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Japan with a debt higher than its GDP, aging population and with increased number of people avoiding relationships is at a risk of reduced labor.
Picture Courtesy: Profit loss

A Perspective: Japan!

Japan with a debt higher than its GDP, aging population and with increased number of people avoiding relationships is at a risk of reduced labor. This risk is countered by the population density when compared to the United States, which is at 36 per Km2 when compared to Japan which is 10 times more. In the future with this current trend, the GDP or wealth would be redistributed to a smaller population and with larger amount of people becoming wealthier in the coming years.

Natural Resources

Natural resources are in small quantities but the emphasis on renewable energy is at large.

  • Coal
  • Iron Ore
  • Zinc
  • Lead
  • Copper
  • Sulfur
  • Gold
  • Silver
  • Renewable Energy

People and Economy

  • The current population is over 125 Million in Japan.
  • Japan has 20 territories that comprise of the four large islands of Hokkaido, Honshu, Shikoku, and Kyushu, and 16 smaller islands.
  • The population growth rate is at - 0.5% (Negative) annually.
  • The median age of population is around 48 Years and is expected to increase further in the coming years due to 60% of the population falling in the bracket (15 years - 65 years ) and 28% of the population over 65 years.
  • The population density in Japan is 347 per Km2 or 899 people per mi2.
  • There is gender equality when we consider other countries in the world. 
  • Freedom of speech is better than most countries in the world.
  • Japan’s debt rises to ¥1.3 Quadrillion or USD 8.9 Trillion.
  • The Japan current GDP stands at USD 5.5 Trillion.
  • The Gross Domestic Product per capita is estimated at USD 35,385 or  ¥ 5.1 Million.
  • The foreign Direct Investment is at  0.66978 % of the global Gross Domestic Product.
  • The income per capita in Japan stands at  ¥ 2.51 Million or USD 17,000.
  • Japan has been in the forefront of technology innovations which include, robots in a controlled mechanism. The robots are soon filling the declining working population of Japan.
  • As any developed nation, Japan has a large debt which is 261% of the GDP and 43% of the USD 9 trillion debt of Japan is held by Bank of Japan. This by far is largest by any developed nation.
  • Around 92% of the people fall under the middle and upper middle class bracket with over 8% people fall under lower middle class.
  • Dependency of Fossil Fuels stand at 84% but there is a commendable increase in renewable energy through hydropower through ocean waves to be the next big thing.
  • Shift in Artificial intelligence from labor is in transition.

Major Issues:

  • Japan is facing threats over failed missile tests from North Korea. This off late has been a reason for Japan to be on its toes.
  • Japan loan to United States stands at one trillion USD.
  • Japan and China face maritime border issues.
  • Japan has been a major player in electronic and automobiles across the world, but currently it faces issues with outsourcing of manufacturing to China due to higher wage costs.

Future of the Japan: Perspective 

  1. Increasing Debt within the country with reducing population.
  2. Inflation has increased to 3% which has increased the prices as well.  
  3. Japan face issues with relation to increasing its population.  About one-third of women (37.4%) and men (36.6%) aged 18 to 24 described themselves as single and not interested in a relationship. This puts 50% of the women and 70% of the working men to a risk of remaining single with over 40% of men not gone on a date.
  4. Japan is a world leader in the manufacturing space of electrical appliances and electronics, automobiles and ships and other equipments.
  5. Increased reallocation of funds to Artificial Intelligence and increased spends on Internet of things.
  6. There would be an increase in retirement and health spends in the Japan in the next forty years as a large amount of people will move into retirement.
  7. Japan investments in other countries as loans will bear fruit in terms of interests.
  8. Japan will still have 86% of their population well above middle class section.
  9. The population density would move towards rural areas as well with shift in technologies from urban areas.
  10. There would be shortage of nurses who could speak Japanese.
  11. Reduction of Coal to renewable energy would be on the rise in the next few years.

To shape a sustainable and equitable future for Japan, several steps can be considered:

  • Encourage Population Growth and Address Aging: Develop policies that support families and encourage childbirth, such as parental leave, childcare support, and financial incentives. Promote policies and environments that support the health and active involvement of the elderly in society.
  • Innovate in Healthcare: Invest in healthcare innovations and training to ensure that there is an adequate supply of healthcare professionals, especially as the population ages. Consider implementing remote healthcare services and robot-assisted care.
  • Sustainable Energy Transition: Further invest in renewable energy sources like solar, wind, and hydroelectric power to reduce dependency on fossil fuels. Develop policies that encourage businesses and individuals to adopt renewable energy.
  • Strengthen Education and Skill Development: Focus on education that fosters creativity, innovation, and entrepreneurship. This includes education in artificial intelligence, robotics, and other emerging technologies that are likely to play a significant role in the future.
  • Economic Diversification and Debt Management: Encourage economic diversification to reduce dependency on manufacturing and exports. Implement prudent fiscal policies and explore options for debt reduction and management.
  • Address Labor Shortages through Immigration and Automation: Adopt a more open immigration policy for skilled workers. At the same time, leverage automation to offset declining workforce numbers.
  • Enhance Social Cohesion and Welfare: Develop programs that address income inequality and ensure that the benefits of economic growth are shared among all citizens. This includes social safety nets, affordable housing, and mental health services.
  • Strengthen International Relations and Security: Engage in diplomatic efforts to strengthen relationships with neighboring countries, address regional security concerns, and contribute to global peace and stability.
  • Promote Gender Equality and Female Participation in the Workforce: Continue efforts to achieve gender equality, particularly in leadership roles and sectors where women are underrepresented.
  • Adapt Urban and Rural Planning: Plan cities and rural areas in a way that accommodates demographic shifts. Encourage the development of smart cities with integrated technology to improve the quality of life and make public services more efficient.
  • Foster Research and Development: Invest in research and development, especially in fields like biotechnology, materials science, and information technology. This would not only contribute to the economy but could also help address societal challenges.
  • Promote Mental Health and Well-being: Implement programs and campaigns to raise awareness about mental health. Make counseling and mental health services more accessible and work to reduce the stigma associated with mental health issues.

By implementing a combination of these steps, Japan can work toward a future that is not only economically prosperous but also socially equitable and environmentally sustainable.


Perspective