H C Singh

Japan from Top to Turmoil and Determination to Improve

For decades Japan’s economy remained at the top but during 2010 it has deteriorated so much that it came to 3rd position, behind USA and China. Newly elected PM of DPJ (Democratic Party of Japan) showed determination to change drastically or making epic changes in Agriculture and Industry as well as in business so that once again Japan’s Sun rises not only in east but throughout the world. During 19th century and upto Second World War.Japan was the strongest Asian Country when China was just struggling. Japan had conquered Korea towards the close of 19th Century and ruled over it without any threat from China or even European countries like UK, Portugal and France who had conquered and dominated most of Asia including India. Indonesia and South East Asia, like Hitler’s Germany in Europe, Japan in Asia, was too ambitious, Germany tried to conquer whole of Europe including the then USSR but ultimately got defeated by Allies. In their over ambitious and fascist attempt both Germany and Japan faced humiliation. To finally crush Japan, USA dropped atom bombs in Hiroshima and Nagasaki, Germany was divided. Japan lost Korea and was banned from manufacturing and keeping equipped Army. After the war Japan concentrated all its energies and initiative on economic development. This is in brief modern history of Japan upto 2000 when Japan triumphed and got top most economic status.

 From 2005 to 2009 Japan helplessly faced worst political crises and stagnation in economy because there were four weak Prime ministers belonging to LDP (Liberal Democratic Party) one after the other, each remaining PM just for one year and paving the ground for another weak and inefficient PM. Four PM’s in four years had never happened before. Thus it is said by Yurika Kolke of defeated LDP that Japanese PM’s are like tissue papers, accordingly they were thrown into the dustbin of history for which no one in Japan was angry or felt sorry. As a consequence, it was natural in a democratic country, opposition Party DPJ, won the elections in 2009 and Naoto Kan was elected PM. It was thought, particularly by the opposition that he, too, will be meeting the same fate as 4 PM’s of LDP. Even the ruling party’s some leaders felt so and did not give him the support unconditionally to strengthen his position and his own party. Opposition had planned to block the budget session in spring of 2011. But new PM of Japan proved to be bold and determined and went ahead with epic making reforms in economy in all the important fields like agriculture, industry, foreign trade.

 Mr. Kan’s package of reforms is more radical than any during last two to three decades. His predecessors in DJP Mr. Koizum who ruled Japan for 5 years from 2001 to 2006 did not think or dared not to attempt any of such drastic reforms though he was an excellent speaker. In contrast the present PM Kan is almost a clumsy speaker and not impressive at all. But has unmatched determination to go ahead with reforms whether the opposition or even his own party stalwarts opposite it. His package of reforms to end the economic malice of more than two decades, includes social security, raise the consumption, sales tax, trade and measures to stabilize finances, more government bonds to be issued than tax revenues to emancipate the worlds one of the most indebted economy. He does not want to step down before completing all reforms in his mind. For free trade he is imitating USA and Western Countries. So he plans to join, radical free Trade countries organization known as Trans Pacific Partnership whose members are USA, Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore. Dr. Kan is determined to join despite all hurdles at home and abroad. His determination is his main character which his predecessors in his own party and even in opposition did not have so they not only failed and were considered like tissue papers but ruined the economy of Japan.

Latest effort by Japan to improve its economy is a bilateral agreement with India to double the trade by 2005. The bilateral agreement was signed in Tokyo by Japanese Government and India’s Commerce Minister recently in Feb 2010 itself. This infact the first bilateral agreement of liberalization of economy between 9 countries which Japan under new PM Kan has decided to join but is yet to be admitted. The India-Japan bilateral agreement has come into operation which will benefit both Japan and India Japan needs precious minerals which were hitherto being imported from China which now Japan would be importing from India which is rich in precious minerals and India by importing from Japan best type of agricultural produce particularly high quality of rice will also benefit besides other imports and exports.  

February 28, 2011 Posted by | Uncategorized | , , , | Leave a comment