Culture as an economic resource [Archives:2007/1113/Opinion]
Mohammed Shamsaddin
The cultural aspect and historic heritage play an important role in the progress and development of peoples worldwide. And, as the cultural area is closely related with the economic one, it is of crucial importance to study the economic, cultural and historic situations of countries that reached exceptional economic growths without having natural resources. On the contrary, there are countries that are rich with natural resources but can not achieve any economic development while other countries reached great economic growth, but can not retain that growth steady.
Having the second strongest economy in the world, Japan offers a unique example for contemplation by underdeveloped countries, specifically as the east Asian nation has no natural resources, and therefore has been exposed to natural disasters and devastating wars. But within a short period of time, the Asian tiger managed to join the list of great industrial states.
Most of the peoples throughout the world know about Japan via its products, but in my opinion a country like Japan is impossible to ignore the cultural aspect and the historic heritage, which both made out of the nation an unparalleled economic and military power in the past, as well as an economic giant in the present.
The Asian tiger will certainly remain an unparalleled economic power in the future as long as the Japanese economy depends mostly on the cultural and moral development of man and sees man as the primary element for the national development.
During the time span between 1603 and 1868 or the so-called Edo Period, which was the last time period in the ancient history of Japan, the country witnessed many reforms in the educational system and its development while researchers sat on extracting texts from religious books and ancient references to strengthen the spirit of nationalism among Japanese people. Those books and references also encouraged the Japanese man to pursue knowledge in the areas of astronomy, mathematics and cartography, as well as work harder for the sake of Japan's progress and prosperity.
The Edo Period saw legal legislations, which were characterized by toughness and objectivity. Laws enacted to regulate works of farmers banned any sales, purchasing or negligence agricultural lands, as a means to encourage citizens to increase production. In addition, the law prohibited the sale and purchase of farmlands in order not to allow the rich exploit the modest economic conditions of peasants, thereby obliging them to become idle citizens and dependents on others.
The principles of sacrifice, honesty in work, showing respect for work values, plus repeating attempts without any feeling of submission, exercising work with the spirit of nationalism, and bequeathing these principles from generation to generation all helped Japan occupy a prestigious status among world countries.
The East Asian state provided a unique lesson for the underdeveloped nations to utilize and improve their deteriorating situations.
A look at development in Asia reveals no clear Asian model of development. For instance, the trade and investment patterns of many developing Asian nations are completely different from those of Japan during its period of development. Japan was determined to make whatever it needed itself, and so excluded foreign currency, allowing in only technology and borrowing capital from the World Bank and similar institutions. Regarding trade, Japan's approach was to use quantity adjustment to keep foreign products out, no matter how inexpensive.
Thus, Japan's postwar development model centered around quantity adjustment, with no price adjustment necessary because of fixed exchange rates. The Japanese government was extremely selective about which foreign firms, no matter how competent, would be allowed to establish wholly-owned subsidiaries.
This policy lasted until about 1970. Korea is the closest to this model, and Japan and Korea share a similar problem, namely, their current difficulty in attracting foreign firms now that they need foreign capital.
The rest of Asia, in contrast, is allowing large amounts of foreign capital in. China has been doing so somewhat selectively, but is still much less selective than Japan was in its developmental stage. The most important between the Japanese and Chinese models is that China's stance is to allow inexpensive products in, and has from the beginning incorporated price adjustment into its policy toward foreign capital.
According to famous European economic analysts, close government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation have helped Japan become the second largest economy in the world, after the United States, at around US$ 4.5 trillion in terms of nominal GDP and third after the United States and China in terms of purchasing power parity.
Banking, insurance, real estate, retailing, transportation and telecommunications are all major industries. Japan has a large industrial capacity and is home to some of the largest and most technologically advanced producers of motor vehicles, electronic equipment, machine tools, steel and nonferrous metals, ships, chemicals, textiles and processed foods. It is home to leading multinational corporations and commercial brands in technology and machinery. Construction has long been one of Japan's largest industries, with the help of multi-billion dollar government contracts in the civil sector.
Distinguishing characteristics of the Japanese economy have included the cooperation of manufacturers, suppliers, distributors and banks in closely-knit groups called keiretsu and the guarantee of lifetime employment in big corporations. Recently, Japanese companies have begun to abandon some of these norms in an attempt to increase profitability.
However, because only about 15% of Japan's land is suitable for cultivation, a system of terrace farming is used to build in small areas. This results in one of the world's highest levels of crop yields per unit area.
However, Japan's small agricultural sector is also highly subsidized and protected. Japan must import about 50% of its requirements of grain and fodder crops other than rice, and it relies on imports for most of its supply of meat. In fishing, Japan is ranked second in the world behind China in tonnage of fish caught.
Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. Japan relies on foreign countries for almost all oil and food.
Now, it is time for the underdeveloped and poor countries in the world including Yemen to make use of the Japanese experience, but upon condition that regimes of these countries should have a political will to recover the ailing economies of their nations and improve their people's living standards.
Source: Newsyemen.net
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