Japan
The Washington Post reports on how little will there is to deal with the causes of Japan’s projected demographic collapse.
The article notes that the country may lose 70% of its workforce by 2050, at the same time it is faced with supporting a massive population of seniors.
The oncoming problems could be alleviated with immigration and a higher birth rate, but these are impeded by social malfunction:
- Japan’s strong sense of ethnic unity makes immigration a non-starter: “the issue is too politically toxic for extensive public discussion.”
- The low birth rate has a lot to do with how women are treated in the workforce and at home, but Japan seems to lack the will to do much to change this. The article reports renewed calls for “enlightened government intervention” on the issue, but those have gone and gone before.
Japan does not seem to face a disastrous implosion, like some socially malfunctioning societies of the past — see the Greenland Norse in Diamond’s Collapse — but it may choose diminishing strength, relevance, and perhaps prosperity over change.
See Futureatlas for more on this issue.
Image: usable with link and credit to Futureatlas.com
In a new poll, most Japanese feel that North Korea and China are potential military threats to their country.
When asked whether these countries constituted threats, Japanese responded:
- 80% — North Korea
- 55% — China
- 39% — Russia
These results suggest that:
- Japanese may be inclined to keep the US close if it is viewed as a responsible protector
- the North Korean nuclear program will continue to cause great alarm in Japan, and in certain circumstances could overcome the Japanese aversion to nuclear weapons
Columnist Fred Hiatt examines Japan’s demographic challenge — “sustained and inexorable population decline” — in the Washington Post.
As a result of this decline, the country’s population is projected to drop from 128 million now to 100 million in 2050. Crucially, the average age will be high and the elderly population large, with some 36 million people 65 and over.
A central issue is that women would like to have more children, but delay or avoid marriage and childbearing because Japanese society in general, and husbands in particular, leave women overburdened and without options.
In essence, Japan has given women too little equality, but enough freedom that they can back away from the system that they feel abuses them.
Hiatt writes:
In fact, robots and other ways to improve productivity are one of four possible routes to economic growth despite an aging population. The others would be making better use of women; immigration, which has increased slightly but remains unpopular in this ethnically cohesive country; and keeping the elderly working longer.
One result will be a continued flow of innovative ideas in robotics from the country.
Hiatt alludes to a fundamental question that Japan will pose: what is the meaning and purpose of economic growth? “What is happiness? Can we be happy without economic growth?” asks a Japanese demographer.
A lot of evidence suggests that growth may not be essential to well-being; income ceases to contribute substantially to happiness when development brings levels to about $10-15,000 thousand dollars a year in per capita income. Japan may test whether a society can remain satisfied without an upward trajectory.
More on the article at Future Uncertain.
Conservative commentator David Frum argues that the apparent nuclear weapon test attempt by North Korea demands that the US seek three goals:
- “enhance the security of those American allies most directly threatened by North Korean nuclear weapons: Japan and South Korea”
- “exact a price from North Korea for its nuclear program severe enough to frighten Iran and any other rogue regimes considering following the North Korean path”
- “punish China”
To achieve this, he advocates four policy initiatives:
- Speed up the development of missile defense systems.
- “End humanitarian aid to North Korea and pressure South Korea to do the same.”
- “Invite Japan, South Korea, Australia, New Zealand and Singapore to join NATO — and even invite Taiwan to send observers to NATO meetings.”
- “Encourage Japan to renounce the Nuclear Nonproliferation Treaty and create its own nuclear deterrent.”
Analysis
Both the goals and the policies are internally contradictory. Policies 1, 3, and 4 seem more designed to alienate China than to punish North Korea. Given that China is in unprecedented agreement with other powers on North Korea, this is likely more based on hostility toward China than the issue at hand.
If China is alienated, goal 2 — punishing North Korea — becomes much more difficult, and policy 2 loses much of its meaning.
The North Korean problem is likely to find resolution, one way or another, but a hostile China might define the 21st century.
Missile defense systems might have some utility, but also threaten China’s deterrent — which Frum sees as a benefit — and could spark an arms race and a less stable US-Chinese relationship.
If a primary goal is enhancing South Korean security, it is unclear why the US should have to pressure the South Koreans to follow its policies. As the most directly affected state, South Korea should have considerable say in what happens next.
An Asian expansion of NATO is interesting, but might be more likely to dilute the meaning the alliance than strengthen Asian security. European allies would be foolish to interpose themselves between China and Taiwan when the US was provoking China, as it would be with these policies.
As for encouraging Japan going nuclear, this might only add to instability, given general East Asian distrust of the Japanese.
Writing in the WP, Steve Clemons of the New America Foundation warns of a “campaign of right-wing intimidation of public figures that is squelching free speech and threatening to roll back civil society.”
Emboldened by the recent rise in nationalism, an increasingly militant group of extreme right-wing activists who yearn for a return to 1930s-style militarism, emperor-worship and “thought control” have begun to move into more mainstream circles — and to attack those who don’t see things their way.
This raises two sets of questions:
- Is something about this new, given that Japan has had a sometimes-violent rightist fringe for half a century? Is the more-nationalist climate such that now it means something different?
- Can Japan really swing in the direction the far right desires? Is it a liberal democratic nation well-integrated into the international system, or is this is a veneer that could fall away in the event of a true crisis?
The Economist Intelligence Unit released its 2006 e-readiness rankings yesterday. The index is a measure of a country’s readiness for e-business, judged by Internet access, broadband penetration, innovation, information security, and other factors. More telling than the ranking is the country’s distance from a score of 10.
