Japanese Economy & Energy

7/31/2019 Japanese Economy & Energy

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JapaneseEconomy & Energy


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Japanese

Economy & Energy

This Presentation mainly discuss Japanese

economy, energy demands and some

related information. It is appropriate for

high school students who have interest in

Japanese Energy Policy.


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Geography Area: 377,864 sq. km.

(145,902 sq. mi.);slightly smaller thanCalifornia.

Cities:Capital--Tokyo.

Other cities--Yokohama,Osaka, Nagoya, Sapporo,Kobe, Kyoto, Fukuoka.

Terrain: Rugged,mountainous islands.

Climate: Varies fromsubtropical to temperate.


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People Population (2007 est.): 127.5 million.

Population growth rate (2007 est.): -0.088%.

Language: Japanese. Education:Literacy--99%.

Health (2007 est.):

Infant mortality rate--2.8/1,000.Life expectancy--males 78 yrs., females 85 yrs.

Work force (67 million, 2003): services--42%;trade, manufacturing, mining, and construction--46%; agriculture, forestry, fisheries--5%;government--3%.


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Introduction to

Economy (1)

GDP (2007 est.): $5.103 trillion (officialexchange rate); $4.34 trillion (PPP).

Real growth rate (2007 est.): 1.9%.

Per capita GDP (2007 est. PPP): $33,800.

Natural resources: Fish and few mineralresources.

Agriculture: Products--rice, vegetables, fruit,milk, meat, silk.

Industry: Types--machinery and equipment,metals and metal products, textiles, autos,

chemicals, electrical and electronic equipment.


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Introduction to

Economy (2)

Japan's industrialized, social market economy is the world's third-largest,adjusted to purchasing power parity (PPP), after the United States andPeople's Republic of China. Also, Japan is the world's second-largesteconomy by real GDP, nominal GDP and by marketexchange rates. Itseconomy is highly efficient and competitive in areas linked to

international trade although productivity is lower in areas such asagriculture, distribution, and services. Government-industry cooperation,a strong work ethic, mastery of high technology, and a comparativelysmall defense allocation have helped Japan advance with extraordinaryspeed to become one of the largest economies in the world. Its reservoir ofindustrial leadership and technicians, well-educated and industrious workforce, high savings and investment rates, and intensive promotion of

industrial development and foreign trade have produced a matureindustrial economy. Japan has few natural resources, and trade helps itearn the foreign exchange needed to purchase raw materials for itseconomy.
http://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Industrializedhttp://en.wikipedia.org/wiki/Social_market_economyhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/Purchasing_power_parityhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/People's_Republic_of_Chinahttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Exchange_rateshttp://en.wikipedia.org/w/index.php?title=Highly&action=edit&redlink=1http://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Work_ethichttp://en.wikipedia.org/wiki/High_techhttp://en.wikipedia.org/wiki/High_techhttp://en.wikipedia.org/wiki/Work_ethichttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/w/index.php?title=Highly&action=edit&redlink=1http://en.wikipedia.org/wiki/Exchange_rateshttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/People's_Republic_of_Chinahttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Purchasing_power_parityhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/Social_market_economyhttp://en.wikipedia.org/wiki/Industrializedhttp://en.wikipedia.org/wiki/Japan


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Introduction to

Economy (3)

Distinguishing characteristics of the Japanese economyinclude the cooperation of manufacturers, suppliers,distributors, and banks in closely-knit groups called keiretsu;

the powerful enterprise unions and shunt; cozy relationswith government bureaucrats, and the guarantee oflifetimeemployment (shushin koyo) in big corporations and highlyunionizedblue-collar factories. Recently, Japanese companieshave begun to gradually move away from some of these

