No.2

Information·Bulletin of

The Union of National
Economic Associationsin Japan

日本経済学会連合

1982

INFORMATION BULLETIN QF
THE UNION OF NATIONALECONOMIC ASSOCIATIONS IN JAPANThis Information Bulletin is designed to serve as an introduction of the academic activities ofmember associations of the Union to the economic societies throughout the world. It will be dis­tributed by the secretariat of the Union to economists and societies in other countries which arerecognized by the member associations of the Union.
Managing Editor
Seiji FURUTA, Keio University
Toshinobu KATO, Asia University
Masami KITA, Soka-University
Kenichi MASUI, Keio University
Hiroyuki NINOMlYA, Tokyo University
Syunsaku NISHIKAWA, Keio University
Moriyuki TAJIMA, Hitotsubashi Universityof Foreign Studies
Shigeru TANESE, Hltotsubashi University
Koichi TANOUCHI, Hitotsubashi University
Editorial Committee
Fumimasa HAMADA, Keio University
Tian Kang GO, Chuo University-Makoto IKEMA, Hitotsubashi University
Yonosuke HARA, University
Junko NISHIKAWA, Tokyo Metropolitan
Ken KURITA, Meiji·Uni沿rsity
College·of Commerce
Shizuya NISHIMURA, Hosei University
lkujiro NONAKA, National Defense Academy
lsamu OTA, Toyo University
Yoshlaki SHIMABUKURO, Tokyo Metropolitan Hitoshi SAITO, Chiba University
Junior College of" Commerce
Kyojiro SOMEYA, Waseda University
Hideo TAMURA, Chuo University
Nobuo YASUI, Chuo University
Directors of the Union
Yoshio ANDO, Seijo University
President
Secret叩General
Takashi SHIRAISHI, Keio University
Shigeo AOKI, Waseda University
Soichiro GIGA, Osaka City University
Masao HAMABAYASHI, Hitotsubashi University
Yoichi ITAGAKI, Asia University
Yasuzumi IWAO, Chuo University
Haruo KANEKO, Tokyo Metropolitan University
Hiroshi KAWAGUCHI, Chuo University
Kaichiro OISHI, University of Tokyo
Kimio SHIOZAWA, Nagoya University,_
Mikio SIJMIYA, Tokyo Women's Christian University
Susumu TAKAMIYA, Sophia University':Auditorlchiro KATANO, Nihon University
KyoJiro SOMEYA, Waseda University
Emeritus
Noboru YAMAMOTO, Soka University::Busi_ness lefters to be addressed, Secretariat of The Union of National Economic Associations inJapan, C/0 Professor Takashi Shiraishi, Keio University, 2-15-45, Mita, Minatoku, Tokyo 108,
Japan.
©COPYRIGHT 1981 BY THE UNION OF NATIONAL ECONOMIC ASSOCIATIONS IN JAPAN.
Print!d in Japan: DAITO ART P印TING CO., LTD. Tel. (03) 552-8341

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INFORMATION BULLETIN
The publkation of tha lnfonnation Bulletin a pan of a Z,,-ogmm aimed at p,omoting inte,

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national exchanges of economic studies, marking the Union's history of 30 years.

Jnomics. We would be most pleased if this book will help the related academic circles throughout,!

The pu,prue of thi, book a to intmduce wide!, to the wo,ld the development of Japane,e ITOthe world to become familiar with the economic studies in Japan. It would also give us pleasure if
economic researches in Japan introduced in this book could contribute to the advancement ofJ

economic studies in other countries.

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sent of all member associations of the Union. Included in the first part of this book was an over-·W ith the intention of introducing the activities of the membership associations during the

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Information Bulletin No. 1, publahed in 1981, gave btief <bmpiion, of the p,t,t and p,eview of the development of economic studies in Japan and the formation process of Japanese
economic societies.
past year, 1981-1982, the present Information Bulletin No. 2, 1982, gives a record of the present

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ed papers & the discussion that took place at the latest annual meeting of these economic associa-

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tions. Included in this Bulletin is a special essay, The Development & Contribution of Modern

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Economics in Japan. Finally, as an appendage to the Bulletin, a list of the member associations,_containing relevant organizational information, zs presented.

March of each year. A copy is sent, with the compliments of the Union, to universities, economic.

research centres, and scholars that are connected to the member associations throughout the world.

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＆e.,,.,.,,.......,.,,.......,.,,.......,.,,.......,.,,.......,.,,.......,.,,.......,.,,.......,.,,.......,.,,.......,.,,.......,.,,.......,.,,.......,.,,.......,.,,.......,.,,.......,.,,.......,.,,.......,.,,.......,.,,......�贔CONTENTS
The Union of National Economic Association in Japan
Development and Contribution of Modern Economics in Japan.................. 1
Activities of the Membership Associations on 1981ー1982
The Japan Accounting Association ............................................... 5
The Agrerian History Sciety....................................................... 9
The Agricultural Economic Society of Japan ..................................... 12
Japan Association for Asian Political and Economic Studies .................... 16
Japan Society for the Study of Business Administration ......................... 18
Japan Business English Association ............................................. 22
Business History Society of Japan ............................................... 24
Japan Society of Business Mathematics ......................................... 26
Japan Society of Commercial Sciences .......................................... 28
Japan Society for Commodity Science ........................................... 30
The Society for the History of Economic Thought ................................ 33
The Japan Association of Economics and Econometrics ........................ 36
The Association of Economic Geographers ...................................... 39
Japan Economic Policy Association .............................................. 42
Japanese Association of Fiscal Science.......................................... 44
Japan Academy for Foreign Trade .................................. .............. 46
The Japanese Society of Insurance Science ..................................... 49
The Japan Society of Internat1onal Economics ................................... 51
Japan Society of Monetary Economics ........................................... 53
Academic Association for Organizational Science ............................... 55
Japan Society for Personnel and Labor Research ............................... 60
Japan Society of Political Economy............................................... 63
The Population Association of Japan ............................................. 67
The Japan Society of Public Utility Economics ................................... 70
The Japan Section of the Regional Science Association......................... 72
The Society for Economic Studies of Securities.................................. 76
Association for the Study in Socialist Economies ................................ 79
Society for the Study of Social Policy............................................. 83
Socio Economic History Society .................................................. 87
Japan Statistical Society .......................................................... 90
Japan Society of Transportation Economics.................................... : . 92
List of Member Association

THE UNION OF NATIONAL ECONOMIC
ASSOCIATIONS IN JAPAN(NIHON KEIZAIGAKKAI RENGO)The Union of National Economic Associations in Japan was established in 1950, a sole
nationwide federation of associations of scholars and experts on economics, commerce, and busi 、ness administration. In order to obtain membership to the Union, an association is subject to astrict examination of its academic activities. As of 1981, the Union had a Membership of 31 asso­
ciations as in the table of contents. Inclusion of a recent entrant to the Union, The Society of
Economic Sociology, brings the total membership for 1982 to 32 associations.
The aims and objectives of the Union are to support scholarly activities of its member associ­ations and to promote academic exchanges both among members themselves, and between Japaneseand overseas academic societies. The main activities of the Union are: (1) the publication anddistribution of academic materials concerning Japanese economics and paper presented by member
scholars, (2) the sending of member scholars to overseas conferences, (3) holding and supportingof international conferences in Japan, (4) provision of financial assistance to member associations
inviting foreign scholars to Japan, and (5) collecting information on activities of member associa、
tions and the issuing of a news bulletin.
The Union published in 1974 "KEIZAIGAKU NO DOKO" (The Trend in Japanese Eco ヽ
nomics), based on a survey of economic studies undertaken in postwar Japan. A similar bookcovering Japanese economic studies after 1974 was published in 1982.
The Union and the International Economic Association (IEA) jointly held the Fifth World
Congress of the IEA in Toky o from August 29 to September 3 in 1978. The Union despatched
30 member scholars to the Sixth World Congress of the IEA held in Mexico in 1980. And mostrecently, the Union and the International Institute of Public Finance jointly held the Institute's
37th congress in Toky o in September, 1981.
The Union celeberated the 30th anniversary of its foundation in 1980 by launching a varietyof activities, one of which was the publication of this present book.

Address: Professor Takashi SHIRAISHI, Secretary General of the Union,
Keio University, 2-15-45, Minato-ku, Tokyo 108, Japan.

Development and Contributionof Modern Economics in Japan
Kotaro TSUJIMURA*
It is well known that the Japanese economy realized, after World War II, especiallyduring the period from 1955 to the first Oil Crisis in 1973, a high rate of economic
growth which had been unprecedent in world history. It is also accepted that Japan,
among the advanced industrial nations, responded most successfully to the first andsecond Oil Crises. The strong international competitiveness of Japan's manufacturing in、
dustry is said to have depended on the vitality of Japanese of labor productivity, as well as
the firmly maintained good relationships between labor and management. These advan­
tages of maintained despite because of the fact that the post-war Japanese domestic
market is more competitive than those of the United States and western European coun 、
tries. One should also point out that small income differences for employees within a Japa、
nese company sustain the good management-and-labor relationship. The level of equality
in Japan's income distribution, before fax, is higher in Japan as a society as a whole, thanin other advanced countries. This leads to the strong willingness to work held by the Japaヽ
nese people as a whole. That is, the present good performance of the Japanese economy
comes from the fact that excellent team play is conducted among employees, in each pri­vate enterprise as a production unit, under the free competition/market system.
It is clear from the facts mentioned above that Japan's free market system afterWorld War II is certainly different from that of a classic capitalistic system. Since the freeworld after the war received a strong influence of the concept of welfare state expressedin the Atlantic Charter and from the Keynsian economics, every country in the freeworld has an economic system different from the classic capitalistic system. the Japanese
economic system depends more heavily on inter-company competition than those in westヽ
ern European countries, and at the same time, the relationship between management andlabor in Japan is better and more closely-tied than in the United States.
The Japanese economy immediately after World War II was extensively democratizedunder the direction of the U.S. Occupation Army, which has had a decisive impact ofthe present Japanese economy. The question remains why, after Japan's independence
was restored, did the Japanese economic system not revert to its pre-war state? The reason
must be that the Japanese people, after World War II, were not unwilling to learn and toaccept the significance of a democratized free economic system. Some conclude that thesystem in posじwar Japan is merely borrowed from the United States, but this view, in myopinion, is wrong. Japan's defeat in World War II helped to remove internal barriers, thisallowed the Japanese people to move towards an ideal free economic society which ad 、
vocated by had long been Japanese intellectual leaders.
Modern economists in Japan after World War II familiarized themselves with new
types of western economics by studying "Value and Capital" by J.R. Hicks and "Econom 、
ics" by P.A. Samuelson, and learned the essence of the free world economics which wasdeveloped by K.J. Arrow and G.D. Debreu and others. They also studied the significanceand procedure of the policy for business cycle adjustment as expressed in the Keynesian-1-

economics. Command of these techniques was not limited to (young economists who hadstudied in the United States) but also included politicians, government officials, corporate
owners and leaders, as well as labor union leaders. T his widespread dissemination ofmodern economic theory was possible because in the pre-war days, lectures on the neo­classical general equilibrium theory and Keynesian economics had been given at somemajor universities, and translations of those original books and written studies·and text­
books on those original western theories had been readily available. As professor Yoshio
ANDO reminds us in the Information Bulletin 1981, No. 1, although in the Universitiesof Tokyo and Kyoto, the mainteaching was dominated by the German historical school
until 1910's and Marxian economics up untill 1930's, Hitotsubashi University (formallyTokyo Commercial College) and Keio Univeristy, orientated to train business leaders,were studying neo-classical economics since the 1920's. Tokuzo FUKUDA established inboth of these universities studies and education in the neo-classical economics, especiallyof mathematical economics.
It is well known that in the early period of Japan's modernization at the time of the
Meiji Restoration Yukichi FUKUZAWA introduced the free world economics developed
in western countries and directed the basic designing of a free market system for modern
Japan. FUKUZAWA then was teaching at Keio Gijuku (the Original school of the present
Keio University) from a textbook written by Francis Wayland, which was then widelyused in the United States. From my personal observation, FUKUZAWA seems to havemastered as much as J.S. Mill. He originated the study of free world economics in Japan,
and in Keio Gijuku an American economist, Garret Droppers (he later became the Presi 一
dent of the University of South Dakota and Professor of Political Economy at W illiams
College) lectured on J.S. Mill in the period form 1889 to 1898.
It seems that Tokuzo FUKUDA was the first to work on Alfred Marshall in Japan.
In that sense, FUKUDA is the first Japanese scholar to master neo-classical economics. In
addition, he disseminated neo-classical theories in Japan by giving his students assignment
to translate major original works on the neo-classical theories into Japanese. Tokuzo
FUKUDA was a man of wide knowledge; versed not only in the neo-classical economics
but in the economics of the German historical school and the Institutional School
economics of the United Kingdom and the United States. He devoted himself to the mas­tery and education of the neo-classical economics, discerning that neo-classical economic
theories were superior and especially useful in the precision and logic with which it usedmathematical tools. At FUKUDA's instigation, various books on neo-classical economics
were translated into Japanese during 1910's and 1920's: Marshall's "Principles" by Kinno­
suke OHTSUKA, W.S. Jevons'Theory by Shinzo KOIZUMI and Takuma TERAO, H.H.
Gossen's "Entwickelung der Gesetze des menschlichen Verkehrs" and Leon Walras' "Pure
Theory" by Toshiro TEZUKA, and A. Cournot's "Researches" by lchiro NAKAYAMA.
T hese translations contributed inestimably to the understanding and spread in Japan oftheneo-classicaleconomics

structured

withmathematical

tools.

Studying

under

FUKUDA was Eiichi SUGIMOTO who later completed the first econometric study ofdemand function for rice in Japan.
We should also remember the contributions of lchiro NAKAYAMA and Eiichi
SUGIMOTO of Histotsubashi University, and Takuma TERAO of Keio University were-2—

as Japanese economists in the early period who not only mastered but applted mathemati、
cal economics. In the University of Tokyo, there was Seiichi TOHATA who, exceptional 、
ly at that time, received instruction from J. Schumpeter in Germany. A little later, Yuzo
MORITA of Hitotsubashi University did much to apply price index theory, using matheヽmatical economics and modern statistics. Yuzo YAMADA mastered the practices of naヽ
tional economic accounting. A little later; Takuma YASUI of University of Tokyo and
Hideo AOYAMA of University of Kyoto came out as modern economists; bringing new
distriction to their universities, they carried their mastery of highly developed mathemati­
cal tools up to the post-war Hicks、 Samuelson era. J.M. Keynes'"General Theory" had been
already translated by T sukumo S HIONOYA of Hitotsubashi University before the end ofWorld War II.
T he person who made the largest contribution among these Japanese modern econo­
mists to the posじwar reconstruction of the Japanese economy was lchiro NAKAYAMA.
NAKAYAMA not only was involved in the monetary, fiscal, and other wide-ranging
economic policies adopted in the post-war days but formed the foundation for the goodmanagement-and-labor relationship, one of the characteristics of present Japan, by nor ヽ
malizing the Japanese management-and-labor relations which were in disorder still in
1950s.
I would raise the name of lchiro NAKAYAMA here, not only because he played avery important role in the actual economy but because he was typical of modern Japanese
economists. He was always aware of Marxists'criticisms of the market economy, in his en­
deavour to establish the relationship between the neo-classical general equilibrium theory
and the actual economy, although he did not go, as a modern economist, with Marxist
econ.omics from the beginning to the end. In this sense, NAKAYAMA is quite different
from American neo-Walrasians. However, this is not peculiar to NAKAYAMA, for pre ヽ
viously mentioned Kinnosuke OHT SUKA and Eiichi SUGIMOTO shared the sametendency, which is common among other Japanese economists as well.
T hese features stem also from Tokuzo FUKUDA, who, as I have already said, regard 、
ed the neo-classical economics as the most useful among the various schools of economics.
However, he did not believe that the market equilibrium theory in the neo-classicaleconomics was complete as a practically applicable theory. Since FUKUDA had received
instruction from Professor L. Brentano at Munich University at the end of the 19th cen 、tury, and developed a strong interest in labor problems, he was well aware that the neo­classical equilibrium theory was not something to justify the bad labor conditions thenprevailing in Japan. FUKUDA had a sense of duty as a scholar in bridging the gap be­
tween the image of efficient resource allocation which the theory stresses and the actualityof the labor market of the less-developed country, Japan. T he academic search for an
economic theory which could successfully explain both the market efficiency and the fairincome distribution was passed on from Tokuzo FUKUDA to lchiro NAKAYAMA.
NAKAYAMA repeatedly states in his small autobiographical essay entitled "Economics—

My Way of Life:' NAKAYAMA strongly admired J. Schumpeter, (after receiving instruc­tion from him at University of Bonn in 192 7). One of the reasons for this is, according to
NAKAYAMA, that he shared the same perspective on Schumpeter as a modern econo 、
mist in that "he views his econo�ics in light of Marx as the constant opposing partner."-3—

The reason not only NAKAYAMA but many other modern Japanese economists
could not re�ain indifferent to Marx economics is said to be that Hajime KAWAKAMI'sbook entitled a "Story of Poverty" published in 1916, pointed out the defects of the Japa­
nese capitalism for those days, and became a best-seller among young students for thisachievement. Thus, Japanese modern economists including Tokuzo FUKUDA were wellaware that unconditional laissez-faire was not necessarily favourable to a free market
system, although they identified themselves with the neo-classical general equilibrium
theory until the end of World War II. lchiro -NAKAYAMA substantially adopted thelabor economics which had been developed in the United States in 1940's and 1950's.
He did this because he was aware, even after he mastered the general equlibrium theory
completely, that knowledge of institutional economics was needed to make a free market
system work well.
In addition, the posじwar Japanese government guided the private economy by vari 、
ous indicative economic plans. The ability to use the Harrod-Domer Model, the KeynesianModel, W.W. Leontief's Input-Output Table, and the national income statistics had al 、
ready been acquired and made ready for use in Japan by the end of World War II.
*Keio University, Tokyo-4—

THE JAPAN ACCOUNTING ASSOCIATIONThe 40th Annual National Convention of the Japan Accounting Association washeld at the School of Business Administration of Kobe University for four days from May
20 to 23, 1981. Approximately 780 members of the Association attended it.
The common theme for discussion at the National Convention was "What Should
Be the Japanese Accounting System?" Active and fruitful reports and discussions were
held on the following three separate sub-themes:
Room No. 1 Sub-theme: "What Accounting Principles should be adopted in Japan?"
Chairm:an: Shogo NAKAJIMA (International Christianity University)
Reports:"Uniformity and Flexibility in Accounting Principles"
Tsunehiro TSUMORI (Kyushu University)"A Statement of Accounting Principles — Its Past, Present, and Future"
Tadashi NAKAMURA (Hitotsubashi University)''The Business Accounting Principles — Its Role and Formation"
Kiyomitsu ARAI (Waseda University)
Room No. 2 Sub0theme: "Functions of Management Accounting"
Chairman: Yasushi YAMAGATA (Osaka City University)
Reports:"Management Accounting in Japan As It Ought To Be"
Takao MAKITO (Nagoya University)"The Function of Management Accounting from the Viewpoint of Profit Planningand Control"
Yoshinobu SUEMASA (Kansai University)"Managerial Accounting & Organizational Structure"
Naomi TSUMAGARI (University of Tokyo)
Room No. 3 Sub-theme: "What should be the Disclosure System of BusinessEnterprises?"
Chairman: Masaatsu TAKADA
Reports:"A Comparison of Annual Report Preparation and Distribution Practices in Major
Countnes
Hiroshi OYACHI (Shiga University)"Amendments to the Commercial Code (Special Law to the Code Concerning the
Audits of Corporations) and the Disclosure of Corporate Financial Information"
Tokugoro MURAYAMA (C.P.A.)"On the Basic Concepts Underlying Corporate Disclosure System"
Akira WAKASUGI (Yokohama National University)
Summary of Reports and Discussions in Room No. 1
The Business Accounting Principles in Japan, since their establishment in 1949,
have been making a great contribution to the accounting system and education of acヽ
counting in Japan. The purpose in Room No. 1 was to discuss inherent problems and—5—future of Business Accounting Principles in comparison with studies conducted overseas
recently on what accounting principles should be.
TSUMORI pointed out that the formation process of the accounting principles of
the United States originated from free judgement for (by) the public, developed into a
privately controled form, and completed with the formation of GAAP (Generally Acceptヽ
ed Accounting Principles), while the formation process of the Japanese accounting princi 、
ples undergoes just the opposite direction.
NAKAMURA suggested that the roles of Business Accounting Principles, fall into
two parts: institutional and educational. He pointed out that Business Accounting Princi、
ples had been reflected in amendments to the Commercial Code, and that these principles
had also been the basis for education in accountancy. He also recommended that infuture (1) drafts for improvement and amendments should be presented openly to the
public in advance so that public opinion could be gauged, and (2) that the contents ofthe present Business Accounting Principles should be stated in greater detail.
ARAI analyzed historically the roles of Business Accounting Principles, for these con ヽ
tributed to the improvement, uniformity and expansion of codes and laws related to ac­
counting, and also did much to encourage accounting education and ultimately the
upgrading of people's intellectual levels. ARAI also expressed his views as to which instituヽ
tions should be responsible for future improvement and amendment of Business Account­ing Principles; although he agreed to the existence of the Business Accounting Deliberaヽ
tion Council in the public sector, he suggested the need for establishing organs in private
sector which would supplement the Council.
Later during discussion an active exchange of views emphasized (1) the nature of ac ヽ
counting rules (standards) for general acceptance and fairness, (2) the theoretical dif 、
ferences and similarities between Business Accounting Principles and measurement re ヽquirements in the Commercial Code, (3) the positioning of the reality principle and t如
normal bookkeeping principles in the Business Accounting Principles, and (4) the groundfor the authority of Business Accounting Principles.
Summary of Reports and Discussions in Room No. 2
T he purpose in Room No. 2 was to make an indepth analysis of problems in theJapanese accounting system in terms of management accounting function, and to discuss
future of management accounting in Japan.
MAKITO made the following suggestions: (1) management accounting should be
separated from financial accounting and a new independent management accounting
system should be designed with use of accrual basis and market price basis; (2) perfor ヽ
mance of manufacturing business should be evaluated in terms of accrued profit, by adopt­ing flexible alternate price system, and (3) problems in profitability accounting for manuヽ
facturing business should be solved in light of optimum product mix and cost manage­
ment.
SUEMASA pointed out the profit management function as the central role to beplayed by management accounting, and stressed the need for planning profit in the long­term, in conjunction with management control.
TSUMAGARI pointed out that "Top Down" method is firmly adopted in corporate—6—

(business) budgeting in Japan. He discussed the status of budget management organizationin conjunction with official management organization, and reported, based on an empiricalresearch, on tendencies found in Japanese major corporations relating both to workabilityof budgeting policy directed by top management, and centralization and reinforcement ofbudget management organization on a company-wide level.
A vigorous discussion followed developing (1) the link between the process for getヽting target cost and recognition of accrued profit in a flexible alternate price system, (2)the differences between management accounting function and the purpose of management
accounting, and (3) criteria to distinguish "Top Down" method and "Bottom Up"
method.
Summary of Reports and Discussions in Room No. 3
The purpose here was to discuss the future of the disclosure system of business infor­
mation as presently found in the Commercial Code and the Security Exchange Code.
OYACHI reported on the results of a questionnaire which asked (1) do all businesscompanies prepare an annual report, (2) to whom do they distribute their annual report,
and what response do they get, and (3) how did they charge the expenses of the annual
report preparation? He pointed out that in other countries business companies distribute
their annual reports very widely as an effective means of communication, while Japanese
corporations regard the annual report as being intended primarily for shareholders.
MURAYAMA regretted that accountants were not always consulted when newenactments of laws of measurement and disclosure in the Commerical Code were being
negotiated. He also pointed·out that satisfactory analysis and review of the linkage among
various financial statements and the linkage between financial statements and audit had
not been made in the legislation process, although the annual report is an importantmeans of disclosure together with the balance sheet and income statement. He stressed
the need for firms to take more notice of the auditor's views and interpretation of finan­cial statements.
WAKASUGI mentioned that disclosure of business information should be discussed
from the viewpoint of "Theory of Participation", and added that disclosure should be
dealt with as indispensable information for decision making by the corporate participants.
He spoke on the problems of incentive and contribution as basic concepts related to par ヽ
ticipation.
Active Discussion followed on (1) the disclosure system in Japan in conjunction
with the extent of parties involved, (2) the meaning of disclosure, (3) methods of disclo 、
sure, (4) audit and disclosure system.
In addition to the above mentioned discussions on the Common Theme, five otherwide-ranging discussions were held as follows:
Room (1)"Provisions for the Future Loss"

Room (2)"Problems in the Implementation of Inflation Accounting"Room (3)"Formulating Uniform International Accounting

Coordinator: Minoru EMURA
Coordinator: Tetsuya MORITA—7-

Standards and Their Application to Accounting
Practices in Various Countries"
Coordinator: Kyoji SOMEYARoom (4)"Evaluation Methods for Business Performances"

Room (5)"Audit of Financial Statements and Irregularities"