The ratings are a good indicator of general abilities in IT, and thus an important component of present and future competitiveness.
The top countries
Rank. Country — score out of 10 (2005 rank)
1. Denmark — 9.00 (1)
2. US — 8.88 (2)
3. Switzerland — 8.81 (4)
4. Sweden — 8.74 (3)
5. UK — 8.64 (5)
6. Netherlands — 8.60 (8)
7. Finland — 8.55 (6)
8. Australia — 8.50 (10)
9. Canada — 8.37 (12)
10. Hong Kong — 8.36 (6)
11. Norway — 8.35 (9)
12. Germany — 8.34 (12)
13. Singapore — 8.24 (11)
14. New Zealand — 8.19 (16)
14. Austria — 8.19 (14)
16. Ireland — 8.09 (15)
17. Belgium — 7.99 (17)
18. South Korea — 7.90 (18)
19. France — 7.86 (19)
Other countries of interest
Rank. Country — score out of 10 (2005 rank)
21. Japan — 7.77 (21)
22. Israel — 7.59 (20)
23. Taiwan — 7.51 (22)
25. Italy — 7.14 (24)
30. United Arab Emirates — 6.32 (X)
31. Chile — 6.19 (31)
35. South Africa — 5.74 (32)
37. Malaysia — 5.60 (35)
39. Mexico — 5.30 (36)
41. Brazil — 5.29 (38)
42. Argentina — 5.27 (39)
45. Turkey — 4.77 (43)
46. Saudi Arabia — 4.67 (46)
48. Venezuela — 4.47 (45)
49. Romania — 4.44 (47)
51. Colombia — 4.41 (48)
52. Russia — 4.30 (52)
53. India — 4.25 (49)
55. Egypt — 4.14 (53)
56. Philippines — 4.04 (51)
57. China — 4.02 (54)
60. Nigeria — 3.69 (58)
61. Ukraine — 3.62 (57)
62. Indonesia — 3.39 (60)
64. Kazakhstan — 3.22 (62)
65. Iran — 3.15 (59)
67. Pakistan — 3.03 (64)
Regional standouts in the developing world are Chile, South Africa, and the United Arab Emirates. The low scores of some countries, notably India, China, and Russia, disguise significant specialized capabilities in infotech.
If the countries did come to blows over the island dispute, Asia / Korea Tide argues out that South Korea is poorly equipped to face the Japanese navy and would face defeat.
(Via Coming Anarchy)
Possible combatants: Japan, South Korea
Causes: Disputes over minor islands and their accompanying sea zones, historical animosity due to Japanese colonization of Korea
Probability in next decade: low; though South Korea has already threatened force, the common interests of the two most advanced Asian democracies should keep them in check
PriceWaterhouseCoopers has released a study of potential growth in the world’s 17 largest economies out to the year 2050.
The study forecasts the eclipse of the current developed economies. The E7, largest emerging market economies (China, India, Russia, Brazil, Indonesia, Mexico, Turkey), were only 20% of the size of the G7 economies at market exchange rates in 2005, but would be 25% larger than the G7 by 2050. By purchasing power, the E7 economies were only 75% as large as the G7 in 2005, but would be 75% larger by 2050.
In purchasing power terms, the shifts in relative GDP would be stark:
COUNTRY — relative econ size 2005 / 2050
US — 100 / 100
Japan — 32 / 23
Germany — 20 / 15
China — 76 / 143
UK — 16 / 15
France — 15 / 13
Italy — 14 / 10
Spain — 9 / 8
Canada — 9 / 9
India — 30 / 100
South Korea — 9 / 8
Mexico — 9 / 17
Australia — 5 / 6
Brazil — 13 / 25
Russia — 12 / 14
Turkey — 5 / 10
Indonesia — 7 / 19
Note that the values are relative within their respective years, but not across them; all economies are projected to be larger in 2050 than at present.
Purchasing power suggests, among other things, the military power the economy can afford to buy, suggesting that the realignment of power toward Asia will have substantially occurred. It will no longer be possible for the US to massively outspend all potential rivals.
The study also offers some startling numbers for per capita income. The figures suggest that the developed countries could have universal prosperity, and the emerging markets could achieve levels of wealth like those of developed countries today, eliminating dire poverty.
COUNTRY — 2005 / 2050 purchasing power GDP per capita (constant 2004 dollars)
US — $40,339 / $88,443
Japan — $30,081 / $70,646
Germany — $28,770 / $68,261
China — $6,949 / $35,851
UK — $31,489 / $75,855
France — $29,674 / $74,685
Italy — $28,576 / $66,165
Spain — $25,283 / $66,552
Canada — $31,874 / $75,425
India — $3,224 / $21,872
South Korea — $21,434 / $66,489
Mexico — $9,939 / $42,879
Australia — $31,109 / $74,000
Brazil — $8,311 / $34,448
Russia — $10,358 / $43,586
Turkey — $7,920 / $35,861
Indonesia — $3,702 / $23,686
These numbers suggest massive value shifts: countries reaching these wealth levels have shifted toward democracy, social freedom, and humane governance.
There is an underlying problem in these hopeful figures: sustainability will be strained with far more of the planet living at developed levels of wealth.
The Washington Post reports on growing economic disparities in Japan.
Differential rewards might make Japanese society more dynamic and individualistic, but it will also undermine the Japanese achievement of providing near-universal prosperity and a high quality of life for its citizens.
Rising class differences may also begin to erode the insular Japanese sense of close kinship with each other.