ABSTRACT

Japan ,QWKHPLGGOHRIWKHQLQHWHHQWKFHQWXU\LQDQHDUOLHUVWDJHRIJOREDOL]DWLRQZKHQ :HVWHUQQDWLRQVXVHGPLOLWDU\IRUFHWRGHPDQGWKDW$VLDQQDWLRQVRSHQWRWUDGH DQGWRFUHDWHDWKUHDWRIFRORQL]DWLRQ-DSDQZDVDEOHWRXQLWHTXLFNO\DQGGHYHORS WKHLQGXVWULDODQGPLOLWDU\VWUHQJWKWRDYRLGFRORQL]DWLRQ&KLQDZDVQRW

7KHEHJLQQLQJRI-DSDQ·VGHYHORSPHQWSODQQLQJFDQEHGDWHGIURPZKHQ WKH,ZDNXUD0LVVLRQUHWXUQHGIURPLWVZRUOGVWXG\WRXU$VVRRQDV0HLMLOHDGHUVIRUPHGWKHLUJRYHUQPHQWLQWKH\KDGEHJXQSODQQLQJIRUWKH,ZDNXUD 0LVVLRQ²WRVWXG\WKHPRUHGHYHORSHGFRXQWULHVRIWKHZRUOG.H\\RXQJ RIÀFLDOVVHOHFWHGIURPHDFKPDMRUEUDQFKRIWKHJRYHUQPHQWVSHQWWZHQW\RQH PRQWKVRQDWULSWRWKH8QLWHG6WDWHV(XURSHDQG$VLDQFRXQWULHVWRVWXG\PRGHUQ JRYHUQPHQW LQGXVWU\ WUDQVSRUWDWLRQÀQDQFH HGXFDWLRQ DQG FXOWXUH$IWHU UHWXUQLQJWKH\EHJDQSODQQLQJWKHVWUXFWXUHVDQGSURJUDPVQHFHVVDU\WRPRGHUQL]HLQHDFKÀHOG,QPDQ\DUHDVWRGHYHORSPRUHVSHFLÀFSODQVWKHJRYHUQPHQW VSRQVRUHGVSHFLDOL]HGVWXG\WRXUVDQGKLUHGIRUHLJQH[SHUWVWRFRPHWR-DSDQ,W

WRRNVHYHUDOGHFDGHVWRDEROLVKIHXGDOFODVVHVUHSODFHIHXGDOFODQVZLWKFHQWUDOO\ OHGSUHIHFWXUHVZULWHDFRQVWLWXWLRQIRUPDPRGHUQJRYHUQPHQWDQGOHJDOV\VWHP HVWDEOLVKXQLYHUVLWLHVDQGDQDWLRQDOV\VWHPRIFRPSXOVRU\HGXFDWLRQDQGLQWURGXFHRWKHULQVWLWXWLRQVWRVXSSRUWHFRQRPLFJURZWK

7RFDWFKXSOLNH(XURSHDQODWHGHYHORSHUVVXFKDV*HUPDQ\-DSDQDGRSWHGD V\VWHPZLWKPRUHFHQWUDOL]HGJRYHUQPHQWDOHGXFDWLRQDODQGVFLHQWLÀ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ÀQDQFLDOLQVWLWXWLRQVLQHDFKUHJLRQRIWKH HFRQRP\DQGHQFRXUDJHGEDQNVWROHQGWRÀUPVLQVHFWRUVDVVLJQHGSULRULW\7KH SDWWHUQ ZDV WKXV RI D FHQWUDOL]HG JRYHUQPHQWOHG SURJUDPZLWKPDMRU SULYDWH FRPSDQLHVWKDWZRUNHGFORVHO\ZLWKWKHJRYHUQPHQW

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zaibatsuÀQDQFLDOFOLTXHVIRUDJURXSRIFRPSDQLHVLQGLIIHUHQWVHFWRUVLQFOXGLQJ DWUDGLQJFRPSDQ\%HFDXVHWKHVHFRPSDQLHVJUHZZLWKJRYHUQPHQWFRRSHUDWLRQ DQGKHOSWKH\UHPDLQHGUHVSRQVLYHWRJRYHUQPHQWJXLGDQFH

)ROORZLQJ WKH SDWWHUQ RIPDMRU (XURSHDQ FRXQWULHV -DSDQ XVHG LWVPLOLWDU\

SRZHU WR IRUFH&KLQDDQG.RUHD WR\LHOG ODQG WRHVWDEOLVKFRORQLHV 7DLZDQ LQ .RUHDLQDQG0DQFKXULDLQ,WDOVRHVWDEOLVKHGFRORQLDOHFRQRPLFUHODWLRQVLPSRUWLQJULFHIURP.RUHDDQGVXJDUIURP7DLZDQDQGH[SRUWLQJ LQGXVWULDOSURGXFWV

7KH-DSDQHVHJRYHUQPHQWVWDUWHGFRPSDQLHVLQNH\VHFWRUVDQGLWDVVLVWHGNH\ FRPSDQLHV LQRWKHU VHFWRUVEXW LWGLGQRWDLP WRFRQWURO DOOPDMRUSDUWVRI WKH HFRQRP\XQWLOZKHQLWFRQIURQWHGWKHSUREOHPRIVFDUFHUHVRXUFHVQHHGHG IRU WKHZDUPDNLQJPDFKLQH$VLW WRRND ODUJHUUROH LQSODQQLQJDQGVXSHUYLVLQJWKHHFRQRP\WKHJRYHUQPHQWHVWDEOLVKHGDVVRFLDWLRQVLQHDFKNH\LQGXVWULDO VHFWRUWRHVWDEOLVKRXWSXWSODQVWRFKDQQHOUHVRXUFHVRQDSULRULW\EDVLVDQGWR RUJDQL]HWHFKQRORJ\VKDULQJEHWZHHQFRPSDQLHV7KH´V\VWHPµRIJRYHUQPHQW²EXVLQHVVFRRSHUDWLRQLQHDFKVHFWRUEURXJKWDKLJKHUOHYHORIEXUHDXFUDWLF OHDGHUVKLSRYHUWKHHFRQRP\DQGSURYLGHGDIUDPHZRUNIRUJXLGLQJWKHSRVWZDU HFRQRP\HYHQWKRXJKWKHFRQWUROVZHUHORRVHQHGDQGLQGXVWULDOSODQWVSURGXFLQJ ZDUPDNLQJHTXLSPHQWZHUHGLVPDQWOHG:LWKWKHWUXVWEXVWLQJLQWKH2FFXSDWLRQ DIWHU:RUOG:DU,,WKHzaibatsuKROGLQJFRPSDQLHVZHUHDEROLVKHGDOWKRXJKWKH UHODWHGÀUPVPDLQWDLQHGDORRVHDIÀOLDWLRQXQGHUOHVVFHQWUDOL]HGOHDGHUVKLSWKDQ EHIRUHDQGVWLOORIWHQFRRSHUDWHGZLWKHDFKRWKHU