Coordinator: Masaaki MIYAMOTO
Coordinator: Hiroji CHIKAZAWA
We chose these five themes as current problems which face the accountant in Japan.
The coordinator and three or four panelists in each group presented the basic issues
which promoted active discussion.
This year, the Sub-Committee on "the Annual Report" (Chairman, Hirohisa
MASUTANI) presented the results of its three year deliberations. The committee con­ducted a comparative study on the status of the annual report in which the position in
Japan was compared with that in the United States, the United Kingdom, Australia, West
Germany, and France. Conclusion and suggestions were given on items of information to
be stated in annual report in conjunction with amendments to the Japanese Commercial
Code.
In addition, reports were made by the following three study groups as well, andactive discussions followed:"A Study of Accounting Expressiveness"
Group Chief: Masao TOKUTANI"A Study of Accounting for Business Combination Including Corporate Division"
Group Chief: Kunitoshi ARAKAWA"Accounting for Research and Development Activities"
Group Chief: Ikuta UENO
(Ryuji TAKEDA)—8—AGRARIAN HISTORY SOCIETY
The Agrarian History Society holds two national conferences every year, in spring
and autumn. In 1981, the University of Tokyo hosted the Spring National Convention
on Saturday, 27th June, and Ritsumeikan University opened the Autumn National Con ヽ
vention on Saturday, 24th and Sunday, 25th, October.
I. The Spring National Convention, 1981
Under the general theme, "Reassessment of the Status Quo of'the Third World'
and Theoretical Criteria for Analysis", the participants aimed to undertake a theoreticalreview on the issues proposed by the so-called "theory of dependency" and to conduct ananalysis of the present situation in the Third World. In the conference, Miyoko
SHIMAZAKI (Nihon University of Welfare) and Yasuo GONJO (Yokohama National
University) jointly chaired discussions on the following two reports presented. 1. "TheThird World and Theory of unequal Exchange" by Masatoshi KAIDO (Kanagawa Uni­

versity). 2. "Economic Dependency and the Labour Policies in Mexico: 1940 — 1970" by
Keiichi TSUNEKAWA (University of Tokyo).
In view of the international division of labour since 1960, KAIDO presented a theoヽ
retical analysis of the significance of a study on the dependence theory by using the Rosa
Luxenburg model. The report also included a theoretical approach to the theory of unequヽal exchange by A. Emmanuel as well as S. Amin's criticism of it.
TSUNEKAWA surveyed statistics on investment, balance of payments, labour
wages and other economic indicators in the 1940
illustrate

the relation

between— 70 period in Mexico in an attempt toimport-subsitution

industrialization

andeconomic

dependency. Further, the reporter anal ysed social processes which influenced the econom、
ic dependency and labour policy decision-making mechanism.
The 1981 Spring National Convention was especially notable because of a conver ヽ
gence of theoretical and historical approaches toward mutual academic interests in theissues involving the Third World.
II. The Autumn National Convention, 1981
Under the general theme, "Domestic Affairs and Foreign Policies in 、Imperialism;'
the following four reports were presented: 1. "The Disputes over British Tariff Revisionand the 1906 General Election" by Kanji KUW�BARA (University of Kumamoto). 2.
"German Imperialism and Baghdad Railroad Construction" by Satoru SUGIHARA(Kansai University). 3. American Imperialism and International Transfer of Capital andLabour" by Daizaburo Y UI (Hitotsubashi University). 4. "International Capital Balancein East Europe in the Period of Imperialism" by Shingo MINAMIZUKA (Tsuda College).
Four chairmen, Eiji ONO (University of Kyoto), Yoshihisa TOKITA (Ritsumeikan
University), Hiroyasu NAGATA(Ryukoku University) and Hideki TAKIZAWA(Konan University) pointed to two weaknesses of conventional researches on imperialism
in bridging domestic formation of financial cap�tal and foreign policies, as well as in con ヽ
ceptualizing policy alternative questions lending themselves too much to the economic
value approaches. In order to compensate for the shortcomings, the chairmen noted that-9—the conference should seek a unified framework to conceptualize domestic affairs and for­eign policies by clarifying social stratification, various social powers, power relations in theimperialists as well as conditions in the colonies. Thus, a linkage between internal and ex­
ternal factors must be brought to light. In the course of studying relations between domesヽ
tic affairs and foreign policies, the issue of the nation submerged. As a result, the themein the 1981 autumn conference primarily aimed to clarify the international leverage on
the domestic establishment of imperialism in terms of foreign policy making, and sought
to conceptualize the linkage between the two in a given domestic power structure. The
following constitute brief summaries of the four presentations.
In the first presentation, KUWABARA focused attention on the Chamberlain Cam­paign depicting the whole picture of controversies concerning tariff revision movement.
Having been a domestic concern, the tariff revision also carried a leverage upon Britain's
foreign policies in connection with the issue of imperial unity, the gravest concern of Brit­ain as a ruler of colonies. Therefore, KUWABARA analyzed the tariff revision controver­sy to seek an interface between domestic affairs and foreign policies of the imperial
power. The presentation revealed that, in the early 20th century, an imperialist line, ajoint product of Chamberlain's tariff revision movement and the imperial unity, yielded
to a free imperialist line, a joint product of free trade movement and imperial expansion­ism (as seen in Indian rule). KUWABARA traced a process in which the British policy ofchoosing free trade further shadowed its free imperialism.
The second presentation by SUGIHARA analyzed the construction of the Baghdad
railroad by Germany, the so-called'German wedge' on the British empire route to India
which was meant to secure Britain's free imperialism. Through this analysis, SUGIHARA
sought to clarify the entire system of the German imperialism. As a conclusion, he statedthat the railroad policies were built into various aspects of German imperialism, including
social, economic, political, military and cultural domains, not only affecting economic poli、
cies but also carving out the imperial social structure for itself.
The third speaker, YUI, maintained that a gap between scholarly approaches in thefields of economic history and political history of the U.S. imperialism should be closed.
At the outset, YUI presented a statistical analysis on U.S. capital imports and exports, andimmigrated foreign labour. Then, he reviewed various conflicts of interests among social
classes and regions, such as monopoly banking business in the east, monopoly heavy indus­
tries in the mid-west, monopoly cotton plantation in the south, farmers in the west, as
well as urban middle classes, in an attempt to identify their positions and levelages on thetariff issue, gold standard dispute and the U.S. 、Spanish War controversy. By doing so,
YUI tried to clarify how the U.S. imperialism formulated its policy line. He underlinedthat the development of an open-door imperialism of the United States should not be at­tributed to the political levelage of dominant capitalists but that it rather needed to be un­derstood as a product of a social integration process in which the dominant capitalists
impeded and countered anti-monopoly·movements. A study on American imperialism, inparticular, must claim a special attention on two points: its international interface andsocial integration function, YUI stressed. He thus pointed to the need to understand themechanism of the social integration to crack and configure anti-monopoly forces, which
maintained a firm resistance even in a period of monopoly formation.

ー

10 —

Lastly, MINAMIZUKA explored on a structural influence which enabled the in、
creased productivity beyond a state boundary in East Europe in the early 20th century.
The presentation first analyzed capital imports and exports among eastern European na­
tions to illustrate a process in which an imperial power established rule over its subject
forces. Then, MINAMIZUKA focused attention on Austria-Hungary "dual kingdom" inthe period of annexation of Bosnia and Hercegovina to study a linkage between domestic
affairs and foreign policies peculiar to a "dual kingdom". The analysis revealed specific facヽtors which prevented anti annexation forces from being organized amid the international
political tentions caused by a war between the dual kingdom and Serbia, and the annexa­
tion of Bosnia and Hercegovina. MINAMIZUKA also described how those factors led tothe outbreak of World War I.
Active discussion sessions followed the presentations on the general theme and thereports presented. The discussions continued after the meeting and one of them was car、
ried on the journal of the Agrarian History Society. (See Akihiko YOSHIOKA's paper in
The Journal of Agrarian History [vol. 95] .)Besides the two national conferences, activities of the Agrarian History Society in1981 were featured by the lecture seminar in memory of Moritaro YAMADA, the socie­
ty's advisor who passed away on 27th December, 1980. The late Dr. YAMADA assumed
the first directorship since the society was founded in 1948 and remained in the post for
27 years till he stepped down in 197 5. The Agrarian History Society jointly sponsoredthe memorial lecture seminar with the Department of Economics, the University ofTokyo on 6th June, 1981. The event proceeded as follows.
I. Opening Remark by Prof. Kaichiro OISHI
II. Silent Prayer
ill. Memorial Lectures
1.

"The YAMADA Theory and Comparative Economic History",
Dr. Hisao OTSUKA (Professor Emeritus of the University of Tokyo)

2.

"Features of Dr. YAMADA's Methodology",
Dr. Masahiko YOKOYAMA (Professor Emeritus of the University ofTokyo)

3.

℃ontribution of Dr. YAMADA to Land Reforms in Japan",

4.

"Dr. YAMADA's Analyses on the Heavy Industrial Stage in Post-war Japan",

Dr. Daijiro HOSOGAI (Professor of Takushoku University)
Dr. Katsumi MINAMI (Director of the Agrarian History Society)
IV. Closing Remark by Dr. Kohachiro TAKAHASHIThe Journal of Agrarian History (vol. 93) was issued in mourning the late Dr.
YAMADA. It featured the above four lectures as well as "Dr. YAMAD�s Academic
Achievements" by Prof. Masanari KOBAYASHI (Musashi University) and "A Marxist
Economist, Dr. YAMADN by Dr. Fumio MORIYA.

(Junko NISHIKAWA)-11-

THE AGRICULTURAL ECONOMIC SOCIETY OF JAPANThe 1981 convention of the Agricultural Economic Society of Japan was held at the
University of Tokyo on April 2, 1981. The common theme of the convention was "TheStrategy of Japanese Agricultural Policy in the 1980s". Considerable time has elapsed
since the confusion in the Japanese agricultural policy was recognized, however, no deci­sive measure has yet been announced to meet this situation . The common theme wasadopted in an effort to spell out various problems facing the Japanese agriculture and findcomprehensive solutions to the problems .
In November 1980, "A Long Term Prospect of Demand and Producton of Agricul­
tural Products in the 1990's" was deciced upon by the government at a cabinet meeting.
The government also announced "The Basic Direction of the Agricultural Policy in the
1980's" based on a report submitted by the Council of Agricultural Policy. As it reflectedin the amount of time invested and a number of qualified people involved in the compila­tion of the report, it is an extensive work which can be valued highly. Nevertheless, adetailed examination reveals that there still exist a number of problems: 1) whether or
not the Japanese-style dietary habit will stay with the people, 2) whether the total self­
sufficiency rate of agricultural foodstuffs in 1990 can be maintained at the 1978 level of
73 percent. Whether the lowering of self-sufficienty rate of grains can be kept within theestimated range of 34 to 30 percent, 3) whether the fluidity of farm land ownership will
be promoted, 4) who will take the charge of producing agricultural and live stock goods.
Any examination of the agricultural policy in the 1980s cannot be carried out with­out taking into consideration the report by the Council of Agricultural Policy. Therefore,on the basis of this report, the basic direction of the agricultural policy in the 1980's was
discussed from scientific point of view at the 1981 conference of our society. The meeting
was chaired by Chihiro NAKAJIMA of Kyoto University and Keizo TSUCHIYA of
Kyushu University. The reporters were Tsukiji FUJITANI of Kyoto Prefectural Universi 一
ty, Yasuhiro Y UIZE of Chiba University, Toshio KUROYANAGI of Hokkaido Universi­
ty and Chihiro NAKAJIMA of Kyoto University.
In the first report titled "A Turning Point in the Japanese Agriculture and the Prob­
lems of Its Agricultural Policy", FUJITANI made the following observations; (1) Japanese
agriculture is shifting its status from being relative diminishing industry to absolute dimin­りishi g one from the viewpoint of agricultural production income, (2) when the crop con­version from rice plan to other crops is promoted with the aim of reducing rice glut, it isof the greatest importance to make the income of a converted product per iO ares equal
to that of rice . To meet this end, it is necessary to raise the prices of wheat, barley and rye
almost twice, and soybeans 1 .4 times as much as the current prices of respective crops, (3)the report by the Council of Agricultural Policy states that the agricultural structure
should be revamped so that a major portion of the production will take place in an agri­
cultural sector of high productivity. But in reality, fostering high-efficient farmers involvesdifficulties due to slow fluidity process of farm land in land-utilization agriculture, andwith part-time farmers remaining, (4) factors impeding the growth of la祉utilization agri­
culture include increased suburban farmers during the period of high economic growth,which as a result hindered the fluidity of agricultural land and made it difficult to enlarge
production scale.
-12—In the second report, "An Economic Analysis of Changes in the Number of FarmHouseholds", YUIZE clarified two aspects that should be taken into consideration intrying to promote healthy farm management in Japan through governmental policies. The
first aspect is the adjustment of farm management to the macro-demand and supply rela ヽtionship, and the second one is the establishment of a technological system to support
such a farm management. In discussing the first aspect, YUIZE came up with a blue print
on the desirable farm management by using an econometric model. He pointed out thatthe key factor which integrated macro and micro models was the number of farm house ヽholds. He stated that the number of farm households was a function of the number ofoutflow of farm households to be determined at the equilibrium of marginal productivityof farmers (wage rates of farmers) and the average productivity (wage scale of non、
agricultural receipts). The point of outflow of farm households is determined not only byeconomic factors but also by sociological and psychological ones. Economics factors consid、
ered include: (1) non-fluid labor, (2) land, (3) capital, (4) changes in the composition ofcrops, (5) technological progress, (6) increased employment opportunity, (7) asset prefer­ence of farmers. YUIZE studied all of the above factors and set up a function of outflow
of farm households in his report.
In the third paper titled "Quantitative Adjustment of Domestic Demand and Supplyof Milk and the Conditions for Import Subsitutions", KUROYANAGI analysed the issueof financial burden of the Japanese agriculture in the 1980s in two perspectives: (1) re ヽ
duction of social welfare losses by lowering prices of domestic agricultural products to ap ヽproach the international level approved by consumers and tax payers, (2) reduction ofsocial losses caused by costly protective policies on agricultural products by eliminating theexcessive products except for stock-piling and farm buffer stocks. On the basis of theseperspectives, KUROYANAGI chose Hokkaido, Northern Japan, as the subject of analysis,
which produced 70 percent of all the processed milk in Japan, competing with imported
products. As a 函ult of his analysis, it was found that: (1) in the case of dairy productswith high demand price elasticity, a mere quantitative restriction on product imports will
have no effect because such a restriction would only leave expensive domestic products inthe market, consequently decreasing the consumption.. Therefore, it is necessary to formu­
late an import policy in line with the protective measures for infant industries and show
both at home and abroad a specific goal and a guideline to make a gradual increase in im 、
ports. (2) It is advisable to impose import surcharges on the products coming from a coun­try that grants a bounty on exports and use them as the fund for the deficient payment
scheme which will result in lowering of standard prices. (3) It is necessary to foster dairy
farm households with international competitiveness in order to use surplus milk to pro­
duce cheese which can substitute for imported dairy products. For this purpose,
KUROYANAGI stressed the need of improved management skills, reduced production
costs as well as effective utilization of institutional finance.
In the fourth report entitled "A Desirable Policy for Polarization of Farmers between
Large-Scale Tenant Farmers and Gardening Non-Farmers Leasing out Their Farm Lands",
NAK AJIMA discussed how to understand the issue of agricultural structure and its related
policies. He stressed that in the Agricultural Fundamental Law of 1961, an agricultural
structue was studied mainly centered on the concept of "economically viable farmers.".
-13—

Howev�r, he argued that this issue should be examined through the concept of realizationof "economies of scale" now that the Japanese economy has irreversibly transformed itself
from a labor surplus economy to a labor scarce one. NAK AJIM A stated that it was desira ヽ
ble to positively promote polarization of farmers into a few large-scale tenant farmers
using large machines in full capacity and maximizing the economies of scale on one hand,and many gardening non-farmers who lend out thier farm lands on the other. NAK AJI­
MA concluded that the polarization should become one of the objectives of the govern、
ment policy concerning agricultural structure in the future.
Four commentators, Yoshihiro MIS ONO (Gifu University), Fumio EG AITSU (Uni 、
versity of Tokyo), Masaaki ABE (Kagoshima University) and lsoshi K AJII (Tokyo Uni 、
versity of Agriculture and Technology), and ten other researchers joined in discussions oneach presentation, actively exchanging their views. Issues raised during the discussions are
summarized as follows. Concerning FUJITANl's report, there were two comments: (1)the Japanese agriculture has become a diminishing industry not because of a decrease indemand but because of expensive domestic products which led to increased imports ofcheaper agricultural products. T herefore rather than raising prices of rice and fostering
highly productive farmers as insisted by FUJITANI, it would be far more desirable tolower rice prices and find new means of rice consumptions such as for feeds, which would
contribute to the advancement of the Japanese agriculture, (2) FUJIT ANI stressd thatlarge numbers of stable non-full time farmers in the middle-lower class should retain farmlands and engage in agriculture in the future. He also emphasized the need of the estab­lishment of "diversified services for the agricultural industry" to support these farmers.
For example, the reporter called for rendering substantial and improved machinery serヽ
vides to large-scale rice producers, agricultural services by agricultural cooperative associa­
tions as well as effective water management within the land improvement districts. Ques ヽtions were raised as to who would take the charge of managing the agricultural production
by a mass of middle lower class part-time farm households, or who would be responsible
for the management of the agricultural production and coordinate its management.
After YUIZE's presentaion, the following arguments were presented: (1) the distri­bution of decreases in the number of farm households is not classified according to the dis 、
trict and class of farmers. A decrease in the number of petty farmers with less than 30
ares of land in the Tokai area, Central Japan and that of large scale farmers in Hokkaido

would take on a totally different meaning. It was thus argued that the distribution must
be shown clearly, (2) according to YUIZE's calculation of a production function, thelabor elasticity is very high and it is coming close to 1. T his suggests that an increasedlabor will trigger agricultural production. From this observation YUIZE concluded that abottleneck to the growth of the Japan's agriculture is labor rather than the availability ofland. However, the validity of his argument seems questionable.
As to the third reptor presened by KUROYANAGI, two comments were made: (1)KUROYANAGI suggested that 64 yen per kilogram of milk should be an appropriate
price for promotion of cheese production using surplus milk to substitute for imported
dairy products. Based on this price level, he discussed the conditions under which dairy
farm households could exist. However, the discussants expressed concerns about possible
squeezing out of dairy farmers whose productivity was lower than that of Hokkaido farm、

ー

14 —

ers. They claimed that this might in turn lead to the ruin of dairy farms in Hokkaido as
well. Some of them argued that it should be more important to establish a Milk Marketing
Board to adjust milk production on the national level. (2) a research on the milk produc ヽtion cost in 1978 indicated that in Hokkaido it was 77 yen per kilogram for farms with
20 to 29 cows and 79 yen for those with more than 30 (cows). Therefore, a great concern
was expressd as to whether the price of 64 yen per kilogram, suggested by
KUROYANAGI, would result in bankruptcy of middle and small-scale farmers becauseof possible increased debts.
Two questions were put to NAKAJIMA concerning his report: (1) what politicalmeasures he would suggest to increase other business opportunities for farmers, which
would be required to create large-scale tenant farmers, (2) whether economies of scale
were really applicable to the case of rice farming. This question was raised on the basis of
the fact that even the most competent large-scale tenant farmers with 10 hectares of land
could reduce their production costs only 20 to 30 percent below small scale farmers with
one hectare of land. In answering these questions, NAKAJIMA compared part-time farm­ers to weeds on the ground in that they were harmful in fostering large scale tenant farm 、
ers and therefore should be eliminated as weeds should be uprooted. His argument, basedon his view that part-time farmers manifest the negative economy of scale, produced aheated debate. As a result, it has been carried over to the 1982 conference of the Agricul­
tural Economic Society of Japan under the common topic, "The Role of Part-time Farmers
in Japanese Agriculture".
In addition to the reports described above, 63 others were presented at the 1981
conference, producing vigorous exchanges of views among the participants.
(Keizo TSUCHIYA)

ー 15

—

JAPAN ASSOCIATION FOR ASIAN POLI TICAL AND
ECONOMIC STUDIESThe Association holds a national confer,ence every year. In addition an annual reヽ
gional conference is held by the Kanto and Kansai branches of the Association.
The Association publishes a quarterly journal called "Asian Studies" in Japanese, andthe latest issue (Vol. 29, No. 1) was released in April 1982. The Association offers someresearch subsidy annually (mainly in the field of Chinese studies) either to a single
member or a group of members and publishes in book form the results of such research.
The Association has a special fund donated by one of its oldest members, Kakuten
HARA, and uses this to offer a scholarship to one or two young members every year.
Since 1972, some twenty scholars have benefited from it.
In the early years of the Association members were mostly drawn from the field ofChinese studies. However, gradually, scholars specialising in the studies of other Asian
countries were also admitted. Recently membership of the Association has been further
diversified to include scholars of African studies. The Association is truly becoming a lead、
ing academic forum for political and economic studies of the Third World. This was re、
flected in the national conference of 1981. Although the main theme of the Conference
was "Urbanization in Asian Countries", papers presented were not necessarily limited toEast or South-east Asia but also included West Asia and Africa.
During the past several years, the Association has regularly taken up topics for discus ヽsion relating to social and political instability and its causes. The main theme of the naヽ
tional conference of 1981 was also selected from this viewpoint.
In the Plenary Session three papers were discussed. Yasuhiko TORII (Keio Universi 、ty) presented a paper on "Urbanization in Asian Countries: formation of the urban inforヽ
mal sector". To begin with he surveyed existing studies on the urban informal sector of
the Third World, and focused on examining various definitions. He pointed out thatmost people in the urban informal sector were rural-urban migrants and emphasised, on
the basis of data collected by him in South Korea and Thailand through field surveys, the'push and pull'factors of migration. He pointed out in conclusion the importance of theinformal sector for employment and suggested as policy recommendation a diversificationof the informal sector through development of manufacturing industries, particularly
small-scale and cottage units.
In his paper "Urbanization in the Middle East", Hirokatsu KANO (Institute of De­
veloping Economies), described the most prominent feature of urbanization in West
Asia: the explosive swelling of the population in major urban centres, especially metro、
politan areas, through rural-urban migration as well as through international migration
since the first oil crisis. He took up the case of Iran and pointed out that such a great
number of agricultural labourers and poor peasants had migrated out from rural areas atfirst on account of land reforms and then construction boom after the oil crisis, as insome rural areas agricultural production suffered from labour shortage. He argued that
there was a basic connection between Islamic fundamentalism and rapid urbanization,and that migrants from rural areas were important promoters of the Iranian Revolution.
Shunya HINO (Tokyo University of Foreign Studies) presented a paper on "Urbanizationー16 —in Africa". He argued that urbanization in Africa had proceeded side by side with the exヽpans10n of colonial regimes and that it had speeded up after independence. He classified
the urban centres in Africa into three types following Southall: type A which was formed
before the arrival of Western powers; type B which was developed during the colonial
period; and type A-B which was mixture of the first two types. Then he pointed out thecharacteristics of each type of urban centre. He also presented three types of adaptationof traditional African society to influences from outside Africa: Islamic type, Western
type and late development type (that is, migration of individuals leaving behind families
in the native place). He described t�e relationship between the typology of urban centres
and the adaptation process of African society, citing several urban centres as examples.
In the discussion of the Plenary Session, it was indicated that the concept of the in­formal sector was not very clear and its definition was not operational. The relationshipbetween the informal sector . and the Lewis model was also questioned, although it was
not fully discussed. Rapid urbanization will be unavoidable, at least during next few
decades in developing countries. Hence urban problems will become increasingly serious
and will become one of the most important factors for social and political instability in
the Third World.
The level, pace and process of urbanization are quite different among regions andcountries. For instance, in Iran, as Hirokatsu KANO showed, huge rural-urban migration
has resulted in labour shortage in rural areas and a decline in agricultural production.
However, in South-east and South Asia, there is almost no labour shortage, except in cer ヽtain areas at short critical periods like harvesting and transplanting of paddy, even thougha great number of people have migrated out to urban centres within the country or
abroad. On the other hand, it is possible to recognize some common characteristics in theurbanization process of the Third World. For example, the typology of urban centres
denoted by Shunya HINO is applicable to Asian countries. These comparative studies
must be further pursued.
Many other important aspects of urbanization, like the relationship .between urbani 、zation and administrative organization, economic planning, etc., or whether labour inten、
sive and appropriate technologies, regionally disaggregated economic planning and decen ヽ
tralised administrative organisation would be effective means for the deceleration of ur 、banization or not, remain to be explored in future.
(Masanori KOGA)-17—

JAPAN SOCIETY FOR THE STUDY OF BUSINESSADMINISTRATION
The annual convention for 1981 of Japan Society for the Study of Business Adminisヽ

tration was held in Ritsumeikan University in Kyoto from Monday, September 7th toThursday, September 10th under the unified theme "Problems in Contemporary BusinessEnterprises:'For the purpose of research reports and symposia, the main theme was divid 、

ed into two sub-themes: "Business Strategy in 1980s" and "Democratization of Business
Administration." Research reporters on the former sub-theme were Koichi IMAMI TSU( Aichi

Gakuin University), Moriaki

TSUCHIYA(University ofTokyo),

GoichiKATAYAMA (Kyushu University) and Kuniyoshi URABE (Kobe University), and theresearchers who read papers on the latter sub-theme were Hiroshi SHIMA (Doshisha Uni 、

versity), Yoshiaki SHIMABUKURO ( Tokyo Metropolitan Commercial College). Hiroshi
H ASEGAWA (Chilo University) and Shozo TANIDA ( Osaka Municipal University) .
Besides these eight, another twenty-seven researchers made reports on free subjects.

Among the four scholars who reported on business strategy, TSUCHIYA and

URABE commented on the content of business strategy on the basis of their view of its
theory after making inquiries into the theory to clarify its development process and antic ヽ

ipated problems. IMAMISU, on the other hand, dealt with the business strategy in 1980s

from the viewpoint of business environment that was based on the theory of demography.

The report by KATAYAMA was focused on financial strategy for Japanese enterprises

and its relation with the revised law of joint stock company. The approaches adopted bythese two researchers were rather limited in their perspective and areas of problems to becovered, while TSUCHIYA and URABE, critically surveying the research trend at home
and abroad, studied business strategy in line with the main subject . Their reports are par­ticularly worth noting in the point that the level of researches in Japan is clearly manifestヽ
ed in them .

According to TSUCHIYA, business strategy is a means-ends chain for business behaヽ

vior that is formed through the medium of subjective idea of executives on the point ofcontact between environment and capability. It comprises three levels of strategies: corpo­

rate strategy, divisional strategy, and functional strategy. In coping with problems and dif、

ficulties pertaining to business strategy differences are obvious between the US businessenterprises which strive to find out new fields of industries as well as breakthrough for ex­

isting ones, and the Japanese counterparts which lay stress on innovation mainly in exist­

ing industries; but both of them regard the accumulation of business resources as vital forbusiness strategy. In order to study such reality, some researchers of business theories
make an attempt to explicate the process of strategy formulation, while others are con­cerned to elucidate the logics involved in strategy formulation. The theory of businessstrategy, which began with the former type of approach, is expected to attain higher level

as the latter type of approach gain a more solid footing.

URABE considers that the business environment in 1980s is characterized by thechanges in industrial structure, diversified demands, internationalization, and dependence

on information, which must be tackled with new strategies; the product strategy and port­

folio strategy (or product portfolio management) that have constituted to date the main-18—

stream of the study would prove insufficient to respond to the emerging factors in thepresent-day business environment. The ground for his argument against the product­
market strategy is found in the transition from strategic planning theory to strategic
management theory, the differentiation and relation between growth strategy and compe 、tition strategy, necessity for systematization of corporate strategy and divisional strategy,
overemphasis on·diversification, etc. Portfolio strategy or product portfolio manage 、
ment(PPM) is criticized due to the insufficiency of market share rate and growth rate as
business indicators, the relativity of the effect of experience curve, disregard for productlife cycle and potential innovation, and the lack of competition strategy. On the basis ofthese criticisms and views, strategy for expansion, differentiation, and specialization canbe substantiated to supplement the conventional business strategy.
As the above-mentioned framework of theory indicates, the business strategy in Japaヽ
nese corporations in 1980s is characterized externally by the quasi-vertical integration
strategy which reflects differentiation, specialization, internationalization, and heavy reli­ance on information, and internally by the strategy centered upon organization, informa­tion sy stem, human development, and motivation.
In other words, focus of research on business strategy is being shifted from process ofstrategy formulation to the logic involved in strategy, from strategic planning to strategic
management, and from product-market strategy to sy stematically integrated strategy.
Among the four researchers who treated the second sub-theme "Democratization ofBusiness Administration:'TANIDA concentrated his report on banking business to dis 、cuss today's issue in the context of democratization of business administration. Comparedwith the researches by SHIMABUKURO, SHIMA and HASEGAWA, his report seems
too specialized to be introduced in this paper.
SHIMABUKURO, citing a number of actual cases, tried to assert the significance ofconsensus management (or labor-management co-ordination) in business administration.
Formation and utilization of autonomous work group in contemporary personnel manage ヽment was taken up by SHIMA from the point of democratization. HASEGAWA's con、
cern was directed to general inquiry into the meaning and conditions for democratization.
Both his research and HASEGAWA's are based on Marxist theory of business enterprise(the school derived from Marxism which discloses contradictions and problems in capi 、talistic business enterprises to establish the theory of business enterprise for workers).
In contrast to their arguments, SHIMABUKURO's view, which represents the outヽsiders of the advocators of the Marxist theory, basically approves of labor-management
cooperation.The following are the details of the reports by the three scholars.
According to SHIMA, 匹italistic production develops socialization of labor and pro ヽ
motes organizing and interrelation of work. On the other hand, thorough planning bymanagement makes workers feel increasingly alienated. Under these circumstances, small
group management or autonomous work group movement such as zero defect movement
and QC circles became widespread since 1960s. Although this movement motivates work­ers and intensifies labor spontaneously, it also estranges, in the process of team making, acヽtivists and unionists who do not conform to the policies of business enterprises, thereby
turning out to be a means of exploitation and oppression.
In this movement, however, there is a possibility to stimulate the workers' awarenessー19—

to the social nature of labor and to their objects; alienation can be abated and humanity
recovered through the autonomous work group movement. In this respect only, small
group management lends itself to democratization of business administration in the courseof development of labor union movement and class struggle.
HASEGAWA contended that democratization of business administration which is
promoted by management with the logic of capital must be distinguished from the real
democratization from the bottom with the logic of labor, which can be materialized by
the labor union that is fully provided with objective and subjective conditions. While
improving the objective conditions such as nationalization of big corporations and tighten­
ing of government regulations on business behavior, unionists must make constant efforts
to attain the workers council or joint consultation with secured rights through their active
participation. It is equally important, for the purpose of fulfilling subjective conditions oflabor union, to promote the study of the members and to help them satisfy their desire
for production control.
SHIMABUKURO presented his notion that consensus management was synonymouswith management decisions made by labor-management consensus from the long-term
viewpoint; the basis for decisions must be provided by accurate, impartial data. In princi 、
ple, there should be mutual respect between management prerogative and rights to work,
and in actuality, decisions are made by labor-management consensus. A prerequisite fordemocratization of business administration is the theory of business enterprises which
coordinates the objective principle of business enterprise and the supreme value of busi、
ness enterprise, namely, the survival of business enterprise and the human life. When thetheory is put into practice, it takes the form of consensus management. Theoretical foun­dation of consensus management is laid in the dual system of business enterprise.
A business enterprise is a unity of the system of production technology and thesystem of production society. In the former system, it is impossible to realize democratiza 、tion because there is no room in it to permit the subjectivity of workers. Democratizationof business administration is attainable only in the system of production society where
workers can gain and maintain subjectivity to objectify the system of production technolo、
gy. Since the subjectivity of workers is brought into play through decision-making, it fol­lows that workers should participate in managerial decisions.
Yet, what assumes greatest importance with regard to democratization is the conceptthat denies in principle implementation of the matters upon which management andlabor have not reached agreement in spite of their hardest effort for compromise. Other­wise, the consensus management does not deserve the word "democratization." A numberof real cases of the consensus management which is not confined to mere participation in
managerial decisions are already existent in Japan and abraod.
The paradigm recognized in the view of SHIMA and HASEGAWA indicates thatevery contradiction of business administration arises from the capitalistic economic
system. To conclude, drastic solution to diverse problems cannot be reached withoutchanging or reforming the system itself.
In contrast to their logic of confrontation, SHIMABAKURO, who represent anotherparadigm, set forth the logic of synthesis which coordinates the nature of business enterヽ
prises or organization and the dignity of human beings or individuals.

