Introducing Foreign Models for Development: Japanese Experience and Cooperation in the Age of New Technology (Emerging-Economy State and International Policy Studies)

This open access book studies how foreign models of economic development can be effectively learned by and applied to today’s latecomer countries. Policy capacity and societal learning are increasingly stressed as pre-conditions for successful catch-up. However, how such learning should be initiated by individual societies with different features needs to be explained. The book answers this pragmatic question from the perspective of Japan’s past experience and its extensive development cooperation in Asia, Africa, and Latin America. Since the late nineteenth century, Japan has developed a unique philosophy and method for adopting advanced technologies and systems from the West; the same philosophy and method govern its current cooperation with the developing world. The key concepts are local learning and translative adaptation. Local learning says that development requires the learner to adopt a proactive mindset and the goal of graduating from receiving aid. Meanwhile, translative adaptation requires foreign models be modified to fit local realities given the different structures of the home and foreign society. The development process must be wholly owned by the domestic society in rejection of copy-and-paste acceptance. These ideas not only informed Japan but are key to successful development for all. The book also asks how this learning method should―or should not―be revised in the age of SDGs and digitalization. Following the overview section that lays out the general principles, the book offers many real cases from Japan and other countries. The concrete actions outlined in these cases, with close attention to individual growth “ingredients” as opposed to general theories, are crucial to successful policy making. The book contains materials that are highly useful for national leaders and practitioners within developing countries as well as students of development studies. Foreword Preface and Acknowledgements Contents About the Editors and Contributors Abbreviations List of Figures List of Tables Part I Translative Adaptation in the Industrialization Process 1 Introducing Foreign Models for Development: A Perspective from Translative Adaptation 1.1 Introduction 1.2 Key Concepts and Analytical Frameworks 1.2.1 Translative Adaptation and Local Learning 1.2.2 Two Types of Local Learning: ‘Policy Learning’ and ‘Societal Learning’ 1.3 Revisiting Japanese Experiences of Industrial Development and Development Cooperation 1.3.1 Japanese Perspectives on Industrial Development 1.3.2 The Japanese Approach to Industrial Development Cooperation 1.3.3 Regional Diffusion of Learning in East Asia 1.4 Approach, Structure, and Main Themes of This Book 1.4.1 Case Study Approach 1.4.2 Structure of This Book and Main Themes to Be Addressed 1.5 Findings of the Remaining Chapters and the Way Forward 1.5.1 Findings Related to the Key Ingredients of Translative Adaptation and Effective Local Learning 1.5.2 Implications of the New Industrial Landscape and the Way Forward References 2 Industrial Policies for Learning, Innovation, and Transformation: Insights from Japan and Selected Countries 2.1 Introduction 2.2 Essential Aspects of Industrial Policies and Typology of Industrial Policy Measures 2.2.1 Broader Scope of Industrial Policy 2.2.2 Critical Role of ‘Learning’ for Industrial Policy 2.2.3 Structural Transformation as an Overarching Purpose of Industrial Policy 2.2.4 Typology of Industrial Policy Instruments/Measures 2.2.5 Key Policy Areas and Domains of Industrial Policy 2.2.6 Process of Formulation and Implementation of Industrial Policy 2.3 Country Experiences 2.3.1 Japan 2.3.2 Korea 2.3.3 Malaysia 2.3.4 Brazil 2.3.5 Chile 2.4 Comparison of Industrial Policies in Key Areas: Insights from Country Experiences 2.4.1 Technology, Long-Term Finance, and FDI 2.4.2 Firm Capabilities, Especially of SMEs 2.4.3 Competition in Domestic Markets, Scheduled Trade Liberalization, and Export Promotion 2.4.4 Formulation and Implementation of Industrial Policies and the Public and Private Relationship 2.5 Translative Adaptation and Local Learning: Insights from Country Experiences 2.6 Concluding Remarks References Part II Case Studies from Japan, Asia, Latin America, and Africa 3 Japan’s State Learning in the Meiji Period from the Vision Perspective 3.1 Introduction 3.2 Why Does Japan’s Experience Matter? 