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Japan

 Flag of Japan

Last reviewed: 17 October 2008

Country information

Map of Japan

Area: 377,780 square kilometres (142,771 square miles)
Population: 127,700,000
Capital City: Tokyo
People: 98.7% Japanese; 1.3 % other (mostly ethnic Korean)
Language: Japanese
Religion(s): 80% of Japanese adhere to more than one religion: Shinto (106.2 million), Buddhism (95.8 million), Christianity (1.8 million), others (10.2 million)
Currency: Yen
Major Political Parties: LDP - Liberal Democratic Party; DPJ - Democratic Party of Japan; New Komeito; JCP - Japan Communist Party; SDP - Social Democratic Party
Government: Representative democracy with a bicameral parliament (the Diet). Executive power rests with the Prime Minister and his cabinet. The emperor is head of state, although his function is purely symbolic.
Head of State: Emperor Akihito, ascended to throne 7 January 1989.
Prime Minister: Taro Aso, since 24 September 2008
Foreign Minister: Hirofumi Nakasone, since 24 September 2008
Economic Information: Despite several years of low growth, Japan still has the second largest economy in the world. An export-led recovery, under way since mid-2002, was becoming more broad-based although it is now unlikely to continue because of the global economic slowdown and the Government has recently introduced some economic stimulus measures.
Membership of International groups/organisations: United Nations (UN), United Nations Conference on Trade and Development (UNCTAD), United Nations Educational, Scientific and Cultural Organisation (UNESCO), United Nations Industrial Development Organisation (UNIDO), World Trade Organisation (WTO), International Monetary Fund (IMF), Group of 8 (G8), Organisation for Economic Cooperation and Development (OECD), European Bank for Reconstruction and Development (EBRD), International Bank for Reconstruction and Development Bank (World Bank), Inter-American Development Bank (IADB), African Development Bank (AFDB), Asia-Pacific Economic Cooperation Forum (APEC), Asia Development Bank (ADB), Food and Agricultural Organisation (FAO), International Atomic Energy Agency (IAEA), International Civil Aviation Organisation (ICAO), International Criminal Police Organisation (Interpol), International Labour Organisation (ILO), International Maritime Organisation (IMO), International Telecommunications Satellite Organisation (ITSO), International Telecommunications Union (ITU), Universal Postal Union (UPU), International Whaling Commission (IWC), World Health Organisation (WHO), plus various others.

HEALTH

Japanese men and women enjoy the highest life expectancy in the world. However, with the Japanese population expected to age rapidly during the next 30 years, the Government is concerned about how it will finance health care for the aged in the future.

ECONOMY

Basic Economic Facts

GDP: US$ 4,381 billion (2007 est.)
GDP per head: US$ 34,296 (2007 est.)
Annual Growth: +2.1% (2007 est.)
Inflation: 0.0% (2007 est.)
Major Industries: High-tech electronic products, motor vehicles, office machinery, chemicals.
Major trading Partners: US, EU, China, Taiwan, South Korea, Saudi Arabia, Australia and Thailand
Aid & development: ODA disbursement in 2006 was US$ 7.8bn
Exchange rate: £1 = 236 Yen (2007 average)

The post-war Japanese economy experienced rapid growth, expanding ten-fold from 1955 to 1990 allowing living standards to catch up and surpass those of established Western economies. A number of factors, including low interest rates, banking deregulation and sudden appreciation of the yen, resulted in a stock market and real-estate bubble in the late 1980s. At the end of 1989 the bubble burst; since then stock prices have fallen as much as 75 percent and the value of commercial land in Tokyo is down 85 percent.

The economy then stagnated for more than a decade due to sluggish consumption and weak investment as excesses from the 1980s unwound and Japan adjusted to Asian industrialisation and globalisation. A particular hindrance was the lingering non-performing loan problem that prolonged the life of the weakest companies and hampered economic recovery. Through the 1990s, the Government utilised huge fiscal and monetary stimuli to try to kickstart the economy. During Prime Minister Koizumi's term in office, there was a greater focus on structural reforms in the corporate and public sectors to lift Japan out of its economic malaise, culminating in the passing of legislation to privatise Japan Post, by some measures the largest financial institution in the world.

