010 ASSIGNMENT 3000 WORDS

Question 1
a)
Japan is facing socioeconomic and environmental changes that many advance nations
have experienced in many ways. These changes are affecting the current economy in Japan.

One of the factors is the declining birthrate in an aging population. Although the life
expectancy in Japan rank one of the highest in the world, 87.32 years old for women and 81.25
years old for men in 2018, the percentage of productive people and youth in general population
have been in a single decreasing trend. Based on statistics, in 2016, the total fertility rate was 1.4,
which is considerably low for advanced nations. These suggests that the declining birthrate and
aging population is developing at a fast rate. Many sources forecast that the Japanese population
is likely to fall below 100 million in 2048 and about 87 million by 2060. This will severely impact
on Japan and it will lose out to regional powers, particularly China. Therefore, many Japanese
politicians are now highlighting an ‘integrated’ immigration policy to draw vital foreign workers
to Japan to reduce the skill-gaps created by shrinking birth rate and ageing population. This has
cause declining in labor force and domestic market as well as increases in social spending. Due
to the changes in the system not able to keep up to combat the current declining in birthrate may
become a serious matter. Many people in Japan prefer Japanese companies to foreign ones. This
makes trading difficult for foreign companies. Indeed, this is one of the main reasons as to why
many foreign companies failed in Japan. For instance, after operating 9 years, Tesco (British retail
giant) had to close its operations in Japan in 2012.

Japan’s rural population is expected to plunge another 17% in just 12 years, from 2018
through 2030, according to United Nations data. Further out, the decline will steepen, with the
population falling by 2% per year in the 2030s. By the 2040s, rural depopulation in Japan will
outpace that in every country. Some predict hundreds of small cities and towns will be completely
deserted over time. Many more will become unlivable by today’s standards. In fact, many of
those left behind in rural areas are already struggling. More than 80% of towns that replied to an
agriculture ministry survey last year said they need to take steps to help residents who find it
difficult to obtain groceries, with almost all citing aging as a reason. From 2002-2017, more than
7,000 public schools across Japan shut their doors, the majority in rural areas, as the country’s
birthrate remained mired well below replacement level. As more schools close and other services
disappear or become harder to access, young families will have even more reason to flock to the
cities.

Japan has long held a policy of limited immigration and engagement with foreign nations.
From the early 17th through the mid-19th century, Japan had an almost totally closed off nation,
with deep penalties for anyone who left or entered the nation. While such restrictions are far less
severe these days, immigration to Japan is still very difficult. Besides the difficulty in entering the
country, and remaining there, Japan does not recognize dual citizenship. This means that any
person, who wishes to gain citizenship in Japan, must renounce citizenship elsewhere. Unseen
Japan wrote a short piece on Naomi Osaka’s decision to finally hand in her Japanese passport. It’s
just one example among many, showcasing how Japan’s unwillingness to allow dual citizenship is
hurting itself. If the economy were booming, a lot of people might choose Japan over rival
citizenship options, but with a decaying economy, those who have resources and who want to do
their best with them are likely going to keep leaving, resulting in an even greater drain on the
country.

The negative impact on the economy has also had a negative impact on sociological
conditions. During economic downturns, suicide rates can increase. The long-term economic
stagnation in the country is one of the reasons why Japan has the highest suicide rates in the
world. In fact, suicide rates were so high for a time that they dwarfed the combined suicide and
homicide rate in the United States. A research paper from Wharton University found the main
reasons for these high suicide rates include adverse economic conditions, unemployment,
changing family structures, depression, inadequate access and resistance to mental health care,
and substance abuse. Suicides at a young age have a major impact on the economy. Families and
governments spend vast amounts on the education of children and young adults but do not reap
the rewards of that investment since the young adults who commit suicide do not have many
productive years. This deteriorates the dependency ratio, as active people bear the burden of
caring for children, teenagers and seniors.