3.3 The Experience of Meiji Japan in Vision Formulation and Learning 3.3.1 Ministry of Engineering Era (1868–1873) 3.3.2 Ministry of Home Affairs Era (1873–1880) 3.3.3 Ministry of Agriculture and Commerce Era (1881–1897) 3.3.4 Comparison of the Three Eras 3.4 Analysis of the Learning Process 3.4.1 Learning Factors 3.4.2 Triggers 3.5 Conclusions: Implications for Today’s Developing Countries References 4 National Movements for Quality and Productivity Improvement with Local Adaptation: The Experience of Japan and Singapore 4.1 Introduction 4.2 Japan: The Experience of a Private Sector-Led National Movement 4.2.1 Leadership and the Role of Core Organizations 4.2.2 Analysis of the Three-Staged Process of Technology Transfer and Local Learning 4.2.3 The Role of Academia, Industry, and Government in Local Learning and Translative Adaptation Process 4.3 Singapore: The Experience of the Government-Led National Movement 4.3.1 Leadership and the Role of Core Organizations 4.3.2 Analysis of Three-Stage Evolution of the Productivity Movement 4.3.3 Mechanisms for Stakeholder Engagement in the Productivity Movement 4.4 A Chain of Learning and Diffusion of Quality and Productivity Improvement 4.5 Conclusion: Implications for Successful National Movements 4.5.1 National Movements as Societal Learning 4.5.2 Six Critical Factors for Successful National Movements References 5 Bilateral Policy Dialogue: Japanese Cooperation for Enhancing Industrial Policy Capacity 5.1 Introduction 5.2 Features of the Japanese Policy Dialogue 5.3 Argentina, 1985–1987 and 1994–1996 5.3.1 Background 5.3.2 Main Pillars and Recommendations 5.3.3 How the Report Was Received 5.3.4 The Follow-Up Reports and Sectoral Cooperation Projects 5.3.5 Assessment 5.4 Vietnam, 1995–2001 5.4.1 Background 5.4.2 A Penchant for Heavy Industries 5.4.3 Three Phases 5.4.4 Industrial Policy Controversies and Japan’s Position 5.4.5 Characteristics of the Ishikawa Project 5.4.6 Achievements, Lessons, and Remaining Issues 5.5 Ethiopia, 2008-Present 5.5.1 A Low-Income but Rising Country 5.5.2 The Evolution of Industrial Policy 5.5.3 Systematic Learning from Japan and East Asia 5.5.4 The Dialogue Agenda 5.5.5 Remaining Challenges 5.6 Thailand, 1999 5.6.1 The Situation Before the 1997 Crisis 5.6.2 Responding to the Asian Financial Crisis 5.6.3 The SME Promotion Master Plan 5.6.4 The Factory Evaluation System 5.6.5 The Automotive Supporting Industries 5.6.6 Lessons 5.7 Conclusion References 6 Industry Engagement in TVET and the Japanese Cooperation in Vietnam: The Case of Hanoi University of Industry 6.1 Introduction 6.2 Overview of Industry Engagement with TVET in Vietnam 6.2.1 Government Policies 6.2.2 Challenges for Industry Engagement 6.3 JICA Support to Hanoi University of Industry 6.3.1 Background for the HaUI-JICA Project 6.3.2 Enhancement of Industry Engagement in Improvement of Education and Training 6.3.3 HaUI’s Motivation to Learn a Japanese Model 6.3.4 Confidence with the Accumulation of Small Successes 6.4 Progress of HaUI’s Industry Engagement After the HaUI-JICA Project 6.4.1 Changes After the HaUI-JICA Project 6.4.2 Learning Industry Skills Needs Through Partnership Activities 6.4.3 Institutionalizing Industry Engagement 6.5 Challenges in Disseminating the HaUI Model 6.5.1 Difference in Capacity with Other TVET Institutions 6.5.2 Lack of Government Support 6.6 Discussion and Conclusion References 7 Promoting Kaizen in Africa: 10-Years of Experience of Japanese Cooperation in Tunisia and Ethiopia 7.1 Introduction 7.2 History and Key Features of JICA Cooperation in Tunisia and Ethiopia 7.3 The Achievements of the Kaizen Projects in Tunisia and Ethiopia 7.3.1 Formulation of Vision, Policy, and Strategy 7.3.2 Establishment of Mechanism, Organization, and System 7.3.3 Development and Accumulation of Capacities 7.4 Key Factors Affecting Sustainable Development of Kaizen 7.4.1 National Leaders’ Commitments 7.4.2 Political and Administrative Stability 7.4.3 Organizational Structure for Kaizen