-20—

In all the issues taken up by Japan Society for the Study of Business Administration,
two leading currents are observed. T his split of current is unique to the society for busi一
ness administration in Japan, and nowhere else is found such a phenomena.
In disputing with each other on democratization of business administration the gap
between the two parties were too wide to be bridged, and the differences of opinions
were accentuated particularly in such areas as social aspect of business administration, or­ganization, personnel management and labor-management relations.
However, as far as another sub-theme "Business Strategy in 1980s" is concerned, di­vergence of views did not come up to the surface because of the conservative stance on
the part of critical paradigm.
Of late, Japan Society for the Study of Business Administration is obliged to put up
a comprehensive title as its unified theme in order to satisfy its rapidly expanding mem­bership. The next convention is to be held from Monday, September 6th to Thursday,
September 9th, 1982; the venue is Rikky o University in Tokyo. T he proposed main
theme for the convention is "New Aspects of Industrial Technology and Problems in Busi­
ness Administration;'and the fields of new technology to be discussed will range wide —from the individual technology such as industrial robots and office automation devices
through the gigantic technology including computer control plants and space telecom­
munications. Intriguing reports and heated debates are expected as to technological devel­
opment and its influences on business administration.
(Mitsuo MORIMOTO)

ー

21 —

JAPAN BUSINESS ENGLISH ASSOCIATION (JBEA)(NIHON SHOGYO EIGO GAKKAI}

The 41st National Convention was held on September 19 and 20, 1981, at Chuo
University, Tokyo, and nine regional meetings were held, three each in the Tokyo,
Osaka-Kyoto, and Kyushu- Yamaguchi districts.
The Association also published "Nihon Shogyo Eigo Gakkai Kenkyu Nempo (TheJBEA Annual Studies)" containing 13 papers which had been read at the 40th National
Convention and an outline of regional meetings.
The trends of study as reflected in the presentations at the latest national convention
are as follo;s:First, the questions of what is Business English and how to study it so as to systema ヽ
tize our studies into a scientific discipline were taken up as old and yet ever new problems,for example, "What ls Business English" by Masatoshi NAKAUCHI (Obirin College)and "A Tentative Structure of Theoretical Studies in International Business Communica ヽtion English" by Yoichi USUI (Kitakyushu University). The former contends that there
is no such thing as English exclusively used in the business world and that what we are
studying is General Current English as a means of communication in foreign trade. The
latter propounds a system of theoretical studies of what the author calls'International
Business Communication English' to distinguish it from the conventional concept of Busi 、ness English.
Secondly, the styles of business writings in English were naturally the main interestsof many members.
"A Comparative Analysis of American and British Business Letters" by Atsuko
TANAKA (Baika Junior College) proved by an experiment that American letters use
more direct expressions, are more enthusiastic in selling, and show more personal feelingand consideration toward the recipient.
"Plain English Legislation" by Koji TSUBAKI (Waseda University) pointed out the
problems concerning the simplification of legal documents, for example, the New York
Plain English Law to protect consumers. In addition to legal problems, one difficulty is
the lack of established standard for plain English. In this connection, "Readability of Busi­
ness W riting" by Mikito NAKAMURA (Kwansei Gakuin University) closely examinedsome corporate annual reports for readability and pointed out the weakness of the famous
readability formulas designed by Rudolf Flesch, Robert Gunning, etc. which fail to take
into account the meaning and context.
Also in this connection, "Euphemism in Business" by Takao NORISADA (Heian
Women's Junior College) warns people against euphemistic expressions, because eupheヽ
mism is now used less to find discreet terms for what is indelicate than to soothe employ­
ees and to delude consumers.
Further on the style of writing, one report was noteworthy for its novelty: "Applica ヽtion of the Faces Method to Business Communication" by Norio AOYAMA (Chuo
Gakuin University), in which the reading ease, human interest, liveliness or wordiness of
messages are illustrated as a man's facial expressions, and it is suggested that an electronic
word processor with a proper attachment will enable a businessman to see on a graphic-22—

display whether his sales letter looks like a successful salesman.
Thirdly, there were reports which concern legal matters, in addition to the one al 、
ready mentioned (TSUBAKI). "A Study of Mutuality in Contract Wording" by Takao
MUKOH (Osaka University of Foreign Studies) discussed the mutuality provisions in in ヽ
ternational commercial contracts, citing actual cases, and warned inexperienced persons
against such provisions which seem fair at first but may later prove harmful to either
party to the contract. "English Terminology of Business Failure" by lsami UCHIZAKI(Mukogawa Women's University) may be mentioned here since it deals with technicalterms both English and Japanese concerning bankruptcy and other business failure.
Fourthly, there were some more papers worth mentioning. "Basic Words for Business
Letter W riting: A Historical Approach" by Hiromitsu HAYASHIDA (Chuo University)
shows what kind of English was used in the 19th-century Japan by merchants in the forヽ
eign concession at Yokohama, citing examples collected from old books on English con ヽ
versation and letter writing.
"The Syntax and Semantics of the Participial Construction: Compound Adjectives"by Junzo HAYASHI (Osaka Y MCA) took up the usage of compound adjectives often
found in business writing and discussed the possibility of participles being used as adjec­
tives before nouns, for example,'oil-producing countries' and'U.S.-made cars; while it is
not normal to say'the killed man:℃ross-Cultural Study of Consumer Behavior" by Shigeto MOROKAMI (Meiji Uni 、
versity), after a review of segmentation research in international merketing, offered aframework of analysis and discussed some cases in cross-national comparisons of Life
Styles.
Lastly, international activity was one big feature of the year. Dr. John Gould, Profes ヽ
sor of the University of Southern California and former President of the American Busi 、ness Communication Association (ABCA), attended the 41st National Convention anddelivered a special lecture entitled "ls Business English in America Healthy?"
Norio AOYAMA (Chuo Gakuin University) attended the 1981 National/lnterna­
tional ABCA Convention at Phoenix, Arizona, U.S.A. on October 14— 17 and read apaper on "How to Reduce Trade Frictions through Better International Communication."

Yoichi USUI (Kitakyushu University) was granted a financial aid from the Union of
National Economic Associations in Japan and is going to attend the 1981 National/Interヽ
national ABCA Convention to be held in New Orleans, Lousiana, U.S.A. on October20— 23, 1982 and read a paper on "A Comparative Study of Business English Educationin the United States and Japan."(Saburo HANEDA)

ー

23 —

BUSINESS HISTORY SOCIETY OF JAPANA)

The 17th Annual Conference of Business History was held at Shiga University be­

tween Oct. 31 and Nov. 2, 1981. The main theme discussed was "The root of Japanesebusiness and it's success", firstly proposed by Eiichiro OGURA of Shiga University andjointly chaired by Yotaro SAKUDO of Osaka University and Hidemasa MORIKAWA of
Hosei University. The names of papers presented and contributors are as follows;"Some issues over Japanese-style business" by Masumi TSUDA of Hitotsubashi Uni 、
versity and commented by Tadashi MITO of Rikkyo University. "Evolutional aspects ofJapanese business" by Kuniyoshi URABE of Kobe University and commented by Tsuneヽ
hiko Y Ui of Meiji University. "Historical origin of Japanese business — SOGO SHOSHA—" by Yoshio KATSURA of Kobe University and commented by Keiichiro NAKA­
GAWA of Fukushima University. "Japanese-style marketing method, dual aspects of it's
up-to、 date and convention" by Kinichiro TOBA of Waseda University and commented
by Kouichi SHIMOKAWA of Hosei University.
At this conference, some characteristics of Japanese business, so called life security of
employment, seniority promoted system, peculiar process of decision making by group,
softness of managerial organisation, royality for the company, were discussed, especialy
concerning with success of the Japanese-style business at present even out of Japan.
TSUDA argued that Japanese successful business after World War II was similar to thetypical family business in the pre-war era and would have been fruitful of efforts of theprevious generation endured through drastic changes in history, although MITO com­mented the continuity of family system in Japan. URABE insisted on the Japanese busi 、ness sufficiently adaptable to stages of economic development as the historical and cultural
product. Y Ui emphasised the importance of transfering business from the public to theprivate sector in early Meiji period. KATSURA, while illustrating a number of Japanesefamily enterprises, pointed out that the organisational success of SOGO SHOSHA had
been achieved by making use of her own backwardness and peculiar feudalistic structure.
NAKAGAWA raised some questions in the case of ITOCHU, mentioning it's dual as ヽ
pects of maintaining family business and policy of expanding, recruiting staff only fromthe local and a way of approaching to governmental work. TOBA reported on several
examples of Japanese industrial goods, which were highly successful in the world market,
because of low cost and high quality, superiority of design and services over foreign com、
petitor, based firmly on the collaborated management like bottom-up decision making.
SHIMOKAWA, fundamentally agreeing with TOBA, went further to ask the historicalbackground established such sophiciticated marketing method in the small islands of the
Far East. Then discussion opened for the floor.
And the names and contributed papers' subjects are follows: "Survey of the expand­ed process of MITSUBISHI Electrical Co.," by Masahisa FUJITA of Konan University.
"Study of some paper-making companies' management in pre-war period" by Toshiyuki
SHINOMIYA of Hirosaki University. "Some influences of OSHIO Affair over the family
policy changes among SUMITOMO, MITSUI and K ONOIKE" by Jyuichi NAKASE of
OSAKA Sangyo. University. ℃omparative study of cost-accounting methods between
Japan and U.S.A." by Masaki YAMASHITA of Nagasaki University. "SOGO SHOSHA's
ー 24—business in America in pre-war period, a case of MIT SUBISHI trading company" by
Noboru KAWABE of Waseda University. "Finance and business adventure of Oumi mer ヽ
chants in Meiji era" by Kuninori SUENAGA of Kyoto Sangyo University. "French entreヽ
preneur's investment to iron companies of South-Russia since late 19th century" by
Takashi HOTTA of Tokyo University. "Some characteristics of Anglo-american shipping
business before World War I" by Shin GOTO of Tokyo University. "Industrialisationand entrepreneu�'s pattern of Austri 、Hungarian Empire" by Masami SAKAI of Teikyo
University. "On the relief activity of CJ.Barnard, labour management of A.T. & T. in
U.S .A:' by Hideo KAWATA of Senshu University. "Study of accounting system of the
British East India Co., in 17 & 18th century" by Torao MOGHI of Rikkyo University.
"Something like ZAIBAT SU in America" by Yoshio OUBA of Hokkaido Gakuen Uni、
versity.
B)

T he 4th of 2nd Series of Fuji Conference on Business History was held at Fuju

Educational Centre, January 5 — 8, 1982 under the subject of "Foreign Direct Investment
to Manufacturing" projected by Tadakatsu INOUE of Kobe University and chaired by
Akio OKOCHI of Tokyo University. T he subjects of papers presented are follows; "AnIntroduction to a Comparative Study on the Emergence of Multinational Manufacturing
by U.S., European and Japanese Firms" by Tadakatsu INOUE of Kobe University andsupplemented by Yosuke KINUGASA Of Yokohama Municipal University? "SOGOSHOSHA's Contribution to the Multinationalizat�on of Japanese Industrial Enterprises inthe Historical Perspective" by Kenichi YASUMURO of Kobe University. "Multinational
Growth of Japanese Manufacturing Enterprises in the posじwar period" by Hideki YOSHI 、
HARA of Kobe University. "The Expansion of British Maltinational Manufacturing,— 1939" by Geoffrey Jones of University of London . "German Investments in
U .S.A., 1871 — 1914" by Jurgen Schneider of University of Erlangen Nurnberg. "T he

1890

、

Evolution of United States Multinational Enterprises: A Perspective" (only paper contri、

bution) by M.Y. YOSHINO . "Multinational Factories in Australia, A History" by Geof、
frey Blainey of University of Melbourne. "Foreign Business Activities and Chinese Re ヽ
sponse, 1842

— 193 7" by T ien yi Yang of Asia University and "Foreign Investments and、Technology Transfer: the case of the French Chemical Industry in the 1950's and 1960's
as Viewed by the Direction des Industries Chimiques (D .LC.)" by Fran�ois Caron of Uni、

versity of Paris 、 Sorbonne: T he Proceeding of this conference will shortly be published by
the Tokyo University Press.
T he 5th (last of 2nd series) of Fuji Conference will be held under the subject of "In、
ternational Comparison of Family Business" early 1983, presided by Shigeaki YASUOKA
of Doshisha University. T he executive committee is planning the 3rd series of Fuji confer ヽences.
T he second international conference of the Business History Society of Japan and
the Gesellschaft fur Unternehmensgeschichte of Germany was held at Tokyo in March
1981 and the proceeding of the conference is now under edition to be published from
Tokyo University Press.
(Masami KITA)— 25 —JAPAN SOCIETY OF BUSINESS MATHEMATICSThe 23rd annual academic meeting was held on the 6th June in 1981 at the Seminar
House of Kobe University of Commerce.
Main reports of this meeting were as follows:(1)

A comparison of depreciation Methods,(2)

Mathematical Study on Inventory Systems,(3)

The Method of Accounting Dynamics,(4)

On Miscellaneous Formulae for Pension Slide,(5)

Goal Programming for Depreciation Analysis of Multiple Objectives,(6)

On Optimal Threat Strategy,

Yoshio IIHARA (Nanzan University).
Eiichi MORIYA (Kanagawa University).
Takahiro KOJIMA (Senshu University).
Kotaro MATSUMOTO (Chiba University of Commerce).
Hiroshi SEMI (Kansei Gakuin University).
lsao USUI (Yokohama National University).
In NO. 1, IIHARA discusses the relative merits of using whether sum研years'digits
method or fixed percentage method in the case of corporations. The choice of depreciaヽ
tion methods will affect the amount and timing of income tax payments.
From the point of financial management, he concludes that the best depreciation
method for a company depends upon the appropriate discount rate as well as upon thelife of the investment and its expected salvage value.
In N0.2 MORIYA is interested in probabilistic models with a mixture of backorders
and lost sales and comments on the optimal inventory policy in reorder point systems.
Relationships between reorder points and quantities are determined independently
in many models which have been suggested by several authors and so the solving methodsof simulations and iterative procedures are used. These are called the joint calculations.
His models contain the normal, poisson, exponential and uniform distributions indemand functions.
In NO. 3 KOJIMA explains an application of industrial dynamics to social systems,
especially business systems, in terms of accounting data.
In NO. 4, MATSUMOTO discusses the relationships between pension slides andfinancial resources for pension payments and criticizes the present situations of the pen­sion problems in Japan.
In NO. 5, SEMI insists that goal programming is still in process of development andthen it still has some defects which have to be corrected, and that in order to make it themore useful and efficient technique, it is necessary to review the existing method again.
His paper consists of three parts.
Firstly the goal programming problem being formulated, presented are two solution
procedures, i.e., the modified simplex methods and the method of generalized inverses.
Secondly, sensitivity analysis is illustrated. And finally explained is the stochastic
goal programming which is suggested by B. Contini.

ー26—

In NO. 6, USUI introduces Nash's two models and analyses some of the properties.
He notes that each player will, given his opponents' threat strategy, choose his threat
strategy in order to maximize his final payoff determined by the Nash scheme, and thatmaximizing his final payoff is equivalent to minimizing his opponents's final payoff on the
Pareto optimal boundary of the payoff space. Therefore optimal threat strategy can bechosen in this case as if each player were playing the non-cooperative game.
(Kesato FUJISAWA)

ー27—

JAPAN SOCIETY OF COMMERCIAL SCIENCE
National annual convention of 1981 was held at the University of Nagasaki between
May 27 and 19, 1981 with over 260 members present.
T he special theme for the convention was "Marketing Activities and the Distribution
Structure", chosen because of concern to maintain effective competition in a world in­creasingly moving towards oligopoly among manufacturers and mass retailers.
Report titles and the names of the reporters were as follows,℃onditions for Distribution Channel Control and Marketing Strategy"
Hiroyuki TATSUTA (Kurume University)"Review of Marketing Activities and Distribution"
Ryoji OIKAWA (Chuo University)"Toward Systemization of Strategic Marketing Management-Transvectional View of
Textile Distribution- "Masahiro SUGAWARA (Research Institute for Marketing Science)℃hange in Marketing Strategy"
Shoji FURUTA (Keio University)"Arrangement of Geographical Space of Market in Marketing Strategy
Marketing Strategy"— Areal Factors in

Tetsue MUROI (Chiba University of Commerce)"Vertical Integration and Organization of Distribution"
Toshiyoshi FUJIMOTO (Osaka University of Economics)"An Angle of the View of the Analysis of Distribution Structure Change"
Yoshiaki SHIRAISHI (Fukuoka University)"Empirical Study on Distribution Structure and Price Behavior"
Masanori TAMURA (Kobe University)"Distribution Advertising and Behavior of Distribution Businesses"
Kozaburo SAKAI (Aoyama Gakuin University)"Oligopoly in Distribution and Price Formation"
Kazuro UMEZU" (Osaka Foreign且nguage University)
Reportrs on free themes and their titles were as follow:"Review of Marketing Information System"
Saichi NEMOTO (Chuo University)"Life-Style Approach to Marketing"
Satoshi HIKITA (Toyo University)"Review of Marketing Activities Responding to Business Environment — Presentation of

Basic Data for Marketing Mix ー "Choji YOKOTA (Meiji University)"A Study on Market Behavior of Housewives in the Age of High Quality of Life
Relationship Between Quality of Life and Buying Behavior-"
Toshio IKUISHI (Chuo Gakuin University)"Historical Study on Main Body of Marketing and Its Activities"
-28—

— On

Yukio OMURA (Kyushu Industrial University)"Measurement of Image of Retail Complex and Multi-Dimensional Scaling"
Masao TANAKA (Konan University)℃omparison of Differences in the Systems of Frl_J.nchise and Voluntary Chains"
Masahiko OHASHI (Osaka Prefectural Research Institute of Industrial Efficiency)"Growth Strategy and�ganizational Adaptation of Large-Scale Retailers"
Mitsuo WADA (Keio University)"Fashion and Consumer Behavior"
Taketo KINOSHITA (Middle Kyushu College)"Supermarket and Consumer Service"
Yukihiko UEHARA (Meiji Gakuin University)"Transaction of Commercial Enterprise as a Determinant of Distribution System Struc ヽ
tureTakahiro YAMASHITA (Otaru University of Commerce)"Distribution Structure of Korea — In Comparison with Japan"
Shuji HAYASHI (University of Tokyo)"Marketing Activities of Mitsui Bussan Company and Distribution Structure"
Yukiyoshi OGURA (Japan College of Economics)"International Transaction of Petroleum and Change in Foreign Exchange Rate"
Makoto YOSHIKI (Osaka University of Economics and Law)
Awards: At the national annual convention of 1981, the following two books were
given awards from the society for their contribution to the study of commercial sciences.
"Retailer Problems at the Early Years of Showa Era" by Yasuaki SUZUKI
Birth and Development of Marketing Management" by Shigero MITSUZAWA(Koichi TANOUCHI)-29—

JAPAN SOCIETY FOR COMMODITY SCIENCE
The subject of the symposium of the 32nd Japan Merchandise Society's national con 、
vention in 1981 held at Aichi Gakuin University between May 23-25 was "Merchandise
and Packing & Packaging — from the Viewpoint of the Study of Merchandise".

As is generally known, the purpose of packing & packaging is to protect merchandise

and to help ease problems of transportation as well as attract the consumer. Packing mate­rials are important for preserving merchandise and have become more sophisticated withthe advance of technology. But there are problems, packages can deceive, sometimes bringtoo showy or exaggerating the amount contained. The consumer can also complain object ヽ
ing to high packaging costs as well as its deceptive nature. Some commodities are prepack­aged unnecessarily to facilitate handling. This annoys conservationists who complain of
the waste of natural resources, environmental pollution and the cost of disposal. Membersof the Society considered how consumer goods should be packaged in an age of scarce
resources.
Kazuko SAMEJIMA (Sapporo University of Commerce) looked at the whole prob 、
lem from the consumers' standpoint. She emphasised the following points. 1) The cost ofexcessive packing. 2) Insufficiency of proper explanation and indication. 3) Safe packing
materials. 4) Increased waste caused by excessive prepackage. 5) Disposal of packing
waste. 6) Recycling of packing resources. She indicated that as item 1 and 2 showed,
some facts were adverse to the benefit of consumers. She pointed out the packing mateヽ
rials, the technology and the way were innovated, and the plastics came to be used as
packing materials, which caused a problem that plastics additives affected the food in it.
She also touched upon the waste of resources caused by the excessive prepackage and the
difficulty in disposing and recycling it. Besides, since the vending machines have been pre­vailed recently, this causes the problem of scattered waste such as bottles and cans. These
wastes are now cleared by the administration and the activities of volunteers. However, reヽ
cently the consumers are well aware of this situation and their awareness are strong
enough to demand makers, who are carrying out the large scale irresponsible sales, toassume their responsibility. SAMEJIMA mentioned that the disposal of these scattered
wastes should be considered in connection with the recycling of resources.
Koichi NAKANO (Nihon University) examined what the new merchandise &packing & packaging should be, from the aspects of the materials and the technology. He
said as we were so called in the age of the stable economic growth, the packing & packag­
ing had to have the social natures like energy saving and resources saving. First, he exヽplained the energy and the raw materials consumption loss caused by the different size
containers for drinks of the same materials. Next, he examined how the difference ofmaterials of metal cans would affect the amount of energy consumption, air pollutant andwater pollutant. In addition, he said�acking materials had not been developed innovativeヽ
ly in the last decade, but with the application of the existing technology and materials,
the new packing product and the way were developed. Using abundant research data, healso explained about the trend of packing materials; packing material competition; pack­ing state of each commodity.
Tomiyoshi YOSHIDA (Senshu University) stated that the modern packing &-30 —packaging should require to have the protective, marketable, convenient, phsychologicalaspects. For this, it should be functional; technological and economical; should be fitted
to the market distribution; should help the sales promotion; should be safe and conve ヽnient for the users; should have an excellent design and visual communication; andshould be energy saving; and should protect the environments. As stated above, the pack­ing & packaging needs many aspects. He also said that there were many products that
could be introduced into the market with the new packing technology. However, thesimple standard theory should not be applied to it as the packing & packaging is function ヽ
ally the compromising by-product created by the collision. The package printing and thestrategy for appealing each brand have been playing significant roles in modern packing& packaging. Consumer, who can not see a commodity on account of prepackage, haveto imagine what the commodity is like by the outlook and the message of package, thequality indication, the experience of using similar goods, the TV commercial and the ad 、
vertisement on the papers. Then, they decide what they should buy. This imagination
causes "modern value contradiction". The micro theory of merchandise study should be
examined in its mechanism. However, as for the social issue, which is likely to be ignoredin the marketing mechanism, its macro theory should be developed and this requires thecreation of method of system's approach or the social ecology like "Pachology". In order
to argue the modern packing & packaging, it is desired to develop the theory of merchan ヽdise packing & packaging based on the study of merchandise. This should have a certain
distance with both the study of marketing merchandise and the study of consumer mer ヽ
chandise. It also should be a part of theoretical merchandise with scientific logic. With
that basic principle, systematic suggestion should be made. In this case the considerationof merchandise from the history of the study of merchandise and the positive study conヽ
cerning merchandise cycling would become important. This provides the dynamism to
the theory of merchandise. The above was stated by Y OSHIDA.
Thus in the symposium, the members tried to establish the theory of packing &packaging in the merchandise study, approaching it from the three viewpoints und.er thetitle of "Merchandise and Packing & Packaging".
Next, the reports presented under the free subject are introduced, classifing theminto the categories such as the technological theory, the management theory and the his­
tory of merchandise study.
In the field of technological theory, Takao IKEGAMI (Kinki University) formerly
disclosed that the distribution rate of the crystal in "Leaf Aschenbild" of persimmon
showed the kind which would be highly economic before its fruition. This time, heproved the practical distribution pattern that could be put to use. Kenro TAKATORI(University of Yamaguchi) organized the theoretical framework of the present situation of
product test and its trend, centering on setting up the test items. Fujio ASAI (Aichi
Gakuin University) reported on the development of chemical removal for textile polluヽ
tion, and as the pollutions were diversified these days, the functional merchandise consid、
ered from that aspect should be required to be developed, showing many examples.
From the viewpoint of the management merchandise study, Kazuhiko SAKAIRI(Bunkyo University) classified new merchandise into three groups phenomenally. He
proved that the factors of developing merchandise in each group were complex and there—31-existed complementary characteristics among them. Yoshiro IIJIMA (Waseda University)
analyzed the characteristics of merchandise, and he also pointed out that the importantcharacteristics of merchandise could be the base of various issues such as comparative reヽ
search on merchandise; application to special or individual commodity; practical use tomerchandise policy; and classification of goods. Thus, he suggested to consider the charac ヽteristics as one of the main issues in the theoretical and positive study of merchandise.
Nobukazu SODA (Association for Casualty Insurance Premium Assessment) said that themerchandise quality guarantee system were made up of the maintenance of reliability, theprevention of accidents and the quality guarantee. He commented on the role of packing& packaging in this system. Hisao MORISAWA (Akechi High School of Commerce)
introduced various indication systems of industrial goods in Korea, touching upon the pre­sent Korean economic situation. Hiraku HOSHIMIYA, (Tohoku Gakuin University)from the standpoint that peculiar system of the study of merchandise consisted in thequality theory, indicated several points concerning service that became more important inrecent years needed to be considered for the application of the quality theory. Ryojiro
I WAKI (Hitotsubashi University) reported on the Japanese postal stamps, which were
owned as a collection. He made clear the relations between its elements in manufacturing
and usage and its evaluation. He also mentioned its characteristics as merchandise for col 、
lection. Mitsuru OBA Qapan I. B. M. Co.) referred to several conditions necessary formerchandising the software. Yuzuru TANAKA (Hitotsubashi University Postgraduate
Course) developed the positive research on the history of the study of merchandise. His
standpoint was with what kind of character the study of merchandise was formed inJapan and how that immatured study contributed to the society in those days. Those were
the free subject reports. Outstanding features this year were the study of service and softヽware merchandise as well as the study of material and substantial merchandise.
There was one special lecture which was given by Prof. Dr. Hi 、 Young H AHN(School of Management Seoul National University) under the title of 、 "Research on the
Commodity 、Geomotrical Forms". This is an attentive theory to examine geometrically theforms of commodity which can be grasped visually with the concept of dimension, and tointegrate the forms and the function. This intends to give the theoretical ground in con­sidering design, from the standpoint of study of merchandise.
Next, the Conference of Merchandise Research was held under the title of℃ase
Study and Guidance Based on the New Course of Study". The reporters were Shigeo
TANIGUCHI (Yasuda Gakuen High School), Takaichi HIG ASHITANI (UjiyamadaHigh School of Commerce) and Minoru YANOTO (Orio High School). The reason why
this subject was selected was because a new case study was added to "the curriculum of
merchandise" in the Course of Study carried out in high schools from 1981.
The members visited Obara Village which is noted for the traditional industry ofJapanese paper. Each member practiced making paper at the Obara Japanese Paper Craft
Center. Then, members visited Toyota Motor Co. Ltd. in order to get better understand­ing of automobiles, the star product of present industries.
(Akitsugu OK ABE)

