China's and Japan's Economies

The political settings of China and Japan are distinct and related to the current status of the economies in each nation. Having shed communism in all but the name of its ruling party, China's government maintains a monopolistic hold on power. The transition from a centrally planned economy to a socialist market economy has fueled economic growth but also created conflict among farmers and officials who continue to acquire land. The government monopoly on power often undermines law and justice, with corruption difficult to control. The government continues to impede progress because of the slow reform of State Owned Enterprises (SOE) that continued to be propped up by zero interest loans in order to offset massive job losses. While most of the challenges of transitioning to a market economy have been overcome, the government must now focus on reforms aimed at development. Naughton (2007) maintains the government must focus on "the need to invest in human skills and physical infrastructure, the need to create effective institutions, and the need to protect underprivileged and vulnerable sections of the population" (p. 5).

In contrast, in Japan, the one-part system of government is one of the biggest obstacles to spurring economic growth. Japan is the only industrial democracy that is a one-party state and the Liberal Democratic Party (LDP) continues to cater to narrow special interests rather than the concerns of the broad middle class. A

Related Essays

ECONOMIC DEVELOPMENT AND POLITICAL DEMOCRACY IN S .... South Korea was a major source of rice for Japan, the Japanese .... of which is becoming much more inter-related with China's than is .... Barrett, RE & Chin, S. (1987). .... (5696 23 )

US Firms in the Asian Market .... to Head The Coming Economic Battles Among Japan, Europe, and .... Tilghman, Thomas S., and Karla L. Knight. .... The Litmus Test for Success in China." Harvard Business .... (4393 18 )

US Japan Trade Economy .... Dillon, D. and Fitzgerald, S. (Apr 28, 2002). .... Economic integration: Shock therapy for Japan's depression .... For US and China, recovery in Japan is worth the price .... (1579 6 )

Economic Integration: The US and East Asia .... this report has demonstrated, created both benefits and deficits for interdependent economies. .... Dollar slide could come via Japan, China actions. .... Yusuf, S. (2002 .... (2176 9 )

China US Spy Plane Trade .... China overtook Japan as the country boasting the largest trade surplus with America, thanks .... 137(16), Apr 16, 2001, 8. Brostoff, S. US lifts China trade ban. .... (1271 5 )

Modes of Production in China (PRC) INTRODUCTION This research .... Japan is an important trading partner with respect to both imports and .... Busi ness with China: An international reassessment. .... Feuchtwang, S., & Hussain, A. (1983 .... (3672 15 )

and their role in the economies of Japan and China is important for understanding a number of issues that are in need of reform. Socialist ideology underpins views of labor to this day in China with the system of danwei, while Japan's view of the firm as a family (lifetime employment) continues to impact the labor force and economy. This analysis will discuss labor force issues in Japan and China as a means of providing insight into some of the social, economic, and government reforms need for continued economic growth and development. Body The "three sacred treasures" of Japanese labor are "lifetime employment," "company unions," and "seniority pay" (Katz, 2002, p. 248). Nearly a third of the work force is involved in lifetime employment, which along with seniority pay has locked employees in nonperforming firms and industries sapping economic growth. As Katz (2002) explains, "labor mobility is vital to productivity growth" (p. 248). Instead of becoming more mobile Japan's employee tenure actually increased during the 1990s. In China, socialist ideology is important to understand the difficulties the country faces in reforming a majority of its state-owned enterprises (SOEs). China's failing SOEs sti

Category: Economics - C