%\ DV WKH SRVWZDU HFRQRPLF VWUXFWXUH WRRN VKDSHPDQ\ IHDWXUHV RI WKH ´ V\VWHPµ UHPDLQHG VHFWRUDO DVVRFLDWLRQV ZLWK JRYHUQPHQW²EXVLQHVV FRRSHUDWLRQVRFRPSDQLHVFRXOGDFTXLUHWKHFDSDFLW\WRH[SDQGDQGFRPSHWHLQ FUXFLDOVHFWRUVDQGSULRULW\ÀQDQFLQJWRVXSSRUW WKHSODQQLQJ7KHJRYHUQPHQW HVWDEOLVKHGLPSRUWFRQWUROVIRUSURGXFWVUHJDUGHGDVLPSRUWDQWIRUWKHIXWXUHDQG LWHVWDEOLVKHGEDUULHUVWKDWPDGHLWGLIÀFXOWIRUIRUHLJQFDSLWDORUIRUHLJQRZQHG FRPSDQLHVWRJDLQDGHHSIRRWKROGLQ-DSDQ:LWKWKLVVWUXFWXUHIURPXQWLO WKHÀUVWRLOVKRFNLQWKH-DSDQHVHHFRQRP\JUHZIDUPRUHUDSLGO\WKDQDQ\ HFRQRP\KDGHYHUJURZQEHIRUH7KH-DSDQHVHHFRQRP\FRQWLQXHGJURZLQJLQ WKHVHQDEOLQJDFURZGHGFRXQWU\ZLWKDSK\VLFDOVSDFHWKHVL]HRI0RQWDQD WREHFRPHWKHVHFRQGODUJHVWHFRQRP\LQWKHZRUOGDQGWRWKUHDWHQ86LQGXVWU\ HYHQLQVHFWRUVVXFKDVDXWRPRELOHVDQGKLJKWHFKQRORJ\

China

,QWKHQLQHWHHQWKFHQWXU\DQGWKHÀUVWKDOIRIWKHWZHQWLHWKFHQWXU\&KLQDQHYHU DFKLHYHGWKHSROLWLFDOXQLW\WRGHYHORSWKHLQVWLWXWLRQVUHTXLUHGIRUPRGHUQL]DWLRQ 7KHGLVLQWHJUDWLRQRIQDWLRQDOSRZHUDQGWKHLQDELOLW\RIWKHQDWLRQDOJRYHUQPHQW WRSURYLGHVHFXULW\FDXVHGSHRSOHRIZHDOWKWRDYRLGLQYHVWLQJLQPRGHUQLQGXVWU\ H[FHSWLQWKHVDIHUIRUHLJQHQFODYHV,QWKHVHHQFODYHV WKH´WUHDW\SRUWVµWKHUH ZDVDKLJK OHYHORIFRPPHUFHDQGVRPHK\EULGRUJDQL]DWLRQV8QGHU-DSDQHVH RFFXSDWLRQ RI0DQFKXULD IURP WR FRQVLGHUDEOH LQGXVWU\ DQG VRPH PRGHUQLQVWLWXWLRQVZHUHLQWURGXFHGEXWWKHQDWLRQDVDZKROHZDVIDUIURPEHLQJ UHDG\IRUHFRQRPLFWDNHRII

&KLQD·VODWHGHYHORSPHQWPD\EHGDWHGIURPZKHQWKH)LUVW)LYH<HDU 3ODQ))<3ZDVLQWURGXFHG$IWHUZKHQWKH&RPPXQLVWVDQG1DWLRQDOLVWV VSOLWWKH&RPPXQLVWVDOOLHGWKHPVHOYHVZLWKWKH6RYLHW8QLRQ7KHDOOLDQFHJUHZ

VWURQJHULQWKHODWHVLQWKHFLYLOZDUDJDLQVWWKH1DWLRQDOLVWVDQGLQ DIWHUWKH&RPPXQLVWVHVWDEOLVKHGWKHLUJRYHUQPHQWLQ%HLMLQJWKHOHDGHUVWXUQHG WRWKH6RYLHW8QLRQDVWKHPRGHODQGWKHVRXUFHRIDVVLVWDQFHIRUGHYHORSPHQW$V DUHVXOWRIWKH.RUHDQ:DU&KLQHVHUHODWLRQVZLWKWKHQRQ&RPPXQLVWZRUOGZHUH HVVHQWLDOO\FXWRII:KHQWKH&KLQHVHJRYHUQPHQWEHJDQLWVFRXUVHRIGHYHORSPHQWZLWKWKH))<3RIDQGVRFLDOLVWWUDQVIRUPDWLRQRI²WKH&ROG :DUZDVLQIXOOVZLQJ&KLQD·VUHODWLRQVZLWKWKH´IUHHZRUOGµZHUHYLUWXDOO\FXW RIIDQGLWVSODQVIRUGHYHORSPHQWZHUHPRGHOHGRQWKH6RYLHW8QLRQ·V

3ULYDWHEXVLQHVVHVZHUHHVVHQWLDOO\DEROLVKHG LQ²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ÀQDQFHRQDSULRULW\EDVLVWRWKHPRVWLPSRUWDQWHQWHUSULVHVVRWKDWWKH\ FRXOGPHHWWKHLUTXRWDV