Frequent deaths from suicide take a huge emotional toll on communities. Economic
productivity is also harmed from an emotional level, since suicide at a company affects company
culture and morale. The phenomenon of ‘karōshi’ (death from overwork) in Japan is
frequently reported in the news. At a company where employee suicide is a common occurrence,
this is sure to adversely affect other employees. Also, when an employee dies, potential years of
productive work are lost, and filling the vacated position incurs search costs. Japan is already
experiencing a labor shortage due to its aging population. Therefore, the loss of young lives has
a huge impact on economic outcomes.

Another factor of socioeconomic is the development of globalization. Compared to half

the century back, free trade has become increasingly loose. Beginning with TTP, the development
of the Free Trade Agreement has brought intense international competition, causing unavoidable
declines in countries that are unable to maintain their ability to compete in international markets.
In terms of maintaining the international competition, Japan is in a difficult position as Japan is
among Asian nations that demonstrated rapid economic development. Japan’s inability to
compete in international markets will inevitably erode the country’s economy. Gradually the
Japanese public has become aware that globalization affects everyone on all social levels, not
just the elite. For several decades, Japan has been a major exporter of manufactured goods, many
of which are manufactured and even designed overseas. Yet Japanese multinational companies
have been slow to adapt their business practices to make the most of globalization. In particular,
the unique features of Japanese labor practices, which supported the years of high economic
growth, may be hindering Japan’s success in the new global economy. One way for Japanese
companies to enhance their global competitiveness is to utilize expertise from outside Japan. This
includes Japanese who have studied or worked abroad, as well as foreign employees.

The forth factor is the improved and increase in standard of living of the people of Japan.
National income per capita has increased tenfold over the last 50 years. As the economy rises,
the national incomes rises as well as the demands in quality of life. It can be said the increase
attention to quality of life owes a great deal to improvements in the overall standard of living.
People are now demanding more services that are faster and more comfortable than ever before.
The living standard that was associate for Japan 50 years ago are unacceptable to Japanese
standards of living today. Many people are even paying higher than necessary just for comfort
and to keep up with the living standard.

As for environmental factors, one of the biggest issues in Japan is the waste management
as a result of the massive amount of products consumed in the modern Japanese society. Japan
is a relatively clean and environmentally responsible nation. However, it faces some
environmental challenges today. For example, waste management is one of the biggest
environmental issues in Japan. Trash produced by the modern society, industrial activities, and
agriculture contribute to the production of a great deal of waste. Japan is indeed under pressure
to minimize waste and control environmental pollution. Due to the small land size of Japan, there
are significantly small amount of space that can accommodate tis trash production. Previously,
Japanese would have facilities to burn high volume of trash. However, the issues surrounding air
pollution forced the government to adopt an aggressive recycling policy.

The implementation of stricter waste management regulations by the Japanese

government has forced residential populations to get creative in how they dispose their trash.
For example, Kamikatsu, a small Japanese town of approximately 1,500, has devised a goal of
producing zero waste by 2020. Since the closest incinerator to Kamikatsu is in another town, it
costs six times more to transport and burn the waste as compared to finding ways to repurpose
materials that have been thrown away. In doing so, the people of Kamikatsu have developed a
systematic method of recycling up to 80% of their waste materials. While Japan is still working in
furthering more of their reduction in waste throughout the country, statistics showed that only
1% of Japan’s council waste ends up in landfills. Additionally, the Plastic Waste Management
Institute of Japan has stated that 83% of Japan’s plastic waste products were recycled or
incinerated.

A second major factor for environmental issue in Japan involves the dealing with the
aftermath of the Fukushima Daiichi nuclear plant disaster. Although the plant was disabled in
2013, the environmental problems associated with the disaster continue to plague the area. In
fact, it was revealed in August of the same year that radioactive water was leaking from the
crippled plant into the Pacific Ocean. According to a recent study conducted by researchers at
Kindai University, it is estimated that since the 2011 disaster that 20,100 becquerels (the
International System of Units used to measure radioactivity) of cesium, which is an extremely
dangerous fission product that is often found near nuclear reactors, into the Tokyo Bay.

