Economy
Japan is one of the world's leading industrial nations. During the 1960's and early 1970's, Japan's gross national product (GNP) grew at the phenomenal average rate of about 11 per cent a year—more than twice that of the United States. The worst postwar slump came in the mid-1970's, when worldwide recession brought a sharp decline in economic growth. The economy recovered during the late 1970's and Japan's GNP experienced continuous growth throughout the 1980's.
Most of Japan's postwar economic growth has been due to keen corporate management, a well-educated, industrious labor force, high levels of savings and investment, intensive promotion of industrial development, and vigorous foreign trade. Government has also been a decisive factor. Its influence is powerful and widespread, though exercised mainly through informal, cooperative arrangements with business.
Giant conglomerates, many of which are interlocked in manufacturing, finance, and trade, are of prime importance in the economy. Coexisting with them are many small and medium-sized firms. Government ownership of industry and business is negligible, limited mainly to transportation services. There has been little foreign investment in Japan because of numerous governmental restrictions.
Of increasing concern to the Japanese are the environmental and social consequences of the nation's industrial expansion. In some areas, water and air pollution is severe and increasing rapidly.
Japan's basic unit of currency is the yen.
which provides most of the nation's exports, is of major importance to Japan's economy. In the output of numerous key products, Japan ranks high among the world's nations—first, for example, in ships, steel, and automobiles and second or third in synthetic fibers, paper, and cement. Japan is also an important producer of many high-technology items, including semiconductors, industrial robots, and optical fibers.
Production is concentrated along the Pacific coast of southern Honshu, primarily in the Tokyo-Yokohama, Osaka-Kobe-Kyoto, and Nagoya areas, and in northern Kyushu. The concentration in the Tokyo-Yokohama area is especially large, accounting for about a third of Japan's manufacturing.
The principal manufacturing activities include the making of industrial machinery, durable consumer goods, iron and steel, ships, chemicals, and textiles.
Industrial machinery and durable consumer goods are of prime importance. They have been largely responsible for Japan's continuing economic growth, rising standard of living, and flourishing export trade. Among the chief products of Japan's machinery industry are factory machines, including machine tools and robots, and heavy electrical equipment. Durable consumer goods are of great variety. They include automobiles, motorcycles, bicycles, television sets, stereo equipment, radios, computers, photographic equipment, and watches.
Japan's iron and steel industry uses imported ore and coal. Production facilities are modern and highly efficient, enabling Japan to export large amounts of iron and steel. Many nonferrous metals are also smelted and refined in Japan.
Japanese shipyards account for as much as half of the tonnage launched in the world each year. Most of the ships are large cargo vessels built for foreign fleets-some of the petroleum supertankers have been in the range of 400,000 to 700,000 tons. Much of Japan's shipbuilding success has stemmed from cost-cutting procedures and the development of new techniques.
The huge, rapidly growing chemical industry concentrates primarily on the production of basic industrial chemicals (largely acids and alkalies), fertilizers, and petrochemicals. As in the years before World War II, the textile industry is large and widespread. Synthetic fabrics are the chief product, replacing cottons, the prewar leader. Wool and silk textiles are also produced.
Other major manufacturing activities include food processing and the making of clothing, Pharmaceuticals, paper and paper products, and ceramics, pottery, and glass. There are also many handicraft industries.
Japan has relatively little farmland (about 1/20 as much per capita as in the United States), yet manages to produce nearly three-fourths of the food required by the nation each year. Only about 12 per cent of the land area is used for farming; the rest is too mountainous. In many areas terraced mountain slopes are common.
Farming is extremely intensive in Japan. Crops are painstakingly planted, cultivated, and harvested to obtain maximum results. Much hand labor, large amounts of fertilizer, and a variety of small machinery are used. As a result of these various factors, crop yields and total agricultural production are high. Also contributing to the nation's total production is the long growing season in the south, which allows two successive crops to be grown each year.
Virtually all the farms are small. Most holdings consist of scattered, small plots, totaling 2 1/2 acres (1 hectare) or less. Nearly all the farms are privately owned, partly because of postwar land reforms that made it possible for farmers to acquire the land they worked. A great majority of the farmers supplement their income by working part-time in some other occupation.
Roughly half of the farmland is planted in rice, the principal crop and a traditional food of Japan. Normally, a surplus of rice is produced. Barley, wheat, and several other grains are also grown, but not in large amounts. Other crops include potatoes, sweet potatoes, soybeans, tea, and tobacco. Oranges, apples, peaches, and pears are the most abundantly produced fruit. The raising of silkworms is a specialty of some Japanese farmers.
The livestock industry, which is small but growing because of a rising demand for meat and dairy products, is limited mainly by the small amount of farmland and by the need to produce crops for human consumption.
