Japan as a Model for Other East Asian Economies

Japan was a model for the NIEs (Taiwan, South Korea, Hong Kong, and Singapore) and is a model for the next economies likely to gain NIE status, Malaysia and Thailand. After 1945, Japan limited the export of capital to prevent a shortage for local investments. It also provided incentives and security for businesses who channelled funds into industry and infrastructure. Japan focused on labor-intensive industries, such as textiles, and used the income from exports to buy equipment while upgrading its training and technology to achieve greater productivity in industries that would eventually allow for higher wages.

Like Japan, the NIEs are densely populated and short on natural resources. Also like Japan, they began with a large labor force that was willing to work and improve its skills to meet the needs of industry. These new employees had relatively high levels of literacy, making them a highly-teachable work force. South Korea and Singapore studied the Japanese experience in detail, but Taiwan and Hong Kong also understood Japan's strategy.

Prime Minister Mahathir of Malaysia has named Japan as its model in his "Look East" policy. Malaysia, however, has less labor available than did Japan. Thus, while it follows Japan's example of a governmental role in guiding economic development, its current policy is aimed at developing capital-intensive, high-tech oriented industries that can produce competitive products for

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able to use its commercial skills as it resumed its traditional role between China and the world. Lifetime Employment In Japanese and American Firms Lifetime employment is not considered to be inefficient in Japan because it is believed to be in the best interest of the long-term viability of the business enterprise. Generally, Japanese firms view themselves as a community with common goals and values. Strategic decision making is the collective responsibility of all in middle-management and above, and even lower-level employees and newly-recruited college graduates are encouraged to take an active interest in the long-term goals of their firm. Thus, each employee and member of the firm is cultivated to believe that he or she is considered to be an integral person to the firm and has a role in the direction of the firm. This invests each person with a long-term commitment to the growth and technological innovation of the firm. American firms consider lifetime employment to be inefficient based on their emphasis on a financial bottom-line. American society is far more individualistic than Japanese society, and this is reflected in the specific duties believed to be the responsibility of each level of management. Strat
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Approximate Word count = 1337
Approximate Pages = 5 (250 words per page)