Japan is one of the countries, most affected by calamities and natural disasters. Tsunamis,
floods, earthquakes, mudslides, cyclones, and volcanic eruptions hit Japan from time-to-
time. These disasters cost Japan billions of dollars for reforms and rebuilding. The 1.2 percent
annualized contraction in the July-to-September period was more than the median estimate for
1 percent growth in annual terms. It followed a robust 3 percent annualized growth in the
previous quarter. A decline in domestic demand was the biggest reason the economy shrank, as
strong typhoons and a powerful earthquake halted factories and stifled consumption, although
economists say this disruption was temporary and the decline in exports is more worrying.
External demand, or exports minus imports, shaved one-tenth of a percentage point off gross
domestic product. This matched the median estimate, but a breakdown of the data showed
exports fell 1.8 percent quarter-on-quarter, the fastest decline in more than three years.

Japan became a less popular tourist destination because of natural disasters. The number
of foreign tourists to Japan dropped for the first time in more than five years during September
2018, as an earthquake and typhoon brought a temporary halt to travel in some of the country’s
top destinations. Tourist numbers fell 5.3 percent last month from a year earlier, according to
the Japan National Tourism Organization. That’s the first year-on-year contraction since January
2013. Visitor numbers from China, which accounts for the biggest portion of Japan’s tourists,
shrank 3.8 percent in September, while tourism from South Korea fell 14 percent. Typhoon Jebi,
the strongest tropical cyclone to strike Japan in 25 years, ripped through Osaka on Sept. 4,
flooding the country’s third most-used airport and canceling inbound flights for weeks. Just days
later, a magnitude 6.7 quake struck Hokkaido in northern Japan, killing more than 40 people and
knocking out power to the entire island. The twin blows to peak tourist destinations were the
latest in a string of natural disasters from floods to heat waves that hit Japan this summer,
something which had already weighed on tourist growth.
b)

Many ways and recommendation can be taken in order to sustain economic growth in
view of environmental sustainability of Japan. The first recommendation is to show clearly the
scenario for economic recovery, and to eliminate fears held by both ordinary people and the
market of a fiscal crisis. The Japanese economy has maintained its potential growth rate of
slightly over 2 percent per annum. By completely clearing the legacy of the bubble economy and
by indicating to people the bold steps of structural reforms, it may be possible to recover
expectations on future growth. If that happens, the economy would be able to shift to a true
recovery path within two years.

On the other hand, the government balances of both the central and local authorities are
worsening greatly due to recent large economic stimulus packages and to declining tax revenues
under a stagnant economy. Early restoration of these deficits will not be easy. However, the
medium-term sustainability of the government balances could be regained through vigorous
efforts, including bringing the economy into a sustainable growth path with structural reforms
implemented, reducing the size of government by significantly cutting spending, selling and
efficiently allocating state property, and rationalizing tax bases. The government needs to relieve
the worries of people and the market by publishing credit-worthy, medium-term projections of
economic growth and government balances.

Tackling environmental problems is the key to achieving economic growth and to

continuing the development of society in Japan and the world. Japan will transform their
measures for environmental issues into an engine for economic growth by improving their
environmental and energy-related technologies, including technologies for energy efficiency,
renewable energy, and nuclear energy, among others, by promoting innovative technological
innovation, and by creating new business models to tackle environmental issues. In doing this, it
is important to pursue environmental protection and economic development simultaneously,
pursuing economic invigoration and a strengthening of international competitiveness while
working to solve environmental problems both at home and abroad.

Japan will also make the best use of people with enthusiasm and skills for environmental
protection and strongly promote local environmental activities all over Japan with a view to
helping local communities become prosperous ones with their own strength and characteristics.
These measures can comprehensively improve the environmental, economic, and social aspects
of our society. Through their response to the environment seen in socio-economic activities such
as a company’s business activities, an individual’s lifestyle, and a community’s activities, they will
create new business opportunities and utilize the society’s energy to pursue environmental
protection, economic growth, and revitalization of local communities.
 Japan should continue to pursue rapid reductions of greenhouse gases emissions based
upon the best available science. In response to the Paris Agreement, Japan formulated the Plan
for Global Warming Countermeasures in May 2016. While the amount of emissions in Japan has
declined over the past three years, there are a number of factors that may contribute to an
increase of these emissions in the future. These include: prolonged shutdown of nuclear power
plants; potential expansion of coal-fired power plants; progress of transitioning from ozone
depleting substances to hydrofluorocarbons (HFCs) that have no ozone depletion effect but have
high global warming potential; and an increase in disposal of refrigerators and air conditioners
using refrigerants that have high greenhouse effect including HFCs.