The economy recovered strongly with its  expansion lasting as long as the longest previous expansion, which ended in 1970. Booming exports and business investment and solid growth in private consumption initially drove this, but increasingly, the domestic private sector then took over from exports as the main driver for growth. The economy seemed to be close to achieving self-sustaining growth. But growth has slowed recently and the Government put together a stimulatory package, including a 1.8 trillion-yen supplementary budget, in late August. The Government has signalled that it might introduce further stimulatory measures because recent financial turmoil has hit confidence and reduced demand.  

Japan has the world's fastest ageing population thanks to the highest life expectancy in the world and a low birth rate. As a result, the population has started to shrink. The working-age population is forecast to contract by almost 20 percent over the next two decades if current trends continue. This presents significant challenges - all too familiar in Europe - for the provision of pensions and healthcare in the future.

HISTORY

A centralised state has existed in Japan since the 4th century. In the middle of the 19th century, the ruling elite set about developing Japan's industrial and military power, and methodically adopted much from the West. Japan's rapid rise led to a war with China 1894-95, Russia 1904-05, and the annexation of Korea in 1910. Japan appeared to be becoming a liberal democracy in the 1920s, but the Great Depression led to acute economic problems and military domination. Japanese military expansion in China after 1931 led to friction with Western powers and, faced with an oil blockade, Japan started the Pacific War.

The Allied occupation after the Second World War introduced far-reaching political, social and economic reforms before Japan regained full independence when the San Francisco Peace Treaty came into force in April 1952. By 1955, a strong co-operative arrangement was established between a dominant conservative party, the bureaucracy and business, which successfully implemented policies aimed at rapid industrial growth. This concentrated economic activity in some regions and led to policies aimed at ensuring wealth was redistributed to rural areas.

BBC News Country Timeline: Japan

INTERNATIONAL RELATIONS

Japan is increasingly active in international diplomacy, and is a reliable and constructive partner on a wide range of issues including Iraq, the Middle East Peace Process, Afghanistan, and in counter-proliferation and the fight against terrorism. Since 11 September 2001 Japan has provided welcome political, economic and logistical support to the international coalition against terrorism and has extended strong civil and military support to reconstruction efforts in Iraq.

Japan held the G8 Presidency this year with Fukuda hosting the Summit in Hokkaido from 7-9 July.  The Summit focussed on food and oil prices, the world economy, climate change and development.

Japan's Relations with the US

The US remains Japan's principal foreign policy and economic partner and the security relationship is central to Japan's defence policy. Under Koizumi, Japan took on a more active role in the security relationship. Japanese support for the war on terrorism, along with the absence of major trade frictions, has contributed to a warming of relations.

Japan's Relations with China

Japan normalised relations with China in 1972 and the two countries have strong and growing economic links. But there is also considerable friction in the relationship. Japan worries about the growth in China's defence spending, and competition from Chinese exports to certain sectors in Japan. In China, there are still bitter memories of Japanese actions there in the pre-1945 period. These came to the fore when Koizumi made several visits to the Yasukuni Shrine that honours Japan's war dead. Relations recovered under Prime Minister Abe. This improvement continued under Fukuda, who visited China on 27 -30 December 2007 and hosted a return visit by Prsident Hu Jintao on 6 - 10 May 2008. The length of these visits reflects the warming of relations.

Japan's Relations with South Korea

Japan's relations with South Korea remain soured by memories of Japanese actions on the peninsula. Relations with the South were normalised under the Basic Treaty in 1965 and had shown signs of warming after President Kim Dae-jung, during his visit to Japan in September 1998, stated publicly that the relationship should look forwards, not back. President Roh Moo-hyun visited Japan for a regular summit meeting in June 2003 but, after he clashed with Prime Minister Koizumi over a variety of what he saw as “inappropriate” Japanese actions (including visits to Yasukuni), these Summits were suspended. But relations improved after Prime Minister Abe’s visit to Seoul in October 2006. They continued to improve under Fukuda and the new South Korean President, Lee Myung-bak, with the two leaders already meeting twice and agreeing to resume regular Summit meetings.

