Japan’s development experience edited

11

Japan’s Development ExperienceJapan’s Development Experience―The Role of the Government―The Role of the Government －－

GSID, Nagoya UniversityGSID, Nagoya University11 　　 September 2008September 2008

Prof. KIMURA, HirotsuneProf. KIMURA, Hirotsune

Non-Degree Training Program for the Professional Human Non-Degree Training Program for the Professional Human Resource Development Project, Phase III (PHRDP-III) Resource Development Project, Phase III (PHRDP-III)

Ministry of Finance, Republic of IndonesiaMinistry of Finance, Republic of Indonesiaonon

Good Governance: Japanese ExperienceGood Governance: Japanese Experience

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Before Before modernizationmodernization, ,

the Warlord the Warlord system had system had been the been the basics of basics of Japanese Japanese history.history.The castle in the picture is The castle in the picture is a warlord residence.a warlord residence.

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A Bird’s Eye View of the CastleA Bird’s Eye View of the Castle

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Statue of a famous warlordStatue of a famous warlord

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A warlord in a A warlord in a formal costumeformal costume

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Warlords had royal Warlords had royal warrior warrior groupsgroups

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A planned town, with division of social A planned town, with division of social classes, was established surrounding the classes, was established surrounding the

castlecastle

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A planned commercial streetA planned commercial street

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A planned harbor by the riverA planned harbor by the river

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Water Water transportation transportation was the major was the major means of means of transport transport before the age before the age of railroads of railroads and cars.and cars.

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For land transportation, For land transportation, horses were usedhorses were used

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In every In every township township along the along the

main road, main road, safe inns safe inns

and and transportation transportation facilities were facilities were

constructed.constructed.

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A regulation A regulation board board

prepared by prepared by the warrior the warrior governmentgovernment

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In towns, community-based cease fire voluntary groups were In towns, community-based cease fire voluntary groups were organized by civiliansorganized by civilians

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Documents of a warlord governmentDocuments of a warlord government

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Warlord trained warrior’s children, introduced merit Warlord trained warrior’s children, introduced merit system and used them in all fields of local government system and used them in all fields of local government management like finance, commerce and agriculturemanagement like finance, commerce and agriculture

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Children of merchants and better off farmers went to private schoChildren of merchants and better off farmers went to private scho

ols called ols called “Terakoya” (There were about 15 thousand (There were about 15 thousand

in mid-19in mid-19thth century). century).

Teachers of “Terakoya” were Buddhist monks, unemployed warriors and others.

Japan’s literacy rate in 1868 was 54% among men and 10% among women (In UK 1837, it was 20 ～ 25 ％ ). More important thing is that the textbooks were on ordinary life and practical science.

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Distribution of warlord schools (in square)

and terakoya (red dots)

in present Tochigi Prefecture

(Northern Tokyo)

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A bookshop during the Edo era A bookshop during the Edo era (1600-1867)(1600-1867)

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Buddhist Buddhist temples temples were the were the

symbol of symbol of culture. The culture. The bigger the bigger the

warlords, the warlords, the bigger the bigger the temples.temples.

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Warlords promoted the local industry.Warlords promoted the local industry.

This picture This picture shows laborers shows laborers smashing smashing stones in a stones in a gold factory.gold factory.

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Women grinding stones in a gold factory.Women grinding stones in a gold factory.

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In case of Aizu warlord government （会津藩） , they produced value added tableware by painting on the lacquered wooden bawls( 会津漆器 ).

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Aizu government lacquered tableware used also

qualified net design.

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SwordSword artisans made guns easily from iron sand using their traditi artisans made guns easily from iron sand using their traditional skill for producing sward. After 2 guns being bought in 1543 onal skill for producing sward. After 2 guns being bought in 1543

by warlord of Tanegashima with 200 million yen (in present value), by warlord of Tanegashima with 200 million yen (in present value), guns were massively produced within a decade. In 1575, warlord guns were massively produced within a decade. In 1575, warlord

Oda mobilized 3000 guns to defeat Takeda army.Oda mobilized 3000 guns to defeat Takeda army.

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In 1575, warlord Oda mobilized 3000 guns to defeat TakIn 1575, warlord Oda mobilized 3000 guns to defeat Takeda army at Nagashino.eda army at Nagashino.

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BulletsBullets

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Accuracy rate was largely based on the ability to hit the chest from a 30-meters distance.

Next fire could be made in 2 minutes. During battles, 2-3 lines of guns were prepared.

