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Exploring Japan’s Political and Economic Practices

Within a parliamentary framework, the governing body is hypothetically the essential organization mirroring the desire of the common people. The political power granted to the executive rests with the head administrator such as the president, cabinet, or prime minister. This paper will explore the political and economic practices of Japan and further compare them to that of Germany and the UK. The challenges faced by Japan are also examined including the state’s response.

Japan and Germany Comparison

            Japan and Germany are considered as two of the most powerful nations available across the globe that further share a strong connection. Germany has a parliamentary system. This suggests that the government is identified by the parliament (Roos, 2019). In the events whereby the government loses confidence in the parliament, a new chancellor is identified through an election procedure. Germany is considered a Federal republic which has made it difficult for the state to apply reforms. Evidently, the Federal Assembly has the obligation to show their approval to 60% of the planned laws (Roos, 2019). On the contrary, Japan operates under a constitutional monarchy. Japan relies on a two-chamber system that contains the House of Representatives and the House of Chancellors, also referred to as the Shugi-in and Sangi-in respectively (Catalinac, 2018). The House of Representatives chamber is composed of 480 delegates while the House of Councilors is made up of 287 (Catalinac, 2018). Only noblemen could vie for a position in the chamber of House of Councilors until 1947. On the contrary, in Germany, the Prime Minister was required to be a Shugi-in member who is also the biggest party leader (Roos, 2019).

            The market economy of Japan is highly advanced in comparison to that of Germany. The region’s economy is founded on a free-market economy defined by a high level of economic freedom, low tax rates, and a system dominated by a private sector (Flath, 2017). Similar to the case of Japan, Germany also operates on a free market economy defined by the free formation of prices, free foreign trade, private property, and the free exchange of goods.

Japan and UK Comparison

            Similar to Japan, the UK has a constitutional monarchy. This suggests that the two nations have a similar parliamentary system. Despite having both states operate under a constitutional monarchy,  it is evident that each is defined by a bicameral system whereby the Upper House functions as the Lower House’ check. In both countries, the monarch functions as the statue’s head, and a large percentage of the royal prerogatives have been eliminated by the cabinet and the Parliament through the constitutional requirements over the recent decades (Baier & Welfens, 2019).

            In comparison to Japan’s market economy, it is evident that the UK’s is smaller. The economy of the UK is also free and fiercely independent. Moreover, it is also highly developed and has been thriving both locally and on the international spectrum (Baier & Welfens, 2019). The UK’s economy is highly dependent on the service sector which employs over 81% of the members of the workforce and contributes and further contributes towards 71.3% of the region’s GDP. Although the service sector forms a part of Japan’s economy, it is evident that the state highly depends on exports for its service gains. However, the services contribute to 71.4% of the region’s GDP (Flath, 2017).

Challenges faced by Japan

            Japan faces several economic challenges such as the dwindling rates of exports and the rise in the sales tax. Evidently, the consumers in Japan have been exposed to a rise in sales tax recorded from 8% to 10% (Flath, 2017). The primary aim of the rise in the sales tax was to offer funding to the region’s social welfare programs, cover for the region’s huge public debt, and cater for the pre-school education services (Flath, 2017). This has reduced the level of public spending which has further forced the government to act using rebates for the purchase of commodities whereby people pay using electronic means. The focus is to negate the rise in taxes to encourage instances of electronic payment and reduce instances of people’s reliance on cash.

            The challenge of the dwindling export rates comes about because of the reduced demand for the exports originating from the country. The state’s economy strongly relies on exports and its main exporters such as Toyota have recorded a sales slump in the global market (Flath, 2017). The situation is mainly because of the negative environmental factors such as the case of the Corona virus pandemic and the global lockdown measures. Protectionism is also a factor that has affected Japanese international trade further lowering the region’s trade volumes. Additionally, the region has also experienced a heightened geopolitical tension which has further threatened the country, foreign direct investment as well as its exports. The government has focused on addressing this challenge through fiscal policy measures. For instance, the region has focused on boosting the economy through the implementation of fiscal stimulus packages to overcome this concern.