7KH V\VWHPZDV EDGO\ GLVUXSWHG GXULQJ WKH*UHDW /HDS )RUZDUG ² ZKHQ0DRWULHGWRPRELOL]HWKHSRSXODWLRQDQGVSHHGXSSURGXFWLRQWROHYHOVWKDW SURYHGXQUHDOLVWLFDQGWKH&XOWXUDO5HYROXWLRQ²ZKHQKLJKOHYHORIÀFLDOVLQWKH&RPPXQLVW3DUW\DQGJRYHUQPHQWZHUHXQGHUDWWDFN(YHQIDFWRULHV VSRQVRUHGE\WKH6RYLHW8QLRQZHUHIDUEHKLQGZRUOGOHYHOV5LJLGLWLHVLQSODQQLQJ DOORZHGOLWWOHURRPIRUORFDOLQLWLDWLYHDQGLQFHQWLYHVIRUHIÀFLHQF\ZHUHDEVHQW 7RHQVXUHWKDWWKH\KDGPDWHULDOVQHHGHGIRUSURGXFWLRQVRPHIDFWRULHVKRDUGHG JRRGV0DQ\JRRGVSURGXFHGZHUHQRWXVDEOH<HWRYHUDOO IURP WR WKHUHZDVFRQVLGHUDEOHHFRQRPLFJURZWKLQ&KLQD7KHWUDQVSRUWDWLRQDQGFRPPXQLFDWLRQVWUXFWXUHZDVH[SDQGHG%XWLQWKHVDQGVDV6RXWK.RUHD 7DLZDQ+RQJ.RQJDQG6LQJDSRUHEHJDQWRWDNHRIIWRVD\QRWKLQJRI-DSDQLW ZDVREYLRXVWR&KLQHVHOHDGHUVWKDWWKHVRFLDOLVWV\VWHPWKDW&KLQDKDGDGRSWHG ZDVIDUOHVVHIIHFWLYHLQGHYHORSLQJWKHFRXQWU\WKDQWKHV\VWHPVWRDFKLHYHODWH GHYHORSPHQWLQ-DSDQDQGWKHIRXUOLWWOHGUDJRQV

The historical legacies: democratic constraints versus democratic centralism :KHQ -DSDQ EHJDQ LWV ODWH OLEHUDOL]DWLRQ LQ WKH ODWH V LW KDG D SHU FDSLWD LQFRPHRIRYHU86&KLQDDWWKHVDPHWLPHGHVSLWHUDSLGJURZWKVLQFH VWLOO KDG D SHU FDSLWD LQFRPH RI OHVV WKDQ86 2Q WKH HYH RI ODWH

OLEHUDOL]DWLRQ -DSDQKDG DPRGHUQ HFRQRP\ OLQNHG WR JOREDOPDUNHWVZKHUHDV &KLQDRQWKHHYHRI ODWHOLEHUDOL]DWLRQKDGDEDFNZDUGHFRQRP\JHDUHGDWEHVW WRWUDGHZLWKLQWKH6RYLHWEORF7KHPDMRUIHDWXUHVRIWKHWZRQDWLRQDOHFRQRPLF VWUXFWXUHVZHUHDVIROORZV

Business-government cooperation versus government ownership and operation

,Q-DSDQDVDUHVXOWRIWKHOHJDF\RIWKHV\VWHPDQGLWVSRVWZDUDGDSWDWLRQV WKHUH H[LVWHG D VRSKLVWLFDWHG SDUWQHUVKLS EHWZHHQ JRYHUQPHQW DQG EXVLQHVV WKDW FRPELQHG SULYDWH VHFWRU HQWUHSUHQHXULDO WDOHQW DQG GULYHZLWK JRYHUQPHQW FRRSHUDWLRQ DQG JXLGDQFH &KLQD·V ODUJH HQWHUSULVHV ZHUH VWDWH RZQHG DQG RSHUDWHGDQGHYHQWKHFRRSHUDWLYHVWUXFWXUHDWORZHUOHYHOVSURYLGHGOLWWOHOHHZD\ IRU DGDSWLQJ WR FLUFXPVWDQFHV ,QGLYLGXDO&KLQHVH HQWHUSULVHV GLG QRW KDYH WKH DXWRQRP\WRWDNHPHDQLQJIXOLQLWLDWLYHVWRSHUIRUPDWKLJKOHYHOVRIHIÀFLHQF\RU WDNHDGYDQWDJHRIPDUNHWRSSRUWXQLWLHV

Indicative planning versus socialist planning

,Q ZKHQ -DSDQHVH OHDGHUV IHOW WKHLU NH\ HFRQRPLF WDVN KDGPRYHG IURP VWDELOL]LQJWKHHFRQRP\DQGSUHYHQWLQJLQÁDWLRQWRJURZWKWKH\HVWDEOLVKHGWKH (FRQRPLF 3ODQQLQJ$JHQF\ (3$ 7KH (3$ FROOHFWHG VWDWLVWLFV IURP YDULRXV VHFWRUVRQSURGXFWLRQDQGXVHG LQSXW²RXWSXWPRGHOV WRHVWLPDWH WKHDPRXQWRI LQSXWVUHTXLUHGWRDFKLHYHJURZWKLQYDULRXVVHFWRUV7KLVHQDEOHGHQWUHSUHQHXUVWR DQWLFLSDWHZKDWZDVUHTXLUHGIRUWKHQH[WVWDJHRIGHYHORSPHQWDQGWRUHGXFHWKHLU ULVNVZKHQLQYHVWLQJIRUIXWXUHJURZWK*RYHUQPHQWLQIUDVWUXFWXUDOGHYHORSPHQWV LQ WUDQVSRUWDWLRQFRPPXQLFDWLRQDQGHOHFWULFSRZHUZHUHSODQQHGWRPHHW WKH SURMHFWHG UHTXLUHPHQWV IRU IXWXUH JURZWK 7KH DQWLFLSDWLRQ RI IXWXUH JURZWK DOVRHQDEOHGÀQDQFLDOLQVWLWXWLRQVWRLQYHVWLQSULRULW\SURMHFWVZLWKDUHODWLYHO\ ORZOHYHORIULVN%XWWKHPDMRUSDUWRIWKHHFRQRP\ZDVVWLOOLQSULYDWHKDQGV $NLR0RULWDDFRIRXQGHURI6RQ\KDGREVHUYHGWKDWLQFRXQWULHVZKHUHPRGHUQ LQGXVWU\KDGQRWWDNHQRIIWKHEXUHDXFUDF\WHQGHGWREHVRLQHIÀFLHQWDVWRGDPSHQ GHYHORSPHQWEXWWKDWZKHQDFRXQWU\OLNH-DSDQGHYHORSHGZLGHVSUHDGHIÀFLHQF\ LQLQGXVWU\WKHVSLULWRIHIÀFLHQF\IURPWKHSULYDWHVHFWRUWHQGHGWRVSLOORYHULQWR WKHSXEOLFEXUHDXFUDF\