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Houses of present gun maker artisansHouses of present gun maker artisansat Nagahama-city, Shiga Prefecture.at Nagahama-city, Shiga Prefecture.

This sward making clan produced guns within half a year in 1544 This sward making clan produced guns within half a year in 1544 after being ordered to produce it from the emperor (Tenno).after being ordered to produce it from the emperor (Tenno).

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At the time of a natural disaster…At the time of a natural disaster…

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Warlord governments prepared shelters for Warlord governments prepared shelters for casualties. Farmers were believed to be the basics of casualties. Farmers were believed to be the basics of

the nation in producing local wealth.the nation in producing local wealth.

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The US military fleet enforced the opening up of Japan. The US military fleet enforced the opening up of Japan.

The Meiji The Meiji Restoration in 1868 Restoration in 1868 was the foundation was the foundation of Japan’s of Japan’s modernization modernization under threat of under threat of colonization.colonization.

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Reasons of Japanese success in modernizationReasons of Japanese success in modernization

(1) Present danger in international relations set the national mobilization system not only in national resources, but also spirits.

(2) Building government (bureaucracy) went ahead of making constitution and parliament

(3) Industrialization ： the government took the initiative for the industrialization (+ success of business mobilization)

(4) Importance of SMEs: 80% of GDP in Meiji era was personal consumption represented by agricultural products and cottage industry products (ceramic, textile, processed foods…).

(5) Agricultural modernization promoted by the government (+ peasant’s efforts)

(6) Japan’s literacy rate in 1868 was 54% among men and 10% among women (In UK 1837, it was 20 ～ 25 ％ )

(7) Recently, the social capacity for industrialization has been noticed (Prof. Suehiro Akira).

All red marked elements were prepared during Edo era (1600~1867) or even before Edo era.

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A fully set modernization A fully set modernization started.started.

The picture sThe picture shows a goverhows a government owned nment owned iron mines (Kiron mines (Kamaishi, Miyaamaishi, Miyagi Prefecturgi Prefecture).e).

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The Meiji Government constructed The Meiji Government constructed a nation-wide railroad system.a nation-wide railroad system.

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The first railroad was constructed inside Tokyo City.

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Railroads were constructed nation wide. Japan’s 70% of land is mountainous areas. Often times, the public works was a tough work.

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Construction of bridge pillars at the valley area for railroad.

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The Meiji The Meiji government government constructed constructed

the first the first modern modern

textile factory textile factory with much with much borrowing borrowing

administered administered by a French by a French engineer. engineer.

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Warriors’Warriors’ daughters daughters

became first became first generation generation

laborers and laborers and teaching staffs teaching staffs

in other in other factories.factories.

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Silk worm and cocoonSilk worm and cocoon

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Silk reeling from boiled cocoonSilk reeling from boiled cocoon

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Parents of silkwormParents of silkworm

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Silkworm’s egg and babySilkworm’s egg and baby

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Silkworms eating mulberry leavesSilkworms eating mulberry leaves

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Silkworm fatteningSilkworm fattening

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One of the major export commodities in early Meiji era was handicrafts which made Europeans amazed when these commodities were displayed in Paris World Exposition in 1867.

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Iron products produced in 1878.

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The Meiji The Meiji government government practiced big scale practiced big scale public works to public works to widen cultivating widen cultivating fields. The fields. The population of population of Japan increased Japan increased from 30 to 90 from 30 to 90 million during million during 1868 to 1941.1868 to 1941.

Developing countries Developing countries can’t develop if they can’t develop if they underestimate underestimate agricultural agricultural modernizationmodernization ..

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A present road along the embankmentA present road along the embankment of that public worksof that public works

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Koriyama basin, Fukushima Prefecture, was an arid barren land during Edo era. Meiji government constructed underground canal system from Lake Inawashiro to the basin and introduced 500 families of unemployed former warriors.

The length of the main canal was 52km and the total length of branch canals was 78km. Using 3 years, Meiji government brought 4000 ha under cultivation.

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The Meiji Government planned modern citiesThe Meiji Government planned modern cities

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Intellectuals who led the modern Meiji eraIntellectuals who led the modern Meiji erain a local area (Gunma Prefecture)in a local area (Gunma Prefecture)

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The Meiji Government founded various government schools, vocational schools, and universities which were followed by private schools.

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Junior high school before the WW was for 5 years.Ⅱ

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A preserved old primary school buildingA preserved old primary school buildingnow used as a municipal library.now used as a municipal library.