The earth’s natural resources are finite, yet demand continues to grow. Environmental
impacts associated with mining and waste disposal are increasing. At the same time, there is a
concern that mounting resource constraints will impact economic growth. Meanwhile, Japan
made great improvements to resource productivity and recycling rates including through the
promotion of the 3Rs (Reduce, Reuse and Recycle), which has been successful in reducing the
amount of final disposal of waste—even despite the fact that recent progress has not been
significant. Ultimately, Japan should further strengthen its efforts to raise resource productivity
through the 3Rs, and promote the 3Rs internationally as a matter of priority in the future.

While nature is certainly a source of abundance, it can sometimes result in serious threats
to humans. Traditional beliefs in Japan do not oppose nature; rather the Japanese have
developed a reverence towards the natural world, adapting and cultivating wisdom to live in
harmony with nature. We need to make full use of this traditional knowledge in conjunction with
ICTs and other modern science and technologies, thereby ensuring minimal environmental
impacts even as Japan’s economy grows. Environmental impacts can be kept to a minimum in
three ways: (i) "circulation" of materials and natural resources, (ii) "symbiosis" between nature
and human beings, as well as "symbiosis" between regions through maintenance and
rehabilitation of sound ecosystems, and (iii) realization of “low carbon” societies through various
measures including those mentioned above. This kind of circulation and symbiosis based society
("Environmental and Life Centered Civilized Society") provides a vision of a sustainable society
that Japan can aim for. This Plan advocates building a "sustainable society" through innovative
environmental policies, so that Japan becomes the most "advanced nation to solve modern
challenges" ahead of other countries.

In building a sustainable society, it is important to recognize that a sound and rich

environment is the basis for socio-economic activities. There needs to be a transformation in our
society so that efforts to promote economic growth and improvement of social infrastructure do
not increase environmental burdens. One important role that future environmental policies can
serve is to create innovations across all perspectives including those concerning socio-economic
systems, lifestyles, and technologies. Such innovations include incremental improvements of
existing goods and services, as well as those that are outside the reach of conventional
technologies and systems. For this to be realized, it is first necessary to present a vision of what
a sustainable society might look like for society as a whole, then share it among all stakeholders
including citizens and businesses. This will hopefully lead to a shared understanding that it is not
only relevant to research and development for purposes of promoting future technology
innovations, but also to facilitate greater financial investment from business. As such, the
following measures are considered critical: provision of incentives to reward early movers of
innovation; creation of market demand for environmental conservation; generation of new
employment opportunities and equitable systems for transition of the labor market;
internalization of externalities by imposing responsibilities on polluters in line with the polluter-
pays principle; incorporation of environmental considerations from the planning stage;
promotion of environmental awareness through environmental education and Education for
Sustainable Development (ESD), as well as introduction of measures to promote partnership with
a wide range of stakeholders. Taken together, these measures will contribute to building
mechanisms to support more sustainable societies.
 Citation

 https://www.nippon.com/en/features/h00250/life-expectancy-for-
japanese-men-and-women-at-new-record-high.html
 https://data.worldbank.org/indicator/SP.DYN.TFRT.IN?locations=JP
 https://medium.com/@unseenjapan/million-dollar-expat-naomi-osakas-
citizenship-dilemma-7fb694de0892
 https://www.abc.net.au/news/2018-05-20/kamikatsu-the-japanese-
town-with-45-different-recycling-bins/9776560
 https://www.newsweek.com/fukushima-japan-power-plant-nuclear-
radioactive-waste-disaster-964458
 https://www.bbc.com/news/business-46203864
 https://skift.com/2018/09/05/japans-torrid-tourism-growth-loses-
steam-due-to-natural-disasters/