FAR EASTERN ECONOMIC REV
Sur Wave high quality stainless steel sinks
Features:
ST-1621
•
•
for every kitchen
Sturdily made of 18-8 chrome-nickel and 18 chrome stainless
steel of 22 to 18 gauge (U.S.) thickness for long-life service. Sanitary-molded with seamless
or
crimped construction for fast, effortless
and thorough cleaning.
⚫ Flawlessly polished with non-glaring,
•
durable, satin-like finish.
Resiliently constructed to cushion mis-
haps often occurring with fragile china.
• Practically designed for versatile, simple and non-time-consuming installation.
Reasonably priced, yet ideal for luxurious, efficient and mod- ernized kitchens.
DT-3221
SUNWAVE, is Japan's largest manufacturer of stainless steel furnishings and appliances for home and commercial kitchens. It produces sinks, sink cabinets, dressing tables, food preparation equipment, and various types of gas ranges of the highest quality.
DEALERS WANTED
We are now seeking dealers throughout the world. For detailed informa. tion and distributorship inquiries, write
SUN WAVE FOREIGN /ndustrial co. Itd. TRADE DEPT.
Page 278
5, 4-chome, Yaesu, Chuo-ku,
Tokyo, Japan
ber 31, 1963
Japan which has heretofore enjoyed an over-supply of man- power, it is an unprecedented experience to witness this new phenomenon. An apt example may be found in the realm of services which is always confronted by the problem of raising the productivity rate. Medium and small industries all lacking facilities to raise their productivity rate are unable to keep pace with the rise in wage levels. An obvious result is a price rise in the products manufactured. In the rise of consumer goods prices analysed for the past years, goods produced by medium and small enterprises and services accounted for 60% to 70%, the balance of 30% being a rise in agricultural pro- ducts. Among the latter an element of weather is present, no doubt, but the rise in labour wages and salaries had much to do with it.
Risc in the price of rice was effected through the Food Control Special Accounts in accordance with the income levels of salary and wage earners, and along with the rise in income levels, demand rose for vegetables and fruits while their sup- ply was inadequate. In this manner, the rise in prices of consumer goods and services on the one hand contributed to the improvement of earnings on the part of medium and small enterprise operators and wage earners whose earnings in the past were relatively low, and it narrowed the existing gap between incomes in the heavy and major industries and medium and small industries. But on the other hand, it can- not be overlooked that it exerted pressure on the people's daily livelihood.
The rise in prices of consumer goods is a natural phenomenon in an economy where relatively short labour supply is existent. In other words the price pattern is chang- When ing in the fashion prevailing in advanced countries. this price pattern is compared with international levels, those registering a lower international index tend to register a higher price rise. It is especially noticeable in the realm of services. In Japan, however, the pace of economic growth was so fast that the economic system and structure failed to proceed along with it and as a result, many frictions, some of which were unduly aggravated, were in evidence. One factor, for instance, may be the wage system adopted on an age and seniority basis, which apparently results in demand being concentrated on workers of younger age groups at relatively lower wage levels. While the supply is short under this situation the wage scale rises higher, and a new position is created wherein the groups of workers of middle and older ages are retained whose working capacity is not utilised to the fullest extent. In order to overcome these difficulties, measures to pro- mote labour mobility are to be put into operation in case of transfer of jobs or retraining of workers, the housing question should be settled first of all. Up to the present, major industries have successfully effected large investments in plants and equipment with the result of achieving a high rate of efficiency in terms of capital invested, but today's business trends seem to indicate that they cannot continue it for long.
In the field of farm products the current policy which is centred principally on rice and wheat must be modified to add perishables such as vegetables with a high rate of income clasticity by giving them a more secure and stable supply system. The structural phase now is far from satisfactory for an unduly high rate of cost is noted in the intermediary stages in the flow of commodities. There is a dire need for im mediate improvement and modernisation of facilities and management. All this is closely related to the application of the Anti-trust Law and import policy. And further, the authorities are formulating overall counter-measures to stabilise prices of consumer goods.
The third factor is the question of social overhead capital, which has failed to keep pace with other activities. While a
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235
JAPAN INTO AFFLUENCE ÷
high growth rate was attained in the nation's economy in an amazingly fast and expanded fashion, social investments lagged far behind others. The lack of capacity in the nation's railway trunk lines and port and harbour facilities is a fact too obvious to mention, while traffic stagnation is of a chronic nature in all major cities.
Shortages in housing, inadequacies in both water and sewerage systems and green belt and other recreational facilities are all common ailments of the nation which com mand immediate attention. It was as early as 1950 that the importance of social investments was taken up, keeping a gradual increase rate every year since then. Today Japan is rated quite high compared with other nations in terms of people's earnings although it is far behind the social demand.
Japan's economy has achieved its growth rate at a high level under a policy which has centred on expanded private investments for plant and equipment and development of the heavy chemical industry. At the present stage, Japan now finds drastic changes taking place in a new environment created b both external and internal factors. Among them are the new pattern of wide-open economy ushered in by the application of a liberal trade policy; a labour shortage; unbalanced conditions created by the attainment of the high growth rate; the reten- tion of obsolete conditions in agriculture and medium and small-scale enterprises; the employment system, and retarded social capital. All of these issues require immediate attention.
At this juncture the authorities of the Government being fully aware of these existing conditions of the country are ever anxious to contribute to the maintenance of a balanced world economy with the spirit of international cooperation. By doing so it is hoped to expand Japan's foreign trade. Meanwhile, efforts will be made to remedy the unbalanced position created by the high growth rate along with structural remodelling and modernisation of the nation's economy.
Trading with Japan? Sure, we are SAFE and STRONG
TOKAI BANK
HEAD OFFICE. NAGOYA JAPAN 844 OVER 170 BRANCHES TASUGHOUT LONDON BRANCH OFFICE
NEW YORK PEPRESENTATIVE OFFICE
236 Page 279 of 344
***
THE
SANWA BANK
LTD.
HEAD OFFICE: OSAKA
JAPAN: 185 BRANCHES
OVERSEAS:
LONDON
NEW YORK
SAN FRANCISCO
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