ー32—

THE SOCIETY FOR THE HISTORY OF ECONOMIC
THOUGHTThe 45th annual conference was held on 7

— 8 November 1981 at Ryukoku Uni、

versity in Kyoto. The common theme of this meeting, which is to be developed further
next year, was "Advanced vs. underdeveloped countries as a problem in the history of
economic thought". Three papers were read: (1) "Advanced countries vs. underdeveloped
countries in James Steuart". (Noboru KOBAYASHI, Rikkyo University) (2)℃ivilization,
advanced countries and underdeveloped countries in J.S. Mill". (Jira KUMAGAI, Momo、
yamagakuin University) (3) "Alfred Marshall and the world economy problem". (Tadashi
HAYASAKA, University of Tokyo)
The chairman were Hiroshi MIZUTA(University of Nagoya) and Saiichi

MI YAZAKI (Tokyo Women's College).
(1) KOBAYASHI's paper: Sir James Steuart's "Principles" (1767) was not inferior
in substance to A. Smith's "Wealth of Nations". Steuart wrote, however, most of thiswork during his long excile on the Continent. He anticipated Smith by nine years andcould not therefore have had any intention to criticize him.
We may say that the "Principles" contains essentially "a general theory of primitive
accumulation" (Marx). Though the author of the "Wealth of Nations" does not mention
Steuart, he tried by inference to criticize the theoretical system of the "Principles".
The theoretical cores of the "Principles" are as follows: modern society was regarded
as an "independent producers' society" that originated from the separation of industry
from agriculture. Although Steuart admitted the unrestrained pursuit of self-love by every
individual and the operation of the market mechanism to be the basic principles ofmodern society, the practice of a skillful art of political economy on the part of "statesヽmen" was indispensable. For the sake of the progress of society, the expansion of "effectuヽ
al demand" and an advantageous balance of trade were regarded as significant. From thesepoints of view, the role of money and finance in economic progress were full discussed
and it may be possible for us to call Steuart's approach "a theory of the monetary manage、
ment .
Steuart analyzed price phenomena in depth. He considered the "completion" of theexchange economy to be the result of economic growth. But he could not explain thegenesis of profit and the mechanism of accumulation in a consistent way.
He took the landlords and the "moneyed interests" to be the creators of "effectual
demand". He advocated the foundation of the Land-Bank on general grounds, though his
scheme could also be thought of as a remedy for the landlords who lacked money.
Smith failed to notice the historical significance of "primitive accumulation" andmonetary analysis in general, whereas Steuart stressed them. For this reason, Steuart had
been studied repeatedly in America, France and Germany which were less developed
than Britain.
Later on, Steuart's theory was re-evaluated by both Marx and Keynes.
(2) KUMAGAI's paper: Mill's theory on the subsidiary effects of foreign trade sug ヽgested that underdeveloped countries could, by trading with advanced countries, get thestimulation of wants (and later industry) which would enable them to make progress.
-33—

Often the response of an underdeveloped country to external stimulus was accelerat ヽ
ed by the re-allocation of the land. As a 添ult of this interpretation Mill tended to criti、
cise both the British landed interests and British political economy. Mill's views reflected
those of the middle class, of which he was himself a member. For him colonization by Bri­
tain was the best for everyone concerned including those colonized. He lacked a frameヽ
work for the analysis of underdevelopment.
(3) HAYASAKA's paper: From the beginning of his studies, Alfred Marshall wasvery conscious of the deterioration of the British situation within the world economy.
Among with the problem of poverty, Marshall thought the situation of Great Britain
in the age of the "great depression" after 1873 had been worsened . Marshall took this as
his main theme .
Along with J .A. Hobson who severely criticised imperialism, Marshall was one of the
few economists who was interested in the "underdeveloped countries". But his main con ヽ
cern was the problem of'later-developed' capitalist countires.
His fear of the decline of Britain began with his visit to America, and culminated in
his article "Memorandum on the fiscal policy of international trade" (1903) which was
written in the course of the "tariff debates".
Although he tl;i.ought much of "increasing return", it would have been easy for him
to suport Chamberlain's protectionism. But in fact he supported free trade because of his
fear of the political corruption that might arise from a tarrif. His oppinions were notchanged in his later works.
Satoshi YAMAZAKI (University of Kagawa), Saburo SHINOMI YA (University of
Shizuoka) and Akio FUJITA (University of Kanazawa) Were the commentators on thesethree reports.
In addition to the above-mentioned Conference debates, to commemorate the 30th
anniversary of the Society, the book "Economic T hought in Japan" (a preliminary title)
will be published before long.
Its contents and contributors are as follows.

I. The "soil" of political economy in Japan.
(Kenji KAWANO, Aichi University)
II. Foundation and development.
(1) T he Society for the Study of Social Policy: Its establishment to dissolution(1896—1924)(Kanae HOA, Keio University)(2) From its dissolution to the World War II (1924— 1941)( Yukio CHO, Tokyo University of Foreign Languages)(3) World War II (1941-1945)(Tadashi HAYASAKA, University of Tokyo)(4) T he Postwar period (1945ff)(A) Modern economics(Mitsuharu ITO, University of Chiba)-34—

(B) Marxian economics(Saiichi MIYAZAKI, Tokyo Women's College)
ID. Traditional economic thought and the receiving process of economic thought.
(1) Economic thought before the Meiji era (before 1868)(Takahito SAKAI, Rikkyo University)(2) Studies on the history of economic thought from the Meiji Restoration to thePre-war years (1868— 1941)(Shiro SUGIHARA, Konan University & Kiichi MIZOKAWA, Universityof Kyoto)
IV. Appendix: Bibliographies.
(Kazuo MAZANE & Kunihiro WATANABE)— 35 —

THE JAPAN ASSOCIATION OF ECONOMICSAND ECONOMETRICS
The 1981 annual convention of the Japan Association of Economics and Econometヽ
rics was held at Yokohama National University on the outskirts of Yokohama on October
1 7 and 18, 1981. As usual, it attracted a great number of scholars and experts in the fieldof Economic Theory and Econometric Analysis from all over Japan. Altogether, sixty
papers were presented and discussed in twenty separate sessions on various topics reflectヽ
ing the fact that Economics today is divided into a wide range of sub-disciplines with re­searches being carried on by many different kinds of economists. There were two major
symposiums, one on rational expectations and time series analysis and the other on theeconomic analysis of energy problems. In addition, there were thirteen sessions on topics
of general interest: Keynesian Economics, Income Distribution, International Economics,
Monetary Economics, the Government Economic Actions, Information and Incentives,
Labor Market and Wage Rates, Monetary and Fiscal Policies, International Economic
Coordination, Statistical Method, Estimation Problems, etc.. There were also four sessions
to cover special interests.
Professor Ken-ichi MIYAZAWA of Hitotsubashi University gave this year's presi、
dential address entitled "The Distribution of Property Rights and Market Systems." Itemphasized the importance of a social rule which stipulated the fair distribution of proper 、ty rights as a necessary prerequsite for the efficient and effective workings of market sysヽ
tems. Professor MIYAZAWA illustrated this point by discussing the problems of defective
products and insurance against accidents and clarified the theoretical underpinnings forthe relevant design of social rule in the light of the Economics of Uncertainty. His address
reflected the present serious concern of Japanese economists with this type of problem.
This year's convention introduced for the first time symposiums on popular topics.
As mentioned above, one was concerned with rational expectations and time series analy­
sis and the other with the economic analysis of energy problems. Both attracted large a_udi、ences.
The symposium on rational expectations and time series analysis started with the preヽsentation of two papers by Chikara KOMURA of Seikei University and Kanemi BAN of
the University of Tsukuba. KOMURA's papar, entitled "Money, High-Powered Moneyand Income as a Feedback System," presented a time series analysis of the supply ofmoney, the supply of high powered money and national income in Japan over the 1963 —79 period. BAN's paper, entitled "Rational Expectations Hypothesis and Econometric
Models," developed an econometric model of the Japanese economy incorporating rational
expectations hypothesis and carried out a simulation analysis of policy interventions.
Their papers provided materials for the following panel discussion. It is only a couple ofyears ago that the rational expectations school challenged Keynesian Economics by reject­
ing activist macroeconomic policies on the basis of rational expectations hypothesis andtime series analysis and invited harsh couterattacks from the Keynesian camp. In this
symposium, however, conciliation rather than pugnacity was preferred. The Keynesians
were ready to accept the significance of the rational school's efforts to treat expectations
endogenously, while rationalists were neutral about the efficacy of macroeconomic poli-36 —cies. In fact, the two papers presented in this symposium illustrated the possibility that
the Keynesian policy prescriptions are viable in the context of economic models incor ヽ
porating rational expectations and time series analysis.
The symposium on the economic analysis of energy problems was equally rewarding.
Yasuhiro MUROTA of Saitama University and his associates presented a paper entitled"Household Energy Demand," investigating the response of the Japanese households tothe oil crisis in 197 3. In parallel, Masahiro KURODA of Keio University read a paper en、
titled "Factor Substitution Following the Hikes of Energy Prices and the Market Perfor­
mances," focusing upon what happened to the Japanese industries after the oil crisis.
These papers contributed a great deal toward the understandings of the impact of the oilcrisis on the Japanese economy. There were two more papers in this symposium. The
paper by Nori URATANI of the Tokyo Institute of Technology entitled "The OPEC
Pricing Strategy in View of Asset Accumulation Abroad" and the papar by Yoshifusa
KITABATAKE and Shuzo NISHIOKA of the National Research Institute of Pollution
entitled "A Model of Regional Demand、 Supply Structure for Energy Taking Account of
Economic Externalities and Seasonal Economic Fluctuations." The panel discussion which
followed the presentation of these papers was concerned not only with the technical anal 、ysis of separate issues but also with the broad theoretical framework to deal with energy
problems in the spirit of Political Economy.
Beside these symposiums, thirteen sessions were carried on with a variety of common
topics and four sessions with free topics. It is difficult to characterized quite a few papers
presented in these sessions. Broadly speaking, however, they seem to reflect the popularconcern for Keyn函an Economics and related macroeconomic policy issues. There were
two theoretical sessions on Keynesian Economics. One concerned with the micro、
economic foundations of Keynesian Economics and the other with the extension of Postヽ
Keynesian Economics. For instance, Tadasni MINAGAWA of the University of Nagoya
presented a paper entited "Excess Supply of labor and Its Adjustment Mechanism" in theformer session and Moriki HOSOE of the University of Kyushu a paper entitled "A Dise、
quilibrium Model with Inventory and Subjective Demand Function" in the latter session.
Some papers read in other sessions were of similar orientation. For example, "The Deriva 、tion of the'Laffer Curve' in a Keynesian Model" by Kiyoshi ABE of Takushoku Universi­
ty and his associate and "The Implicit Contract Theory: The Optimality of Full Employヽment and the Problems of Incentive Compatibility" by Kiyoshi KUGA of Osaka Universi、ty and his associate. In addition, there were three sessions which dealt explicitly with relat­
ed policy issues: the Government Economic Action, the Empirical Analysis of Moneyand Finance and Monetary and Fiscal Policies. They contained papers such as "Personal
Savings, Corporate Savings and Government Deficit" by Hitoshi OCHIAI of the Universi 、
ty of Tokyo, "A Surprise Increase in Money Supply, Output and the price Level inJapan" by Hirotaka K ATO of Soka University and "Effectiveness of the Monetary Policy"
by Naoyuki YOSHINO of Saitama University, to name only a few.
This year's convention may also be characterized by its ample harvest of interesting
empirical papers. In addition to those already referred to, there were a number of empiri 、
cal studies including "Measurement of Income Mobility" by Toshiaki TACHIBANAKI of
Kyoto University and his associate, "An Empirical Analysis of the Term Structure of the-37—Rates of Returns of Bonds" by Takao KURODA and Takashi OKUBO of the Bank ofJapan, "A Model of Sexually Differentiated Labor Markets" by Jira NAKAMURA of
Kyoto University, "Asia Link Model" by Shin-ichi ICHIMURA of Kyoto Univeristy andhis associates, etc.. In particular, the paper entited "The Labor Market for Economists" by
Shozaburo FUJINO of Hitotsubashi University and his associate attracted a great deal ofattention by making clear that the market had been in the state of excess supply in recent
years.
In contrast, there were fewer papers on the neoclassical analysis of general equili 、
bruim models. There was only one session on Mathematical Economics with four papers
including "A Characterization of Optimal Paths in an Economy with a Non-Concave Pro 、
duction Function" by Kazuo NISHIMURA of Tokyo Metropolitan University and "On
the Neuman Mappings" by Ryuichi WATANABE of Keio University. Also scarce were
the papers dealing with statistical method. For example, "on New Methods of linear Re­
gression" by Tokio TAGUCHI of the Institute of Mathematical Statistics and "On theMoment of the T SLS Estimator" by Yusaku KATAOKA of Kyoto College of Industry.
In tne field of International Economics, there were several papers concerned with
the Pure T heory of International Trade, e.g., "The Equivalence of Tariffs and Quotas
Reconsidered" by Motoshige ITOH of Tokyo Metropolitan University and Yoshiyasu
ONO of Musashi University and "International Capital Mobility and Economic Welfare:Vertical Trade" by Masayuki OKAWA of Kobe University of Commerce. On the other
hand, there were only two papers on International Finance despite the rapidly growing
concern, both theoretical and empirical, for the workings of flexible exchange rate
system. T he one is the paper by Masanao AOKI of Osaka University entitled "On the
Dyamic Interpretation of the Impacts of Differential Properties of Macroeconomic Models
on International Policy Coordination" and the other is the paper by Yusuke ONIT SUKAof the National University of Yokohama entitled "Imperfect Capital Markets and the Ef 、
fects of Monetary and Fiscal Policies under the System of Flexible Exchange Rates."(Michihiro OHYAMA)-38—

THE ASSOCIATION OF ECONOMIC GEOGRAPHERS
T he Association of Economic Geographers adopted themes concerning main theoヽ
retical phases of "economic region" as an objective existence — agricultural region, industri 、
al region etc. — for its annual symposia in the mid 1970s. In 1966, 1972, 1979 and 1980,
it adopted themes concerning "regional policy" - its historical nature, the process of its en­forcement in Japan, and international comparison of such policies — for the annual sympo­sia. In 1979, an achievement of joint study was published under the title of "Developmentof Regional Policies in the Contemporary World" ("Gendai Sekai no Chiiki Seisaku" ed.by lwao KAMOZAWA).
In order to develop further the achievements of the earlier symposia, the Association
adopted the main theme of "Relations between regional economies and policies of local
governments" for its 28th annual symposium which was held in Okayama University
from 23 to 25 May, 1981. T his symposium proceeded as follows: - (cf.'Abstract ofPapers and Discussion at the 28th Annual Meeting'in "Keizai Chirigaku Nenpo"["Annals of the Association of Economic Geographers"] Vol. 27 No.3·4, 1981)
Toshio NOHARA (Chukyo University), Takahiko YOSHIDA (Fukui University),and Shogo YUIHAMA (Okayama University) were elected chairmen.
Kenichiro MORITAKI (Okayama University), the organizer of this symposium, exヽplained the purport of the main theme, emphasizing that special attention should be paid
to the relations between the objective process of spatial reorganization of national econo、
my caused by the blind movement for capital accumulation and the subjective effort for
improvement of each regional economy by the policy-makers, especially local govern ヽments.
T he first panelist Tadashi SATO (Iwate University) reported that, though the agri­
culture of Tohoku District had been nearly monoculturized to rice-cropping as a whole,
there had been coming out new types of farming combining rice-crop, horticulture andlivestock within individual peasantry farms, especially in such regions as Shiwa Town,
Iwate Prefecture, where the agricultural cooperative society had been democratized as areally autonomic organization of peasantry and worked out proper policies for regional agヽ
riculture. (cf. Tadashi SATO: "A Guide to Policy-making for Reginal Agriculture"["Chiiki Nosie no Shishin"l, Nosongyoson-bunkakyokai, Tokyo 1981)
His report was reviewed by the designated commentator Motoi WATANABE(Okayama University), who asked how far experiences in Shiwa could be applied toother regions, especially in west Japan.
T he second penalist Masayoshi SADAMOTO (Okayama University) reported that,in Okayama Plain, while the prefectural government had been encouraging the formationof large-scaled dairy farms, out of step with the natural course of development in "farming
method", medium-sized dairy farming linked up with rice-cropping had been developingin actuality. (cf. Masayoshi SADAMOTO: "Local Government and Regional Agriculture—

A Case Study in Okayama Prefecture" in "Okayama Daigaku Bungakubu Kiyo" ["Bulletinof the Faculty of Letters, Okayama University"] No. 2, 1981)

His report was reviewed by the designated commentator Toshi ONUKI (Hosei Uni­
versity), who noted the role which agriculture should play in regional economies, and the-39 —possibility of the active participation of the peasantry in regional policy-making.
The third panelist Mitsuo YAMAKAWA (Fukushima University) presented a casein which a municipal government, supported by a citizen's movement, had partly succeed、
ed in preventing the removal of factories linked to the rationalization program of a big
iron and steel concern, and so easing somewhat the crisis of economic life in the local
city- Kamaishi City, Iwate Prefecture—. (cf. Study Group for Regional Development,
Fukushima University [ed.l: "A Study on the Socio-Economic Change of an Industrial
City-Kamaishi- in the Process of the Rationalization by a Dominant Enterprise"["Kigyo Gorika Katei ni okeru Sangyo 、 Toshi no Keizai 、Shakaiteki Hendo ni kansuru
Kenkyu-Kamaishi Shi wo Jirei to shite" -1)
The designated commentator Fujio YAMAGUCHI (Hosei University) questioned
whether the relative immobility of fixed capital and workers had left room for compro­
mise on the part of the enterprise, and whether the rationalization would gradually under­
mine the regional economy.
Tsutomu FUJIMORI (Toyama University) reported on two cases in Hokuriku Disヽ
trict; one in Toyama Prefecture, where, despite a spacious site for a new coastal industrial
zone prepared by the local government in accordance with the central government's
policy, there were located far less factories than expected. Another was seen in Wakasa
Bay Coast, Fukui Prefecture, where, after the local government's projects for promoting
tourist industry had failed to prevent depopulation, atomic power stations were built one
after another.
In this case the designated commentator Kiyoshi ITO (Keio University) considered
it reprehensible that both local governments and inhabitants had suffered owing to the ac­
cumulated confusion brought about by central government with its arbitrary changes ofregional policy.
Toshio SAT O (Nippon University) reported that in Kanagawa Prefecture, where
new big retail stores were flourishing following the expansion of dormitory towns forTokyo workers and old small shops were threatened, the prefectural government had so
far succeeded in preventing decline of the latter by taking various coordinating measures.
(cf. Toshio SAT O:'Regional Economy and Retail Policy in Kanagawa Prefecture' in"Keizai Chirigagu Nenpo" ["Annals of the Association of Economic Geographers"] Vol.
27 No. 3·4, 1981)
Kunitaro SUGIMOTO (Shimane University) commented this paper, and presented
cases in Shimane Prefecture, where, regarding the impact of the location of big stores, at­tention should be paid to its influence on urban plannings and environmental conditions
as well as on the old small retail shops and consumers.
The sixth panelist Yoshiaki SAKAGUCHI (Kagawa University) referred to two con­trasting cases of industrialization projects in Kagawa Prefecture: one having been enforcedby the ml!nicipal government of Sakaide City, depending upon the national projects inthe coast of the Inland Sea, where big plants of oil refinery and chemicals had been locat­
ed. Another had been planned and enforced under the relatively independent policy ofthe municipal government of Marugame City, where many medium-sized enterprises had
been located.
Michihiro KONO (Kandai University), in commenting, asked whether the local-40—

governments had to shoulder an additional burden of social costs resulting from the indus、
trialization.
In the presidential address, reviewing above-mentioned reports, Tetsuro KAWA、SHIMA (Osaka Municipal University) argued that "regional economy" should be taken
as a whole, and that, if it should be studied in connection with government policy, a cer ヽtain vision of its future should be assumed. As for the local government, according to
KAWASHIMA, attention should be paid to the possibility and limit of its original policyヽ
makirig rather than its functions a s the mere agency of the central government. (cf. Tetsu ヽro KAWASHIMA:'On the Equilibrium among Regions'in "Keizaigagu Zasshi" ["Journalof Economics", Osaka Municipal University) Vol. 79 No. 1, 1978; Tetsuro KAWASHI­
MA:'Region and Regional Economy— in Search for the New Vision of Regional Econo、

my ー 'in "Keizai Joho" ["Information of Economy", Tokyo Metropolitan Government]
No. 118, 1978)
In the free discussion, Yoshio OKUDA (Chuo University), Gojiro NAKAMURA(Kanazawa

University),

lwao

KAMOZAWA(HoseiUniversity)

andAtsuhiko

TAKEUCHI (Nihon Kogyo University) spoke of the relations between private enterprises
and local governments, mentioning the possibility of some control over the activities ofthe former by the policies of the latter.
Kazuo WATANABE (Hosei University) and Yoshio OKUYAMA mentioned theextent to which local governments could carry out their original projects for their regional
economies. In this context, Masanori KOGA (Osaka Municipal University) and Daijiro
NISHIKAWA (Hosei University) pointed out that the·initiatives of inhabitants·whoshould support local government's original policies had been discouraged through theperiod of the high-speed growth of Japanese economy; and President KAWASHIMA
emphasized that in order to restore such initiative of inhabitants the regional economies
and hence regional societies should be re-established, and that for this very purpose thetheoretical framework of economic geography must be reinforced.
T he Association adopted the main theme of "problems on the regional developmentin provincial areas" for its 29th annual symposium, which was held in Sendai City on 23
May 1982.
(Kenichiro MORITAKI)-41 ーTHE JAPAN ECONOMIC POLICY ASSOCIATIONThe Japan Economic Policy Association (Nihon Keizai Seisaku Gakkai) held its 38th
annual meeting at Hitotsubashi University, Kunitachi, Tokyo, from May 23 ー 24, 1981.
More than 400 members attended. The main theme chosen for the panel discussion was"Pacific Cooperation and the Japanese Economy." The events of the year 1980 encourag­ing the building of a Pacific Community and of strengthening Pacific economic coopera­tion, must have several effects upon Japan. It also demands important leadership by theJapanese economy.
Although a number of studies and proposals by the Pacific Trade and Development
Conference series, the Pacific Trade Basin Economic Council, and other private organiza 、
tions had raised keen interest in this topic, only very recently did some governments
show their interests and involvement, though indirectly, in Pacific Community building.
Professor Hugh Patrick of Yale University and Dr. Peter Drysdale of the Australian Na 、
tional University were asked by the Sub-committee on East Asian Pacific Affairs of theUnited States Senate Committee on Foreign Relations to write a report on the topic
which was later published under the title "An Asian Pacific Regional Economic Organiza
tion: An Exproratory Concept Paper" in July 1979. In Japan, the late Prime Minister
Masayoshi Ohira, keen on promoting the "building of a Pacific Community," created a
Pacific Basin Cooperation Study Group, the first chairman of which was Dr. Saburo
Okita, succeeded by Professor Tsuneo Iida of Nagoya University. This group issued adocument entitled "Report on the Pacific Basin Cooperation" Concept (The Interim
Report was published on Nov. 14, 1979 and the Final Report on May 19, 1980.
Based upon these documents as well as other important studies and in response to
the request from Prime Minister Ohira and Dr. Okita (then Foreign Minister), Sir John
Crawford, Chanceller of the Australian National University, held the Canberra Seminaron "Pacific Community Idea" in September 1980 under the sponsorship of the Australian
government. The seminar outlined the main areas of substantive cooperation which Pacif、
ic countries should pursue. Moreover, for purpose of exploring the possibility for coopera­tion, it recommended the establishment of a Pacific Cooperation Committee (PCC), an
informal and non-governmental group of business, academic/professional and government
persons of considerable authority. Now is the crucial time for such a private organization
as the PCC to be formed in the Asian、 Pacific region . The promotion of Pacific coopera 、tion has gained momentum, but the formation of the PCC will still take some time be、
cause of the cautious attitude of the five ASEAN countries.
Tsuneo lida's address dwelt on "Pacific Basin Cooperation: Its Concept and Pro­
gram." He stressed two points. Firstly, several ideas on Pacific cooperation have so far
been focused on how to promote economic cooperation and development in this area;
however "cultural exchange" or "mutual understanding through cultural contacts"should be the first priority, and therefore, the building of a Pacific Community should bepromoted gradually and never in haste. Secondly, it would be feasible to establish only aprivate organization like PCC, but never a formal, intergovernmental Pacific Community
organization .
Okita supplemented it with a review of recent developments in Pacific Communityヽ