7KH&KLQHVHJRYHUQPHQWZLWKLWVHODERUDWHSODQQLQJVWUXFWXUHDVVLJQHGSURGXFWLRQWDUJHWV WRHQWHUSULVHVDQGPDGHDQHIIRUW WRVXSSO\WKHHQWHUSULVHVZLWK JRRGVSHRSOHDQGIXQGVQHHGHGWRPHHWWKHWDUJHWV*UDGXDWHVRILQVWLWXWLRQVRI KLJKHUOHDUQLQJZHUHDVVLJQHGWRJRYHUQPHQWRIÀFHVRUVWDWHHQWHUSULVHVDVFDOOHG IRULQWKHSODQV7KHSODQQLQJZDVEXUHDXFUDWLFULJLGDQGLQHIÀFLHQW

Democracy versus democratic centralism

%\WKHV-DSDQKDGHQMR\HGDIXOO\IXQFWLRQLQJGHPRFUDF\IRUGHFDGHVEXW WKH FRQVHQVXVRQQDWLRQDOJRDOVKDGEHJXQ WRGLVDSSHDU$V HDUO\ DV WKH0HLML 3HULRG-DSDQKDGGHYHORSHGDVVHPEOLHV WKH'LHWDQGORFDOJRYHUQPHQWERGLHV

ZKLFKKHOGSXEOLFGLVFXVVLRQRILPSRUWDQWLVVXHV$OWKRXJKWKHVSURXWVRIDQHZ PLGGOH FODVV DQGGHPRFUDF\ WKDW KDGEHJXQ LQ WKHVZHUH VQXIIHGRXW E\ PLOLWDULVPLQWKHVWKH\VWLOOSURYLGHGDEDVHIRUWKHH[WHQVLRQRIGHPRFUDF\ LQWKHV(YHQWKRXJKGHPRFUDWLFUHIRUPVKDGEHHQLQWURGXFHGE\DQ$OOLHG 2FFXSDWLRQWKH\FRQWLQXHGDIWHUWKH2FFXSDWLRQHQGHGLQ

)URPWKHHQGRI:RUOG:DU,,WKURXJKWKHV-DSDQHQMR\HGDFOHDUFRQVHQVXVIRUSURPRWLQJHFRQRPLFJURZWKFDWFKLQJXSZLWKDQGHYHQVXUSDVVLQJRWKHU LQGXVWULDOL]HGFRXQWULHV:KHQWKLVZDVDFKLHYHGLQWKHVWKHFRQVHQVXVDERXW JRDOVIHOODSDUW9DULRXVVSHFLDOL]HGLQWHUHVWJURXSVUHSUHVHQWLQJDJULFXOWXUHUHWDLO HVWDEOLVKPHQWVDQGGLIIHUHQWORFDODUHDVKDGORQJFRQVWUDLQHGHIIRUWVWRZDUGWUDGH OLEHUDOL]DWLRQ%\WKHODWHVPRVWSHRSOHZKRKDGNQRZQSRRUHUGD\VZHUH KDSS\ZLWK WKHLU OLIHVW\OHEXW VLQFH WKH\KDGDFKLHYHG WKHJRDORIFDWFKLQJXS ZLWKWKH:HVWWKHUHZDVQRORQJHUDQRYHUULGLQJJRDODQGQRFHQWUDOL]HGSRZHU VWUXFWXUH WKDW FRXOGRYHUFRPHVSHFLDO LQWHUHVWV&RQVXPHUVZKRKDGEHQHÀWHG HQRUPRXVO\IURPUDSLGJURZWKDQGGHÀQHGWKHLULQWHUHVWVLQWKHLUUROHDVHPSOR\- HHVDVZHOODVFRQVXPHUVGLGQRWSUHVVXUHWKHJRYHUQPHQWWRLPSRUWSURGXFWVWR ORZHUFRQVXPHUSULFHVDQGWKXVRIIHUHGQRFRXQWHUZHLJKWWRVSHFLDOL]HGSURGXFHU LQWHUHVWV7KH/LEHUDO'HPRFUDWLF3DUW\ZKLFKFRQWUROOHGWKHJRYHUQPHQWIURP WRKDGSURYLGHGDPHDVXUHRIFRKHUHQFHDQGFRQVLVWHQF\EXWDIWHU ZKHQLWORVWLWVPDMRULW\LQWKH'LHWWKLVEHFDPHYLUWXDOO\LPSRVVLEOH

7KH GHPRFUDWLF FHQWUDOLVP RI &KLQD WKHRUHWLFDOO\ DOORZHG ORFDO SHRSOH DQG RIÀFLDOVWRH[SUHVVWKHLUYLHZV+RZHYHURQFHYLHZVKDGEHHQIRUZDUGHGWRWKH WRSWKHQWKHWRSKDGWKHSRZHUWRPDNHGHFLVLRQVLQWKHLQWHUHVWRIWKHZKROHDQG SHRSOHEHORZZHUHH[SHFWHGWRIROORZ'XULQJKLVOLIHWLPH0DR=HGRQJGRPLQDWHGGHFLVLRQPDNLQJ$IWHU0DR·VGHDWKVWHSVZHUHWDNHQWRSUHYHQWDVLQJOH LQGLYLGXDOIURPGRPLQDWLQJWKHGHFLVLRQPDNLQJDQGWRHVWDEOLVKVHWSURFHGXUHV IRUGHFLVLRQPDNLQJDOOXQGHUWKHOHDGHUVKLSRIWKH&RPPXQLVW3DUW\+RZHYHU &KLQHVHOHDGHUVVWLOOKDGIDUPRUHOHHZD\WRPDNHGHFLVLRQVIRUWKHFRXQWU\WKDQ -DSDQHVH EXUHDXFUDWLF DQG SROLWLFDO OHDGHUV ZKR ZHUH JUHDWO\ FRQVWUDLQHG E\ LQWHUHVWJURXSVDVZHOODVE\HOHFWLRQV