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All primary schools All primary schools had the statue of had the statue of NiNinomiya Kinjironomiya Kinjiro, an i, an intellectual farmer ntellectual farmer who promoted agriwho promoted agricultural devices ancultural devices and helped many peod helped many people during the Edo ple during the Edo era.era.

He studied hard whHe studied hard when he was a child wen he was a child while helping parenthile helping parents’ jobs.s’ jobs.

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At the final At the final stage of WWII, stage of WWII,

the US the US bombers bombers

destroyed the destroyed the top 44 cities of top 44 cities of Japan, except Japan, except 4 atomic bomb 4 atomic bomb

candidate candidate cities cities

(Hiroshima, (Hiroshima, Nagasaki, Nagasaki,

Kyoto, Kyoto, Niigata).Niigata).

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At the air strike of Tokyo on March 10, 1945 At the air strike of Tokyo on March 10, 1945 100 thousand persons were killed by 325 bombers 100 thousand persons were killed by 325 bombers （東京大空襲）（東京大空襲） ..

This experience produced the national atmosphere “We shall This experience produced the national atmosphere “We shall never fight the war” which connected with the support to the never fight the war” which connected with the support to the

article 9 of present constitution. Just opposite to the US.article 9 of present constitution. Just opposite to the US.

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The Horrors of WarThe experience gave Japanese elite the conviction “If we fight against Anglo-Saxon, Japan will be destroyed.” It was the first experience Japan was defeated completely by other nation in its history. The very deep rooted Japan’s subordination to the US started.

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The Japanese were forced to recognize that not only their The Japanese were forced to recognize that not only their physical facilities, but their whole system (militarism, physical facilities, but their whole system (militarism,

authoritarian society etc.) was destroyed.authoritarian society etc.) was destroyed. A comprehensive reform has been started after the surrender. But A comprehensive reform has been started after the surrender. But

actually, the post-world war Japan’s political system started as actually, the post-world war Japan’s political system started as the extension of mobilizing industry for the state. That is called the extension of mobilizing industry for the state. That is called

the “1940s System” which became the basics of Japan Inc.the “1940s System” which became the basics of Japan Inc.

This scene signifies the basics (starting point) of post-world war Japan.

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Construction of Developmental State: the Major Construction of Developmental State: the Major

feature of Post WW2 Japan’s economic growthfeature of Post WW2 Japan’s economic growth • Chalmers Johnson’s book “MITI and Japanese Miracle” (1982) i

s the leading book on this topic. MITI (Ministry of Trade and Industry)’s naming of Japan’s economic system = (government) planned market economy. “The most basic issue is the relation between the government institutions and economic activities.”

• Developmental state means the government system where political- bureaucratic- business elite have the consensus to prioritize economic development and the whole government system led by the bureaucracy is set to support that direction.

• Features of budget expenditure:• USA = military state = military expenditures have been prioritize

d in national budget.• EU = welfare state = social welfare expenditures have been prio

ritized.• Japan = corporation state (or Japan Inc.)

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Kasumigaseki by the emperor’s palace (left side), TokyKasumigaseki by the emperor’s palace (left side), Tokyo, is the area where the majority of central government o, is the area where the majority of central government

ministry buildings are located.ministry buildings are located.

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The other side of emperor’s palace (former Edo castle) is thThe other side of emperor’s palace (former Edo castle) is the business center (Marunouchi) of Japan.e business center (Marunouchi) of Japan.

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Keidanren (Federation of Japanese Business Association) Keidanren (Federation of Japanese Business Association) is the headquarter of Japanese big business.is the headquarter of Japanese big business.

Keidanren is center building. Right side is Nikkei building which issues Nikkei Business Daily, the representative business newspaper in Japan (3 million copies). The left side building is one of state banks of Japan.

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The second building from the left is CCI (Chamber of The second building from the left is CCI (Chamber of Commerce and Industry) headquarter office, which Commerce and Industry) headquarter office, which

represent Japanese SMEsrepresent Japanese SMEs

SMEs count 99% of SMEs count 99% of all Japanese compaall Japanese companies.nies.

Left side building is Left side building is Mitsui Life InsurancMitsui Life Insurance Co. which was use Co. which was used as the headquarted as the headquarter office of GHQ (Ger office of GHQ (General HeadQuarter eneral HeadQuarter of US occupation foof US occupation force after the WW Ⅱrce after the WW Ⅱ1945~52) which fac1945~52) which faces emperor’s palaces emperor’s palace. e.