-42—

building, Hiroshi Kato of Keio University and other participants raised several very rele­vant questions and pursued a lively discussion with Iida. One big question which the par­ticipants wanted to be answered was on the meaning of lida's "cultural approach." Iida an、
swered that, besides conventional cultural exchange the Japanese must intensify culturalcontacts and training while undertaking trade, direct investment and ODA with Asiandeveloping countries in order to avoid cultural and social conflicts and to promote mutual
understanding. Thus, lida's emphasis was on the "cultural exchange involved in internaヽ
tional economic interdependence." lida's presentation may have been more persuasive if
it had more theoretical and empirical support.
The second paper, "The Japanese Industrial Adjustment Policy toward Asian 、 PacificCooperation," read by Tsuneo Nakauchi of International Christian University, and thethird paper, "The Japanese Direct Investment in Asian Developing Countries," read by
Atushi Murakami of Kobe University, were excellent academic researches which invited
many comments and debates from Hideaki Kumano and Yasuo Hayashi of MITI, Yasu ヽkichi Yasuba of Osaka University, and others from the floor.
Nakauchi showed how fast and how successfully industrialization has spread in thepast 15 years or so to the NICs (newly industrializing countries) and further to ASEAN
countries. He urged the need for Japan to promote her positive adjustment policies (PAP)in order to create a harmonious triangular balance of payments relation among them. Thisis feasible if PAP is undertaken along the line of dynamic (or potential) comparative ad­vantage of each country concerned.
Murakami identified the fact. that the Japanese direct investments contributed har­moniously to the industrialization of Asian developing countries through a step-byヽ stepestablishment of joint ventures, beginning from labor intensive and simple technology
production, by small and medium-sized firms, and also from labor intensive activities suchas assembly and production of parts and components.
Thus, both papers clearly showed that in order to facilitate Pacific economic coopera、
tion, self-reliant efforts of individual or a group of developing countries must be effectively
supplemented by "international complementation" such as trade, aid, direct investment
and technology transfer, if it is undertaken along the line of dynamic comparative advan­
tage.
As Chairman of this annual meeting, I would like to add a word: it is hoped thatmuch interest be generated and many studies encouraged on Pacific Community building
even in academic circles, which would provide sound theoretical and empirical bases suchas the applicability of economic integration, the theory of international complementation,and the merits and demerits of a regional-multilateral approach.
(Kiyoshi KOJIMA)— 43 —JAPANESE ASSOCIATION OF FISCAL SCIENCE
T he 38th Conference of this Association was held at Yokohama National University
on 14 and 15, October, following the 37th Congress of International Institute of Public
Finance held in Tokyo from 7 to 11, September 1981. T he common topics of this Con、
ference were (1) Public Choice and Optimum Taxation, (2) Choice of Tax Systems, and(3) Efficient Local Finances and Expenditures.
Under the title of "Public Choice and Optimum Taxation", three reports are pre­sented, i.e., "Public Choice of Legal Regulations" by Tatsuya OHMURA (Keio Universi­ty), "Optimum Taxation: A Survey" by Masaaki HONMA (Osaka University), and"Determination of Corporate Tax Rates as a Public Choice" by Seiji FURUTA (Keio Uni­
vers1ty).
Studies on public finance from the viewpont of public choice have been increasingly
popular among scholars in Japan, so that these reports are considered the typical examples.
For instance, FURUTA tried to find out the factors which determine the rate of corpo­
rate tax by introducing political parties and interest groups that exchange election cam、
paign fund and support. T he second common topic, ℃hoice of Tax Systems", was devid 、
ed in to two sections. Under the℃hoice of Tax Systems I", three reports were presented,
i.e., "The Corporation Income Tax and the Canon of Equity" by Masatoshi HAYASHI(Yokohama City University), "Tax Evasion of Individual Income Tax" by Hiromitsu
ISHr (Hitotsubashi University), and "Tax-Expenenditure in the Japanese income tax
system", by Mamoru SUZUKI (Tokai University). It is said in Japan that assesment ofincome varies from one category to another, i.e., 90% of actual income in case of salary,
60% in case of self-employd, and 40% in case of agricultural income. ISHI adopted an in、
direct method of macro-estimation by which he compared national income statistics withstatistics of taxation in order to clarify the so-called different assessment of the threemcome groups.
T he ℃hoice of Tax Systems II" includes also three reports, i.e., "Economic Effectsof Land Taxation" by Yukio NOGUCHI (Hitotsubashi University)," Taxation or Subsidy
against Pollution?" by Hirofumi SHIBATA (Osaka University), and℃hoice of Tax Sys、
tems" by Taro KANEKO (Marusan Securities K.K.). NOGUCHI constructed a simple
model of land taxation by which he made clear the conditions of demand and supply ofland. He pointed out that the income tax on transfer of land had the same effect as giving
subsidies to landlords in so far as unrealized capital gains were tax-exempt. T his effectbrought about the so-called lock 、in effect, so that the tax was in effect considered to beinferior to the municipal property tax. KANEKO maintaind that a general consumption
tax, say, a wholesale sales tax is unavoidable. Otherwise the increase of government ex ヽ
penditures is bound to rely on the increase of income tax which most people dislike.
T he last common topic, i.e., the "Efficient Local Finances and Expenditures" com­prises three reports. T hey are as in the following: Publicness and Efficiency of theGovernment Monopoly Enterprise of Tobacco" by Shusaku YAMATANI (Toyo Uni、
versity),"The Present State and Problems of Specific Grants-in-aids" by Tohru

HASHIMOTO & Yoshitsugu HAYASHI (Kwanseigakuin University), and "A Proposalof Reform on the Specific Grants-in-aid" by Junshichiro YONEHARA (Hiroshima Uni 、-44-versity). The reports made by HA SHIMOTO and YONEHAR A concentrated on thepresent 、 day administrative reform. Since this reform had aimed mainly at entrenchment
and rationalisation of grants-in-aid and been discussed enthusiastically, their reports
which dealt the same theme attracted great deal of attention.
The 39th C onference of J.A.F.S. will be held at Nihon University on 16 and 17,
October 1982. The common topics to be discussed are as follows: (A) Medium-Run
Overview of Japanese Public Finance, (B) Effectiveness of Fiscal and Monetary Policies,and (C) Problems of local Tax Sy stems.
(Seiji FURUTA)-45—

JAPAN ACADEMY FOR FOREIGN TRADE (JAFT)
Main Research Subject in JAFT in 1981
The common subject of annual national meeting in 1981 was "Developing Countries
and Foreign Trade; Subject and Prospect". There were 6 presentations, one was a surveyof the position of the third world in the world trade, others were their structural analysis
by region, Asia, Africa, Middle East, Latin America.
Masaru SAITO (Chuo University) made a survey of the trade of the third worldfrom two viewpoints, industrialism and reorderism, involving the Lima Target and NIEO
(the New International Economic Order) movement respectively. Some importantchanges have been seen in the industrialization of the third world trade since World War
II, including an advance in establishing her bargaining autonomy, and increasing inner ヽ
regional trade. The third world has been not only the exporter of primary product but is
now also the exporter of technology extensive products in manufacturing industry. The
Lima Target and IPC (the Integrated Program of Commodities) are like the two wheels ofa cart for the development strategy of the third world, therefore, the developing country
is necessary to cooperate with this strategy by using industrial cooperation and coordina­tion policies. Now, there is some enthusiasm wanted to develop the international divisionof labour among developing countries. Masaru SAITO proposed a group development.
Group development means a grouping of countries to realize the economies of function in
addition to the economies of scale for maximization of the development outcome.
T he development gap in Asia is larger than elsewhere, although the rate of economic
growth of this region has been higher. Hideyuki WAKUI (Rikkyo University) showedthat the higher economic growth rate of Korea is based partly on some dependence on
both the U.S.A. and Japan. Many economists rote up Korea as the top country in theworld competition of economic growth, but Hideyuki WAKUI said that 90.9% ofmachinery used in the steel industry and a large part of the chemical plants were imported
from the developed countries. Korea is afflicted by v(!ry high debt service ratio. WAKUI
believes that monopolistic companies of both countries, recipient and donor, brought the
debt into Korea under the guise of "economic cooperation".
Many developing countries have excuted their development plans which attachedmuch importance to heavey & chemical industries. Generally, heavy & chemical indus ヽtries have to be supported by many medium & small sub-contracting companies, although
they are lagging far behind. Many of medium & small companies have grown from cottage
industries. In the Philippine, cottage industries have played a greater role in economic de­velopment by providing a large number of employment opportunities and by earning theforeign currency. The Philippine government has. enforced many clever policies for thedevelopment of cottage industries through NACIDA and CIDE. Jitsuji INADA (Hiro­shima Shudo University) pointed out the possibilities of trade conflicts with another
Asian countries, dependence on a few number of markets, excessive competition, capital
shortages and difficulty of procurement of raw materials, as important subjects for future
development of the cottage industry in the Philippine.
Africa is the continent in which remnants of the old colonial system still remain.
The main donors of economic assistance to Africa are European developed countries with-46—

a group assistance through the Rome Convention of the European Communities andwith the bilateral assおtance. There is a aid competition between the East and the West in
Africa. Africa has been endeavoring to disengage from the dependent structure on
Europe. Masamichi CHIYO URA (Dokkyo University) explained that the aid has beenutilized to reinforce the dependent structure. In the case of Madagascar, for example,
even STABEX by the Rome Convention has contributed to stay her in the monoculture
economy.
The oil shock in 1973 brought about a world income redistribution which wasfavorable to OPEC countries and reorganised the world oil economy. The patterns oftrade and economic development in the Middle East has also been changed. Although

this region will remain the key supplier of world oil exports, the trade structure is cha畑

ing. This region is especially a big importer of manufacturing plants of petrochemicalindustry and of infrastructural equipments. Mitsuro TERAMOTO (Chiba College ofCommerce) explained that buying industrialization from the developed country with oilmoney produces a new type of dependence of the Middle East on her. And he asserted
that the baiased politicization of OPEC assistance to another developing countries puts alimit on the effective use and on the appropriate distribution of it among developing
countries to strengthen the collective self reliance of the thrid world.
The trade policy of Latin America has been changed from mainly import substitution
in 1960's to exporじoriented industrialization in 1970's. Now, readjustment in industriali 、zation continues among countries in this region, between foreign and domestic sectors, be­tween manufacturing industry and agriculture, etc.. There are many countries with abun ヽdant natural resources in Latin America, now trying to increase their own processing of
natural resources. This is changing the world trade structure of natural resources. Kazuhiko
HIROSE (Takushoku University) reported his prospects of trade and such economic inteヽ

gration as LAFTA, ANCOM, in Latin America.
In this session of common subject, we must conclude that not only the position andfunction of the third world in world trade have been changing but that the extent of thechanges have differed from region to region. As the south is higher than the north in therate of economic growth, if the north transfers resources for economic development tothe south in the way of developing the international division of labour between the northand the south, this may be very usefull for the revitalization of the world economy. The
formulation of group development might assist the regional development by building ap ヽpropriate industrial cooperation and adjustment mechanisms into it. We could think ofother combinations of countries different from existing economic integrations, by rethink­ing the development capacity of each country from the functional viewpoint.
In the free subject sessions, we had following presentations, "The functions and sub、
stances of Sogo Shosha", Yoshiyuki IKEDA (Nippon University); ℃ommunication func­tion of Sogo Shosha", Giichi MIYASAKA (Rikkyo University); "Foreign voluntary
divestment", Takayoshi ARISAWA (Kinki University); "International industrial coordi 、nation",Kiichi

KAGEYAMA(ChibaCollegeofCommerce):"Thesystemofhumanization-global identification of life and LDC", Shinju MATSUMOTO (Takasaki
College of Economics); ℃orrelation between the growth rate of productivity and thegrowth rate of export", Yoshiaki YANAGIDA (Hiroshima Shudo University); "A critical-47—

view on the concept of Pacific Rim Coヽ operation", Kimio KAWAHARA (College of In、
temational Economics, Nagasaki); "Trade problems of the developing countries in tokyo
Round", Katsuyoshi NISHIDA (Kumamoto College of Commerce); "Trade of primary
products in ASEAN and the international commodity agreement", Shigeo IRIY E(Yokohama College of Commerce); "On the cartel of the countries producing primarycommodities", Yasushi NAKAMURA (Kyushu Kyoritsu University); "Problems relating
to reform of the trade system in China", Hideo UENO (Kinki University).
The common subject of annual national meeting in 1982.
We selected the title of "Trade and Industrial Structure of Japan — steel textitle, autoヽ
mobile, electronics" as the common subject of annual national meeting in 1982. We had
4 presentations in it, "The structure of world steel trade and Japanese steel exports", Hiro、
moto TODA; ℃hange in the trade structure of textile and Japanese . policy", Kaoru
WATANABE; "Problems in automobile export of Japan", Kiichi KAGEYAMA; "Prob、
lems in trade of Japanese electronics industry", Atsushi KAGEYAMA.
(Masaru SAITO)-48—

THE JAPANESE SOCIETY OF INSURANCE SCIENCE
The annual meeting of the Society for 1981 was held on 1st. and 2nd. of Octoberin Kwansei Gakuin University in Osaka. The common theme was "The Insurance Indus­
try in Japan-Past and Future."
This subject seemed appropriate for the following reasons, as suggested in MIZUSHI 、
MA's paper. First, insurance science as a social science require study and research basedon real . problems. Researchers should attempt to look at the problems which Japanese
insurance are presently facing. Because the Japanese economy and society are at a turning
point, it is necessary to clarify the direction in which the Japanese insurance industry isheading and whether the industry needs to make a fresh start. To do this it is necessary tounderstand the development process of the Japanese posじwar economy and insurance in­dustry.
Second, the Japanese economy underwent various changes in the past 35 years afterWorld War II. Japanese consumers also changed remarkably. Inevitably, the insurance in、
dustry and its management policy reflected these changes. The supervision of the insur ヽance industry by the Government has effected changes .
Presentations were made on every aspect of the insurance industry in the post-war
period, as follows:
Introduction to the General Theme "Insurance Industry in Japan-Past and Future"
Kazuya MIZUSHIMA (Kobe University)
Life Insurance
Yuichiro TAMUR A (Nagasaki University)
Non-Life Insurance
Takashi OCHI (Dai、 Tokyo Fire & Marine Insurance Co., Ltd.)
Co-operative Insurance
Kojiro S AK AI (Insurance Research Institute)
Insurance Supervision
Kichie Y OSHIK AWA (Shizuoka University)
The following free themes were also covered:
A View of lnsurability
Yutaka M AEK AWA (Keio University)
Cost of Insurance — From the Insurance Manager's Point of View
Yasushi MORIMIYA (Meiji University)
Comparison of the Legislation on the Modern Insurance Contract
Takeshi Y AMASHITA (Hiroshima University)
Early Italian Statutory Laws of Insurance
Masahiko CHIK AMI (Senshu University)
The Effect of Asymmetry of Information, Observed in the Insurance Market
Yasuhito TABATA (Aichigakuin University)
The Event Insured in an Accident Insurance Rider of a Life Insurance
Masatoshi FURUSE (Nippon Life Insurance Co.)

-49—

Three sectional meetings were held both in Kanto and Kansai areas in 1981. The fol­lowing are the themes and speakers in those sectional meetings:( We list here only those which were published in the Society's bulletin, The Journal of
Insurance Science.)
The Non-Life Insurance Industry in 1880's as Seen through the Insurance Council's
1981 Report— Harmonization of Corporate Attitude toward Consumerism and its Social

Responsibility

Kunito MORIMATSU (Insurance Research Institute)
Uncertainty and Insurance under Imperfect Information
Tatehiko FUJITA (Shudo University of Hiroshima)
The Characteristics and Problems of Insurance Management in U.S. Multinational
Compames
Keiji HABARA (Kansai University)
Case Study of Marine Insurance and Banking Subsidiaries of a Japan Life Insurance
Company in 1893

— 1901

Isao OGAWA (Nippon Life Insurance Co.)
Rate Regulation and Efficiency in the Non-Life Insurance Industry
Yutaka MAEKAWA (Keio University)
Economic Social Background and Life Insurance Marketing in Japan, 1918
Yasuhisa SATO (Meiji Mutual Life Insurance Co.)

— 1941The Chairman Nagahisa KASAHARA resigned in the spring of 1981 on the
grounds of ill health. We regret to announce the death of Professor KASAHARA on

October 13, 1981. Professor Eiichi KIMURA (Hitotsubashi University) accepted the invi­
tation to take over the Chairmanship.
(Nobuo YASUI)— 50 —

THE JAPAN SOCIE TY OF IN TERNATIONAL ECONOMICS:
The Fortieth Meeting (at Otaru Commercial College, July 11-1 2, 1981)

The Meeting usually consists of a plenary session which is devoted to general discus­
sion of important topic(s) by all participants, followed by smaller sectional meetings
whose individual members read their papers. The plenary session is the highlight in the
Meeting, and papers read and discussions there are summarized here.

The topic for general discussion this year was "Economic Frictions between Japanand the US, and between Japan and the EC", reflecting severe disagreements amongmajor economic powers. The chairmans were KITAMURA (International Christian Uni 、

versity), OKA (Musashi University) and IKEMOTO (Kobe University). Three reporters
read their papers with comments by three discussants.

ODAWARA (Jochi University) presented his paper on "The Economic Friction be­

tween Japan and the US" making the following points. (1) Japanese culture and history
are markedly different from those of the US. (2) Japanese economy is more competitiveand dynamic than that of the US, partly because Japanese enterprises prepare longer-range
perspectives and strategies, which the US may not do. In addition the Japanese vertically or ヽ
ganised labor union maybe more efficient, than the US characterised by horizontal organi、
zation. (3) The US has had to follow the open door policy in foreign trade transaction beヽ
cause the US dollar has been playing an international role. This has affected foreign tradetransactions. (4) Perhaps the lower productivity of the US reflects the greater legal rights(and therefore independence) of American labor. It is widely belie\Ted in the US that thewhole Japanese market is less open, but only the agricultural market is blamed for this.

The discussant OKUMURA (Osaka Municipal University) presented an alternative

view. (1) The decline in US competitiveness is fundamentally due to conservative invest ヽ
ment policy. (2) A Keyri.sian policy of encouraging aggregate demand can lead to a trade
deficit by stimulating importation. (3) The US policy for economic revitalization may failunless stockholders persist in more dividends. (4) The free trade argument which favors
countries with stronger international competitiveness does not help to eliminate economic
friction. Adjustment in national interests through coodination and cooperation among
the big economic powers is the only way of escape from the difficulties.
The second paper "Perception Gap in Economic Friction between Japan and theEC" was read by EGUCHI (Nomura Research Institute). His points were as follows. (1)The European order is based on the belief that the European cartel serves to stabilize aninternational economic order, and supports the organized trade system. (2) The interna ヽtional order by the hand of the US is to maintain security of the triangle including Japan,

the US and the EC (European Community). (3) It is indispensable for Japan to keep
economic dynamism in order to support the free economic order. (4) Owing to these dif 、

ferences, the elimination of economic friction between Japan and the EC may be a longer
process. Japan's measures for economic friction cover (1) an increase in manufactures im­
portation from the EC, (2) a decline of share of oil imports and an industrial transformaヽtion toward energy saving structure, and (3) an increase in economic assistance to developヽ
ing countries which in turn serves to increase the EC exports.
SHIMANO (Gakushuin University) was the next discussant and made the following—51—

points. (1) The perception gap plays only a subsidiary role in economic friction. (2)There is a Japanese style cartel comparable to the EC cartel. The former is organized by
the government, while the latter is in private hands. (3) Japan has increasing her econom、
ic power, but her response is rather slow. (4) Some extent of organized trade is acceptable
and also compatible with free trade. (5) But the establishment of rules for organized trade
is difficult.
The third reporter was OHKITA (Government Representative for Foreign Eco
nomic Relations) and his points were as follows. (1) Japan's economic growth was sup­ported by rapidly growing sectors in manufacturing, those sectors with weak international
competitiveness were protected. It is now difficult to leave protected sectors untouched.
(2) Negotiation for eliminating economic friction has been done bilaterally, by passing
GATT (General Agreement on Tariffs and Trade). It is however important to reorganize
the GATT system so as to make it the forum for discussing economic friction. (3) Japan
has had the tendency to treat the international economic conditions as given data, but
she is now big enough to exert influence and also to assume an international responsibility.
WATANABE (Osaka University), the third discussant presented the following
points. (1) Although the higher productivity in Japanese enterprises and the industrious­
ness of Japanese laborers are believed to be the main causes of economic friction, thisview reflects ignorance of the comparative advantage theory. (2) The US will complain
about her big trade deficit with Japan without reflecting on her failure in economic
血nagement. (3) It is most important to revitalize the US economy and so to make themarket mechanism more efficient.
The comments from the floor included the following. First, both OKA (Musashi
University) and KATO (Nihon University) pointed out (1) that NTBs (non tariff bar、
riers) have increased because GATT aimed at tariff cuts, (2) that tariffs can in general be
objectives for negotiation while NTBs are not owing to their nature, and (3) that an alter、
native trade order should be established on the basis of price mechanism using tariffs asmeans.
Second, KOJIMA (Hitotsubashi University) claimed that the US is·selfish indemanding the fair trade action against Japan without reasonable cause. It should be possi­
ble to avoid protectionism by revising Article 19 of GATT. This could allow limited pro­tection for say a three year period. Where an industry does not respond within the fixed
period, all protective measures should be eliminated.
Third, KITAMURA (International Christian University) (responding to KOJIMA)
suggested that the free trade system may, under various kinds of distortion, be ineffectual
and it may be better for GATT to accept a production subsidy as an important mean forindustrial revitalization.
Finally, SHIRAISHI (Keio University) suggested that (1) Japanese enterprises havefollowed the market mechanism. The basic cause of economic friction is due to various
specific action on the part of Japanese government. (2) It is better to avoid explicit rules
for eliminating econorµic friction, thus leaving room for negotiation. (3) Perfect free trade
policy may not be exercised and voluntary export restraint is compatible with the pricemechanism.
ヽ— 52 —(Kiyoshi IKEMOTO)JAPAN SOCIETY OF MONETARY ECONOMICSThe Spring Time General Conference was held on 30— 31 May, 1981, at Meiji Uni、

versity in Tokyo. Four papers were presented on the common topic of'Monetary Policy
in Japan - its Present and Future'.
Tadashi YASUDA(Bank of Japan) said that there was a major shift of emphasis
among the policy goals, price stability now being accorded top priority. This is due, firstly,
to the adoption of the floating exchange rate regime, which has enabled the authorities
largely to disregard the balance of pay ments constraints. The second reason is that it hascome to be appreciated that price instability gives rise to serious uncertainty in the econo 、
my. Moreover, in a chronically inflationary world, the workers' money illusion has all but
disappeared. The intermediate target has also been changed from bank lending to themoney supply. During the high growth period vigorous industrial investment was predo­
minantly financed by bank loans, but after the oil crisis the industrial firms' borrowings
from banks rapidly dwindled, so that bank lending has lost its pertinence as the target.
Thus, it has been supplanted by the money supply. However, due regard is also paid tothe level and variation of the interest rates in order to maintain order in the money andcapital markets.
Masaru Y OSHITOMI(Economic Planning Agency ) pointed out that the change ofgear from high to medium growth has involved a great fall in the rate of investment in
the economy. In spite of this, the household sector's savings ratio has not dropped fromits traditional high level. This has meant that a strong deflationary bias has come to be em、
bedded in the economy. It was against such a background that the second oil crisis brokeout. Because of the existence of this deflationary trend, however, a moderately tightmonetary policy sufficed to prevent the acceleration of domestic inflation. The deflation­
ary bias has also given rise to a huge surplus in the current balance of pay ments, which
has caused the economy to grow at a reasonable rate and has enabled the authorities toprevent mass unemploy ment. The future may bring two impediments to the execution of
the monetary policy. One is the expansion of the Euro-yen market, which will greatly
facilitate the shifting of funds in and out of Japan. Another is the volatility of interest
rates in the United States, which has the same effect.
Asajiro IIDA(Mitsubishi Bank) argued that, whereas the authorities claimed thatthe target has now been changed to the money supply, the truth was that even during thehigh growth period the target was'the money supply. That is, the Bank of Japan controlled
the money supply through its 'Madoguchi Shido'(literally window guidance, but, in
effect, moral suasion) on the level of bank lendings. This was effective because the interest
rates were kept at artificially low levels so that there was excess demand for bank loans.
The banks also depended persistently upon borrowings from the Bank of Japan. Althoughmoral suasion was a powerful weapon under these circumstances, an element of discrimi、
nation as among banks was unavoidably involved. It also severely restricted competion
among banks. And moral suasion is still the most important single weapon in the arsenalof the Bank of Japan in spite of its claim that it is now only a subsidiary weapon. The masヽsive flotation of government deficit bonds, however, has made it impossible to maintain aregime of low interest rates. Liberalisation of the money and capital markets consequent— 53 —

upon the internationalisation of the economy has also tended in the same direction. In
the circumstances, then, the use of moral suasion as the principal instrument of policy
should be discontinued. The authorities should rely more upon the market mechanism
and use markeじoriented method of control.
Ryoichi MIKITANI (University of Kobe) discussed the authorities' indirect action
upon the intermediate target. For instance, the authorities must first of all alter theamount of the high-powered money in order to operate upon the volume of money
supply. This indirect approach, however, presupposes that the economy has a recursive
structure. Even if the economy has such a characteristic, there may remai·n the problems
of uncertainty and uncontrollability. For example, if the level and structure of the interest
rates change, the relationship between high-powered money and the total money stock
may change. That between the money stock and the national income, too, may be altered.
Thus, interest rates cannot be ignored. On the other hand, in an inflationary era, nominalinterest rate loses its pertinence as the target of monetary policy. Hence, the authorities
may be coerced to adopt a monetary aggregate as the target, but this does not necessarilymean that they should adhere to monetarism. Then, when the uncertainty in the mone ヽtary sector is greater than that of the real sector, the interest rates would be the appropri­
ate target. If otherwise, monetary aggregates must be preferred. In sum, in a world where
there are rigidities and uncertainties, a mistaken policy may entail unexpected and unde 、sirable consequences which cannot be reversed. Monetary policy must, therefore, be em­
ployed with caution and reserve.
Tsuneo IIDA (University of Nagoya) and Ryuichiro TACHI (University of Tokyo)
were the commentators on these four papers.
Unusually, there was a second common topic at this conference. It was the'The Key ヽ
nesian Economics — A Review'. Three papers were read.
Osamu TSUNOKUNI (Aichi Gakuin University) discussed the Z theory propound、
ed by Axel Leijonhufvud which is a d ynamic theory taking into account the relative
speeds of adjustment of the variables and of the markets. He argued that this theory
could elucidate the conditions under which a cumulative contraction, such as the Great
Depression of the nineteen thirties, could be started.
Hfrotaka KATO (Soka University) dealt with the Friedmanian criticism of the Key­nesian view of the Great Depression and argued that the inept monetary policy pursued
by the Federal Reserve was chiefly responsible for the great crash of 1933.
Tatsuhiko AOKI (University of Shinshu) reviewed Post-Keynesian Economics. Parヽticularly he took up Hyman Minsky's financial instability hypothesis and showed how va ヽ
riations in the money supply could exert influences not only upon the interest rates but
also more directly upon the capital asset pricing, and hence on the level of investment.
Naomichi HOSAKA (Kobe University of Commerce) and Hiroshi KAWAGUCHI(Chuo University) were the commentators on these three papers.
Twelve other'free topics'papers were also read before this conference.
(Shizuya NISHIMURA)— 54 —

ACADEMIC ASSOCIATIONFOR ORGANIZATIONAL SCIENCE
The activities of the Academic Association for Organizational Science in the year of
1981-1982 will be described with an emphasis on reports presented at its 1981 annual
convention.
The association, which was founded to counter the criticism against tendency of dif 、
ferentiation in scientific studies, has undertaken and accumulated interdisciplinary scholar­
ly works. The existing science was not appropriate as a tool for analysing diversified andcomplex organizational phenomena characterizing modern society; in the past researchersof differentiated sciences did not succeed to perceive these phenomena as a challenging
subject of analysis and clarify their internal mechanism and adaptation process with outerenvironments. During the past twenty years since the association was founded, its mem、
bers in various fields such as business administration, economics, sociology, psychology,
political science and public administration, have been conducting interdisciplinary researches of organizational phenomena by using basic knowledge in their respective fields.
The abstract of the past achievements is described in the association's first annual journal.
The following points were considered in deciding on the unified theme of the 1981
annual convention of our organization. The association has so far worked out and refined
its own research methods to elucidate organizational phenomena and accumulated academ、
ic results accomplished by its member researchers. But, in recognition that organizational
factors and structures are undergoing qualitative changes in many sectors in the present
society, the existing framework of organizational analyses was questioned over its applica
bility to the newly emerging phenomena. The points at issue included: 1) to which
extent can the existing framework solve the problems involved?, 2) what type of develop­
mental perspective can be built theoretically as a result of a critical development of thepresent method of organization analysis? And, we finally agreed to explore boldly thefrontier of organization theory on the occasion of the annual meeting. After examining a
set of subthemes, four of them were selected for further examination,: "De-bureaucracy;'"Strategy and Leadership", "Non-market Organization" and "Organization Culture".
The 1981 annual conference was held at Waseda University on October 24 and 25
under the theme, "The frontier of Organization Theory". The program of the conference
is as follows:(Saturday, Oct. 24 Morning Session)
Subtheme: De-bureaucracy
Chaired by: Tadashi MITO, St. Paul University"Industrial Democracy and Social Technological System Theory: Examination on Its
1.
Possibility as a Theory for Organization Democratization", Shuji ISHII, Komazawa
University
Commentator: Kyoichi FUTAGAMI Waseda University
2.
"Elements of Matrix Organization", Shunji KOBAYASHI, Waseda University
Commentator: Kiyonori SAKAKIBARA, Hitotsubashi University
3.
"Modern Bureaucracy and Changes in an Organization: Examination of Possible Debureaucracy", Shozo UEMURA, Momoyama Gakuin Universityヽヽヽ

— 55 —

Commentator: Minoru HARADA, Kyushu University
1st Day, Afternoon Session
Subtheme: Strategy and Leadership
Chaired by: Minoru KURUMADO, Waseda University
1.