7KH&KLQHVH&RPPXQLVW3DUW\ &&3DOVRFRQWUROOHG WKHPHGLDDQGVHWRXW ´FRUUHFWSROLFLHVµDQG´FRUUHFWLGHDVµWKDWJXLGHGDOOSXEOLFDWLRQVDQGWHOHYLVLRQ 'XULQJWKHHDUO\VWKHUHZDVVRPHH[SDQVLRQRIWKHUDQJHRIDFFHSWDEOHRSLQLRQEXWWKLVZDVDJDLQFRQVWUDLQHGGXULQJWKH&XOWXUDO5HYROXWLRQ$IWHU0DR·V GHDWKDQGWKHFDSWXUHRIWKH´ JDQJRIIRXUµ0DR·VZLIHDQGKHUFORVHVWDVVRFLDWHV WKHUDQJHRISHUPLWWHGSXEOLFGLVFXVVLRQH[SDQGHGEXWWKH&RPPXQLVW3DUW\VWLOO GHÀQHGWKHUDQJHRIDFFHSWDEOHGLVFRXUVH

Japan ,Q-DSDQORVWLWVFRORQLHVZKLFKKDGVXSSOLHGLWZLWKIRRGDQGRWKHUUDZ PDWHULDOVDQGLWJDLQHGVRPHPLOOLRQSHRSOHZKRUHWXUQHGIURPOLYLQJRYHUVHDV $OO-DSDQHVHNQRZLQJWKDWWKHLUFRXQWU\KDGYLUWXDOO\QRUDZPDWHULDOVDQGQRW

HQRXJKIRRGWRIHHGLWVSRSXODWLRQUHDOL]HGWKDW-DSDQKDGWRH[SRUWWRVXUYLYHDQG WKDWLWVRQO\KRSHIRUH[SRUWOD\LQLQGXVWULDOSURGXFWV-DSDQHVHFDUHIXOO\VWXGLHG ZRUOGPDUNHWV WRXQGHUVWDQG LQGXVWULDOFRPSHWLWLRQDQG WRJDLQ WKH WHFKQRORJ\ DQGPDQDJHPHQWV\VWHPVUHTXLUHGWRFRPSHWHLQZRUOGPDUNHWV8QWLOWKH$OOLHG 2FFXSDWLRQHQGHGLQLWZRXOGKDYHEHHQHDV\IRUPDQ\IRUHLJQFRPSDQLHV WRHVWDEOLVKEUDQFKHVLQ-DSDQEXWDWWKHWLPHIRUHLJQFRPSDQLHVFRQVLGHUHGWKH -DSDQHVHPDUNHWVRVPDOODQGODFNLQJLQSURPLVHWKDWIHZKDGPRYHGWRGRVR

-DSDQHVHRIÀFLDOVUHDOL]HGWKDWWRFDWFKXSZLWKWKH:HVWLWZDVFKHDSHUWRVWXG\ IRUHLJQWHFKQRORJ\WRWUDLQHQJLQHHUVLQVFLHQFHVRWKDWWKH\FRXOGIROORZZRUOG VFLHQWLÀFGHYHORSPHQWVDQGSRWHQWLDOWHFKQLFDODSSOLFDWLRQVDQGLIQHFHVVDU\WR OLFHQVHIRUHLJQWHFKQRORJ\WKDQLWZDVWRLQYHVWLQEDVLFVFLHQFHDQGWHFKQRORJ\ ,QWKHVIRUHLJQFRPSDQLHVKDGORZH[SHFWDWLRQVRIWKHRSSRUWXQLWLHVLQWKH -DSDQHVHPDUNHWDQGRI WKHFRPSHWLWLYHQHVVRI-DSDQHVHLQGXVWU\DQGWKHUHIRUH OLFHQVHGWHFKQRORJ\FKHDSO\DQGYRLFHGIHZSURWHVWVDV-DSDQSXWLQSODFHUXOHV DQGSUDFWLFHV WKDWPDGHLWGLIÀFXOW IRUIRUHLJQFRPSDQLHV WRHQWHU WKH-DSDQHVH PDUNHW(YHQZLWKDOOWKHHIIRUWVWRUHVWUDLQLPSRUWVEHFDXVH-DSDQHVHLQGXVWU\ ZDVWKHQIDUEHKLQGZRUOGVWDQGDUGVLWZDVQRWXQWLOWZHQW\ÀYH\HDUVDIWHU WKHHQGRI:RUOG:DU,,WKDW-DSDQEHJDQWRKDYHDSRVLWLYHWUDGHEDODQFH

(YHQLQWKHVDV-DSDQHVHWH[WLOHVDQGHOHFWURQLFSURGXFWVEHJDQWRRYHUZKHOPFRPSHWLWLRQLQWKH86PDUNHWWKHUHDFWLRQRI86FRPSHWLWRUVZDVQRWWR IRFXVRQRSSRUWXQLWLHVWRHQWHUWKH-DSDQHVHPDUNHWZKLFKVWLOOVHHPHGVPDOOEXW WRDVN-DSDQHVHFRPSDQLHVWRUHVWUDLQWKHLUH[SRUWVWRWKH8QLWHG6WDWHVWKHUHDOO\ ODUJHPDUNHW-DSDQHVHRIÀFLDOVDQGEXVLQHVVOHDGHUVUHDOL]HGWKDW LI WKH8QLWHG 6WDWHVHQDFWHGOHJLVODWLRQWRFXUE-DSDQHVHLPSRUWVWKH\ZRXOGKDYHQRÁH[LELOLW\ LQ UHVSRQGLQJ DQG WKHUHIRUH -DSDQHVH FRPSDQLHV WKURXJK WKHPHGLDWLRQ RI -DSDQHVHJRYHUQPHQWRIÀFLDOVDJUHHGWRDFFHSW´YROXQWDU\UHVWUDLQWDJUHHPHQWVµ OLPLWLQJWKHLUH[SRUWVWRWKH8QLWHG6WDWHV