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Business associations

Bureaucracy Liberal Democratic Party (LDP)

Japanese Bankers Association

Banking Section of MOF (MOF)

Financial Committee of LDP

Japan Automobile Manufacturers Association

Automobile Section, Bureau of Heavy Industry, MITI

Commerce and Industry Committee of LDP

Japan Iron and Steel Federation

Iron Manufacturing Section, Bureau of Heavy Industry, MITI

Agriculture, Fishery and Forestry Committee of LDP

Institutionalized Regular discussion system among 3 elements of elite class

Accepting thousands of retired bureaucrats Donation to LDP (= “second investment”)

40% of LDP MPs from bureaucrats in 1980s

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From e-Japan to u-JapanFrom e-Japan to u-Japan

e-Japan as national strategy (2001~05) high speed internet to 30M by 2005 = attained: 2008: proliferation of internet to 57% of families = 2.8M families

proliferation of HP to 127M=80% of all people; US 76%; Africa 21%; world average 41%

(Indonesia: 25M internet users = 10% of population = urban; HP user to 75.6M )Japan’s government strategy to make active IT system:(1) Proliferation of high speed internet (2) IT-zation in education(3) IT-zation in international deals and communication(4) E-government, e-local government (a) more efficient management of governments (b) information disclosure (c) easier public service to citizens and companies (d) promotion of participation by absorbing more opinions…

From 2006 to 2010, u-Japan (u = ubiquitous = anytime, anywhere, anything, anyone)

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A Prefectural government buildingA Prefectural government building(Japan has 48 prefectures)(Japan has 48 prefectures)

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City Government Hall City Government Hall (Kobe)(Kobe)1.5 million population1.5 million population

Number of second level local Number of second level local governments before and after governments before and after the large scale amalgamationthe large scale amalgamation

Total

LGs

cities municipalities

1999 3232 670 2562

(568)

Nov.

2008

1784 783 1001

(193)

( ) means administrative village

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Former Shimizu

City Hall

(with 243 thousand population)

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Miyako

City Hall

(with 55 thousand population)

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Municipal Hall of Taro (with 5 thousand population)

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Municipal Hall of Okushiri Municipal Hall of Okushiri (with 4 thousand population)

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The CommunitThe Community Hall of Yaizu y Hall of Yaizu City GovernmCity Government near the sent near the s

eashore. eashore. (constructed a(constructed as a 3-story buis a 3-story building as a prelding as a preventive measventive measure against tsure against ts

unami)unami)

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Community Hall of Kora Municipal GovernmentCommunity Hall of Kora Municipal Government

The building The building was built in a was built in a traditional traditional style as part style as part of local of local culture based culture based on the rural on the rural revitalization revitalization movement.movement.

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Social infrastructureSocial infrastructureJapan’s community is very strong. It has the Japan’s community is very strong. It has the

combination system of self-help, mutual -help combination system of self-help, mutual -help (neighborhood) and public help. (neighborhood) and public help.

　 In Japan, there are about 300,000 neighborhood (community) associations (RT, RW) throughout the country. In the community, centered around neighborhood association, there are: organized self-disaster prevention association (jishu-bosaikai); women’s cease fire association; community women’s association; association for aged; association for children. Cease Fire Organization at the community level is also organized under the fire station that has the responsibility in anti-disaster system at the local government level.

These community organizations are especially strong in rural areas and These community organizations are especially strong in rural areas and local city areas where about 90% of inhabitants pay the fee for local city areas where about 90% of inhabitants pay the fee for neighborhood association. But they took an important role even in big city neighborhood association. But they took an important role even in big city areas where only about 50% of people pay the fee for neighborhood areas where only about 50% of people pay the fee for neighborhood association. The good example is at the time of Hanshin earthquake in 1994 association. The good example is at the time of Hanshin earthquake in 1994 at Kobe and surrounding cities.at Kobe and surrounding cities.

In Japan, successful community organizations reduce the cost of In Japan, successful community organizations reduce the cost of organizing self-help or mutual-help system at the bottom. organizing self-help or mutual-help system at the bottom.

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Community Discussion

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Building Developmental Regime at the Local LeveBuilding Developmental Regime at the Local Leve ll

• LGU should be the agency or the “think tank” of “Integrated Management Body at the Local Area” and “Planning Agency” and also should be the Center of tripartite cooperation among LGU, business and civil society at the area. LGU is an Integrated Service Industry for practicing economic and social developments of the area.