Japan's Relations with North Korea

Japan has never had diplomatic relations with the DPRK, and the situation between the two nations remains tense. Then Prime Minister Koizumi's bold initiative to visit Pyongyang and meet with Kim Jong II on 17 September 2002 was supposed to pave the way for normalisation of relations. But Kim’s admission that the DPRK had abducted several Japanese citizens in the 1970s and 1980s, with eight having died there and only the five survivors allowed to return to Japan, shocked the Japanese people. The Japanese Government responded by cutting the humanitarian aid that it had provided to the DPRK. This temporarily resumed around May 2004 when Prime Minister Koizumi made his second visit to Pyongyang and secured the release of the surviving abductees’ immediate families. However, continued suspicions about the fate of the deceased abductees and other Japanese who have gone missing, as well as Japan's security concerns over the DPRK's nuclear and missile programmes still stand in the way of a normalisation of relations. Japan is a participant in the Six-Party Talks, which address the North Korean nuclear issue.

Japan's Relations with Asia

The Japanese economy is by far the largest in Asia. Japan made a major contribution to help South-east Asian countries affected by the 1997-98 Asian financial crisis. Japan is by far the largest investor and bilateral aid donor in the ASEAN region.

Terrorism

Twenty-four Japanese citizens died in the 11 September 2001 terrorist attacks. The Japanese reaction was swift. Prime Minister Koizumi presented a package of measures to the Diet that included humanitarian assistance for the countries near Afghanistan and logistical support from the Self Defence Forces for US and other forces involved.

Aid

Japan was the world's largest single aid donor in absolute terms for several years. It has reduced its aid budget in recent years, due to economic difficulties and  is now fifth (behind the US, UK, France and Germany). Until recently most aid went to Asia and the Pacific, particularly China, and ASEAN states. But Africa is now the main recipient with Japan’s growing interest in the continent being reflected in its hosting of four international conferences on development there, the latest on 28-30 May 2008.  

Japan relations with the UK

The British Ambassador to Japan, David Warren arrived in Tokyo in July 2008. As well as the Embassy/Consulate-General in Tokyo, Britain also has a Consulate General in Osaka.

His Excellency Shin Ebihara became Japanese Ambassador to Britain in May 2008. Japan also has a Consulate-General in Edinburgh.

Recent Visits

The scope of the bilateral relationship, both governmental and non-governmental, has expanded greatly in recent years. The Emperor and Empress came to the UK on a State Visit in 1998 and the Crown Prince (who studied at Oxford) visited in May 2001. Former Japanese Prime Minister Fukuda visited the UK in June 2008. He held a meeting with the Prime Minister which focussed on oil and food prices, climate change and international development.

There have been a number of Ministerial visits to Japan in 2008 for G8 related meetings including one by the Prime Minister to attend the G8 Summit in July.  There have also been visits by the Chancellor Alistair Darling, the Secretary of State for Environment Hillary Benn and International Development Minister Gareth Thomas.  The Foreign Secretary visited Japan in June 2008 where he attended the G8 Foreign Ministers meeting and participated in a number of climate change related events.  Lord Malloch-Brown, Foreign Office Minister for Asia, visited Japan in January 2008.  

Cultural links

There are strong cultural and educational links between the two countries. Around 100 British cultural organisations – theatres, museums, orchestras – have links with Japan. 52,000 Japanese students study in the UK each year – both on full-time and short-term courses. And about 55,000 Japanese live in Britain (the third-largest Japanese community overseas), while approximately 20,000 British people live in Japan.

JET Programme

The JET Programme is a government-to-government programme between Japan and 37 countries worldwide. It brings young overseas graduates to teach in Japanese schools and local communities in order to foster international exchange and aid foreign language proficiency. The UK was one of the first countries to participate in the Programme. There are 440 British JETs in Japan at present.

JET Programme

Youth Exchange Scheme

Following agreement by Prime Ministers Blair and Mori in summer 2000, the UK-Japan Youth Exchange Scheme began in April 2001. It provides opportunities for young British people between the ages of 18 and 25 to spend up to a year in Japan and vice-versa. During their stay, participants in either country can take work incidental to their holiday in order to supplement their travel funds. A special visa is issued to successful applicants. British applicants should contact the Japanese Embassy in London or British Embassy in Japan (see 'Diplomatic Representation' for contact details above).

