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Unformatted text preview: lation reached 20 per cent. Yet, the next decade
and a half saw the elevation of Japan to the status
of the OECD’s most competitive economy, thanks
to its manufacturing successes. Indeed, for one
brief moment, in 1989, Japan’s per-capita income (measured in dollar terms) was the world’s highest
(bar only that of Switzerland).
Thus, while today’s circumstances do not look very
promising, one must recall that they did not look
particularly promising in 1953 or in 1974. And Japan
still has underlying strengths in many areas. Its rates
of both human and physical capital formation are
among the highest (if not the highest) in the world.
The volume of its R&D expenditure is equally
impressive. It can boast an enviable degree of social
consensus, buttressed by a relatively equal pattern
of income distribution. It still has an abundance of
world-beating firms and technologies, etc. What it
most lacks today is confidence in itself. Should that
change, the relatively pessimistic outlook here outlined, could well be transformed. REFERENCES
Aoki, M. (1988), Information, In...
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This note was uploaded on 02/03/2014 for the course ECON 204 taught by Professor Devero during the Summer '13 term at American University of Sharjah.
- Summer '13