"Strategy and·Leadership: Moral and Technological Aspects", Tetsuo ONUMA
Otsuma Women's College
Commentator: Haruki IINO, Kansai University、

2.

"Management Strategy and Top-Leadership", Akihiro OKUMURA, Keio University

3.

"A Survey on the Strategy and Structure", Toyohiro KO W NO, Gakushuin Uni 、

Commentator: Motokichi INABA, Yokohama National University·

versity
Commentator: Hiroyuki ITAMI, Hitotsubashi University
2nd Day, Oct. 25, Sunday, Morning Session
Subtheme: Non-market Organization
Chaired by: Tsutomu SHIOBARA, Osaka University
1.

"Non-market Organization and Logics of Economics", Kazumi KUROKAWA,
Hosei University
Commentator: Kiichi Kageyama, Tokyo College of Economics

2.

"Public Administration as a Model", Wataru OMO RI, University of Tokyo
Commentator: Mitsuo MORIMOTO, Yokohama City University3.

"Non-market Organization and Market Organization", Tamito YOSHIDA, Universi 、
ty of Tokyo
Commentator: Kimio MI YAGAWA, Hitotsubashi University

2nd Day, Afternoon Session
Subtheme: Organization Culture
I. Organization Culture 1, Chaired by Kuniyoshi URABE, Kobe University
1.

" T he Social Unification Approach for a Clarification of Japanese Organization Char ヽacteristics", Kozo NISHIDA, Nagoya City University
Commentator: Eiichi YOSHIKAWA, Waseda University

2.

℃ hanges in Organization Culture: Action Research and Historical Viewpoints",
Koichiro KOBAYASHI, Toyo University
Commentator: Jyuji MISUMI, Osaka University

II. Organization Culture 2, Chaired by Yasuo OKAMOTO, University of Tokyo1.

" T he Process of Diffusion and Formation of Value Orientation in Groups: Its Con�
ceptual Framework for Analysis", Takaharu MASUDA, Musashi University
Commentator: Yoshitaro HARASAWA, Tohoku University

2.

℃ommon Paradigm and Organization Culture", Tadao KAGONO, Kobe University
Commentator: Toshichika TOTOKI, Keio University

3.

"Identification and Identity: Basic Conceptions of Organization and Human Being",
Hiroshi WATASE, Kyoto University— 56 —

Commentator: Hisao KAWABATA, Ky ushu University
In the "De-bureaucracy " session, the first session, one of the reporters ISHII, exam­
ined the socio-technical approach as a definite solution for de-bureaucracy in terms of in 、
dustrial democracy, especially of organizations. A possible formation of an organizational
democratization theory was presented together with a notion of compatibility of social
and technological demands. The participants discussed how compatibility can serve as a
general answer to the real organization or organizational democratization.
In his presentation, KOBAYASHI posited the idea that the introduction of matrixorganization and the accompany ing organization culture, i.e., co-existence of heterogeneヽous specialists, would solve the disfunctional phenomenon of bureaucracy. In reviewing
KOBAYASHI's presentation, a question was raised as to whether matrix organization
should be affirmatively valued or should be turned down because of the possibility of it
causing confusion to an organization. Some felt futher clarification was needed.
UEMURA's presentation critically examined the conventional organizational reform
based on the viewpoint of de-bureaucracy. Although bureaucracy was structurally rational,
but it had tendency to oppress people within an organization. Factors to be considered
included: structural creasing in the departmental sy stem, matrix organization and others,
new development of motivation on management (like participative management), in chas­ing professionalism of managers, as well as encouraging non-bureaucratic elements such as
voluntary organizations. Further, he examined a management responsibility theory, (preヽsented by C.l. Barnard) of the belief that true de-bureaucracy can not be attained unlessthe human subject, who actually operates bureaucracy, is re-examined. The following
points were suggested for further consideration by the participants: 1) rational aspects ofbureaucracy such as a specialization and neutralization have helped avoid oppression
against human beings caused by the arbitrariness and irrationality of power, 2) the possi 、
bility that there are various ty pes of bureaucracy, 3) examination of conditions underwhich the bureaucracy model was established, and the way in which it has become gener­
al. In addition, some doubt was cast over the emotional approach in promoting de­bureaucracy efforts. The de-bureaucracy session thus discussed a need for a recognition of
the present situation surrounding all ty pes of bureaucracy. In this respect, the participantsconfirmed that the issue had become so complex that it could·not be dealt with by any
simple solutions.
In the session on "Strategy and Leadership", OKUMURA claimed that a role of top­
leadership lied in balancing among environment, strategy, and organization determined
the success of an enterprise. OKUMURA criticized the present situation of studies on top­
leadership because although top-leadership played a key role in their organizations, notenough attention was paid to them, OKUMURA noted. Past leadership theories either
discussed top-management in a two 、dimentional way, looking at human and task orienta­
tion, or focused their attention on the behavior of lower ranking managers. OKUMURA
believed that top-leadership had to be dealt with differently. He emphasized the varietyof roles they should play: maintenance and development of balance among environment,
strategy, and organization; the introduction of a value system on ari organization culture
and its maintenance, consolidation and reform; defining an area of operations in terms of—57—

enterprize management, and the removal of ambiguity and uncertainty; presentation of apremise for a decision making; consensus building; development of a social system replac ヽ

ing the existing formal one, in terms of organizational structure and management system;
introduction of tension .in organization behavior and socialization of its evaluation; guid­ance of organization learning. In assessing OKUMURA's presentation, several questions
were raised: how a top-leader can manage to balance the demands made upon him,
where this theme can be placed on a time-span, and whether the balance is in a state ofdynamic equilibrium or is the final state of equilibrium.
KOWNO reported on his empirical study on 102 Japanese major enterprises during
the last 16 years. His findings can be summarized as follows. A lthough 40 percent of theenterprises surveyed were specialized companies, the rate of diversified firms was being
raised. Specialized firms were good achievers when their growth rates and market shareswere high. A fter KOWNO's presentation, the method of control over variables except
for those of strategy, and the need to clarify the theoretical model of KOWNO's hypotheヽ
sis were discussed.
In the session on "Non-market Organization", KUROKAWA examined the econom­
ic motivation of a non-market organization. His theme was how a non-market organization
can exist for each economic subject. KUROKAWA stated that a genuine non-market or­
ganization could not exist in a market unless it involved cooperative behavior for which
nobody could receive rewards. This notion was contrasted with market behavior which in 、
volved the receipt of monetary rewards. Examples of non-market organization were, infor­
mal clubs, religious groups, schools, special corporate bodies. But this was a limited defini、
tion. Instead, KUROKAWA emphasized the need to be alert in a situation where people
prefer to have public supplies marketed. Of non-market services those such as militaryforces and law, provided by the public.sector, were only small in quantity. KUROKAWA
examined, associate public properties which were important in both private and public
sectors. Included in these categories were: roads, street arrangement and scenery whichwere expensive although the expenses incurred in collecting tax and other charges wereless. KUROKAWA advised us to pay more attention to associate public properties inorder to gain more productive results.
admm1strat1ve
organ1zat10n was considered as non-market
In OMORI's presentat1on,··on the ground that its organizational goal was performed by a governance process, and its
products were not marketables. Based on this definition, he emphasized as the external
establishment of the organizational goal, the ability to provide administrative services,multi-meanings of the product and imbalanced plans in evaluating public administration.
YOSHIDA compared market and non-market organization within the framework of
the general theory. He also reported on differences between the two approaches and theirability to realize the effectiveness of goal achievement and fulfillment of participants.
In the sub-section on "Non-market Organization", the discussants agreed that it wasdifficult to evaluate main organization products. It was also suggested that it was more im­portant to consider the non-market organization in its continuity with market organiza ヽtion. This followed further discussions on whether the organization supplying associatepublic properties should be included in non-market categories, what organization evalua­tion principle, different from market principle, was like, and how a parameter for a— 58 —

resource distribution according to authority in an enterprise was related to market princi 、ple.
In one of the many reports on "Organization Culture", TSUCHIYA described it as asharing of a common way of thinking and behavior among members of an organization
through repeated personal interactions. With this definition, TSUCHIYA examined fac­
tors determining the organization culture in terms of goal, formal systems and procedures,degree of exclusiveness of an organization, leader's personality as well as accomplishments
in fulfilling goals. In addition, he discussed the two functions of organization culture: one
to strengthen solidarity, and the other, the reverse, which affects members'ability toadjust to an outer environment because of their strong group solidarity. He noted that or­
ganization culture also functioned to regulate members' daily behavior by influencing
their sensitivity and value system and by controlling their satisfaction with their organiza 、
tions. TSUCHIYA took a position that h'1s way of exammmg organization culture would
enable scholars to have a picture of desirable organizational behavior. He stated that thisparticular cultural phenomenon could not be explained by either formal rules and systems,
the leaders personality, or organization environments.
KAGONO pointed out the mcreasmg opportunity for people to recognize their own
organization culture as a result of a diversification of an enterprize and a merger of compa ヽnies. He also referred to the growing need for measures like a concept of organization cul 、ture to organize people, replacing such as organization structure and management system.
He stated that members of an organization accepted the fact that a paradigm, meaning,knowledge and system shared by them, was knitted into the strategy, structure andmanagement system of an organization. They also accepted as rational that the values andrules of an organization were organically related to each other. To explain it more con ヽ
cretely, KAGONO stated that the area of organization activities, task environment, infor­
mation, organization structure, its members, and the social status of an organization fellwithin the semantic and intellectual system which was shared by the members of an or­
ganization hypothetically. KAGONO suggested that the very basic meaning of dynamic
organization behavior would become clear by examining its formation and reformation
including a resistance against a change of organization culture.
In the session on "Organization Culture", many other speakers emphasized from vari、
ous angles that in studying organization behavior, the those shai;ed and built-in among
members of the organization, such as value, behavior style and semantic system, took on
more significance than the organization structure and its management system.
T he problem of how to develop an analytical concept and a measurement methoddl 、
ogy to conduct a more effective examination of organization culture was left for a future
study.
(Yasuo OKAMOTO)—59—

JAPAN SOCIETY FOR PERSONNEL AND LABOURRESEARCH ACTIVITIESThe 11th national meeting of the Japan Society for Personnel and Labour Research

was held at Kinki University, May 29th — 30th, 1981. Its central theme was: "Women at
Work".

Reports and presentators in the national meeting were as follows:
1. The Main Theme Section"Women's Labour in Japan",
Kiyoko TSUTSUI, (Kyoto Industrial University)"Sewing Workers'Consciousness on the Quality of Working Life",
Misako NISHIYAMA, (Kansei Gaguin University)"The Key Issues of Japanese Part-Time Workers",
Akira NISHIJIMA, (Tokyo Foundation for Promotion of Corporations for the
Aged)"The Problems of Equal Opportunity in Employment',
Tokuzo FUJII, (Japan Federation of Employers' Associations)"Female Labour Situations in Spain",Toshio YAMASAKI, (Osaka University of Foreign Studies)2. The Free Topic Section"D.Yoder's Essay on the Reorganization of the Traditional Personnel Administration
Theory",Hiroshil WAIDE, (Nihon University)"Recent Personnel Research and Systems Approach",Kazuo KIKUNO, (Rikkyo University)"AComment on Rucker Plan and a New Method in Japanese Industry",
Tatsuro TSUTSUMI, (ResearchCenter of Management System)"The Professionaiization of Managers",
Etsuhiro GOHDA, (Japan SteelworksCo. Ltd.)"An Analysis of the Roots of the Japanese Ranking System",Tadashi NISHIKAWA, (Nippon Kokan K.K.)"Recruitment Activities and Japan's Labour Market",Toshiyuki SHIGESATO, (Kinki University)
The theme of the 1981 meeting was the problem of women workers. Recent statis­
tics show that the number of women workers and their average age has been rising.
Women still remain secondary workers, although there may be a tendency among themto seek professional independence. The demand from employers using female labour is in­creasingly for women in the distribution trades rather than in industry. Unlike the textile
and electronic industries, which have ample experience in the management of women
workers, the distribution trades1 especially super-markets, lack both skill and experiencein managing workers, and in dealing with trade unions. In this light, women workers are— 60 —

faced with many overlapping problems in the fields of business administration, labour
legislation, labor economics, labour physiology and industrial sociology. For these reasons
the Japan Society for Personnel and Labour Research chose the women labour issue to be
the main theme of its 1981 convention.
In discussing this issue, it is of first importance to clarify the extent to which Japaneseindustry (manufacturing, service etc.) relies on women in the workforce. The labour
force participation ratio of women must be discovered first as a basis for examining thecharacteristics and problems concerning the employment status of women.
Kiyoko TSUTSUI tried to clarify the characteristics of Japanese female labour using
the U.S. model as an example. The female labour force participation ratio was similar, atabout 50 percent, both in Japan and the United States. In examining the average age ofworking women in Japan, two peaks, creating an M-shaped age distribution. The peaks
represent the age groups of 20 to 24 and 40 to 49, with a falling off in the 25 to 34 age
bracket. This shows a marked contrast with the U.S. case which supports a plateautype
age distribution. In the U.S., full-time housewives have become a minority and sometimes
feel as if they were discriminated against. Various social and economic conditions, especial 、ly legislation forbidding sex discrimination in employment and the changing views ofAmerican women have produced the plateau-shape age distribution in the U.S..
An outstanding feature of Japanese, (as well as female labour elsewhere) is theprevalence of part-time work. At present, women account for a third of the Japaneselabour. The female workforce, and perhaps especially part-time workers, will almost cer、
tainly continue to grow. Akira NISHIJIMA emphasized that the growth rate of part-timers
surpassed that of regular employees in all industries, and that the increase in the female
workforce in recent years reflected the growing number of women working part-time.
Part-time workers are defined as those who work 35 hours a week or less in the U.S. andSweden, and less than 30 hours in Britain. In Japan, however, there is no such clear-cut
definition. The Labour Ministry defined part-timers as those whose working hours
and/or weekly working days are shorter than those of regular full-time workers. Japanesepart-time workers especially in manufacturing industry generally work long hours. But inthe distribution and service sectors, hours are shorter usually averaging less than 35 hours
per week, and less than six hours a day.
Another important point to which many speakers referred was that although part­time workers were hired on a temporary basis, many had become well established and so
worked on a regular long-term basis. Part-time workers as a class must be further sub­divided into regular part-time workers and temporary ones. The former are often seen in
manufacturing businesses, and the latter in non-manufacturing sectors. As can be expectヽ
ed, the former want a regular sorker status, while the latter consist mainly of middle-aged
housewives who give priority to their domestic duties rather than their paid work. Regularpart-time workers soon voice their demands for improved working conditions and theright to unionize themselves. If this happens, the practice of viewing part-timers as abuffer during business cycles, or a means for reducing labour costs will not last long. The
speakers·believed these conditions persisted, assume new responsibilities such as the train ヽ
ing of part-timers.
Companies having separate working rules for part-time workers account for only 36—61-percent of all firms, and the proportion of firms which provide them with employment
insurance, health care pension, health insurance and other benefits is below 40 percent.
Less than half of all companies give part ヽtimers regular periodical wage increments andthe rate of companies adopting the systems of mandatory retirement coupled with lumpヽ
sum retirement payment to part-time workforce has been low. Because of this, part-timeworkers are especially interested in their wage level; their demands center on wages,
bonuses and retirement payments. In view of the growing number of women who seek
part-time jobs, (unwilling to remain full-time housewives), and wishing to make use of
their abilities and skills, the employers will be required to meet the needs of those
women, instead of employing them merely as a means to resolve wage and labor shortage
problems.
A similar change of attitude has also been seen among full-time women workers re­cently. In her report, based on a survey on full-time workers, Misako NISHIYAMA
revealed that they were dissatisfied with their low wages, duties, training programs andinadequate chances to improve their professional abilities. However, NISHIYAMA alsoemphasized that their willingness to keep harmonious inter-personal relations within thecompany as an extension of their local community showed that their attitudes were consis 、tent with Japanese "mura-ishiki" (village-oriented values). Women workers therefore
have a strong attachment to their company and easily adjust themselves to their local com 、
munity, NISHIYAMA stressed. Because of this, their dissatisfactions with unfavorable
working conditions and management failure to meet their demand for better jobs are
rarely expressed.
W ith women accounting for over one-third of the labour force in Japan, (and thecontroversies over female labour in other countries) it has become imperative for Japaneseemployers to consider the calls for equal employment opportunities. Tokuzo FUJII of theJapan Federation of Employers' Associations explained the problems hampering theremoval of sex discrimination in Japan. First, FUJII stated that the Labour Standard Law,
which provisions includes concerning protection of women workers, made it hard forcompanies to treat women on the same terms as men. He stated that in order to bringabout complete equality, an amendment of this law would be necessary. However, he be­lieved that in view of the sexist nature of the Japal).ese society, the removal of the protec ヽtive provisions would be likely to intensify discrimination in stead of encouraging equality.
Secondly, he referred to the fact that management practices of Japanese firms were basedon a system of the traditional life-time employment of men.
Female workers tend to work on a temporary bases and therefore companies are
reluctant to accept them on an equal footing with male workers. FUJII noted that this
only reflected the internal sexism within the companies concerned, and called for further
efforts on the part of businesses to make full use of women workers.
T he two day discussion thus revealed diverse problems facing women workers who
were attempting to find good employment opportunities despite the still persistent socialand economic discrimination against them.
T he central theme of the 1982 national meeting of the society will be "TechnologicalInnovation and Labour Management Problems in the 1980's".
(Iwao ISHIZAKA)— 62 —JAPAN SOCIETY OF POLITICAL ECONOMY
The 29th National Convention of the JAPAN Society of Political Economy, which
is organized mainly by the Marxist economists in Japan, was held on Sept. 25th and 26th,
1981, at Hokkaido University.
The program of the convention is organized each year around an approved theme al­though there is room for sub-committee sessions which reflect interests other than thoseof the theme. The theme chosen at each National Convention reflects current social andeconomic problems as well as theoretical or ideological concerns. The common subject for1981 was "The P resent World Economy and International Currencies".
As a 困ult of the dissolution of the IMF (fixed ratio) system and the first andsecond oil crises, the present world economy is affected by various problems including
stagflation, trade frictions and international credit uneasiness. The convention hoped toconsider these matters, and discuss possible ways forward for the world economy.
The reports and the reporters on the theme were as follows,"The Multipolarization of World Economy and International Currencies" by Takao
SASAKI (Hosei University)"The Attestation of the American Network-the Financing Structure of the Integrated
Imperialism" by Fumitake MATSUMURA (Osaka University of Economics)"The Structure of the World Economy and International Currencies" by lkuya
FUKAMACHI (Kyushu University)
The commentators were Kenji IMAMIYA (Chuo University), Sadayuki SATO
(Hitotsubashi University) and Kazuo KONISHI (Rikkyo University). The chairmen were
Yoshio MIYAKE (Rikkyo University), Kazuo SHIBAGAKI (University of Tokyo) and
Mitsuhiko TSURUTA (Chuo University).
SASAKI, a specialist on the American economy and international financial matters,suggested that, in the international economy which is basically under a controlled mone­tary system, the exceptional maldistribution of international economic strength amongsome major nations had been necessary in order to maintain a stabilized order by those na ヽ
tions. SASAKI stated that the IMF system had relied upon such exceptional conditions.
Therefore, with the disappearance of such conditions, it collapsed. After the disolution of
the IMF system international monetary relations might more properly be described as a'Non-system'. But without a system multipolarization is encouraged. There can be two re ヽ
sults of this, for developing nations accumulative heavy liabilities and international mone­tary problems are exacerbated among the advanced capitalist nations.
SASAKI pointed out that the recent overvalued dollar was based upon the UnitedStates high interest-rate policy and the inflow of oil money into the United States. Al 、
though in the long-term, there is anxiety about P resident Reagan's supply-side economics.
He predicted that, even if the United States succeeded in stabilizing the dollar, there
would be pressure on the international economy. Indeed unless the United States succeed、
ed in controlling inflation, there would be further fluctuations of the dollar-based system,
as well as the tripolarization or multipolarization of international monetary relations.
SASAKI also explained that OPEC had become an important international financial
power as a result of a large increase of petroleum revenue. But, on the other hand,-63—

SASAKI pointed out that developing countries including some socialist nations were
facing a serious problem of accumulating liabilities. As such problems increases, so furtherpressure is exerted on the IMF, which comes to be regarded as the "financier of lastresort". But in fact at present, there exists no such thing as the "financier of last resort" inthe world economy. We must find a solution through international cooperation, for all
nations in the end depend upon each other. Yet the world economy will remain in a stateof "mutual fragility" for some time to come.
MATSUMURA, who presented the second report, is a specialist in the American
economy, especially on integrated imperialism. As he believes that the United States isstill the axis of the world economy, he conducted a detailed analysis of the international
payment structure in the United States in the 1970s. It might, given that approach be
possible to reach the very core of the international financing and currency problems.
MATSUMURA believed that the main features of the American economic relations
with other nations in the 1970s, from a standpoint of the balance of international pay­ments, are as follows.
(1) The trade balance achieved a Copernican change and came to record a huge deficit;(2) the profit of the investment balance greatly increased, about three times more than in
the 1960s; (3) the loss of the capital balance was roughly the same as in the 1960s, but it
is noteworthy that the balance of security investment went into the black; (4) as theshort-term capital balance began to suffer a deficit, the loss in the balance of official
reserve transactions increased enormously; and (5) the finance by Treasury securities(TS) is rapidly increasing, MATSUMURA described the United States in the 1970s as in
the state of'national bankruptcy in its relations with other nations'.
Naturally, the'national bankruptcy' would not immediately be connected with reali、ty. MATSUMURA said that the deficit, caused by diversified trade structure and long­term capital investment, was covered by the 'systemヽ supporting finance\ such as thereflex of investment gains or the sales of the Treasury securities. He named such interna、
tional linkage, centering around the United States, as the American Network.
At the end of his report, MATSUMURA stated that, despite the existence of theAmerican Network, there were contradictions due to the tragility of the American domes­
tic economy and the instability of the paper dollar standard. ls then he asked even a possi、
bility that the gold-standard system would be revived?
FUKAMACHI is a specialist in Marxism credit theory. His recent book is entitled"The Present Capitalism and the International Currencies" (lwanami -Shoten). He main­tained that, in a situation where convertibility of the dollar with gold was suspended andthe Bretton Woods system had collapsed, the regulation of the'international currency'
should be reexamined.
FUKAMACHI said that the pound sterling had been originally established as theclassic international currency, as a result of the dominance of the British pound in the for ヽ
eign exchange. International credit and liabilities, including the transferring and offsettingof short-term obligations, had come to be settled through the pound. On the other hand,the emergence of the dollar as the international currency after World War II, resulted in
the use of the doUar as the official reserve of intervention currency. Along with that, at.
the private level, commercial banks began to hold dollars, this trend continued as the-64 ーdollar started to be used by banks and in the exchange market. After it was floated, boththe usage and the supply of the dollar in the international money market was accelerated,
and the excessive supply of dollars has become conspicuous.
FUKAMACHI also explained the special role of the Eurodollar market under thecurrent international credit system, and described the current world economy which fea ヽ
tured both the lowering of American status, and the huge supply of the dollar in the in、
ternational money market.
At the end of his report, he presented the following two points. (1) The excess
supply of dollars also concerns the Eurodollar market, but here the situation is eased by
the multinationalization of American industries and banks. (2) The American banks arelaunching into the systematization of foreign banks in international monetary business,and the international monetary cartel is being formed, making the United States as the'Headquarter or Core economy'.
In each of their reports, SASAKI took a serious view of the loss of cohesion in theworld economy, and MATSUMURA attached importance to its integration which con­firms the supremacy of the United States. FUKAMACHI laid stress on the excessive
dollar supply in the monetary economy, which seemed to be inconsistent with the lowerヽ
ing of the American status. Each of them presented their views from different angles.
The first discussant, IMAMIYA, expressed his basic agreement with MATSU­
MURA. He criticized SASAKI's view, saying that the multipolarization of the economy
was unlikely. If we consider the role of the dollar at present it is rather like that of interヽ
national finance and both are involved in a kind of world power struggles. Also, IMAMI­
YA criticized FUKAMACHI's view, stating that FUKAMACHI seemed to overestimate
the coordinating functions of the Eurodollar market in the international scene.
The second discussant, SATO, expressed a doubt as to the concept of the'multipo、
larization of the world economy'. He maintained that the current world economy israther taking a course of strengthening mutually dependant relations, than becoming
multipolarized.
SATO criticized SASAKI's concept of a'Non-system', as incomprehensible. He also
wondered whether MATSUMURA's concept of 'system-supporting finance', was basedon a political or economic reasons? SATO challenged the view that the return of the gold
standard was at all possible in the United States, and sought opinion, from MATSU­
MURA and FUKAMACHI about prospects.
The third discussant, KONISHI, presented his questions mainly to FUKAMACHI,
such as "what do you mean by'excess' in relation to the'excessive dollar'?; "what would
be the nature of international finance cooperation, which also concerns OPEC, in the
1970s?"�r "how FUKAMACHI relates international currencies and gold at this time?"
Besides such exchanges, Hiroyasu IIDA, Masahide NAKAMURA, Kiyoko IMURA
and others contributed to an active debate. The main point at issue was whether to see
the basic tendency of the current world economy, which includes the international mone、
tary relations, in terms of a standpoint of integrated understanding, or from a point ofmultipolarization.
At the end of the debates, Yoshio MIYAKE, representing the chair, summed up. He
said, "The dollar plays a central role in the current world economy as a result of— 65 —

international cooperation, not because the dollar itself is powerful". "The dollar today is'deracine' having lost its connection with gold. There is talk of'demonetization of gold'
or'restoration of gold', but it is the dollar which has changed, and not the gold. We must
try to clarify the problems of the world economy, which is disturbed with internationalmonetary crises, inflation and depression, by developing the theory of℃apital"'.
MIYAKE concluded by say ing that he hopes the debates at this convention would help
bring about worthwhile achievement in the study of the subject.
Incidentally, the 3Dth Convention was held on Oct. 2nd and 3rd, 1982, at Hitotsu ヽbashi University, and the common theme was'The Long-Ranging World Depression and
the Japanese Capitalism'.
(Mitsuhiko TSURUTA)— 66 —

THE POPULATION ASSOCIATION OF JAPANThe 33rd meeting of the Population Association of Japan was held at the Economic
Department of Tohoku Gakuin University in Sendai on June 5th and 6th, 1981. The
theme of the symposium was the "Recent Fertility Decline in Japan".
The recent population trend of Japan is characterized by two distinctive features.
The first, is the dramatic rise in the average life expectancy. The average life span is ap­
proaching 75 years for men, and 80 years for women. Currently Japanese longevity isranked as one of the highest in the world. The recent gain in longevity necessarily accelerヽates the aging of the population.
The second, is the decline in fertility since 1973. The total fertility rate (TFR),
which rated 2.14 in 1973, decreased to 1.91 in 1975, and in 1981 it reached a new low
at 1. 72. This figure may in future fall to the level of 1. 7. If the total fertility rate continues
to be below the level of 2.1, which is the rep_lacement level of fertility, the percentage ofaged population will continue to grow.
Given such a demographic situation, this symposium focussed on the future in Japaヽ
nese fertility.
This symposium was organized with by Masaaki YASUKAWA (Keio University),
the Chairman, with three reporters from different disciplines:
Economics: Hiroshi OHBUCHI (Chuo University)
Sociology: Makoto ATOH (Institute of Population Problems, Ministry of Health andWelfare)Demography: Tatsuya ITOH (Institute of Population Problems, Ministry of Health andWelfare)The summaries of each reporter are as follows:
Hiroshi OHBUCHI (Chuo University)
Since 1974, the fertility rate of Japan has declined. The cause of the decline andfuture prospects will be discussed from the aspect of economics. Three methods havebeen adopted: (1) Verification through the Chicago Model, (2) Verification by the Eas ヽ
terlin hypothesis, and (3) Correlation analysis of the short term circular fluctuation.
First, through the analysis of the decline in fertility from 1950 to 1975 using the
Chicago Model which explains the decline from 1950 to 1960 but does not explain the
decline from 1865 to 1975. Therefore, it seems that it is difficult to explain the recent deヽcline in fertility using the Chicago Model. However, the confirmation of a positive
income effect and the negative effect of the educational standard�nd women's employヽment were recognized.