Volunteer Visas

The Japanese government introduced a new category into their visa regulations in May 2003. This will allow young people working for voluntary organisations to travel on a volunteer visa. The new visa was launched on 1 May 2003.

Far East Prisoners of War

The British Government announced on 7 November 2000 that a single ex-gratia payment of £10,000 would be made to surviving members of the British groups held prisoner by the Japanese during the Second World War or, if they had died, their surviving spouses. Details can be obtained from the War Pensions Agency website. Both the British and Japanese Governments regard the question of official compensation as having been settled under the 1951 San Francisco Peace Treaty, and support reconciliation as the way ahead.

Energy and Environment

Energy Security has been a core goal of Japanese domestic and foreign policy. As a nation that imports 99% of its huge fossil fuel requirements, Japan is particularly vulnerable to external shocks. This vulnerability lies behind the vigour with which Japan has pursued a nuclear programme, investing huge sums in the pursuit of the nuclear fuel cycle. Although Japan currently produces 35% of its electricity in nuclear plants, recent safety scandals and demand concerns (Japanese electricity demand is forecast to peak within 20 years) mean that this programme may not expand much further. Japan has also invested tremendously in the pursuit of 'new energies', and is a world leader in solar, hybrid car and fuel cell technologies. These technologies, as well as nuclear power and Japan's impressive level of energy efficiency, lie at the heart of the country's efforts to reduce its carbon emissions. However, attached though it is to the Kyoto Protocol, Japan is currently slipping behind its targets and is considering what further policies to implement. Japan's own natural environment, while diverse and often exceptionally beautiful, has suffered from the pressures of population density and expansive infrastructure investment.

GEOGRAPHY

Japan consists of a chain of islands. The main ones are Kyushu, Shikoku, Honshu (where Tokyo and Osaka are situated) and Hokkaido. The land is mountainous and volcanic, and only 17% of the total area is cultivable. The highest mountain is Mount Fuji (a dormant volcano) at 3,776 m.

UK/Japan Trade and Investment

There are over 1,400 Japanese investors in the UK. Of these, about 240 are engaged in manufacturing, 160 Japanese companies have R&D operations, and 74 have European headquarters in the UK. UKTI recorded 84 new investments from Japan in 2005/6, second only to the number from the US, and these investments created or safeguarded over 2,000 jobs. The UK has the largest amount of Japanese FDI in Europe, about 20% of the total. The UK remains successful in attracting Japanese investment across a range of industries in high-value added manufacturing, research and development, regional headquarters, and European marketing functions. The automotive sector is largest in terms of manufacturing employment and capital expenditure, but the ICT and biopharma/healthcare sectors are also significant sources of investment.

Japan is the UK's largest export market after Europe and the US, and Britain is Japan's ninth largest market, with tourism (60,000 visitors per year) and financial services bringing our balance of trade with them into surplus. The UK exported about 3.8b of goods and £5bn in services to Japan in 2003.

Main UK exports to Japan include chemicals, pharmaceuticals, automotive components and cars, electrical machinery and scientific instruments. UK companies that have made significant investments in Japan include Vodafone, Cable and Wireless, Astra Zeneca, GSK, Tesco, GKN. British retailers with a presence in Japan include Virgin, HMV, Body Shop, Burberry. Toyota motors now build their Avensis model in Britain and re-export it to Japan. .  A number of law firms have also opened offices in Japan including Allen & Overy, Linklaters, Freshfields and Clifford Chance.

The Japanese market has become more open during the 1990s, as 'cost down' pressures and more competitive global markets encouraged Japanese companies to look overseas for products, technology, design and services. Deflation since the bursting of the economic bubble in Japan in 1989 has brought down rents and salaries. Japan is still a relatively expensive and time-consuming market to do business. But succeeding in Japan can enhance companies' global competitive position, and bring significant profit and technology advantages.

UKTI supports exports and investment into Japan through a range of services, including market research, missions and trade fair grants. UKTI has over 50 specialist staff in Tokyo and Osaka. New investors can take advantage of high quality, low cost serviced offices at the British Industry Centre in Yokohama (run by the British Chamber), and services provided by the Japanese Government through JETRO.

