
• Inability to make hard decisions called for by
  transition to new economy

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PROBLEMS

• Bottlenecks Labor and Land, Low returns on
  domestic investment
• Barriers to imports
• Aging population, aging workforce

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Trade Balances
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Deregulation Initiative
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• Central Government
• Legislative Branch (The Diet)
• Executive Branch (The Cabinet)
• Judicial Branch (The Courts)
• Prefectural Governments
• Municipal Governments

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• Most Powerful Ministry in Japan
• Most people in the ministry are concerned with
  collecting taxes
• Includes Budget Bureau and Tax Bureau
• Regulates Banking, Securities, Insurance,
  International Finance