By the Easterlin hypothesis, the observation of the change in age distribution, wasapplied from 1965 to 1980, that is over the long term. The Easterlin hypothesis by com 、
parison seems to be able to expalin the trend until around 1950, however, the explanation
does not hold water when it is applied to the trend after 1960. Consequently, the causeof the decline in fertility cannot be clearly shown by the Easterlin hypothesis.
Lastly, it is useful to analyze the relationship between the business cycle and fertility
which showed a strong positive correlation between fertility and the business cycle, altho、— 67 —

guh fertility has a one year lag behind the business cycle.
Can any conclusion be drawn? Although fertility may have latent recuperative
power in the long run, this has not yet surfaced. In the short run, economic recession
deters fertility. W hen economic recovery comes, fertility may be expected to recover its
original upward progress, although this upward swing may remain small.
Makoto ATOH (Institute of Population Problems, Ministry of Health and Welfare)
We should not conclude, toe hastily, that the recent decline of the fertility rate forJapan is caused by the same "fertility revolution" which is occurring in North America
and Western Europe.
Change in the fertility rate is attributable to the change in two factors: the propor­
tion marrying and the marital fertility rate. If we look at the change in the measures ofmarriage, it can be seen that the crude marriage rate started to decrease one year before
the decrease in the fertility rate and, at the same time, the mean age at first marriage has
kept increasing.
One reason is the change in the age distribution due to an echo effect of the dramaticchange in fertility in the post World War II period, and the other is the decline in the
total first marriage rates. The Postponement of marriage has been the prevailing trend inrecent Japan and it .is not considered to be a dominant factor in the decline of the fertility
rate.
Decline in the total first marriage rate is considered to be not due to the rise in thelifelong celibacy rate but due to the postponement of marriage, according to the cohort
analysis. The primary factor in the trend toward late marriage is found in the sudden
trend toward achieving a high level of education which occurred from 1965 to 1975.
Next, when we look at the change in period marital fertility rate, it also seems tohave declined, at least temporarily. It is difficult to judge right now whether this is due tothe decline in completed fertility or the changes in the spacing of wanted births. However,
the average number of children ever born per married couple during the recent decadeand the mean number of intended children during the recent five years is 2.2, which isquite stable. There is hardly any indication of an increase in the percentage of non-childand single-child couples. Therefore, the fertility rate is not considered to have suffered amajor change.
If the recent decline in fertility is said to be caused mainly by late marriages, withthe spacing of wanted births, it is likely that the fertility rate will gradually recover fromnow on because of the tapering off of the rise in college enrollement rate which caused
the postponent of marriage .
Tatsuya I TOH (Institute of Population Problems, Ministry of Health and Welfare)
A comparison between the period fe冗ility measure and the cohort fertility measure
after 1960 shows that, from 1960 to early 1970s, the former had an upward trend, while
the latter did not undergo a major change. The total fertility rate, which rated 1.96 in
1961, increased to 2.16 in 1971, however, the average number of children per couple
being married for ten to 15 years was some 2.2. W hen we compare the general fertility
rate by birth order with the rate of growth in the parity by duration of marriage, we finda more marked difference between the two.
In order to give a unified explanation of the trend in the two different fertility rates,— 68 —

an attempt was made to estimate the female population by age, marital status and durationof marriage, and restore the period fertility measure using the cohort fertility measure. As
a result, we found that the average number of children was 2.2 from 1960s until around
1975, restoring figures for the number of children and the total fertility rate within three
percent of official figures.
Next, we examined the current and future trend in fertility rate by making a simula 、tion of the completed number of children according to marriage cohort in 1970s, which
is not available in the seventh national fertility survey, using three assumptive figures, 2.4,
2.2 and 2.0. In this simulation, we used actual values for nuptial rate until 1978, andafter 1978 we used the 1978 figure. Comparing the result of the simulation with official
figure later announced, we find that the number of children and the total fertility rate
almost agreed with the simulation result based on the assumptive figure 2.0. As the eighth
national fertility survey is yet to be completed, we cannot confirm whether this findingmeans a decrease in the completed number of children according to the marriage cohort
in 1970s or temporary fertility control. However, the result of the simulation suggests thateven if the completed number of children remains 2.0, the total fertility rate may fall tothe level of 1.70 in or around 1980, and after 1980, it will turn upward. In the latter
half of 1980s, this figure is expected to reach the level of 1.80.
Comment by the Chairman
In this symposium, we had three reports on the current decline in fertility and theprospect of future fertility from three different viewpoints. They share a common viewthat the fertility is expected to gradually recover althoguh it may remain low for somewhile from now.
The nation is faced with two conflicting population problems: the overpopulationand the acceleration of the aging of the population. This means that if we try to avoid
overpopulation in this aging society, we should curb fertility which will result in an accel 、eration of the aging of the population. On the contrary, if we enhance fertility in an atヽ
tempt to avoid the aging population, the entire population will continue to grow, inconve 、
niencing people's living.
The Japanese are now under the pressure of these demographic problems, though, asa homogeneous nation, the Japanese have lived in this island country lifelong for genera ヽtions. Therefore it seems that fertility will in future continue to remain low to deal withthe overpopulation. This is an immediate choice we can make to endure the increasing
burden of supporting old people resulting from the aging of the population. If this occurs,
the population may reach its peak at 130 million in the early 21st century or aroundyears between 2005 and 2010, and it may decline gradually thereafter. W hen the people
come to enjoy a relative space in life, fertility may be expcted to recover its upward prog ヽ
ress toward achieving the replacement level of fertility.
The main theme and the subject of the symposium in the 1982 meeting of the asso­
ciation are as follows:
Special Session: "Migration in Different Parts of the World"
Symposium subject: "Migration in Japan- Trends and Policies"(Masaaki YASUKAWA)— 69 —

THE JAPAN SOCIETY OF PUBLIC UTILITY ECONOMICS
The 31st annual meeting was held on May 29 & 30, 1981 at the Matsuyama Com、
merce University on Shikoku Island. The meeting was opened by the Chairman, Hideo
HOSONO.

Later

EijiroNAWATA

took

thechair and H.

WATANABE,M.

MIYAZAKI and K. HOTTA reported on individual themes. Later, during the lunchhour the board of trustees and the ordinary general meeting were held.
In the afternoon, under the chairmanship of Yoshinobu MAEDA and Kunio
OHSHIMA, the main theme of "Public Utilities and Environmental Change" was taken
up by M. TSUCHIYA, T. SATO and H. SASAKI as reporters. This was followed by dis 、
cussion.
After the research report, the customary party was held at the Telegraph and Teleヽ
phone Hall of Matsuyama near the University. Teizo TAK AZAWA, Dean, School ofBusiness Administration, welcomed the delegates on behalf of the University.
The meeting was opened on May 30, by Tsutomu ENDO and Naoto KANO. The
reporters were T. NOGIMURA, S. FUJITA and Y. ISHIGAKI. in the afternoon, Atsu­
taka FUJII and Hisao SEKIJIMA presided. T. SAITO, E. YANO and T. ICHINOSE were
the reporters and the discussion continued until 4 P.M. Vice Chairman Hisao SEKIJIMA
conducted the proceedings by expressing the thanks of all for the opportunity to meet in
the quite and splendid atomosphere of Matsuyama Commerce University Campus.
Titles of presented papers are as follows:1.

Individual papers"On the Movement of Electric Power Shift in Western Countries",
Hiroshi WATANABE (Shikoku Electric Power Co., Inc.)"Island Steamship Lines in the Setouchi Area",
Mitsuru MIYAZAKI (Matsuyama Commerce University)"The Relationship Between Public Enterprises and Government in France",
Kazuhiro HOTTA (Kinki University)"Deregulation and Anti-trust Policy of the U.S. Truck Transportation Industry",
Tadakuni NOGIMURA (Nihon University)"Transition of the Number of Men Transported by and the State of Profit and Lossof Motor Bus Corporations in Hokkaido",
Shoich FUJITA (Sapporo University)"The Characteristics of the Electric Industry in Okinawa and Problems on Its Private
Ownership",
Yodai ISHIGAKI (Okinawa Electric Works Company)

2.

The common topic papers (Main Theme of 1981: Public Utilities and Environ­mental Change)"Telecommunication in the 21st Century"
Morinosuke

TSUCHIYA(NipponTelegraph

Corporation)"Movement of Personal Communication Media",— 70 —

andTelephone

PublicT sutomu SATO (Shikoku Postal Service Bureau)"Recent Critical Situation Towards Regulation for Public Utilities",
Hiroshi SASAKI (Kobe University)"The Change of Business Environment of Atomic Power Generation in the Court
Judges of Western Countries",
To SAITO (Central Research Institute of Electricity)"T he Sewer Service of Kobe City; Its Actuality and Subjects",
Eiichiro YANO (Sewer Service Bureau, Kobe City)"Public Utilities in International Society Era",
Tomoji ICHINOSE (International Christian University)
Main T heme of 1982: Productivity of Public Utilities and Public Enterprises
PUBLICAT IONS
Contents of J . of P.U.E., Vol. 33 No. 3, March 1982
Articles:"Public Utilities and Industrial Pollution Problems",
Hisao SEKIJIMA (Seikei University)℃omparative Study on Management— Form of the Tobacco Industry",

Shusaku YAMAYA (Toyo University)"Good Sense in the Study of Water Enterprise",
Tatsuo TAKENAKA (Kobe University)
Translation:
Martin T. Farris and Roy J. Sampson, Public Utilities (VIII): Regulation, Management
and Ownership, Boston, Houghton Mifflin Company, 1973, translated by Yoshio
NISHIKAWA (Tokyo Keizai University) and Yasunori FUJII (Long Range Credit Bank)Book Review:
Koyo Terao, Water Supply Industry in Japan, 1982,
by Hisao SEKIJIMA (Seikei University)(Tomoji ICHINOSE)-71-

THE JAPAN SEC TION
OF THE REGIONAL SCIENCE ASSOCIATION
In 1981, the Japan Section of the Regional Science Association (RSA) held its own
annual domestic conference and sponsored the Pacific Regional Conference.
1.

The Annual Domestic Conference:
The 18th Annual Domestic Conference was held at Meiji Gakuin University inTo�yo from Nov. 22 to 24.
The Main Theme of the 18th Conference, papers and reporters:
1) Problems of Data on Regional Analysis"Problems of Data in the Planning Process of the Domiciliary Area",
Yoshiyuki OSAKAYA (Ministry of Construction)"The Precision of Data and its Effects on the Accuracy of Transport Forecasting",
Koichi YAMAGATA (Hokkaido University)"Systems Approach to the Large-scale Physical Planning through the Concept of In­
formation System Design",
Mamoru HARUNA (Kyoto University)"The Use of Attitudinal Data in Building a Modal Split Model for Urban Transporヽ
tation Planning",
Tohru

TAMURA,

Keiichi

SATO

and

Hideo

IGARASHI(Hokkaido

University)2) The Reconsideration of Metropolitan Problems"Overpopulation Problems in Metropolitan Seoul",
Yoo-Hyuk KIM (Dankook University, Korea)"Metropolitan Reconstruction in the Mature Society",
Akira TAMURA (Hosei University)"Metropolitan Problems and Regional Policy in Japan",Eiichi ISOMURA (Toyo University)
3) Symposium: On the Evolution of Location Theory
Reporters:
Hisao NISHIOKA (Aoyama Gakuin University), "A Review of Classical Location
Theory"Yoshitsugu KANEMOTO (University of T sukuba): "A Review of Modern Location
Theory"Discussants:
Takeo !HARA (Kagawa University), Koichi MERA (University of Tsukuba) andHiroshi OHTA (Aoyama Gakuin University)
2.

The Pacific Regional Science Conference:
The 7th Pacific Regional Science Conference (under the joint auspices of the Austra ヽ

lia and New Zealand Section of RSA, the Canadian Regional Science Association, the-72—

Japan Section of RSA and the Western Regional Science Association) was organized by
the Australia and New Zealand Section of RSA at Surfers Paradise, Queensland, Austraヽ
lia from August 16 to 20, 1981. The main theme of the Conference was "Energy,
Technology and the Pacific". Participating countries were Australia, Brazil, Canada, India,
Japan, Korea, Mexico, New Zealand, Philippine, U.S.A., Taiwan and also Britain, France,
Finland, Netherland, Poland, Sweden and West-Germany in Europe.
From the Japan Section, 25 members attended and 10 papers were presented:"The Optimal Control of the Environment (II)haustible Energy Resources —",— Optimal Depletion Model of Ex­

Hirotada KOHNO and Masatoshi YOSHIDA (University of Tsukuba)℃hange of Regional Development Policy of the'Tohoku'(North Eastern District),
Japan",
Hiroshi SASAKI (Iwate P refectural College)"Recycling and Regional Economic Growth",
Yoshio KIMURA (Nagoya City University)"A Study of the Economic and Environmental Evaluation of Regional Energy arisingfrom a Soft Energy Path",
Etsuo YAMAMURA and Seiichi KAGAYA (Hokkaido University)"A Study of T ime Value as a Measure for Economic Benefits",
Tetsuo YOSHIDA (The Mitsubishi Research Institute)"Growth and Change in Regional Economies — Interaction of Transportation andLand Use — ",Takeo IHARA (Kagawa University)"The Logit-type Behavioural Econometric Model of Interregional Trade Patterns and
its Contributions to Location Theory",
Fujio OKAZAKI, Masashi HASEGAWA and Yukihiko UEHARA (Meiji
Gakuin University)"A Multi Variate Analysis of Regional Structural Change for Transportation Plan­
nmg
Kiyoshi KOBAYASHI, Kazuhiro

YOSHIKAWA and Mamoru HARUNA(Kyoto University)"Land Use Transport Model for Metropolitan Area",
Hideo NAKAMURA and Yoshitsugu HAYASHI (University of Tokyo)"Measurement of Housing by Disaggregation into Structure and Garden",
Katsuhiko SHIMIZU (Kinki University)
PUBLICATIONS(I) "Studies in Regional Science — the Papers and Proceedings of the Japan Section of
RSA—"(℃hiikigaku Kenkyu"), Vol. 11 was issued in Oct., 1981.
Contents of Vol. 11:
1.

"Building a Model for Predicting Regional Development Impact of Transportation

Investment-An Interim Report ー",Koichi MERA (University of Tsukuba)
2.

"Irrational Factors in the Demarcation Lines of Administration Area and the Direc ヽ-73 —tion for their Improvement in Korea",
Yoo、 Hyuk KIM and Dong-Sin KEUM (Dankook University, Korea)
3.

"Evaluation Method for Transportation Network Planning and its Application",
Kozo AMANO, Tsunekazu TODA and Hirofumi ABE (Kyoto University)

4.

"Simultaneous Optimal Allocation of Public Investments to the Interurban Compreヽ
hensive Transport System and Regional Living-Environmental Facilities",
Hirotada KOHNO (University of Tsukuba) and Masatoshi YOSHIDA (Insti 、tute of Behavioural Sciences)

5.

℃omprehensive Evaluation Method of the Residential Environment in Relation to
the Road-side Area — A Case Study in Tsukuba Science City — ",Sachihiko HARASHINA, Hideo HARASAWA, Masaaki NAITO (National
Institute for Environmental Studies) and Kohki KOH (Taiwan Public HealthAgency)6.

"On the Total Evaluation of Water Resources Management Planning in River Basin
Development— In Case of Chitose River Basin ",ー

Etsuo YAMAMURA (Hokkaido University) and Yuzuru MIYATA (The Mitヽsubishi Research Institute)7.

"An Analysis of the Political Choice and Fiscal Policy of the Cities with an Increasヽing Population",
Tatsuo KINUGASA (Hyogo Prefectural Government)

8.

"Process Oriented Optimal Regional Development: The Oevelopment Speed Ap­
proach",Noboru HIDANO (Tokyo Institute of Technology)

9.

"Study on a Method of Systems Analysis of Regional Planning Related to Civil Engi­
neenng ,Kazuhiro YOSHIKAWA and Mamoru HARUNA (Kyoto University)

10.

"Structural Analysis of Domestic Water Demand System with Questionaire Data",
Yoshimi HAGIHARA, Haruhiko WATANABE (Nihon Suido Consultant
Co. Ltd.) and Akira KOIZUMI (Tokyo Metropolitan University)

11.

"Empirical Study of the Households'Production of Refuse within the Frameworkof a New Consumer Theory",
Yoshifusa KITABATAKE,

Osami

NAKASUGI, Shuzo NISHIOKA, andHideo HARASAWA (National Institute for Environmental Studies)
12.

Symposium: Problems in Kinki Metropolitan District1)℃onstruction of Port-Island and City Management of Kobe",
Seiji KOMORI (Kobe Commerce College)
2) "The Role and Political Problems of Osaka in Keihanshin Metropolitan District",Yasusuke SENGOKU (Osaka Municipal Office)3) "Problems of Urban Conservation: the Preservation of old Kyoto",
Tadashi YAMAZAKI (Kyoto University)

13.

"Regional Science in Japan: A Survey",
Hirotada KOHNO and Yoshiro HIGANO (University of Tsukuba)(II) The Papers of the Pacific Regional Science Conference (PRSC):-74-

The selected papers of the 6th Pacific Regional Science Conference edited by theeditorial board of PRSC (Chief Editors: H. KOHNO (University of Tsukuba, Japan) and
R. Jensen ( University of Queensland, Australia ) were issued as Papers of the Regional
Science Association, Vol. 46 published by the headquaters of RSA in 1981.
Contents of Vol. 46:
I. Evaluation and Resources
1.

"Qualitative Evaluation Models with Conflicting P riorities",

2.

"A Study of Multi、Objective Aspects of Dynamic Water Resource Allocation",

Peter NIJKAMP (Free University, Amsterdam)
Haruhiko WATANABE, Yoshikazu NAKAGAWA, and Yoshimi HAGIHA、
RA (Nihon Suido Consultants Co. Ltd., Japan)
3.

"Measurement of Road User Benefits by Means of a Multi-Attribute Utility Func ヽtton
Hisayoshi MORISUGI (Gifu University), Nobuharu MIYATAKE (the Mitsu­
bishi Research Institute, Japan) and Akira K ATOH (Gifu University)

4.

"The Theory and Measurement of the Marginal Rate of Valuation of Public Nuis 、
ance ,
Hirotada KOHNO (University of Tsukuba) and Masatoshi YOSHIDA (TheInstitute of Behavioural Sciences, Tokyo)

5.

"Fisheries Exploitation off Canada's West Coast: The Effects of National Policy",
Parzival COPES (Simon Fraser University, Canada)

II. Regional and Urban Environment and Planning
1.

℃ity Size and Environmental Quality Relative to Population Movement",lsao ORISHIMO ( Toyohashi University of Technology, Japan)

2.

"Regional P lanning in Developing Countries: The Case of Taiwan, Republic ofChina",
Foh-Tsrang TANG (National Cheng Kung University, Taiwan, Republic ofChina)(Katsuyuki KURASHIMO)-75—

SOCIETY FOR ECONOMIC STUDIES OF SECURITIESIn 1981 the Society for Economic Studies of Securities held a national convention
and two division meetings, one is eastern Japan and the other in western Japan as well as
seven regional meetings, four in Kanto, two in Kansai and one in Kyushu.
T here were two main themes in the 18th national convention held at Senshu Uni­
versity in Tokyo on June 13th and 14th, 1981. One of them was "International Securities
Investment in the 1980's: Foreign Capital Inflow into Japan". T he following reports were
presented on this theme:
1.

"Present Situation of the International Money and Capital Markets",2.

"Overseas Securities Market Trend and Japanese Corporate Finance",

3.

"Yen's Internationalization and Securities Market",

Masaiku NUNOME, (Kochi University)
Ariyuki TERASAKI, (Nomura Securities Co., Ltd.)
Morio OKAZAKI, (Momoyama Gakuin University)
It is well known that foreign corporate organizations sharply increased their invest­
ment into Japanese stocks since 1968 in line with Japan's favorable international balanceof payment and high economic growth. T he increased investment in Japanese stocks
brought about a major rise in share prices and active stock transactions in the 1970's.
This resulted in structural changes in the Japanese stock market such as the establishmentof a practice of public subscription at market price.
NUNOME first analysed the role of the international financial market in reprocess­ing surplus funds from oil producing nations. He reported that although non-oil producing
developing countries were faced with financial difficulties such as huge excess payments,
the international finance market would function'at a high level unless it lost its innovative
nature.
TERASAKI took up the issue of foreign fund raising by Japanese companies. He
summarized the characteristics of Swiss, Euro-dollar, German and other foreign securities
markets, where Japan recently issued convertible bonds, with special emphasis on terms of
issue and the disclosure provisions.
In his report, OKAZAKI clarified the relations between the influx of foreign capital
into Japan and the subsequent internationalization of the yen. He stated that oil money
began to account for a major portion of the enormous sum of foreign capital brought into
this country in recent years. OKAZAKI also pointed out that in addition to the usual for­eign portfolio investment in the Japanese market, foreign investors began holding the yen
as a reserve asset.
Another main theme of the national convention was "Transformation of the Japa­
nese Financial System amid the Growing Competition between Financial and Securities
Markets".
The following reports were presented on this theme:
1.

"Transformation of Japanese Financial Structure Viewed from Securities Market",2.

"Changing Financial System and Banking Industries",

Takeshi GOTOH, (Yamaichi Securities Research Institute)-76—

Akira YOSHIDA, (Federation of Bankers' Association of Japan)
3.

"Banking and Securities Industries",

4.

"Banking and Securities Businesses",

Chozo AMARI, (Tokai University)
Yoshio KUMANO, (Senshu University)
The Japanese financial market underwent drastic structural changes as the Japanese
economy slowed down in the latter half of the 1970's. Such changes include the develop­
ment of the open money market due to financial surplus, flexible operation of issue terms
following massive national bond issues as well as a decrease in the relative portion of indi 、rect finance resulting from the diversification of corporate financing. The development of
the open money market, featured by free interest rates, and the flexible operation ofterms of government bond issue were combined to help promote liberalisation of financial
activities. Under such a situation, competition between banking and financial businesses
intensified, especially over the start of government bond sales by banks.
GOTOH traced the change of a financial structure centering on a massive issue ofgovernment bonds. He stated that the relative decline in financial transactions in taking
and loaning deposits would greatly affect the managemetn of banking institutions. YOSHI 、
DA noted that the financial structural change, especially the free financial transactions,
was as a matter of course. He maintained that it was inevitable for banks, sharing a heavy
burden of accepting and holding a huge amount of government bonds, to start securities
business like selling and dealing of national bonds.
AMARI stated that an indiscriminate removal of the boundary between the twobusinesses for free transactions would be extremely harmful in maintaining and developing
the financial circle in an orderly and stable manner.
KUMANO explained in his report that the development of open money market
made banking industries start securities business in raising funds. He claimed that thiscaused an increased cost of procuring funds to banks on one hand, and serious difficultyin bank management on the other hand.
Among papers presented at the Society's national, divisional and regional meetings
held in 1981, 16 were published in Annals of the Society for the Economic Studies of
Securities, No. 1 7 in May. 1982.
These included:"The Underwriting Corporate Bonds of Seven Big Financial Groups in the 1920's
and the 1930's",
Takeo KIKKAWA"An Empirical Analysis on the Effects of Mergers",
Megumi SUDO
"Present Situation of the lhternational Money and Capital Markets",
Masaiku NUNOME"The Promotion Processes of Public Utility Holding Companies and Investment
Trusts of the U.S. in the 1920 's",
Hiroshi NISHIDA— 77 —

"Transformation of Japanese Financial Structure Viewed from Securities Market",Takeshi GOTOH"Banking and Securities Industries",
Chozo AMARI"Enactment of New Banking Act and Securities Business",
Nobuhiro SAIJO"On the Financial Control of Large Corporations in the United States",
Tetsuo SHINTANI"Some Comments on the 1981 Revision of the Corporation Capital Concept",
Michihiro IKOMA"The Amended Japanese Corporation Law and the Securities Market",Junjiro MORI"The Process of Development of Investment Trusts over a 30、 year Period and Issues
at Present",
Mitsuo IZUMI"On the Association between the Capital Structure and the Risk of Firms",
Akihiro KOYAMA"The Public Subscription at Market Price and Strengthening of Stock Equity",
Katsuji HIGUCHI"Stock Borrowing Charge of the Margin Trading in Japan",
Yukio KISHIMOTO"On the Finance of British Industry after World War I",
Takashi IIDA
"The Jobbing System in the United Kingdom",
Joji KOBAYASHI(Masaho NODA)— 78 —

THE A SSOCIATIONFOR THE STUDY OF SOCIALIST ECONOMIESThe following two "open subject" reports were presented at our 21st convention;"A Review of Land Reforms (1945) in East Germany" by Keiko MATSUNAGA (Kochi
俎

University), and "Industrialization in Soviet Central-Asia" by Hidesuke KIMURA(Yokohama National University). The former attempted to review conventional andcommonly-held views on East German land reform policy, by drawing from the results ofrecent E. German studies on the subject, with particular reference to the difficulties andsetbacks which arose from a straight application of Soviet-type agricultural reform.
In the latter report, Professor KIMURA pointed out the keen interest shown by
Third World countries in ethnic groups living in former Imperial-Russian colonies skirting
the U.S.S.R., and the rapid development achieved by these peoples after the Russian com­munist revolution. The success of these ethnic minorities cannot be ignored when discussヽ
ing Soviet Socialism. This report attempts to distinguish and characterize four stages in theindustrialization process of the Usbek Republic which claims 60% of the Soviet Central­
Asian population as well as a core role in its economy.
In Poland, workers' movements under the independent labor union "Solidarity",
which originated partly as a protest against .substantial rises in meat prices in the summerof 1980, and forced the nation into successive turmoil which finally led to a military take­over in December 1981. Being greatly affected by "Solidarity " activities, our society choseto discuss "The Role of Labor Unions in Socialism" as its overall theme in the 1981 con­vention. The following four reports were presented: 1) " The Role of Labor Unions inSoviet Socialism" by lchiro ONO (Ritsumeikan University), 2) "The New Polish Labor
Union and its Significance as a Function of the Economy" by Hiroshi WATANABE(Japan Association for Trade with Soviet Union and Socialist Countries of Europe)
3) "The Role of Labor Unions in Chinese Socialism" by Susumu YABUKI (Yokohama
Municipal University), and 4) "A Study on the Yugoslavian Workers'Self-Rule andCommon Interest Communities (SIZ) with Particular Emphasis on the Educational
Aspect" by Hiroshi KOYAMA (Koochi University).
lchiro ONO, in his report, discussed the nature and activities of Soviet labor unions,
not omitting the problems facing these unions today. Ono believes that Soviet labor
unions (which naturally find their roots in Lenin's theory of workers'unions), have thefollowing three characteristics:

1) Soviet labor unions are mass-supported organizations, and in Lenin's words, are"giant associations, one for each industry, which incorporate all workers".