POLITICS

Japan's Diet consists of the House of Representatives, and the less powerful House of Councillors. The House of Representatives has 480 members (300 from single seat constituencies and 180 from regional PR blocks); the House of Councillors has 242 members (146 from prefecture-based multimember constituencies and 96 from a national PR list.). Members of the House of Representatives are elected for a four-year term, but the Prime Minister can call an election at his discretion. Members of the House of Councillors serve a fixed six-year term, with half of the seats contested every three years. The last general election (House of Representatives) was held on 11 September 2005; the next must be held by September 2009. The last Upper House election took place on 29 July 2007.

The conservative Liberal Democratic Party (LDP) has ruled Japan for most of its post-war history. In power continuously from 1955-1993, they were toppled by a loose coalition of their rivals in 1993. But in 1994 they were back in power as part of a coalition and nearly all governments since then have been LDP-led coalition governments. The current coalition was formed in April 2000 between the LDP and New Komeito, a small party with close ties to the lay Buddhist organisation, Soka Gakkai. The main Opposition party is the "centrist" Democratic Party of Japan (DPJ).

After a succession of short-lived leaders in the late 1990s, Junichiro Koizumi became Prime Minister in April 2001. His fresh approach was popular with the public allowing him to pursue difficult structural reforms and tackle vested interests within the party. When faced by internal opposition to his plans to privatise the post office, he took the rebels on by calling a Lower House election and won an overwhelming victory with his coalition gaining two-thirds of the seats. Koizumi was succeeded as Prime Minister by Shinzo Abe on 26 September 2006. His position was weakened when the LDP and New Komeito lost their Upper House majority in the election on 29 July 2007 and he finally resigned on 12 September 2007 after just one year as Prime Minister.  

Yasuo Fukuda succeeded Abe as Prime Minister on 25 September 2007.  He had a moderate, consensual approach and pushed for constructive engagement with the Opposition but with minimal success.  After months of low poll ratings he offered his resignation unexpectedly on 1 September after less than one year in office.

His successor, Taro Aso, was elected Prime Minister on 24 September.  Aso is the grandson of the post-war Prime Minister Shigeru Yoshida and he served as Foreign Minister in the Koizumi government.  His most recent position was LDP Secretary General.  He is popular with the public and during his leadership campaign pledged to tackle social and economic issues.  He is keen to see Japan asserting itself more internationally and his approach to foreign policy is likely to reflect this.  

The Aso Government’s main priority is reviving economic growth and has already introduced a supplementary budget. The Opposition has said that it will cooperate on this although its priority will then be to push for an early dissolution of the Lower House and an election.

HUMAN RIGHTS

There has recently been increasing discussion of human rights issues in Japan. The main issues of interest to activists in the past was the treatment of minorities of Japan, including 'lower caste' Japanese, the Ainu race in Hokkaido, and ethnic Korean and Chinese residents in Japan. With the Japanese Government having taken some action to deal with these, the focus has moved on to the rights of children and women. Legislation to counter child abuse, both in Japan and abroad, has been passed and measures are also being introduced to reduce the level of domestic violence. Japan still retains (and carries out) the death penalty and Britain, through the EU, regularly takes this up with the Japanese Government, although there is still overwhelming support for capital punishment in Japan. There are also concerns over Japan’s criminal justice system, in particular legislation which enables suspects to be detained for up to 23 days without charge while police try to extract confessions.

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Contacts

Japan, Tokyo, British Embassy

Address:

No 1 Ichiban-cho
Chiyoda-ku
Tokyo 102-8381

Telephone:

(+81) (3) 5211-1100

Fax:

(+81) (3) 5275-3164

Office hours:

Office hours, Monday-Friday:
09:00-12:30 / 14:00-17:30 (Local time)
00:00-03:30 / 05:00-09:00 (GMT)

Website: http://ukinjapan.fco.gov.uk/

Japan, Tokyo, British Embassy - Office of the Cultural Attache


Japan, Osaka, British Consulate-General


Japan, Tokyo, British Consulate-General


Japan, Tokyo, British Council