Presentation on theme: "Neoliberalism and Japan. Neoliberalism Liberalism – Classical theory Adam Smith, market –self-regulating Milton Friedman, Chicago School – hyper- market."— Presentation transcript:
Neoliberalism Liberalism – Classical theory Adam Smith, market –self-regulating Milton Friedman, Chicago School – hyper- market ideal Myth political regulation (law, contract, property)
Reagan, Thatcher – Washington Consensus Privatization minkatsu, de-regulation kisei- kanwa, liberalization marketism shijo shugi 1974 USA 1979 UK Big Bang All restrictions on capital controls removed New financial instruments Banking, insurance, stock trading companies, invest, compete Economic globalization New technologies of communication
Japan – developmental state (govt. regulation, closed markets, trade protection, kereitsu cross share holdings seniority wage and promotion, lifetime employment) Alternative form of capitalism Different institutions Commitment to public goods Distribution – 90% middle class, narrowest gap between top and bottom groups among G-7 Ideal of sameness ? Paternalistic? Communitarian? Is Japan too turning neoliberal?
Year 2020 – watershed year in policy making 1 in 4 Japanese will be 65 years old by 2020 Population growth negative since w007 Tax, welfare, and medical payments of the wage earner will triple by 2007.
Social transformation underway Meiji Ishin (make new) 1868 1946 Constitution Heisei era (1989 – 1991- bursting of the economic bubble Unemployment 4.9% 1999 highest in post-war Japan Suicide (1998 30,000 a year) men in their 40s and 50s 1/3 of suicides
Hikikomori (drop outs/recluse/at home) NEET (not in education, employment, or training) Women Irregular workers Immigrants Homelessness Yoseba/ doyagai
Japanese unemployment (5%) low by US and European standards Lifetime employment eroding 1997 32% of corporations declared commitment to continue life time employment, 26% in 1998. Seniority-pay,promotion Introduce contract, and individualized remuneration.
Government spending (since 1991 invest sum in economy equivalent to rebuilding the city of Tokyo); high rate of indebtedness. Japan economy ripe for change since 1970s Trade deficits –USA Plaza Accord 1985
Deregulation and liberalization finance, infrastructure, insurance, communication, land, housing, health and welfare, labor and education Govt guaranteed all bank deposits – now plan to let uncompetitive banks fail People swim at own risk Education – Tokyo consider voucher system, Meritocracy?
Anglo Saxon capitalism (Ronald Dore) More talk of change than actual change Dismiss workers? Legislative change