For many years Japan has been one of the world's foremost fishing nations. Fish is the nation's main protein food. Nearby waters, especially in the Pacific where the warm Kuroshio and cold Oyashio currents meet, are among the finest fishing grounds in the world. The catch is taken by small, family-operated boats along the coast and by larger commercial ships in more distant waters. Some of the larger ships travel great distances and have modern canneries and freezing facilities aboard.
Among the chief fish caught are pollack, mackerel, pilchard (sardine), tuna, squid, and shellfish. Seaweed, used as food, is both gathered wild from the sea. and grown in shallow coastal waters. Japan has strongly resisted international attempts to curtail whaling and remains a major whaling nation.
The raising offish in fresh water ponds has been practiced for many years, yielding carp and other species. Many fish are also taken from inland lakes and streams. The production of cultured pearls is a relatively small but valuable operation, especially around Nagoya and Nagasaki.
Japan's forests, which cover about 70 per cent of the land, are valuable resources, both as sources of wood and as protected national areas. About a third of the forested land is owned by government—-national, prefectural, and local; the rest is owned by individuals and corporations.
Japan's construction and paper industries use large amounts of wood, as do various other industries. Demand far exceeds domestic production, and most of the wood used is imported. To ensure the greatest possible production in the future, the most modern methods of forest management are employed.
Mining is of little importance. Virtually all the known mineral deposits are small, low in quality, and difficult to mine. There are, nevertheless, many mines that operate on a small scale. Together they produce a rather wide range of metallic and nonmetallic minerals, but the total production is small compared with the nation's overall need for minerals. Coal, generally low-grade, is the most plentiful mineral resource and is produced in fairly large amounts. For its energy needs, Japan is heavily dependent on imports, especially oil.
Highways are Japan's chief means of passenger and freight transport. To ease rapidly increasing traffic problems, construction of an extensive highway system was begun in the 1970's. Extensive road construction continued throughout the 1980's. In 1998 the world's longest suspension bridge was completed, linking Honshu and Awaji Islands.
Until the mid-1960's the railways were the chief means of passenger transportation and the second largest freight carrier. Today they rank second in passenger transport and third, behind coastal shipping, in freight transport. Most of the railway system is operated by companies that are part of the Japan Railways Group, a privately owned concern.
Japan has several high-speed rail (bullet-train) lines that provide passenger service between most major cities. Trains on these lines reach speeds of 170 miles per hour (270 km/h) and more. The Tokyo-Osaka bullet-train line, opened in 1964, was Japan's first high-speed rail line. Hokkaido and Honshu islands are linked by the world's longest tunnel—the 33.5-mile (53.9-km) Seikan railway tunnel. A number of Japanese cities have subway systems.
Coastal shipping has long been important, mainly because of the heavy concentration of population and industry near the sea. The merchant marine, largely destroyed in World War II, is again one of the largest and most modern in the world. Of the many ports, the leading ones are at Yokohama, Kobe, and Nagoya.
Japan Air Lines and All Nippon Airways are Japan's main airlines, providing both international and domestic service. The airports serving Tokyo and Osaka are the chief terminals for foreign and domestic flights. Many foreign international airlines serve Japan.
The telephone system, which was largely developed by the government, is one of the most technologically advanced in the world. The postal service is also highly advanced and uses much automated equipment.
Television and radio broadcasting is by a publicly owned national network and by numerous privately owned commercial stations. The largest system is that of the Japan Broadcasting Corporation (NHK), a public corporation financed by annual fees paid by all households with television sets. NHK presents mainly cultural, educational, and news programs and, to a lesser extent, entertainment.
The Japanese are avid readers and support one of the largest publishing industries in the world. Asahi Shimbun and Yomiuri Shimbun are the leading newspapers.
Wholesale and retail trade are important economic activities, accounting for about IS per cent of the labor force. The service industries, especially financial services such as banking and insurance, are vital to the nation's economy. During the 1980's Tokyo became one of the world's largest financial centers. Other service industries, including advertising, entertainment, and data processing, are also important.
The growth of Japan's foreign trade has been most spectacular since the mid-1960's, resulting in highly favorable balances of trade and the accumulation of large amounts of foreign exchange.
Industrial raw materials, such as petroleum, coal, iron ore, lumber, and cotton, make up the bulk of the nation's imports. No other industrialized nation is so heavily dependent on imported raw materials. The rest of the imports consists mainly of agricultural products, chiefly grains, sugar, and soybeans.
Exports are mainly manufactured products, most notably iron and steel, ships, motor vehicles, heavy electrical equipment, electronic products, photographic equipment, and synthetic fabrics.
The United States is Japan's leading trade partner, exceeding other nations by a large margin in value of imports and exports. The rest of Japan's exports are shipped worldwide, with no one nation particularly prominent. By value, petroleum accounts for a major share of all imports, coming heavily from Saudi Arabia, the United Arab Emirates, other Middle East countries, and Indonesia.