%\ WKH V DV WKH -DSDQHVHPDUNHW JUHZ86PDQXIDFWXUHUV LQ NH\ VHFWRUVVXFKDVDXWRPRELOHVVHPLFRQGXFWRUVDQGFRPSXWHUVFDPHWRUHDOL]HWKDWD SURWHFWHGKRPHPDUNHWJDYH-DSDQHVHFRPSHWLWLRQDQHQRUPRXVDGYDQWDJHDQG WKHUHIRUH86SUHVVXUHVWRIRUFH-DSDQWRUHGXFH´ XQIDLUµWUDGHEDUULHUVJUHZ-DSDQ ZDVIRUFHGWRHOLPLQDWHPDQ\RILWVIRUPDOWUDGHEDUULHUV,QPDQ\FRXQWULHVVXFK DVWKH8QLWHG6WDWHVWKHGRPLQDQWHFRQRPLFSKLORVRSK\RIJRYHUQPHQWRIÀFLDOV LVWRSURYLGHDIUHHDQGRSHQPDUNHWZLWKDSSURSULDWHUXOHVDQGOHWFRPSDQLHV FRPSHWH,Q-DSDQEXUHDXFUDWVLQHFRQRPLFPLQLVWULHVKDGWKHUHVSRQVLELOLW\IRU VHHLQJWKDW-DSDQJUHZDQGFRPSHWHGHIIHFWLYHO\DJDLQVWIRUHLJQFRPSHWLWRUVLQ VHFWRUVZLWKLQWKHLUMXULVGLFWLRQ7KXVRQFHWKHIRUHLJQSUHVVXUHIRURSHQLQJXS WKHPDUNHWVLQFUHDVHGLWZDVVWLOOWKHUHVSRQVLELOLW\RIWKH-DSDQHVHEXUHDXFUDWV LQWKHLUDUHDVWRZRUNZLWK-DSDQHVHFRPSDQLHVWRÀQGLQIRUPDOZD\VWKDWLQIDFW PDGHLWGLIÀFXOWIRUIRUHLJQFRPSDQLHVWRSHQHWUDWHWKH-DSDQHVHPDUNHW)RUHLJQ JRYHUQPHQWV WKHQKDG WRZRUNKDUG WR LGHQWLI\ DQG HOLPLQDWH WKHVH ´QRQWDULII EDUULHUVµ2QFH86RIÀFLDOVLGHQWLÀHGWKHQRQWDULIIEDUULHUVDQGSODFHGSUHVVXUH RQ-DSDQLILWZLVKHGWRUHWDLQDFFHVVWRZRUOGPDUNHWV-DSDQZDVIRUFHGWRPDNH VRPHSURJUHVVLQHOLPLQDWLQJEDUULHUVDQGPDNLQJLWHDVLHUIRUIRUHLJQFRPSDQLHV WRHVWDEOLVKWKHPVHOYHVLQ-DSDQEXW-DSDQHVHRIÀFLDOVDQGFRPSDQLHVIRXQGFUHDWLYHZD\VWRGHOD\WKHSURFHVV

-DSDQHVHLQGXVWULDOSURGXFWVKDGEHJXQWRVXFFHHGLQZRUOGPDUNHWVEHFDXVH -DSDQHVHPDQXIDFWXUHUVKDGVWXGLHGIRUHLJQPDUNHWVDQGZRUNHGKDUGWRFXWFRVWV UDLVHTXDOLW\DQGGRZKDWHYHUHOVHZDVQHFHVVDU\WRJDLQHQWU\LQJOREDOPDUNHWV 7KH\KDG LQ IDFWPDGHH[WUDRUGLQDU\SURJUHVV LQSURGXFWLRQEHFRPLQJRYHUDOO ZRUOGOHDGHUVLQPDQXIDFWXULQJWHFKQRORJ\,QFRQWUDVW-DSDQHVHÀQDQFLDOFRPSDQLHVLQWKHVDQGVGLGQRWJRDEURDGWRFRPSHWHLQIRUHLJQPDUNHWV QRUGLGWKH\KDYHWRFRPSHWHLQWKHZHOOSURWHFWHGORFDOPDUNHWV7KXV-DSDQHVH ÀQDQFLDOÀUPV ODJJHGEHKLQG WKHLU LQWHUQDWLRQDOFRPSHWLWRUV LQHIÀFLHQF\FRQVXPHUVHUYLFHVDQGGHYHORSPHQWRIVRSKLVWLFDWHGSURGXFWV7KLVGLGQRWFUHDWH VHYHUH SUREOHPV LQ WKH V DQG V EXW E\ WKH V -DSDQHVH ÀQDQFLDO LQVWLWXWLRQVKDGEHJXQWRIHHOQHZSUHVVXUHVIURPVHYHUDOVRXUFHV7KHPRVWVXFFHVVIXO-DSDQHVHLQGXVWULDOSURGXFHUVZHUHDFFXPXODWLQJVRPXFKFDSLWDOWKDWWKH\ QRORQJHUQHHGHGWRERUURZIURP-DSDQHVHEDQNV-DSDQHVHÀQDQFLDOLQVWLWXWLRQV ÁXVKZLWKFDSLWDOKDGWRÀQGQHZFXVWRPHUVWRZKRPWROHQGDQGWKLVZDVJHQHUDOO\PXFKULVNLHU:LWKWKHLUH[FHVVFDSLWDOWKH\ZHUHZLOOLQJWRLQYHVWLQWKHUHDO HVWDWHPDUNHWVZKLFKFUHDWHGKXJHUHDOHVWDWHEXEEOHV)XUWKHUPRUHEHFDXVHVR PDQ\ -DSDQHVH FRPSDQLHV KDG JRQH DEURDG DQG KDG DFFHVV WR IRUHLJQ FDSLWDO WKH -DSDQHVH)LQDQFH0LQLVWU\KDGPRUH WURXEOHFRQWUROOLQJ -DSDQHVHÀQDQFLDO LQVWLWXWLRQV,QSDUWLFXODUWKHJURZWKRIZRUOGZLGHHTXLW\PDUNHWVUHODWLYHWRWUDGLWLRQDOEDQNOHQGLQJFRPSOLFDWHGWKHHIIRUWVRIWKH)LQDQFH0LQLVWU\WRFRQWURO ÀQDQFLDOLQVWLWXWLRQV-DSDQHVHÀQDQFLDOLQVWLWXWLRQVGXULQJWKHODWHVÁXVK ZLWK FDSLWDO H[SDQGHG WKHLU RSHUDWLRQV DEURDG EXW WKH\ VRRQ IRXQG WKDW WKH\ ODFNHG WKHVNLOOV WRFRPSHWH LQ LQWHUQDWLRQDOPDUNHWV:LWK WKHJOREDOL]DWLRQRI FDSLWDOPDUNHWVDQGWKHJURZWKRIJOREDOHTXLW\PDUNHWVFRPSDUHGZLWKEDQNLQJ DVWKHVRXUFHRIFDSLWDO-DSDQHVHDXWKRULWLHVZHUHIRUFHGWRDOORZPRUHIRUHLJQ ÀQDQFLDOÀUPVLQWR-DSDQ·VGRPHVWLFPDUNHWHYHQEHIRUH-DSDQHVHÀQDQFLDOLQVWLWXWLRQVZHUHHIIHFWLYHFRPSHWLWRUV