norms in an attempt to increase their global competitivenessand profitability (the latter due mostly to their increasedreliance on equity rather than debt financing).
http://en.wikipedia.org/wiki/Keiretsuhttp://en.wikipedia.org/wiki/Shunt%C3%85%C2%A8http://en.wikipedia.org/wiki/Shunt%C3%85%C2%A8http://en.wikipedia.org/wiki/Lifetime_employmenthttp://en.wikipedia.org/wiki/Lifetime_employmenthttp://en.wikipedia.org/wiki/Labor_unionhttp://en.wikipedia.org/wiki/Blue-collarhttp://en.wikipedia.org/wiki/Blue-collarhttp://en.wikipedia.org/wiki/Blue-collarhttp://en.wikipedia.org/wiki/Blue-collarhttp://en.wikipedia.org/wiki/Labor_unionhttp://en.wikipedia.org/wiki/Lifetime_employmenthttp://en.wikipedia.org/wiki/Lifetime_employmenthttp://en.wikipedia.org/wiki/Shunt%C3%85%C2%A8http://en.wikipedia.org/wiki/Shunt%C3%85%C2%A8http://en.wikipedia.org/wiki/Keiretsu


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Introduction to

Economy (4) For three decades, Japan's overall

real economic growth had been

spectacular: a 10% average in the1960s, a 5% average in the 1970s,and a 4% average in the 1980s.
http://en.wikipedia.org/wiki/Japanese_post-war_economic_miraclehttp://en.wikipedia.org/wiki/Japanese_post-war_economic_miraclehttp://en.wikipedia.org/wiki/Japanese_post-war_economic_miraclehttp://en.wikipedia.org/wiki/Japanese_post-war_economic_miracle


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Introduction to Economy(5)

Sliding stock and real estate prices marked the end of the"bubble economy" of the late 1980s, and ushered in a decadeof stagnant economic growth. These problems may havebeen exacerbated by domestic policies intended to wringspeculative excesses from the stock and real estate markets.

Real GDP in Japan grew at an average of roughly 1.5%yearly between 1991-1999, compared to growth in the 1980sof about 4% per year. Growth in Japan throughout the 1990swas slower than growth in other major industrial nations,and the same as France and Germany. Government effortsto revive economic growth have met with little success and

were further hampered in 2000 to 2001 by the slowing ofthe global economy. However, GDP per worker hasincreased steadily even through the nineties, given thatfrom 1993 to 2007, 10% of the population distribution movedfrom the "working age" to "elderly age."
http://en.wikipedia.org/wiki/Japanese_asset_price_bubblehttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Japanese_asset_price_bubble


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Introduction to Economy (6)

Starting in 2003 Japan's economy began to grow

strongly, growing at 2.0% per year in 2003 and

2004, and 2.8 percent in 2005. Unlike previous

recovery trends, domestic consumption has been thedominant factor in leading the growth. As predicted,

the economic recovery continued in 2006 and 2007.

Former Prime Minister Shinzo Abe, who was

working on Japan's economic revival, signed atreaty with Saudi Arabia and UAE about the rising

prices ofoil.
http://en.wikipedia.org/wiki/Saudi_Arabiahttp://en.wikipedia.org/wiki/UAEhttp://en.wikipedia.org/wiki/Oilhttp://en.wikipedia.org/wiki/Oilhttp://en.wikipedia.org/wiki/UAEhttp://en.wikipedia.org/wiki/Saudi_Arabia


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Introduction to Economy (7) The Japanese economy began to see signs of trouble

again in 2008. In January, Ota Hiroko, the Ministerof State for Economic and Fiscal Policy, announcedthat Japan's economy can no longer be considered

1st class economy due to a number of facts including:a decline in the countrys per capita gross domesticproduct, resulting in the fall of Japan's GDP percapita to 18th among the 30 member nations of theOrganization for Economic Cooperation and

Development (OECD) in 2006 and the reduction ofJapans share of aggregate world income to below10% for the first time in 24 years.


