The Japanese Economic System and Its Historical Origins

Author: Okazaki, Tetsuji : Okuno-Fujiwara, Masahiro

Reviewer: Frankl, Jennifer

Published by EH.NET (August 1, 2000)

Tetsuji Okazaki and Masahiro Okuno-Fujiwara, editors, The Japanese Economic System and Its Historical Origins. Oxford: Oxford University Press, 1999. x + 294 pp. $78 (cloth), ISBN: 0-19-828901-4

Reviewed for EH.NET by Jennifer Frankl, Department of Economics, Williams College.

This book is the result of a joint research project to examine the historical forces that caused the emergence of the current Japanese Economic System, which is so different from the U.S. or British economic systems. The theory advocated in this book is that many major elements of the system were deliberately created during the Pacific War years (1930-45) as part of the war effort.

THE ECONOMIC SYSTEM IN INDONESIA

The economic system in Indonesia is economic democracy is an economic system which came from by and for the people. The people play role active in economic activity, and government shares to give the direction and guidance of economic policy.

Fundament of economic system in Indonesia
Ideology fundament (phylosophical) : Pancasila
Structural fundament (operational) : UUD 1945 section 33 (23A-23G) section 27, section 34
Section 33 UUD 45, constitution of 1945 output of the fourth amandement states that :
1. The economy is arranged as collective work with by virtue of kinship principle.
2. Production branches which are vital for the state and which gains control of throng intention is controlled by the state.

Economic System of Islam

Islam is an entire way of life, and Allah's Guidance extends into all areas of our lives. Islam has given detailed regulations for our economic life, which is balanced and fair. Muslims are to recognize that wealth, earnings, and material goods are the property of God, and that we are merely His trustees. The principles of Islam aim at establishing a just society wherein everyone will behave responsibly and honestly. The fundamental principles of the Islamic economic system are as follows:

• Muslims are not to deal in interest. "Those who devour usury will not stand....Allah has permitted trade and forbidden usury.... Allah will deprive usury of all blessing, but will give increase for deeds of charity..." (Qur'an 2:275-6). "O you who believe! Devour not usury, doubled and multiplied. But fear Allah, that you may really prosper" (Qur'an 3:130) This prohibition is for all interest-based transactions, whether giving or receiving, whether dealing with Muslims or non-Muslims.

Socialist Economic System

In today's world every economy is based upon a specific political philosophy and ideology. The three prominent ideologies, that are used by the government to orient and plan their economy are capitalism, mixed economy and socialism. There are several different arguments about the origin of socialism, some say that it is an age old concept that is derived form biological symbiosis, where two elements of plants and animals survive with the help of each other.

Thinkers such as Karl Marx and János Kornai, established some definite principles and theories of socialism, upon which a socialist economic system is based.

Economic system - Definition

An economic system is a mechanism which deals with the production, distribution and consumption of goods and services in a particular society. 

The economic system is composed of people, institutions and their relationships. It adresses the problems of economics like the allocation and scarcity of the resources.

The division of economic systems

There are several basic questions that must be answered in order to resolve the problems of economics satisfactorily. For example, the scarcity problem requires answers: what to produce, how to produce it, and who should get what is produced. An economic system is thus a way of answering these basic questions. Different economic systems answer them differently.