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MARTIN, Frances Lavinia C.
12 ABM 3
Japan and Cuba’s Economy: A Comparative Analysis
Every country has different preferences on what economic system they should use. It
depends on what they believe to be best for their country according to their needs and in mind
of prioritizing the distribution of the countries’ limited resources. Since each country has different
levels of needs and wants, their leaders must decide how to run the country financially. For
example, we have Japan who has a mixed economy, which according to Amadeo (2019), is based
on capitalism, but the government works closely with industry and central bank. On the other
hand, we have Cuba, which uses a command economy, where according to Chappelow (2019), is
a system where the government solely answers the three basic economic questions. The question
is, how do their government intervene to attain economic efficiency?
Japan’s a nation with virtually no natural resources like oil, natural gas, coal, iron and
copper. Fishes are considered the main natural resource of Japan. It has over two thousand
fishing ports, making it a major economic activity there. They are well known for deep-sea fishing
and whaling. Also, they have other rich resources like high quality and wide varieties of trees.
Japan has a small land area, but the land is mostly covered with forest. According to Owuor
(2019), approximately 68.2% of the Japanese land is under forest cover, the world’s 4
th
highest
percentage after Laos, Finland and Bhutan. Thus, Japan has the opportunity to export most of its
timber to other countries that cannot fully meet its demand like China. Japan’s labor market
conditions face a rise in employment but given the labor shortage, more people have been
entering and entering work. Japan is one of the richest countries in Asia, mostly because of its
entrepreneurs, the owners of the companies that are highly sought after in other countries like
Sony, Nintendo, Canon, Toyota, etc.
In contrast with Japan, Cuba’s natural resources are oil, natural gas, nickel, cobalt, and
arable land. All land is owned by the government therefore, they manage all agricultural ventures
in the country. Sugarcane and Tabacco are two of the largest export crops of Cuba. Although
Cuba was formerly covered with forest, according to Sawe (2019), only 16% of the land is covered
with forests. With 11.5 million as a population, 2.6% are unemployed.
The Japanese government, because of the scarcity of major natural resources, the
government relies on imported raw materials and energy. In order to pay for these imports, the
government trades a variety of manufactured goods to other countries. These include
automobiles and parts, steel products and semiconductors. As said before, the countries’ wealth
is from its successful Japanese corporations, which gives the country enough money to buy the
resources it needs. Although they have enough wealth to buy their needs, the government wants
manufacturers to stop building conventional cars by 2050 as the world moves toward electric
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vehicles to combat climate change (Amadeo, 2019). Electric vehicles use one-third fewer parts
than gas-powered vehicles. It’s also restarting nuclear plants that were shut down due to a
disaster. To meet with their labor shortage, Japan is also expecting at least 345,000 people from
abroad to join their workforce over the next five years.
Cuba’s government depends on its natural resources to run its economy. They manage it
and the income earned from these resources is redistributed to the citizens through government.
Their economic performance is largely determined by the international price of its export goods.
Just recently, according to (Marsh & Acosta, 2019), Cuba will be controlling the sales of food and
hygiene products due to shortages blamed partly on the tightening of the U.S. trade embargo.
Cuba imports 60-70% of its food. Decline in aid from key ally Venezuela and lower exports left
the country struggling to find cash to import. The citizens are struggling because the government
has now limited how much each person can buy and other products such as eggs, rice, beans and
sausages are only available if you have a ration card. Low-salary and pensions Cubans expressed
relief because they cannot afford black market prices. Most still stress that this remedy does not
resolve the long run.
Abenomics, an ambitious plan to bolster Japan’s economy launched by Shinzo Abe on his
second term during 2012. This implemented bold monetary policy, flexible fiscal policy and a
growth strategy (Kenton, 2018). They printed additional currency to generate modest inflation
roughly 2%, new government spending programs to stimulate demand and consumption. They
also made a reform of various regulations to make industries more competitive and encourage
investments from private sectors. Some of these are corporate governance reform, easier firing
of ineffective workers, easing of hiring foreign stuff, and more. After the implementation of this
economic policies, growth in Japan has run at an annualized 1.2%, unemployment at 2.8%.
According to Cordovi and Perez (2013), President Raul Castro, released economic guidelines
to modernize Cuban socialism. It became permitted to some previously restricted economic
activities such as the purchase and sale of homes and automobiles and creation of non-
agricultural co-ops. It turned the attention to the need for a more modern infrastructure, direct
investment and gross fixed capital formation, production policies that complements it.
