2004GIR Government-Business Relations

Workshop 9 – GBR in China and Japan

1. HOW WOULD YOU DESCRIBE GOVERNMENT BUSINESS RELATIONS IN CHINA?

- China evidently possesses the developmental model where the state directs the economy and
the people.
- The government is extremely proactive and even though is arguably too controlling their actions
are generally accepted.
- The state exerts a parental relationship over the country.
- The government ventrally plans the economy thus exerting a lot of control.
- However, they are taking on some western features.
- They are becoming more socially minded in relation to human rights and environment because
they are aware of their place within the globe.
- They are quickly becoming the world’s superpower.

2. WHAT ROLE DOES THE STATE PLAY IN THE JAPANESE MODEL?

- Japan possesses the developmental model as they have close partnerships between
government and business.
- Japan values their bureaucracy.
- Business looks to government for guidance.
- There is an attitude which sees that nation as a ‘family’ which allows government to influence
business.
- Business not only work hard for their profits, but also for national well-being.
- Government and business collaborate in the interests of a creating a better Japan.
- Often top Japanese business leaders head government positions, in order to establish strong
and meaningful relationships between government and business.
- In 2002, Japan established the Japan Business Federation, which maintains the link between
Japan’s corporate world and the government.
- Currently sitting on the board as chairman, is Chairman of Toray Industries. Vice Chairman of
Toyota and chairman of Toshiba also on the board and are currently 2 of 17 vice-chairmen who
are mostly prominent business leaders.

3. WHAT ARE THE MAIN DIFFERENCES BETWEEN THE JAPANESE AND THE CHINESE
MODELS?
- Level of extremity
- Difference is between the levels of control – China is stricter and controls people.
- China takes away people’s rights, censorship, centralised economy, they often undermine
human rights and people’s lives are sort of mapped out for them.
- Example – Facebook is not accessible in China, something that Western countries utilise and
take for granted every day.
- In Japan, however, the level of control is not as fierce, people enjoy more civil rights.

4. WHAT LESSONS MIGHT THE REST OF THE WORLD LEARN FROM JAPAN’S RESPONSES
TO ITS ‘LOST DECADES’?
- From the 1990’s till today Japan has experienced a drop off in the economic growth.
- Arguably, due to a lack of appropriate economic reform.
- They did not float their currency, nor did they sell off national assets, something that the rest of
the world was doing.
- They were reluctant to adopt neo-liberal policies.
- The fact that Japan is surrounded by extremely fast-growing nations meant that they would
have had to battle with fierce competition.
- Japan’s aging population is arguably one of the causes of the ‘lost decades’ because an aging
population means less young productive workers. The rest of the world needs to look at
managing the situation of an aging population – rising the retirement age for example would be
a good start.