1. JAPAN INCORPORATED?

2. Relative Growth

3. Domestic Investment

4. Will Japan Crash? Slow growth, 1.3% per annum since 1992 NNP 25% smaller than if economy had continued to grow at 5% Hammered by increase in Sales Tax By decrease in exports to East Asia Inability to put together an adequate stimulus package –78 Trillion Yen 1998 Budget Marks First Outlay Cut in 11 Years

5. Why? Why Now? Bureaucracy influential, but lacks technical expertise Consensus decision making Inability to make hard decisions called for by transition to new economy

6. PROBLEMS Bottlenecks: Labor and Land, Low returns on domestic investment Barriers to imports Aging population, aging workforce

7. Trade Balances

8. Deregulation Initiative

9. Central Government –Legislative Branch (The Diet) –Executive Branch (The Cabinet) –Judicial Branch (The Courts) Prefectural Governments Municipal Governments

12. Most Powerful Ministry in Japan Most people in the ministry are concerned with collecting taxes Includes Budget Bureau and Tax Bureau Regulates Banking, Securities, Insurance, & International Finance