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Economy 1: Agriculture

Only 15% of Japan's land is arable. Theagricultural economy is highly subsidized andprotected. With per hectare crop yields among thehighest in the world, Japan maintains an overallagricultural self-sufficiency rate of about 40% onfewer than 5.6 million cultivated hectares (14million acres). Japan normally produces a slightsurplus of rice but imports large quantities of

wheat, corn, sorghum, and soybeans, primarilyfrom the United States. Japan is the largest marketfor U.S. agricultural exports.


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Economy 2: Minerals Deposits of gold, magnesium, and silver meet

current industrial demands, but Japan is

dependent on foreign sources for many of theminerals essential to modern industry. Iron ore,

coke, copper, and bauxite must be imported,

as must many forest products.


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Economy 3 : Industries(1) Industries: Manufacturing, construction,

distribution, real estate, services, and

communication are Japan's majorindustries today. Agriculture makes uponly about 2% of the GNP. Most importantagricultural product is rice. Resources of

raw materials are very limited and themining industry rather small.
http://www.japan-guide.com/e/e2043.htmlhttp://www.japan-guide.com/e/e2043.html


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Economy 3 : Industries(2) Japan's industrialized, free market economy is

the second-largest in the world. Its economy ishighly efficient and competitive in areas linked tointernational trade, but productivity is far lowerin protected areas such as agriculture,distribution, and services. After achieving one ofthe highest economic growth rates in the worldfrom the 1960s through the 1980s, the Japanese

economy slowed dramatically in the early 1990s,when the "bubble economy" collapsed, markedby plummeting stock and real estate prices.


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Economy 3 : Industries(3) Japan's reservoir of industrial leadership and

technicians, well-educated and industrious

work force, high savings and investment rates,

and intensive promotion of industrial

development and foreign trade produced a

mature industrial economy. Japan has few

natural resources, and trade helps it earn theforeign exchange needed to purchase raw

materials for its economy.


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Economy 4: Exports The Japanese economy is one of the strongest in the

world. Only the USA has a higher GNP. The

Japanese currency is the Yen.

Exports: Japan's main export goods are cars,

electronic devices and computers. Most important

single trade partner is the USA which imports more

than one quarter of all Japanese exports. Other

major export countries are Taiwan, Hong Kong,

South Korea, China and Singapore.
http://www.japan-guide.com/e/e2196.htmlhttp://www.japan-guide.com/e/e2196.html


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Economy 5: Imports

Imports: Japan has a large surplusin its export/import balance. The

most important import goods are rawmaterials such as oil, foodstuffs, andwood. Major suppliers are the USA,

China, Indonesia, South Korea, andAustralia.


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Giant consumer market (1)

Despite its struggles, the Japanese market is still theworld's giant. The ratio of imports of raw materialsand fuel, including mineral fuels such as crude oil

and textile raw materials, to total value of importswas 26% in 2001. Considering that raw materialsand fuel accounted for 66% of total imports in 1960,this is a great drop. Conversely, the ratio of finished

goods, such as machinery, equipment, and textilegoods, has increased.


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Giant consumer market(2)

The ratio of imports of finished goods to total

imports exceeded 50% in 1989 because of increases

in imports of machinery from European countries

and the U.S., and of home electric appliances andtextile goods from Asian countries. This ratio, lower

than the 75-80% of Western countries, has led to

criticism that Japan's market is closed. In fact,

Japan's large imports of natural resources andagricultural products statistically lower the finished-

product import ratio.


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Product type Value % of totalFoodstuffs 431.31 12.4

Fish and shellfish 133.61 3.8Meat 83.81 2.4(Beef) 22.97 0.7

Fruits and vegetables 61.55 1.8Grains, processed grain products 46.82 1.3

Textile raw materials 8.29 0.2Raw cotton 3.44 0.1

Wool 1.7 0.0Metal ores and scrap metal 77.16 2.2

Iron ore 30.7 0.9Copper ore 20.35 0.6

Other raw materials 126.26 3.6Lumber 49.42 1.4

Pulp 13.2 0.4

Value of Imports by Product (2001) :1

(Units: USD100 million, %)


