Andersen, Malene Kjelgaard

Frederiksen, Regitze Helene

Hansen, Sofie

Rivin, Daria

Schoop, Maria Richardt

This paper seeks to answer whether economic growth in GDP is necessary in order to maintain or increase the level of the conditions for welfare, and whether Japan has accomplished to maintain the conditions for welfare in the period 1990-2013 in light of the economic development in the country. To enlighten this, a case study of Japan is done, by analyzing quantitative data and qualitative reports concerning: 1) socio-economy, 2) physical and mental health, 3) education, 4) trust, security, and community, and 5) relations, employment, and societal participation, parallel to the economic development from 1990-2013. The quantitative methods are used on carefully selected data to generate an understanding of the Japanese development while the qualitative methods consist of critically chosen reports to shed light on the politically implemented conditions for the developments, and the effects of such. Using the theoretical framework of the mainstream economics, John Keynes, and critical political economics, the paper argues that the influence of economic growth in GDP on the conditions for welfare appears to be relatively depending on which theoretical approach that defines the term welfare. Where the mainstream economics defines prosperity as welfare, critical political economics includes social indicators, such as the five indicators mentioned in the previous paragraph. However, in the case of the Japanese development, GDP seems to have had an influence in maintaining indicators such as: employment, trust in the national and local government, self-reported health as well as the age-dependency ratio and mortality. On the other hand, a positive development has been found in the following indicators: trust in the local police and the financial institutions as well as an increase in people who feels safe walking alone at night, the education level and life expectancy. The paper seeks to analyze and discuss possible causalities of these developments through the different theoretical scopes, as well as different reports such as reports by the OECD, Statistics Japan, and The Gini Project. It is found beneficial to base the analysis on a critical realist approach in order to question the causality between economic growth and welfare. Furthermore, the initial phases of the report presents a historical overview of Japan’s development combined with a short description of the most relevant features of the society. In conclusion, it is found that the development in Japan has not alone been determined by GDP growth rates, but also by policies, which have influenced the developing of the conditions for welfare in Japan. Thus it is concluded that GDP growth can be useful in achieving basic material needs, after which policies can be used to secure conditions for welfare. Certain welfare indicators have been rising notwithstanding growth, which demonstrates that welfare may not depend solely on growth. Other indicators for welfare have declined in line with growth rates, which thus can lead to conclude that certain welfare conditions can be related to a country’s economic growth, while other can develop regardless of this.This paper seeks to answer whether economic growth in GDP is necessary in order to maintain or increase the level of the conditions for welfare, and whether Japan has accomplished to maintain the conditions for welfare in the period 1990-2013 in light of the economic development in the country. To enlighten this, a case study of Japan is done, by analyzing quantitative data and qualitative reports concerning: 1) socio-economy, 2) physical and mental health, 3) education, 4) trust, security, and community, and 5) relations, employment, and societal participation, parallel to the economic development from 1990-2013. The quantitative methods are used on carefully selected data to generate an understanding of the Japanese development while the qualitative methods consist of critically chosen reports to shed light on the politically implemented conditions for the developments, and the effects of such. Using the theoretical framework of the mainstream economics, John Keynes, and critical political economics, the paper argues that the influence of economic growth in GDP on the conditions for welfare appears to be relatively depending on which theoretical approach that defines the term welfare. Where the mainstream economics defines prosperity as welfare, critical political economics includes social indicators, such as the five indicators mentioned in the previous paragraph. However, in the case of the Japanese development, GDP seems to have had an influence in maintaining indicators such as: employment, trust in the national and local government, self-reported health as well as the age-dependency ratio and mortality. On the other hand, a positive development has been found in the following indicators: trust in the local police and the financial institutions as well as an increase in people who feels safe walking alone at night, the education level and life expectancy. The paper seeks to analyze and discuss possible causalities of these developments through the different theoretical scopes, as well as different reports such as reports by the OECD, Statistics Japan, and The Gini Project. It is found beneficial to base the analysis on a critical realist approach in order to question the causality between economic growth and welfare. Furthermore, the initial phases of the report presents a historical overview of Japan’s development combined with a short description of the most relevant features of the society. In conclusion, it is found that the development in Japan has not alone been determined by GDP growth rates, but also by policies, which have influenced the developing of the conditions for welfare in Japan. Thus it is concluded that GDP growth can be useful in achieving basic material needs, after which policies can be used to secure conditions for welfare. Certain welfare indicators have been rising notwithstanding growth, which demonstrates that welfare may not depend solely on growth. Other indicators for welfare have declined in line with growth rates, which thus can lead to conclude that certain welfare conditions can be related to a country’s economic growth, while other can develop regardless of this

Roskilde Universitet

Velfærd uden vækst? Et casestudie af Japans økonomiske og sociale udvikling, 1990-2013: Welfare without growth? A case study of Japan's economic and social development, 1990-2013

Velfærd uden vækst? Et casestudie af Japans økonomiske og sociale udvikling, 1990-2013: Welfare without growth? A case study of Japan's economic and social development, 1990-2013

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Roskilde Universitet