Japan and Cuba’s Mixed Economic System and Cuba’s Planned Economic System aims to
meet the necessities of their people due to the lack of their natural resources. In Japan’s mixed
system, the government aims to use the people’s expertise in advance technology to supply their
raw materials and energy. In Cuba’s Command Economic System, citizens are cut down of their
imported necessities because there is a lack of private sector that may be able to help their
economy instead of simply relying on their export goods.
No country has the same number of resources. There will always be an uneven economy between
the countries and change is the only constant thing in the world. That’s why countries should
help each other and help themselves to distribute and exchange what they have and what they
lack.
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References
Amadeo, K. (2019). Japan's Economy, Abenomics, and Impact on U.S. Economy. Retrieved from
https://www.thebalance.com/japan-s-economy-recession-effect-on-u-s-and-world-
3306007
Chappelow, J. (2019). Command Economy. Retrieved from
https://www.investopedia.com/terms/c/command-economy.asp
Cordoví, J.T. & Pérez, R.T. (2013). Policies for Economic Growth: Cuba’s New Era. Retrieved from
https://www.brookings.edu/research/policies-for-economic-growth-cubas-new-era/
Kenton, W. (2018). Abenomics. Retrieved from
https://www.investopedia.com/terms/a/abenomics.asp
Marsh, S. & Acosta, N. (2019). Cuba to ration more products due to economic crisis, U.S.
sanctions. Retrieved from https://www.reuters.com/article/us-cuba-economy/cuba-to-
ration-more-products-due-to-economic-crisis-u-s-sanctions-idUSKCN1SG2HA
Owuor, S. (2019). What Are The Major Natural Resources Of Japan? Retrieved from
https://www.worldatlas.com/articles/what-are-the-major-natural-resources-of-
japan.html
Sawe, B.J. (2019). What Are The Major Natural Resources Of Cuba? Retrieved from
https://www.worldatlas.com/articles/what-are-the-major-natural-resources-of-cuba.html
Unemployment rate ticked up in November, but labor market remains tight: ministry. (2018,
December 28). Retrieved from
https://www.japantimes.co.jp/news/2018/12/28/business/economy-
business/unemployment-rate-ticked-november-labor-market-remains-tight-
ministry/#.XTQyPOgzY2x

Unformatted Attachment Preview

MARTIN, Frances Lavinia C. 12 ABM 3 Japan and Cuba’s Economy: A Comparative Analysis Every country has different preferences on what economic system they should use. It depends on what they believe to be best for their country according to their needs and in mind of prioritizing the distribution of the countries’ limited resources. Since each country has different levels of needs and wants, their leaders must decide how to run the country financially. For example, we have Japan who has a mixed economy, which according to Amadeo (2019), is based on capitalism, but the government works closely with industry and central bank. On the other hand, we have Cuba, which uses a command economy, where according to Chappelow (2019), is a system where the government solely answers the three basic economic questions. The question is, how do their government intervene to attain economic efficiency? Japan’s a nation with virtually no natural resources like oil, natural gas, coal, iron and copper. Fishes are considered the main natural resource of Japan. It has over two thousand fishing ports, making it a major economic activity there. They are well known for deep-sea fishing and whaling. Also, they have other rich resources like high quality and wide varieties of trees. Japan has a small land area, but the land is mostly covered with forest. According to Owuor (2019), approximately 68.2% of the Japanese land is under forest cover, the world’s 4 th highest percentage after Laos, Finland and Bhutan. Thus, Japan has the opportunity to export most of its timber to other countries that cannot fully meet its demand like China. Japan’s labor market conditions face a rise in employment but given the labor shortage, more people have been entering and entering work. Japan is one of the richest countries in Asia, mostly because of its entrepreneurs, the owners of the companies that are highly sought after in other countries like Sony, Nintendo, Canon, Toyota, etc. In contrast with Japan, Cuba’s natural resources are oil, natural gas, nickel, cobalt, and arable land. All land is owned by the government therefore, they manage all agricultural ventures in the country. Sugarcane and Tabacco are two of the largest export crops of Cuba. Although Cuba was formerly covered with forest, according to Sawe (2019), only 16% of the land is covered with forests. With 11.5 million as a population, 2.6% are unemployed. The Japanese government, because of the scarcity of major natural resources, the government relies on imported raw materials and energy. In order to pay for these imports, the government trades a variety of manufactured goods to other countries. These include automobiles and parts, steel products and semiconductors. As said before, the countries’ wealth is from its successful Japanese corporations, which gives the country enough money to buy the resources it needs. Although they have enough wealth to buy their needs, the government wants manufacturers to stop building conventional cars by 2050 as the world moves toward electric vehicles to combat climate change (Amadeo, 2019). Electric vehicles use one-third fewer parts than gas-powered vehicles. It’s also restarting nuclear plants that were shut down due to a disaster. To meet with their labor shortage, Japan is also expecting at least 345,000 people from abroad to join their workforce over the next five years. Cuba’s government depends on its natural resources to run its economy. They manage it and the income earned from these resources is redistributed to the citizens through government. Their economic performance is largely determined by the international price of its export goods. Just recently, according to (Marsh & Acosta, 2019), Cuba will be controlling the sales of food and hygiene products due to shortages blamed partly on the tightening of the U.S. trade embargo. Cuba imports 60-70% of its food. Decline in aid from key ally Venezuela and lower exports left the country struggling to find cash to import. The citizens are struggling because the government has now limited how much each person can buy and other products such as eggs, rice, beans and sausages are only available if you have a ration card. Low-salary and pensions Cubans expressed relief because they cannot afford black market prices. Most still stress that this remedy does not resolve the long run. Abenomics, an ambitious plan to bolster Japan’s economy launched by Shinzo Abe on his second term during 2012. This implemented bold monetary policy, flexible fiscal policy and a growth strategy (Kenton, 2018). They printed additional currency to generate modest inflation— roughly 2%, new government spending programs to stimulate demand and consumption. They also made a reform of various regulations to make industries more competitive and encourage investments from private sectors. Some of these are corporate governance reform, easier firing of ineffective workers, easing of hiring foreign stuff, and more. After the implementation of this economic policies, growth in Japan has run at an annualized 1.2%, unemployment at 2.8%. According to Cordovi and Perez (2013), President Raul Castro, released economic guidelines to modernize Cuban socialism. It became permitted to some previously restricted economic activities such as the purchase and sale of homes and automobiles and creation of nonagricultural co-ops. It turned the attention to the need for a more modern infrastructure, direct investment and gross fixed capital formation, production policies that complements it. Japan and Cuba’s Mixed Economic System and Cuba’s Planned Economic System aims to meet the necessities of their people due to the lack of their natural resources. In Japan’s mixed system, the government aims to use the people’s expertise in advance technology to supply their raw materials and energy. In Cuba’s Command Economic System, citizens are cut down of their imported necessities because there is a lack of private sector that may be able to help their economy instead of simply relying on their export goods. No country has the same number of resources. There will always be an uneven economy between the countries and change is the only constant thing in the world. That’s why countries should help each other and help themselves to distribute and exchange what they have and what they lack. References Amadeo, K. (2019). Japan's Economy, Abenomics, and Impact on U.S. Economy. Retrieved from https://www.thebalance.com/japan-s-economy-recession-effect-on-u-s-and-world3306007 Chappelow, J. (2019). Command Economy. https://www.investopedia.com/terms/c/command-economy.asp Retrieved from Cordoví, J.T. & Pérez, R.T. (2013). Policies for Economic Growth: Cuba’s New Era. Retrieved from https://www.brookings.edu/research/policies-for-economic-growth-cubas-new-era/ Kenton, W. (2018). Abenomics. https://www.investopedia.com/terms/a/abenomics.asp Retrieved from Marsh, S. & Acosta, N. (2019). Cuba to ration more products due to economic crisis, U.S. sanctions. Retrieved from https://www.reuters.com/article/us-cuba-economy/cuba-toration-more-products-due-to-economic-crisis-u-s-sanctions-idUSKCN1SG2HA Owuor, S. (2019). What Are The Major Natural Resources Of Japan? Retrieved from https://www.worldatlas.com/articles/what-are-the-major-natural-resources-ofjapan.html Sawe, B.J. (2019). What Are The Major Natural Resources Of Cuba? Retrieved from https://www.worldatlas.com/articles/what-are-the-major-natural-resources-of-cuba.html Unemployment rate ticked up in November, but labor market remains tight: ministry. (2018, December 28). Retrieved from https://www.japantimes.co.jp/news/2018/12/28/business/economybusiness/unemployment-rate-ticked-november-labor-market-remains-tightministry/#.XTQyPOgzY2x Name: Description: ...
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