LECTURE
Less immigrants => non-flexible labour market. Social capital (culture, value, identity, spiritual dimension..) human capital.

2011: china took over Japanese position as 2nd world economy. Yen is fixed to the US dollar. Germany, France, .. benefited from invasion, in 1937. What’s the impact of Marshall on japan? How japan became such a miracle economy? Japan was a miracle economy since the helped of the US, in 1960. Highest growth during 50’s and 60’s, but what caused this growth?
Keiretsus: the bank is at the heart of business, and businesses hold crosshold of equity. The keiretsus system won’t allow foreigners to invest. It has been accused by the US to prevent free market from operating.
The vertical and horizontal kereitsus:
Other features of the Japanese economy:
1. Long life employment: decating yourself to a company, they will probanly care for your family
2. Seniority wages: it goes hand in hand with wage equality, they eat in the same cantine as the employees, park in the same car park.
3. Japanese miracle: the role with government is an important point (MITI) in promoting Japanese business. MITI targeted business which it thought will become giants or national champions, some organisations became big some didn’t. MITI promoted the mission cartel.

Sales time
Chinese buying American bonds, controversy will begin if they start buying lands, houses.
In the 1990’s when we had a period of stagnation. Stagnation was caused by something we do not know but we know it followed the stock market bubble burst. Japan becoming more like the west, senior wages are being replaced by merit wages. Some suggest that japan has to previous mentality where there is the stake holder approach, because it was growing so much. Some disagree that approach done well till it reached a point of stagnation.

Exam revision

Germany, india, mexico, socialism, capitalism,

1) BRICS what does brics stand for, explain globalisation. When it was established, historical. Know a bit about each country. Why countries want to be members? What are the benefits and disadvantages of SA to be part of BRICS? How did they become members of the BRICS? Now they are engaging their own financial bank… Supremacy of the western power. Draw numbers how much money they are 50billion dollars and mention authors, sites, economists, Bloomberg. Implication of Brics on the global economy. Impact of Brics on Africa

2) Transition economies: Russia and China and their transitions reforms, their similarities and differences. The nature of the reforms the introduction of market mechanism. The before and after reforms situation example the GDP. How they move from a social economy to a market economy?
Similarities: Privatisation; Liberalisation, exchange rate, deregulation, market reforms (Geffrey Sachs ((for Russia transition))), in terms of time frame work, and in terms of scale.
Chinese took longer.
Russia was rapid, shock therapy. (EBRB website)
- Impact of these reforms. (World Bank, IMF, 91-93 reports on Russia, lates 80s for china) Immediate aftermath reforms, 10 years after reforms. ( FIND OUT IF THE REFORMS WERE SUCCESSFUL OR NOT)

3) Russia and China: Why do they have to move, or transit their economies?
Economic situation in both countries: previous economic situation and present economic situation. Private homes, equality,
Political rationale matters mostly, relates to government expenditure.

4) East Asian miracle. Why has japan become the 2nd world economy? Drives of economy growth: very strong traditions.
What’s the impact of Marshall on japan? How japan became such a miracle economy?
Human capital: high educated.
Developmental state  heavy regulated state, respecting authority, the role of the state.
Japan 20 years later went to recession: Lecture slides=> source of the miracle.
Is Japanese miracle sustainable? => Lecture slides =>current market outlook.