The Main Goals of Japan Economy Essay Example | Topics and Well Written Essays - 750 words

The Main Goals of Japan Economy - Essay Example Catch up effect theory speculates that poorer and richer economies will grow faster than richer nations; this, therefore, means that they will converge at some point in terms of their per capita incomes. In the chart below there is no catch-up effect because developed countries like Japan has a per capita of 30866 as compared to Congos 374 (GAPMINDER, p. 2). Japan is currently ranked number 12, with a human development index of 0.901, compared to the world’s average of 0.682. Human development index shows a three-dimensional measure of human development which includes assessment of health, education, income, inequality, and poverty. With HDI of 0.901, Japan has a very high standard of living and is currently viewed by economists as one of the most expensive countries to live because of its market competitiveness. A lot of expatriates working in Japan live in big cities like Tokyo and Nagoya. The incomes of most of the residents are enough to provide them with the basic necessities. With the very high propensity to consume among the citizens a number of them still have the surplus for their leisure and personal satisfaction. This high standard of living has been on a rising scale from 0.778 to 0.901 between 1980 and 2011 showing a 16% increase (Human Development Indicators, p. 14). Japan is a very strong economy as shown by the above indicators. It has got a very high economic growth as compared to other nations with a free market and industrialized economy; it is ranked the second in the world in terms of wealth. Even though there was a reduced growth in Gross Domestic Product between 2007 and 2009, the economy picked up in 2010 with a GDP growth of 4% which is quite encouraging.  The recent reports confirmed that Japan posted a 1% expansion in the quarter of 2012 over the previous quarter.  Japans economy is also experiencing positive net exports of 1.1% of the Total GDP. Its economy is competitive and efficient on international trade as shown by the net exports, major contributors being the manufacturing and industry sector.