,QVKRUW-DSDQHVHOHDGHUVLQJRYHUQPHQWDQGEXVLQHVVLQERWKLQGXVWU\DQG ÀQDQFH UHPDLQHG DV WKH\ KDG EHHQ EHIRUH UHOXFWDQW OLEHUDOL]HUV 7KH -DSDQHVHSHRSOHKDGDFKLHYHGDKLJK VWDQGDUGRI OLYLQJDQGKDG VXFFHHGHGE\ UHPDLQLQJLQVXODU7KH\EHJDQWROLEHUDOL]HRQO\ZKHQIRUFHGWRE\WKHSUHVVXUHV IURPIRUHLJQJRYHUQPHQWVDQGJOREDOPDUNHWV

China

:KHQ 'HQJ ;LDRSLQJ OHG WKH &KLQHVH LQWR UHIRUP DQG RSHQLQJ XS LQ &KLQDZDVIDUEHKLQGJOREDOVWDQGDUGVLQLQGXVWU\LQÀQDQFHLQHGXFDWLRQDQG LQSK\VLFDODQGLQVWLWXWLRQDOLQIUDVWUXFWXUHV,WGLGQRWKDYHWKHWLPHWREXLOGXS LWVRZQLQVWLWXWLRQVDQGVNLOOHGSHUVRQQHOWKHZD\-DSDQGLGDIWHURUHYHQ DIWHU7KHGLVDVWHUVRIWKH*UHDW/HDS)RUZDUGDQGWKH&XOWXUDO5HYROXWLRQ LQFUHDVHG WKH QHHG IRU GUDVWLF FKDQJH WR HOLPLQDWH SRYHUW\ DQG UHGXFH WKH JDS ZLWKIRUHLJQFRXQWULHV7RUDLVHLWVVWDQGDUGRIOLYLQJ&KLQDQHHGHGWREHPRUH RSHQWRIRUHLJQLQYHVWPHQWWRLPSRUWVRIIRUHLJQSURGXFHUJRRGVDQGWRIRUHLJQ DVVLVWDQFH WKDQ -DSDQ ZDV DW FRPSDUDEOH VWDJHV RI GHYHORSPHQW &KLQD·V WRS RIÀFLDOVZHUHDOVRFRQÀGHQWWKDWWKHLUKXJHQDWLRQFRXOGDOORZRYHUVHDV&KLQHVH

DQGRWKHUIRUHLJQHUVWRJDLQDIRRWKROGZLWKRXWFDXVLQJORQJWHUPGRPLQDWLRQRI &KLQDE\IRUHLJQHUV%HFDXVH&KLQDZDVIDUPRUHXQLWHGWKDQEHIRUHDQG EHFDXVHIRUHLJQFRORQL]DWLRQZDVODUJHO\DVSHQWIRUFHWKH&KLQHVHZHUHIDUOHVV ZRUULHGDERXWORQJWHUPGRPLQDWLRQWKDQWKH\KDGEHHQGHFDGHVHDUOLHUDQGIDU PRUHFRQFHUQHGDERXWJHWWLQJJURZWKVWDUWHGUDSLGO\

%HFDXVHWKH&KLQHVHJRYHUQPHQWDQGLQGXVWULDOVWUXFWXUHZHUHVRKRSHOHVVO\ EHKLQGZRUOG VWDQGDUGV WKH FRXQWU\·V WRS OHDGHUV UHDOL]HG WKDW&KLQD XUJHQWO\ QHHGHGIDUUHDFKLQJGRPHVWLFUHIRUPVDQGWKDWIRUHLJQÀUPVLQ&KLQDFRXOGSURYLGHUDSLGWUDQVIHURIWHFKQRORJ\DQGPDQDJHULDONQRZKRZ7KH\DOVRNQHZWKDW LQVXFKDKXJHFRXQWU\ZLWKVRPDQ\ORFDORIÀFLDOVODFNLQJNQRZOHGJHRILQWHUQDWLRQDOVWDQGDUGVIRUHLJQLQYHVWPHQWIRUHLJQWHFKQRORJ\DQGIRUHLJQPDQDJHPHQW DQGPDUNHWVFRXOGKHOSRYHUFRPHORFDOUHVLVWDQFH

