Part 426

Political parties and leaders: Liberal Democratic Party (LDP), Ryutaro HASHIMOTO, president, Koichi KATO, secretary general; Social Democratic Party (SDP), Takako DOI, chairman, Shigeru ITO, secretary general; Sakigake (Harbinger), Akiko DOMOTO, acting chairman, Hiroyuki SONODA, secretary general; New Frontier Party or NFP (Shinshinto), Ichiro OZAWA, president, Takeo NISHIOKA, secretary general; Democratic Party of Japan (DPJ), coleaders Yukio HATOYAMA and Naoto KAN; Japan Communist Party (JCP), Tetsuzo FUWA, chairman, Kazuo SHII, secretary general; Sun Party, Tsutomu HATA, chairman, Eijiro HATA, secretary general note: DPJ was formed in September 1996 by former members of SDP and Sakigake; Sun Party was formed in December 1996 by former members of NFP

International organization participation: AfDB, AG (observer), APEC, AsDB, Australia Group, BIS, CCC, CE (observer), CP, EBRD, ESCAP, FAO, G- 2, G- 5, G- 7, G- 8, G-10, IADB, IAEA, IBRD, ICAO, ICC, ICFTU, ICRM, IDA, IEA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, Inmarsat, Intelsat, Interpol, IOC, IOM, ISO, ITU, MTCR, NEA, NSG, OAS (observer), OECD, OSCE (partner), PCA, UN, UN Security Council (temporary), UNCTAD, UNDOF, UNESCO, UNHCR, UNIDO, UNITAR, UNRWA, UNU, UPU, WFTU, WHO, WIPO, WMO, WToO, WTrO, ZC

Diplomatic representation in the US: chief of mission: Ambassador Kunihiko SAITO chancery : 2520 Massachusetts Avenue NW, Washington, DC 20008 telephone: (202) 939-6700 FAX: (202) 328-2187 consulate(s) general: Agana (Guam), Anchorage, Atlanta, Boston, Chicago, Detroit, Honolulu, Houston, Kansas City (Missouri), Los Angeles, Miami, New Orleans, New York, Portland (Oregon), San Francisco, and Seattle consulate(s): Saipan (Northern Mariana Islands)

Diplomatic representation from the US: chief of mission: Ambassador (vacant) embassy: 10-5, Akasaka 1-chome, Minato-ku (107), Tokyo mailing address : Unit 45004, Box 258, APO AP 96337-0001 telephone: (3) 3224-5000 FAX: (3) 3505-1862 consulate(s) general: Naha (Okinawa), Osaka-Kobe, Sapporo consulate(s) : Fukuoka, Nagoya

Flag description: white with a large red disk (representing the sun without rays) in the center

Economy

Economy - overview: Government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (roughly 1% of GDP) have helped Japan advance with extraordinary rapidity to the rank of second most powerful economy in the world. One notable characteristic of the economy is the working together of manufacturers, suppliers, and distributors in closely knit groups called keiretsu. A second basic feature has been the guarantee of lifetime employment for a substantial portion of the urban labor force; this guarantee is slowly eroding. Industry, the most important sector of the economy, is heavily dependent on imported raw materials and fuels. The much smaller agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan must import about 50% of its requirements of other grain and fodder crops. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades overall real economic growth had been spectacular: a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed considerably in 1992-95 largely because of the aftereffects of overinvestment during the late 1980s and contractionary domestic policies intended to wring speculative excesses from the stock and real estate markets. Growth picked up in 1996, largely a reflection of stimulative fiscal and monetary policies as well as low rates of inflation and social disorder. As a result of the expansionary fiscal policies and declining tax revenues due to the recession, Japan currently has one of the largest budget deficits as a percent of GDP among the industrialized countries. The crowding of habitable land area and the aging of the population are two other major long-run problems.

GDP: purchasing power parity - $2.85 trillion (1996 est.)

GDP - real growth rate: 3.6% (1996)

GDP - per capita: purchasing power parity - $22,700 (1996 est.)

GDP - composition by sector: agriculture: 2% industry : 41.5% services: 56.5% (1995)

Inflation rate - consumer price index: 0.3% (1996)

Labor force: total: 67.23 million (March 1997) by occupation: trade and services 50%, manufacturing, mining, and construction 33%, utilities and communication 7%, agriculture, forestry, and fishing 6%, government 3% (1994)

Unemployment rate: 3.4% (1996)

Budget: revenues: $528 billion expenditures: $673 billion, including capital expenditures (public works only) of about $75 billion (FY97/98 est.)

Industries: among world's largest and technologically advanced producers of steel and nonferrous metallurgy, heavy electrical equipment, construction and mining equipment, motor vehicles and parts, electronic and telecommunication equipment, machine tools, automated production systems, locomotives and railroad rolling stock, ships, chemicals; textiles, processed foods

Industrial production growth rate: 2.4% (1996 est.)

Electricity - capacity: 199.88 million kW (1994)

Electricity - production: 992.5 billion kWh (1995)

Electricity - consumption per capita: 6,895 kWh (1995 est.)

Agriculture - products: rice, sugar beets, vegetables, fruit; pork, poultry, dairy products, eggs; world's largest fish catch of 10 million metric tons in 1991

Exports: total value: $385 billion (f.o.b., 1996 est.) commodities : manufactures 96% (including machinery 50%, motor vehicles 19%, consumer electronics 3%) partners : Southeast Asia 37%, US 27%, Western Europe 15%, China 5%

Imports: total value: $329 billion (c.i.f., 1996 est.) commodities: manufactures 54%, foodstuffs and raw materials 28%, fossil fuels 16% partners: Southeast Asia 24%, US 22%, Western Europe 15%, China 12%

Debt - external: $NA

Economic aid: donor: ODA, $14.7 billion (1995 est.) note: ODA and OOF commitments (1970-94), $174 billion

Currency: yen (¥)

Exchange rates: yen (¥) per US$1 - 118.02 (January 1997), 108.78 (1996), 94.06 (1995), 102.21 (1994), 111.20 (1993), 126.65 (1992)

Fiscal year: 1 April - 31 March