Dissemination and Development 7.4.4 Counterpart and Foreign Expert Teams in Customization 7.4.5 Capacity Required for Advanced-Level of Kaizen 7.4.6 Industry-Government-Academia Collaboration and the Role of Development Cooperation 7.5 Conclusion References 8 Thailand’s Experience of Learning Industrial Technologies and Monodzukuri Education with Localization 8.1 Introduction 8.2 TPA: 50-Years’ Efforts Toward Learning and Promoting Industrial Technologies in Thailand 8.2.1 Origin and Background 8.2.2 Philosophy and New Cooperation Framework 8.2.3 Activities of TPA 8.3 TNI: Promoting Monodzukuri Education in Thailand 8.3.1 Origin and Background 8.3.2 Philosophy and Core Values 8.3.3 Educational Programs 8.4 TPA and TNI under the New Landscape of Industrialization 8.4.1 New Landscape of Industrialization 8.4.2 Smart Monodzukuri Support Team Scheme: Integrating Kaizen into the IoT Process 8.4.3 Thailand-Japan Investment Promotion Project (J-SME Project) 8.4.4 Thai-Nichi International College (TNIC): New International Education Program 8.5 Development of TPA and TNI from a Perspective of Translative Adaptation and Local Learning 8.5.1 Five Stages of Development of TPA and TNI 8.5.2 Key Factors for Successful Development of TPA and TNI 8.5.3 The Role of Japanese Industrial Cooperation 8.6 Conclusions and the Way Forward References Part III Translative Adaptation in a Changing World 9 Kaizen and Non-cognitive Skills Development in Africa in the Age of Digitalization 9.1 Introduction 9.2 Evolution of Kaizen and Its Relation with Business Management and Capacity Development 9.2.1 Definition and Evolution of Kaizen 9.2.2 Review of Business Management Theories from a Perspective of Kaizen 9.2.3 Kaizen from a Perspective of Capacity and Skill Development Theories 9.3 Review of the Arguments on Non-cognitive Skills Development 9.3.1 Importance of Non-cognitive Skills 9.3.2 Digital Technologies and Non-cognitive Skills 9.4 Analysis of Impact of Kaizen 9.4.1 Outcomes of Kaizen Activities that Relate to Mindset 9.4.2 A Case of Mindset Change Prompted by Kaizen in Ethiopia 9.4.3 Impact of Kaizen Activities on COVID-19 Responses 9.4.4 Impact of Kaizen Activities on Digital Transformation 9.5 Discussion 9.5.1 Non-cognitive Skills Development Through Kaizen 9.5.2 Importance of Cyclical and Continuous Process 9.5.3 Needs of Research on Kaizen Activities 9.6 Conclusion References 10 New Industrial Landscape: Implications for Industrial Policy and Japanese Industrial Development Cooperation 10.1 Introduction: Background and Contemporary Mega-Trends in Industrial Development 10.2 Renewed Interest in Emerging Global Value Chains (GVCs) 10.2.1 Overview of GVCs 10.2.2 Industrial Policies in Developing Countries in Relation to GVCs 10.2.3 Donors’ Intervention in GVC-Related Industrial Policy 10.3 Industry 4.0/Fourth Industrial Revolution 10.3.1 Overview of the Fourth Industrial Revolution/Industry 4.0 10.3.2 Industrial Policies in Developing Countries in Relation to Industry 4.0 10.3.3 Japan’s Possible Intervention in Industry 4.0 10.4 COVID-19 and Industrial Development 10.4.1 Overview of the COVID-19 Pandemic 10.4.2 Policy Support in Response to COVID-19 10.4.3 Resilience and Future Pandemic and Other Challenges 10.5 Environmental and Social Response in Industrial Development 10.5.1 Overview of the Environmental and Social Response in Industrial Development 10.5.2 Environmental Consideration in Industrial Development 10.5.3 Social Consideration in Industrial Development 10.6 Case Study: The Automotive Industry 10.6.1 Overview of the Automotive Industry Development Promotion in the World by JICA 10.6.2 Global Value Chain, Supporting Industries Development, and Linkage Formulation 10.6.3 Digitalization and CASE 10.6.4 Carbon Neutral, Environmental and Social Consideration 10.6.5 New Automotive Industry Promotion Landscape and Key Takeaways from the Experience of the Automotive Industry 10.7 Implications and Conclusions 10.7.1 Opportunities and Challenges Under the Contemporary Mega-Trends in Developing Countries 10.7.2 What Does Not Change in Industrial Development Policy Under These Trends? 10.7.3 What Changes in Industrial Development Policy Are There Under These Trends? 10.7.4 Conclusions References Index