%HFDXVH&KLQDGLGQRWKDYHGHPRFUDF\WKHWRSOHDGHUVZHUHDEOHWRWDNHVWURQJ PHDVXUHVWRRSHQXSWKHFRXQWU\GHVSLWHUHVLVWDQFHIURPORFDORIÀFLDOVDQGORFDO VHFWRUV7KH&KLQHVHJRYHUQPHQWGLGHQRXJKLQWKLVDUHDWRDOORZHQWUHSUHQHXUVKLS WRGHYHORS3HRSOHDQGHYHQRIÀFLDOVZHUHJLYHQWKHÁH[LELOLW\WRWDNHLQLWLDWLYHV WRLPSURYHWKHLUVWDQGDUGRIOLYLQJDQGWKLVSURYLGHGDEDVHRISRSXODUVXSSRUWIRU WKHEROGDFWLRQVWKDWOHDGHUVFRXOGWDNHWREULQJLQIRUHLJQLQGXVWU\

,QVKRUWEHFDXVH&KLQHVHOLEHUDOL]DWLRQLQWKHODWHVRFFXUUHGZKHQWKH &KLQHVHZHUHVRSRRUWKHUHZDVZLGHVSUHDGUHFRJQLWLRQDPRQJOHDGHUVDQGDPRQJ RUGLQDU\SHRSOHWKDWWKH\QHHGHGVXEVWDQWLDOUHIRUPVDQGOLEHUDOL]DWLRQWREULQJ SURVSHULW\,QFRPSDULVRQZLWK-DSDQZKHUHLQSHRSOHDOUHDG\KDGDKLJK VWDQGDUGRIOLYLQJDQGZKHUHORFDODQGVHFWRUDOLQWHUHVWVFRXOGEORFNOLEHUDOL]DWLRQVWHSVE\WKHQDWLRQDOJRYHUQPHQWWKURXJKGHPRFUDWLFSURFHVVHVWKH&KLQHVH WRSRIÀFLDOVWKRXJKOHDGLQJDQDWLRQWKDWZDVIDUEHKLQGDQGXQDEOHWROLQNWUDFNV HDVLO\ZLWKJOREDOLQVWLWXWLRQVIRXQGLWUHODWLYHO\HDV\WRDGRSWPHDVXUHVWKDWVXSSRUWHG OLEHUDOL]DWLRQ&KLQHVH ORFDORIÀFLDOVDQG ORFDO VHFWRUVFRXOGRIFRXUVH ÀQGZD\V WR VORZGRZQ IRUHLJQ HQFURDFKPHQW LQ WKHLU WHUULWRU\ DQG WR IXUWKHU WKHLURZQLQWHUHVWV%XWWKHWRSQDWLRQDOOHDGHUVIXOO\FRQYLQFHGRIWKHYDOXHRI RSHQLQJXSWKHFRXQWU\FRXOGXVHJOREDOPDUNHWSUHVVXUHVQRWRQO\WRHQKDQFH WKHLQYHVWPHQWLQ&KLQDDQGWKHWUDQVIHURIWHFKQRORJ\EXWDOVRWRKHOSGULYHWKH UHIRUPSURFHVVLWVHOI

Concluding remarks $VWKHHGLWRUVWRWKLVYROXPHKLJKOLJKWLQWKHLULQWURGXFWRU\FKDSWHUWKHFHQWUDOL]HG VWUXFWXUHWKDWODWHGHYHORSHUVOLNH&KLQDDQG-DSDQHUHFWHGKLVWRULFDOO\WRFDWFKXS ZLWKDGYDQFHGFRXQWULHVLVQRZEHLQJDOWHUHGWRSURYLGHWKHÁH[LELOLW\WRDGDSWWR WKHPRUHFRPSOH[HFRQRP\DQGWKHOLQNVZLWKWKHJOREDOL]HGHFRQRPLHV:KLOH WKHSURFHVVRISXWWLQJLQSODFHLQVWLWXWLRQVIRUODWHGHYHORSPHQWKDVEHHQVWXGLHG WKHUHLVOLWWOHLQIRUPDWLRQDERXWKRZDQGLQZKDWZD\VVWDWHVLQWKHVHHFRQRPLHV KDYHDGDSWHGWRWKHSUHVVXUHVIRUODWHOLEHUDOL]DWLRQLQWKHWZHQW\ÀUVWFHQWXU\

:KDWFKDOOHQJHVDUHWKHWZRVWDWHVIDFHGZLWK":KDWKDYHWKH\GRQHWRDGDSW" :KDWDFWRUVDQGVWUXFWXUHVDUHFHQWUDOWRGD\LQWKLVDGDSWLYHSURFHVV"&KLQDZLWK LWVVRFLDOLVWVWUXFWXUHKDVRQHVHWRILQVWLWXWLRQVWRPRGLI\EXWLWKDVDVWURQJFHQWUDO

OHDGHUVKLSDGGUHVVLQJWKRVHSUREOHPV-DSDQKDVDQRWKHUPRUHÁH[LEOHVWUXFWXUH WKDW VWLOO QHHGVPRGLÀFDWLRQEXW LVZHLJKWHGGRZQZLWK DGHPRFUDWLF VWUXFWXUH WKDW FRQWLQXHV WR SURYLGHPRUH SURWHFWLRQ WR VRPH VHFWRUV WKDQ RWKHUV ,Q WKLV SLRQHHULQJZRUN-DSDQDQG&KLQDVSHFLDOLVWVFRPSDUHDQGFRQWUDVWKRZWKHVWDWHV LQWKHVHWZRFRXQWULHVZLWKWKHVHGLIIHUHQWEDFNJURXQGVDUHFRSLQJZLWKWKHVDPH SUHVVXUHVRIJOREDOL]DWLRQDFURVVÀYHFULWLFDOHFRQRPLFDUHDVQDPHO\GHYHORSPHQW WUDGH LQYHVWPHQWÀQDQFHDQG WHFKQRORJ\$V WKHHGLWRUVKLJKOLJKW IURP WKHVWXGLHVWKHUHDUHVLJQLÀFDQWYDULDWLRQVDFURVVWKHVHDUHDVLQWKHPDUFKWRZDUG OLEHUDOL]DWLRQZKLFKPHDQVWKDWZHVKRXOGEHFDXWLRXVDERXWPDNLQJRSWLPLVWLF SURMHFWLRQVRIPDUNHWEDVHGOLEHUDOL]DWLRQ