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Mineral fuels 702.03 20.1Crude oil 388.64 11.1

Liquefied natural gas 131.24 3.8Coal 61.9 1.8

Petroleum products 74.51 2.1Chemical products 256.38 7.3

Pharmaceuticals 50.33 1.4Plastics 29.91 0.9

Metal products 149.52 4.3Non-ferrous metals 84.22 2.4

Iron and steel 28.35 0.8Machinery and equipment 1,088.64 31.2

Computers 223.96 6.4Semiconductors, ICs 153.97 4.4

Automobiles 64.29 1.8Communications equipment 43.7 1.3

Textile products 238.03 6.8Clothes and accessories 190.92 5.5

Total 3,491.92 100

Value of Imports by Product (2001) :2


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Finished-Product Import Ratio Trend

(Unit: %)

Source: Ministry of Economy, Trade and Industry

Note: Finished-product import ratio=value of finished product imports total value of imports x 100. Number of countries constituting ASEAN

was six in 1985, seven from 1990 through 1996, nine in 1997 and 1998 and ten from 1999.


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Finished-Product Import Ratio Trend by Country

(Unit: %)

Source: Ministry of Economy, Trade and Industry

Note: Germany in 1985 denotes West Germany.

For more detailed data, click here


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Raw Material The extent and nature of Japan's

economic vulnerability to aninterruption in the supply ofimported raw materials.


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Raw Materials: 1 Deposits of gold, magnesium, and silver meet current

industrial demands, but Japan is dependent on foreign

sources for many of the minerals essential to modernindustry. Iron ore, coke, copper, and bauxite must beimported, as must many forest product
http://en.wikipedia.org/wiki/Iron_orehttp://en.wikipedia.org/wiki/Coke_(fuel)http://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Bauxitehttp://en.wikipedia.org/wiki/Bauxitehttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Coke_(fuel)http://en.wikipedia.org/wiki/Iron_ore


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Raw Materials: 2

The Japanese steel industry depends

entirely on imports for iron ore andcoal, the main steelmaking raw

materials.


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Raw Materials: 3

Iron ore imports in 2005 totaled 132.31 million tons,down 1.9%, or 2.57 million tons, from the previous

year. Among major suppliers, Australia shipped81.29 million tons, down 4.9%, accounting for 61.4%of all imports. Brazil supplied 27.68 million tons, up15.6%, for a 20.9% share, followed by India, with10.40 million tons, down 14.3%, for a 7.9% share.


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Raw Materials: 4

Coal imported in 2005 amounted to 62.79 million

tons, down 3.5%, or 2.27 million tons, from the

previous year. Imports from Australia reached43.21 million tons, up 3.0%, representing 68.8%

of all imports. Canada shipped 6.55 million tons,

up 22.4%, for a 10.4% share, China supplied

5.26 million tons, down 30.8%, for an 8.4%share, and Indonesia shipped 1.28 million tons,

down 16.3%, for a 2.0% share.


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Raw Materials: 5

Regarding ferrous scrap, Japan's exports have

exceeded its imports since 1996, making the

country a net exporter. Ferrous scrapexported from Japan in 2005 totaled 7.58

million tons, hitting a record high for the

second straight year. Nearly all of this

tonnage was supplied to three countries:

China, South Korea, and Taiwan.


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Raw Materials: 6

With steel demand growing in China andother BRIC markets, steel production isincreasing worldwide, making raw materials

supply and demand tight. In order to ensurestable supplies of steel products in thissituation, Japanese steelmakers are striving tosecure raw materials by taking such measures

as concluding long-term quantity contractsand acquiring mining rights and interests.


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Raw Materials: 7

With supply and demandcontinuing tight, efforts weremade to secure stable suppliesof raw materials.