• In Japan, society is “strong” because of the well developed Agricultural Cooperative (JA) (nation wide organization having 350 thousand full staffs) and CCI (Chamber of Commerce and Industry in cities and Association of Commerce and Industry in municipalities) as cores. It has been easier for Japan’s local areas to build Japan Inc. local version and realizing NGO-GO synergy between strong and institutionalized LGU and strong and institutionalized Business and (not so strong) civil society organizations.

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Agricultural Research Center of Aichi Prefectural Government:

It is an 8-story building located at the center, having surrounding laboratory farms and about 30 agricultural extension workers.

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Nisshin City (Government) Hall Nisshin City (Government) Hall The city, adjacent to Nagoya, has 70 thousand The city, adjacent to Nagoya, has 70 thousand

population.population.

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Nisshin City CCI (Chamber of Commerce and Industry) Nisshin City CCI (Chamber of Commerce and Industry) Building is on the opposite side of the road Building is on the opposite side of the road

from the city hall.from the city hall.

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Let’s promote Dream to our area!!

Prosperity to our companies!!

Board sign of CCI

We provide tax consultancy on …. every month.

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Agricultural Cooperative (JA) has a big Agricultural Cooperative (JA) has a big influence. influence. Because of the amount of members, the JA head has Because of the amount of members, the JA head has

a big influence in supporting the next mayor.a big influence in supporting the next mayor.

Banking section

Insurance section for life, health, car, fire…

Direct Deal Shop of Agricultural products

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City Hall, CCI and Agricultural City Hall, CCI and Agricultural Cooperative are in the same site.Cooperative are in the same site.

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National road

Direct deal shop of cooperative.

Member farmers bring in their products

City Hall

at the back

Cereal Center of Agricultural Cooperative: Imported cereals for livestock

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Agricultural Agricultural Cooperative Cooperative Direct Deal Direct Deal

Shop:Shop:The Local The Local

Government, Government, Agricultural Agricultural

Cooperative and Cooperative and the Association the Association of Commerce of Commerce and Industry and Industry

cooperate cooperate closely and closely and

constitute the constitute the core of Japan core of Japan

Inc. local Inc. local version.version.

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Horizontal TransparencyHorizontal Transparency

Inside Municipal Inside Municipal Halls,Halls,it can be it can be observed that observed that various sections various sections are not divided are not divided by walls.by walls.

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Local Economy Promotion Corporation buildingLocal Economy Promotion Corporation buildingwhich is the joint venture betweenwhich is the joint venture between the the Local Local

Government, Agricultural Cooperative and the Government, Agricultural Cooperative and the Association of Commerce and IndustryAssociation of Commerce and Industry

The building is former municipal hall (former Municipality of Hachiman, Gujo District, Gihu Prefecture)

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Inside the building, there is a souvenir shop Inside the building, there is a souvenir shop selling local products. selling local products.

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Winery factory of the Municipality of Ikeda, Winery factory of the Municipality of Ikeda, HokkaidoHokkaido

another another typical joint typical joint venture venture among the among the three three sectors: sectors: local local government, government, agricultural agricultural cooperative cooperative and and chamber of chamber of commerce commerce and industry and industry

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““One village one product” movement shop,One village one product” movement shop,Municipality of Oyama (the birth place of this movemenMunicipality of Oyama (the birth place of this movemen

t) now promotes “one village 128 products.”t) now promotes “one village 128 products.”Agricultural sector as the typical 6th industrial sector =

Agricultural sector (1st)

×

Industrial sector (2nd =food processing)

　 ×

Service sector (3rd)

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Party after 5 p.m. with rural revitalization Party after 5 p.m. with rural revitalization movement activists/inhabitants.movement activists/inhabitants.

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For getting deeper information, drinking For getting deeper information, drinking together after 5 p.m. is indispensable.together after 5 p.m. is indispensable.

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If you go to a Shinto Shrine and look around If you go to a Shinto Shrine and look around carefully, you can find out sake barrels.carefully, you can find out sake barrels.

Japanese gods Japanese gods are known to loare known to love drinking.ve drinking.

““Sake” is made Sake” is made from rice. It hafrom rice. It has been the syms been the symbol of good harbol of good harvest.vest.

““Sa” meant goSa” meant god. “Ke” meant fd. “Ke” meant food in ancient ood in ancient Japan. Sake mJapan. Sake meant gods’ fooeant gods’ food.d.

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Thank you for your

attention…