Economy of Japan in the context of "East Asian model"

East Asia is a geocultural region of Asia. It includes China, Japan, Mongolia, North Korea, South Korea, and Taiwan, plus two special administrative regions of China, Hong Kong and Macau. The economies of China, Japan, South Korea, and Taiwan are among the world's largest and most prosperous. East Asia borders North Asia to the north, Southeast Asia to the south, South Asia to the southwest, and Central Asia to the west. To its east is the Pacific Ocean.

East Asia, especially Chinese civilization, is regarded as one of the earliest cradles of civilization. Other ancient civilizations in East Asia that still exist as independent countries in the present day include the Japanese, Korean, and Mongolian civilizations. Various other civilizations existed as independent polities in East Asia in the past but have since been absorbed into neighbouring civilizations in the present day, such as Tibet, Manchuria, and Ryukyu (Okinawa), among many others. Taiwan has a relatively young history in the region after the prehistoric era; originally, it was a major site of Austronesian civilisation prior to colonisation by European colonial powers and China from the 17th century onward. For thousands of years, China was the leading civilization in the region, exerting influence on its neighbours. Historically, societies in East Asia have fallen within the Chinese sphere of influence, and East Asian vocabularies and scripts are often derived from Classical Chinese and Chinese script. The Chinese calendar serves as the root from which many other East Asian calendars are derived.

Agriculture, forestry, and fishing (Japanese: 農林水産, nōrinsuisan) form the primary sector of industry of the Japanese economy together with the Japanese mining industry. Together, they account for 1.3% of gross national product; only 20% of Japan's land is suitable for cultivation, and the agricultural economy is highly subsidized.

Agriculture, forestry, and fishing dominated the Japanese economy until the 1940s, but thereafter declined into relative unimportance (see Agriculture in the Empire of Japan). In the late 19th century (Meiji period), these sectors had accounted for more than 80% of employment. Employment in agriculture declined in the prewar period, but the sector was still the largest employer (about 50% of the work force) by the end of World War II. It was further declined to 23.5% in 1965, 11.9% in 1977, and to 7.2% in 1988. The importance of agriculture in the national economy later continued its rapid decline, with the share of net agricultural production in GNP finally reduced between 1975 and 1989 from 4.1% to 3% In the late 1980s, 85.5% of Japan's farmers were also engaged in occupations outside farming, and most of these part-time farmers earned most of their income from nonfarming activities.

Japan is a great power and a member of numerous international organizations, including the United Nations (since 1956), the OECD, and the Group of Seven. Although it has renounced its right to declare war, the country maintains Self-Defense Forces that rank as one of the world's strongest militaries. After World War II, Japan experienced record growth in an economic miracle, becoming the second-largest economy in the world by 1990. As of 2021, the country's economy is the third-largest by nominal GDP and the fourth-largest by PPP.

Japan has close economic and military relations with the United States, with which it maintains a security alliance. The United States is a major market for Japanese exports and a major source of Japanese imports, and is committed to defending the country, with military bases in Japan.

Although the Japanese economy is largely based on private enterprise, it has a number of government-owned (public) corporations, which are more extensive and, in some cases, different in function from what exists in the United States.

Japanese popular culture includes Japanese cinema, cuisine, television programs, anime, manga, video games, music, and doujinshi, all of which retain older artistic and literary traditions; many of their themes and styles of presentation can be traced to traditional art forms. Contemporary forms of popular culture, much like the traditional forms, are not only forms of entertainment but also factors that distinguish contemporary Japan from the rest of the modern world. There is a large industry of music, films, and the products of a huge comic book industry, among other forms of entertainment. Game centers, bowling alleys, and karaoke parlors are well-known hangout places for teens while older people may play shogi or go in specialized parlors. After the Meiji Restoration, Japan adopted European and American culture. Today, Japanese popular culture plays a major role in the country's soft power,tourism, and economy, standing as one of the most widespread and famous popular cultures around the world.

A keiretsu (Japanese: 系列; literally system, series, grouping of enterprises, order of succession) is a set of companies with interlocking business relationships and shareholdings that dominated the Japanese economy in the second half of the 20th century. In the legal sense, it is a type of business group that is in a loosely organized alliance within Japan's business community. It rose up to replace the zaibatsu system that was dissolved in the occupation of Japan following the Second World War. Though their influence has shrunk since the late 20th century, they continue to be important forces in Japan's economy in the early 21st century.

The members' companies own small portions of the shares in each other's companies, centered on a core bank; this system helps insulate each company from stock market fluctuations and takeover attempts, thus enabling long-term planning in projects.