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Japanese Gas Market
http://localhost/var/www/apps/conversion/current/tmp/scratch30321/Japanese_Gas_Market.pdfhttp://localhost/var/www/apps/conversion/current/tmp/scratch30321/Japanese%20Gas%20Market.pdfhttp://localhost/var/www/apps/conversion/current/tmp/scratch30321/Japanese%20Gas%20Market.pdfhttp://localhost/var/www/apps/conversion/current/tmp/scratch30321/Japanese_Gas_Market.pdf


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Why are Japanese so anxious

about energy security?

1: Japans energy consumption is

enormous, due to its massiveeconomy;

2: Japan is one of the worlds poorest

countries in terms of naturalresources.


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What should be done to

secure a stableenergy security?


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Energy Security Given its heavy dependence on imported energy, Japan has

aimed to diversify its sources. Since the oil shocks of the 1970s,Japan has reduced dependence on petroleum as a source ofenergy from more than 75% in 1973 to about 57% at present.

Other important energy sources are coal, liquefied naturalgas, nuclear power, and hydropower. Demand for oil is alsodampened by higher government taxes on automobileengines over 2000 cc, as well as on gasoline itself, currently54 yen per liter sold retail. Kerosene is also used extensivelyfor home heating in portable heaters, especially farther north.

Many taxi companies run their fleets on liquefied gas withtanks in the car trunks. A recent success towards greater fueleconomy was the introduction of mass-produced Hybridvehicles.
http://en.wikipedia.org/wiki/Fuel_economyhttp://en.wikipedia.org/wiki/Fuel_economyhttp://en.wikipedia.org/wiki/Hybrid_vehiclehttp://en.wikipedia.org/wiki/Hybrid_vehiclehttp://en.wikipedia.org/wiki/Hybrid_vehiclehttp://en.wikipedia.org/wiki/Hybrid_vehiclehttp://en.wikipedia.org/wiki/Fuel_economyhttp://en.wikipedia.org/wiki/Fuel_economy


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The New Directionof

Japanese Energy Policyand

the Role of Gasification
http://localhost/var/www/apps/conversion/current/tmp/scratch30321/Japanese_Energy_Policy.pdfhttp://localhost/var/www/apps/conversion/current/tmp/scratch30321/Japanese_Energy_Policy.pdfhttp://localhost/var/www/apps/conversion/current/tmp/scratch30321/Japanese_Energy_Policy.pdfhttp://localhost/var/www/apps/conversion/current/tmp/scratch30321/Japanese_Energy_Policy.pdfhttp://localhost/var/www/apps/conversion/current/tmp/scratch30321/Japanese_Energy_Policy.pdfhttp://localhost/var/www/apps/conversion/current/tmp/scratch30321/Japanese_Energy_Policy.pdfhttp://localhost/var/www/apps/conversion/current/tmp/scratch30321/Japanese_Energy_Policy.pdfhttp://localhost/var/www/apps/conversion/current/tmp/scratch30321/Japanese_Energy_Policy.pdfhttp://localhost/var/www/apps/conversion/current/tmp/scratch30321/Japanese_Energy_Policy.pdfhttp://localhost/var/www/apps/conversion/current/tmp/scratch30321/Japanese_Energy_Policy.pdfhttp://localhost/var/www/apps/conversion/current/tmp/scratch30321/Japanese_Energy_Policy.pdfhttp://localhost/var/www/apps/conversion/current/tmp/scratch30321/Japanese_Energy_Policy.pdfhttp://localhost/var/www/apps/conversion/current/tmp/scratch30321/Japanese_Energy_Policy.pdfhttp://localhost/var/www/apps/conversion/current/tmp/scratch30321/Japanese_Energy_Policy.pdfhttp://localhost/var/www/apps/conversion/current/tmp/scratch30321/Japanese_Energy_Policy.pdf


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Energy Efficiency
http://localhost/var/www/apps/conversion/current/tmp/scratch30321/Energy_Efficiency.pdfhttp://localhost/var/www/apps/conversion/current/tmp/scratch30321/Energy_Efficiency.pdf


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What else do you thinkcan be done to secure astable energy security?

Documents

Japanese Economy & Energy