Strategies for Reviving the Japanese Economy :: essays papers

Strategies for Reviving the Japanese EconomyIntroduction1. legal opinion of the Current Economy The Japanese economy has begun to show some signs of win over as the effects of recent large-scale economic packages feel gradually helped to stop the severe economic downturn. But despite this progress, private claim as a whole remains stagnant. Therefore, the economic prospects for self-supported recovery be still uncertain once the economic effects of the last packages have phased out. The fundamental problems pertinent to the weak economy are twofold. First, the true margin of the burst of the bubble economy is still insufficient. Second, against the background of the sharp downslope in the number of births and the rapid aging of the population, the pace of which has not been experienced in other industrialized nations, the Japanese system--the engine of the countrys staggering high growth in the postwar era--has turned problematic with visualize to economic growth. First, fears about employment prospects, future pension plans, and the sharp climbing in government deficits are obviously restraining an economic turnaround. These fears are traceable to eroding sustainability in the Japanese-style wage and employment systems and the generous social pledge system. To cope with the situation, provisions of renewed safety nets are urgently needed. Furthermore, the acclivity fiscal deficits are restraining economic upturn by making people weighty about future tax hikes and raising long-term interest rates. Measures to bushel government fiscal balances in the medium and long term are also required. Second, the Japanese social system, which has looked highly on across-the-board equality, has generated a bloated public sector and in expeditious resource allocation. Typical examples are immoderate regulation, overprotection, lack of self-reliance, and the convoy system. To cope with these problems, a new system necessitate to be built in which all production factors such as capital, labor, and land should be best allocated in a more efficient way through fundamental reforms in the public sector and generous utilization of the market mechanism. Third, a Japanese management style that depends on unrealized capital gains has become obsolete by international standards, and has make the new challenge difficult. The Japanese pecuniary system of indirect pecuniary intermediation, which is based on land as collateral, has been malfunctioning. A new avocation management as well as a new financial system that will fit the Japanese economy in the twenty-first century need to be established early, so that the abundant savings of Japan are best mobilized for economic development in the coterminous century.