2) They form an organic part of a sy stem which allows social integration andeconomic management by the working class. Since unions of socialist societies comprisemembers of the same social class as the ruling party and the administrative government,
they are destined to become, as Lenin noted, "state organizations" which can take overthe functions of the party and state mechanisms.
3) Soviet labor unions are designed to protect the interests of the working class.
ONO belived that the activities of Soviet labor unions can be listed under fourheads, 1) those aiming towards establishing socialist economies as well as organizing pro-

— 79 —

duction sy stems 2) guarding of workers rights and campaigning for better working andliving conditions 3) educational, cultural and phy sical education activities, and 4) internaヽ
tional activities. The report also pointed out that labor unions may take part in manage­
ment, by 1) participating in decision-making processes 2) taking part in their execution3) transfer of state functions and 4) penetration of mass-supported management organiza 、tion. Lastly, touching upon present problems, facing Soviet labort unions, ONO cited
first, the negative stance taken toward mechanisms which safeguard the interests of labor
unions, a setback already discussed at the 26th Soviet Communist Party Convention.
Secondly that union participation in management has still not surpassed the levels seen
during the incipient stages of the movement, and thirdly that Soviet labor unions are still
fettered in various technical, economic, and historical restrictions which prevent themfrom fulfilling their projected roles in socialist societies, and that many problems still reヽ
mained for their future development.
WATANABE's rep?rt was intended to discuss the significance of the 1980-born
Polish union "Solidarity" in terms of its bearing on the nation's economy. WATANABE
first gave a brief outline of the founding and development of past Polish labor unions,and stressed the fact that quest for workers'self-management, closely coupled with thedemand for liberalized politics, has existed ever since the socialist regime was installed in
Poland. After various twists and turns, the movement for workers'self-rule finally bore
fruit on the crest of nation-wide workers'demonstrations triggered by food strikes. "Soli­
darity" was distinct from previous labor unions for the following reasons, 1) Solidarity
rejected subordination to the state and the party, which was observed across-the-board by
past unions, and was established more to protect workers'rights than to function as asocial-control mechanism. 2) Solidarity denied the ill-defined sharing of responsibilities beヽ
tween the management and workers practiced under previous workers'self-management
organizations, and clearly demarcated the responsibilities of the management and theworkers. 3) Solidarity is the first substantial organization to represent the interests of theworkers only. 4) Solidarity marked the birth of a union which placed priority, not ontaking part in the management of corporations, but on keeping the state and the governヽ
ment in check. 5) By winning the right to strike, it gained more negotiating power thanother worker organizations. WATANABE stressed the great historical significance of thisnew labor union with features, unique in the Socialist bloc. WATANABE concluded his
presentation by pointing out that the advent of "Solidarity" brought substantial changes
to mechanisms for distributing national income.
YABUKI introduced his presentation by difining the roles of Chinese socialist labor
unions. He then supplemented his findings with his own views, citing shifts and changes
in corporate management laws (adopted after the 1931 "Sino-Russian Labor Act" in theliberated districts of China) to substantiate the belief in China that workers should be thecentral figures of corporations in a socialist society. YABUKI considered that although
the vestiges of the cultural revolution, (such as overly -bureaucratic corporate sy stems andthe relegation of labor unions to a supplementary role) were criticized and slowly dis­
mantled in a strong drive toward the direct and democratic management of corporations
by the working masses, the attempts ended in total failure. As a result, YABUKI believes
that the reality of Chinese socialism still falls miserably short of a society where "workers-80—are the central figures of corporations." YABUKI continued to elaborate on the subject,introducing letters carried on the readers editorial pages and "Union Policy Inquiries" inthe "Koogin Nippo", emphasizing the various stresses which allegiance to the party andthe labor unions may cause at working places.
KOYAMA's report deviated slightly from the overall theme in that it introduced
the Yugoslavian "Workers' Self-Rule and Common Interest Communities (SIZ)", an un、
derstanding of which is vital in studying Yugoslavian socialism. KOYAMA first expalinedthat the Yugoslavian form of socialism featuring workers' self-management, aims principal 、
ly for a "Free Association of Direct P roducers" by promoting what is called the "FourD's" of decentralization, de-nationalization, de-politicization and democratization, as wellas the farming out top state functions to the lower rangs of society, to achieve what is
known as the "Extermination of the State". KOYAMA feels that state ownership is onlya primitive stage of social ownership which should be the ultimate goal, and that unified
guidance by the ruling party and the government are inappropriate. KOYAMA goes on
to say that SIZ, which was established for the purpose of social service, is a structured
system of worker self-management which caters to individual as well as collective needs
and interests, and that it is unique system which links economic activities such as material
production, trade and finance directly to social service functions, without having to resort
to state mediation. KOYAMA introduced the nature, make-up and activities of different
SIZ organizations, citing mainly SIZ activities involving specialized education. Lastly,
KOYAMA commented briefly on the role played by labor unions in Yugoslavia to supple­
ment his presentation. The Yugoslavian labor union is a "single, voluntary and wide­
reaching organization" which makes up an inseparable part of the united front formed bysocialist forces organized under a "Socialist Worker's Association", including some 95% of
all Yugoslavian workers. These unions are active, in seven fields as follows,1) in the Yugoslavian workers' decision-making process.
2) in social and economic issues,3) working for better living and working conditions for workers,4) concluding workers' self-rule agreements and social contracts,
5) the educational field,6) personnel management
7) protection of workers' rights.
Next, Hiroyuki OKADA (Hoosei University), Tsune-aki SATO (Yokohama Munici 、
pal University), Kazuhiro UEHARA (Komazawa University) and Minoru NAGASUNA(Kansai University) were the discussants for the above 4 reports. During the discussion,
OKADA hinted that while the Polish independent labor union Solidarity was making
headway in its opposition to the Lenin theory of workers qnions, the cause was notunique to Poland alone. OKADA said that the Solidarity was in fact a serious indictmentof workers movements in socialist nations as a whole, and a sharp criticism of Soviet laborumons.
SATO supplemented WATANABE's presentation with the following analysis ofcurrent developments in Poland. 1) The birth of the new Solidarity union bore great hiふtorical significance in that it marked the advent of a counter-vailing (opposition) force ina society hitherto and otherwise dominated by the ruling party and the government. 2)―-81-However, the fact that the self-rule of c0rporations is being used as a pawn in a politicalconflict is making the matter worse, not to mention the complications, involved in grap ヽpling with the long-term pains of democratzation along with the short-term problems of
the present economic crisis.
The 1982 convention will feature the following reports:
1) "Problems in the Methodology of Soviet Statism" by Michio KANEKO (Osaka Uni­
versity of Economics and Law), 2)℃ommunism Distribution Policy and Private Commer­
cial Activities During War Communism" by Akira UEGAKI. The overall theme will be"The Economic Relations Between Socialist Countries — Domestic Factors and Their In­

fluences — " and the convention will hear the following 4 presentations:

1) "The Export and Import of Grain, Centering around the USSR" by Hiromasa
NAKAYAMA (Meiji Gakuin Univ)
2) "East and West Economic Relations: Its Growth and its Limitations" by Shige­
yasu SUZUKI ( Yamaguchi Univ)
3) "Modernization in China and its Foreign Economic Relations" by Hideo UENO
(Kinki Univ)
4) "TheCOMECON:ITS Planned

Activities andMarket"by Sho-ichiro

TAKENAMI (Momoyama Gakuin Univ)(Heihachiro OHSAKI)— 82 —

SOCIETY FOR THE STUDY OF SOCIAL POLICY(SHAKAI SEISAKU GAKKAI)I.

The Society for the Study of Social Policy is an inter-disciplinary body devoted tothe study of labor and social problems. Economists comprise the majority of its members
but it also has many sociologists, historians and legal scholars. Under the emperor sy stem

prior to August 1945 not only was the labor movement suppressed, so too were studies
on labor problems. However, some independent researchers managed to produce scientificstudies on labor problems, under the rubric of "social policy ", an outward concession to

the regime of censorship and thought control. (On the history of the prewar Society see

Yoshio ANDO, "The Development of Economics and Economic Society " which appearedin the first issue of the Information Bulletin of the Union of National Economic Associaヽ

tions in Japan.)In the postwar period many scholars continued to carry out research which built on

the tradition of "social policy studies". Their main concern has been and continues to be
domestic labor problems. Since the study of Western labor problems and social move、

ments was the main preoccupation of prewar social policy studies, some of today's mem­bers are specialists in European and American labor problems. In recent y ears, as oppor、

tunities for study abroad have increased, the number of members who specialize in bothWestern and Japanese labor problems has grown. ふa result, international comparative
studies are flourishing and reports by Japanese authors appear with increasing frequency

in Western languages. In 1981 alone thirty articles by Society members appeared in En、

glish, French and German language publications. The Society 's annual report contains alist of all articles and books authored by its members.
II.

The 62nd Annual Conference of the Society was held on May 9— 10 at Chuo Uni、

versity, Hachioji City, Toky o. Approximately 300 members attended, five of whom deliv­

ered reports on the main theme of "The Wage Problem in Contemporary Japan". The

problem of the conference was to clarify, both theoretically and empirically, the changes
that had occurred in the Japanese wage level, which first rose steadily during nearlytwenty y ears of high economic growth starting in 1955, then declined from the time ofthe oil shock of 1973.

In "The Wage Level and Capital Accumulation", Ikuro TAKAGI (Yamagata Uni、

versity ) argued that what had long been regarded by members as defining characteristics

of Japanese capitalism ー "low wages and high accumulation" ー changed in the process ofhigh economic growth. Japan's new accumulation structure now centers on "high efficien 、
cy and high wage workers" in strategic industries such as automobiles and steel.

Yukichi TAKAHASHI (the Institute for the Science of Labor) reported on "TheStatus of Labor Costs and Its Problems". Analyzing the recent wage situation in Japaneseindustry, he noted that various components of the wage packet, such as allowances forfamily, housing and transportation, were increasing while, at the same time, the nature of
the bonuses paid to workers was changing. W hereas once bonuses represented a distribu­

tion of corporate profits, nowaday s they signify a life support pay ment, vital to the wage

packet.

— 83 —

Yonosuke OGOSHI (Kokugakuin University) reported on "The Current Low Wage
Structure and the P roblem of the Minimum Wage System". He analyzed the situation of
low wage workers in medium, small and minute-scale industries, and called attention to
the rising numbers of older workers and female workers in commercial and service indus、
tries within the tertiary sector. The minimum wage system is not functioning adequately
enough to raise the wage level of these workers.
Tadashi M ATSUZAKI (Hosei University) spoke on "The Wage Policy of Labour
Unions". He analyzed historically the characteristics of the wage policy of the Japan Feder ヽation of Iron and Steel Workers' Unions, a "pattern setter" in setting the wage level formany other Japanese industries. From the late 1960s through the early 1970s, this laborfederation demanded a distribution of the profits resulting from economic growth. But,
starting in the late 1970s, it shifted its emphasis to demanding a "social wage", meaning
policies and institutions to guarantee stable commodity prices and a solution to the hous 、ing problem.
Mihoko TSUDA (Nayoro Women's College) reported on "Wages and the Living
Standard". She noted that because of the increasing diversity of livelihoods, the standardof living of workers can no longer be revealed by today's wage level statistics. She under ヽ
took an investigation of the theoretical problems involved in constructing a wage level
capable of indicating the social environment and labor conditions of workers.
A t the general meeting there was a lively discussion of these reports under the chair 、manship of Tadao TA KAGI (Hosei University). In the afternoon there were three separ 、
ate meetings. The first one concentrated on the theme of "Methodologies for the Studyof the Labor History". W ith Kazuo NIMURA (Hosei University) acting as chairman,
Hideo KOBAYASHI (Komazawa University) spoke on "The Methodology of Studying
Japanese Labor History" while Masami NOMURA (Okayama University) lectured on"The Methodology of Study of Labor-Capital Relations in Foreign Countries". In the tworemaining open-agenda sessions, the following six reports were delivered:
Makoto S A KURA BAYASHI (Teikyo Univesity), "Wage Differentials Between
Part-time Workers and General Workers";
Isao SEKIGUCHI (Kokusai Shoka University), ℃hanges in the Wage Systemof the Japan National Railways";
Yoshitaka FUJITA (Asia University), "The Rising level of Stages of Economic
Development and Wage Negotiations";
Kiyoshi SATO (Chuo University), "The Development of the Workers Self,
Management Movement in France";
Fumiaki TA KEDA (Keio University Graduate School), "Social Research andSocial Welfare";
Sakiko SHIOTA (Hitotsubashi University Graduate School), "On the Industrial
Patriotic Movement during the World War II.
ill. ·The 63rd General Meeting was held at Hiroshima University, Hiroshima on Novem­
ber 7— 8, 1981. Eight people reported on the general theme of "Integrated Social Policy

and Labor Welfare".

The term "integrated social policy" was first used in an OECD international project—84-

in 1973. It was based on the belief in a need for an effective and efficient integration ofsocial policy with such oth�r policies as economic and employment policy. The Japanese
government took an active part in this project, establishing within the Economic Planning
Agency a "Basic Problems Research Committee on Integrated Social Policy". In 1977 thiscommittee issued a report titled "Towards an Integrated Social Policy: On the Theory ofSocial Welfare". This rising official concern with "integrated social policy" lay behind ourown adoption of the theme.
Nobuko KANAJI (Nihon Fukushi University) reported on℃ontemporary Worker
Living Conditions and Integrated Social Policy". Through an analysis of family household
accounts commencing with the start of high economic growth in 1955, she revealed
recent changes in worker living conditions. Noting considerable differences in living reヽquirements according to generation, she stressed the importance of an integrated social
policy to meet widely divergent household needs.
Iwao NAMIE (Osaka Sangyo University), in a report titled℃orporate Welfare andLabor-Capital Relations in Integrated Social Policy", noted that the Japanese government's
conception of an integrated social policy stressed the limits of the state's role in welfare.
At the same time, the government emphasized individual self-help and the welfare func ヽtions of "intermediate groups" such as companies and families. NAMIE, taking a criticalstance toward the official view, clarified the problems and the contradictions in "corporate
welfare".
Keino OMOTO (Social Security Reserach Institute) spoke on "Integrated Social
Policy and the System of Property Formation". Comparing the property formation systems
in Japan and West Germany, she revealed that Japan's system was based on encouraging
savings. Although weak in social policy components, it was strong as a method for raisingbank capital.
Kiyoto MOCHIZUKI (Matsuyama Shoka University) reported on "Integrated Social
Policy and Social Security". After discussing the aims and background of the integratedsocial policy currently being developed in Japan, he explained how traditional social
policy theory was changing and the problems resulting from those changes.
Yoichi FUJISHIMA (Kagoshima University) reported on "Integrated Social Policy
and the Theory of the Contemporary State". He examined the distinctive nature of thestate's advocacy of a welfare society and argued that, in matters of social reform, the im、
portant point was how to develop the positive aspects of the demands of the working
class as reflected in integrated social policy.
Yoshitaka FUJITA (Asia University) reported on "The Rise of Integrated Social
Policy and Its Background". He pointed out that discussions of integrated social policy
broaden the area of traditional social policy discussions and signal the arrival of a new anddeeper stage of research. On the other hand, the idea of "integrated social policy" could
generate an undesirable retreat in the area of social policy.
Tomoyoshi OKADA (Tokyo University) reported on "Integrated Social Policy andIts Historical Lineage". He argued that the integrated social policy which arose as a newsocial policy is anything but new. It arose repeatedly in the past and its origins lie in the"new liberalism'.
Kazuo OKOCHI reported on "The Integration of Social Policy". Reviewing the his 、-85—tory of the study of social policy, he located its roots in the prewar period. Its purpose, heargued, lies in maintaining autonomous, independent labor power.
Following the delivery of these reports, the general meeting shifted to discussions
under the joint chairmanship of Hiromichi NISHIMURA (Doshisha University) and
Masami KIMURA (Kagawa University). Here the main discussants were Junichi
TA IY OJI ( Hitotsubashi University), Shinichiro KIMOTO ( Meiji University), Kazuo
HAYAKAWA (Kobe University) and Hiroshi MIZAKI ( Shiga University).
The 64th general meeting of the Society will convene at Chuo Gakuin University,
Abiko City, Chiba Prefecture in May 1982. Its general theme will be℃ontemporary In 、
dustrial Rationalization". Volume 26 of the society's y earbook, titled "The Wage Problem
in Contemporary Japan" and containing the reports of the 62nd general meeting, is sche ヽ
duled for publication by Ochanomizu Shobo ( Toky o) in May 1982 ..
(Kazuo NIMURA)-86—

SOCIO-ECONOMIC HISTORY SOCIETY
The 50th national Conference was held in Wakayama University on 16— 17thMay, 1981. "World Capitalism and the Emigration in Asia, 1834 ー 1930" was the special
theme this year. Organizer was Sakae TSUNOYAMA, Wakayama University. The pro ヽ
gramme and proceedings were as follows:'Keynote speech'was made by Sakae TSUNOYAMA. During the nineteenth cen ヽtury Asian countries pushed out a great population. The Chinese and Indians were theatton estimates, a maximum guesstlヽ
biggest groups. Though there are no accurate popul·
mate of emigration put the total figure of both the Chinese and the Indians at about 47
millions. This suggests that there was the great mass migration in Asia to be comparedwith the emigration from Europe to the American Continent, its figures amounting toabout 50 millions. The migration movements in Asia took place mainly in response to thedemands of the international market: while many countries in Asia were forced to beunder colonial control or were undeveloped periphery economies of the world capitalism,
the great mass of the poor people was constrained to be out of their countries. There
were two types of migration in Asia: emigrants who travelled as coolies to work on planta­tion estates and in mines, and emigrant groups like Chinese merchants who were engaged
in the service sector and commercial activities in South East Asia. The case of Japan was
not exceptional, but it was unique in its emigration policy for Japan made use of emigra、
tion for the purpose of her colonial invasion and market expansion of her industrial pro ヽ
ducts in Korea.
'Indian Emigration and the Export Economies of South and Southeast Asia, 1890—

1920'by Kaoru SUGIHARA (Osaka City University) tried to show the basic pattern ofIndian emigration and the role it played in the process of integration of South and South、east Asia into the world economy during the period of 1890 to 1920. The relevant statis­
tics revealed that emigration of unskilled workers from the Madras Presidency to Burma,
Ceylon and Malaya under "the Kangany (or maistry) system" was numerically by far themost important, overshadowing and partly replacing "indentured emigration" mainly via
Calcutta to the more distant British colonies.
This paper was supplemented by two comments:·'Labour Movement in Southeast
Asia'by Yasukichi YASUBA (Osaka University) in the case of Chinese migrants to Siam,and'Development of the Delta in Lower Burma and Immigration' by Toshikatsu ITO(Aichi University) on Burmese migration from Upper Burma to the Delta.
According to the comment of YASUBA, most of the Chinese migrants in this,period were sojourners, staying in Southeast Asia for a limited time before they could gohome with substantial savings. This fact makes the estimation of net migration rather mis ヽ
leading and that of gross migration quite difficult. At any rate, there were some Chinese
who substituted for slaves in the first half of the nineteenth century in Central and SouthAmerica, but their number was limited. Most of the Chinese migrants who went to South
East Asia were more or less free labour except in the early years. Particularly, in the caseof Siam, the status of Chinese immigrants was high. There was strong demand for maleunskilled labour in mines, construction, services and trade. Consequently, wages in Bang­
kok were three times as high as in Japan and probably the highest in Asia toward the end—87-

of the nineteenth century. The royal encouragement of Chinese immigration was anotherpull-factor. The push-factor was the difficulty of life in South China. Unlike in European
countries, there is no evidence, in the case of the Chinese migration, to show that thesecular rise and fall of the pushfactor、
were responsible for the swings of the migration.

The migration swelled continuously until th�1930's when the pull-factor was suddenly

weakened due to the Depression. There is little doubt that Siamese economy was drawn

into the network of the world capitalism by the free trade of the nineteenth century andthat the Chinese immigrants were drawn by the forces working in the course of develop ヽ

ment of world capitalism. The Siam economy specialized more and more in the producヽtion and export of rice which supported the producers of rubber, spices, tea, tin, sugar
and other tropical products in Asia. The Chinese migrants provided labour for the distri、

bution of rice and for other related activities.
According to ITO's paper, the number of migrants from Upper Burma to the Deltareached a peak in the 1890's when migrants reclaimed swamp and forests to grow rice.

Most of the agricultural labourers in the Delta were Burmese, but the Indian immigrants

sharply increased in the period 1881-1931. They worked mainly in the rice mills, thedock y ards and so on, though some became agriculturalists. It has been said that a great
migration must be attributed primarily to such'pull' factors as rapid economic growth, im­proved transportation facilities, the promise of abundant and fertile land and low taxes inthe Delta. But his paper concludes that the reason for migration into the Delta are to befound not in the'pull'factors but in the'push' factors such as drought, food shortages
and periodic famines occured in the Dry Zone of Upper Burma, which were caused by
the colonial tariff policy of Britain.

Yoshinobu SHIBA (Osaka University) reported on'Chinese Merchants in Hakodate,

1854-191O's, which deals with the activities. of Chinese merchants settled in the city of

Hakodate, a treaty port of Japan, just after her opening for international trade in 1854.

Due to the fact that marine products were in great demand from the vast Chinese popu ヽ

lance along the Yangtze River Valley, and that these marine goods of high quality wereplentiful on the Hokkaido coast, Hakodate became an important centre of the Sino­

Japanese trade of the day. The pioneering group of Chinese in Hakodate was a mixture ofthose from Kwangtung and Shanghai、Ningpo areas. But the latter group grasped the busi­

ness, because they were well-financed and well-informed about marketing in Inland

China. On the other hand, the Japanese who had been behind hand tried to improvetheir trading position by organizing both sectors of producers and wholesalers into a single

entity. This plan failed mainly due to the lack of detailed informations of marketing in
China. The Russo-Japanese War marked a new stage in the history of Sino-Japanese con­flict about the export of sea-products. The Japanese merchants in Hakodate formed a
Chamber of Commerce, and soon succeeded in integrating an effective union of produc ヽers, collectors and exporters. This commercial conflict reached its climax during the early

191Os', and ended with the withdrawal of the main force of Chinese dealers to Shanghai
at the end of the 1920's.

There were two routes by which the Japanese emigrated in the Meiji era: the Ameri 、

can Continent and the Japanese colonies such as China, Korea and so on. Masa- aki

KODAMA (Archivist of Hiroshima Prefecture) reported'Japanese Emigration to the-88—

U.S.A. in the Meiji Era'with special reference to that from Hiroshima Prefecture to
Hawaii. He analysed the social and economic background of the emigration as well as theemigration policy of Japan.
Kenji KIMURA (Waseda University) dealt with'Japanese Residents in Korea in the
Meiji Era'. The number of the Japanese emigrants to Korea in 1880 amounted to 934,
which represented 61. 9 per cent of the total sum of the Japanese emigrants, and in 1910
it amounted to 25,396. Most of them were traders, brokers and retail dealers, who settled
there with the help of the Japanese Government and the privileged support of the big'seisho'to build a base for political and economic invasion. This feature made a striking
contrast to the agricultural emigrants to Hawaii who hardly enjoyed the government's supヽ
port.
(Sakae TSUNOYAMA)-89—

JAPAN STATISTICAL SOCIETY(NIHON TOKEI GAKKAI)
The 49th Convention of the Japan Statistical Society was held·at Kansai University,
Osaka between the 13th and 15th of July, 1981. The year 1981 was also the 50th Anni­
versary of the Japan Statistical Society (The 1945 Convention was not held because of
the escalation of World War II).
As sessions of the main program of the 49th Convention, we had some plenary ses­
sions celebrating the 50th Anniversary. The followings are the main sessions among
others; "The Fiftieth Anniversary Special Lectures", chaired by Junjiro OGAWA: July
14, 1981. The first speaker, Toshio KITAGAWA (Institute of International Informations
and Social Science) reviewed the past fourty years in the development of statistics in theJapanese academy. Yuzo MORITA (Asia University) talked about the situations and thecircumstances under which the Japanese scholars of statistics were kept and the remarkable
movements of the scholars of economics towards the establishment of the Japan StatisticalSociety as well as the growing of mathematical statisticians in Japan.
T he third speaker Kameo MAT SUSHITA (Institute of Statistical Mathematics) at­
tempted to make a survey on the Japanese statistics (theories and applications) whichhave so far been discussed in the articles published on the academic journals. Shozo
ARITA (Shiga University) talked about the development of statistics based on the His­
torical School of Germany with a special emphasis on the works of Torazo NINAGAWA(A Honorable Professor and the ex-Governor of Kyoto Prefecture).
"The Fiftieth Anniversary Panel Discussion;'chaired by Kei TAKEUCHI (Universi­
ty of Tokyo): July 14, 1981.
The panelists·were, among others, Koji AKAIKE (Institute of Statistical Mathemat­ics), Eiichi EGUCHI (The Bank of Japan), Yoichi OKAZAKI (Institute of Demographic
Problems), Tadashi OKAMOTO (Osaka University), Ryuei NAKAMURA (Universityof Tokyo), and Chikio HAYASHI (Institute of Statistical Mathematics). The discussions
were concentrated on the developments of statistical studies in Japan for these fifty years.
The main points were the development of data construction based on statistical survey ofthe households, unincorporated and incorporated firms, of the system of the Japanesenational accounts, and also the applications of systematic methods of statistics including
econometric studies on consumer and entrepreneurial behavior as well as nation-wide
economic phenomena.
The regular sessions of the 49th Convention of the Japan Statistical Society werealso held during the same period. Sessions concerning economic analyses including eco­nometric studies and economic statistics were, among others, as follows:"Econometric Studies on Policy Simulations and Structural Changes," chaired by Taka­
mitsu SAWA (Kyoto University), "Macroeconometric Models and Energy Problems,"
chaired by Sohichi KINOSHITA (Nagoya University), and "Economk Statistics andSocial Surveys;'chaired by Yoshiro MAT SUSHITA (Hitotsubashi University).
In the first session, Kanemi BAN (Tsukuba University), presented a comparative
study of policy evaluations using both a Keynesian and a Monetarist macroeconometricmodels of the Japanese economy, the latter of which was strengthened with the "Rational-90—

Expectation Hypothesis". He concluded that the significant differences come from wheth、
er or not to take into account the rational expectaion of individuals economic behaviors.
Fumimasa HAMADA (Keio University) presented a comparative study of specification
change of macroeconomic behavior and its effects on changes of characteristics of the ex 、
trapolations in a macroeconometric model. HAMADA concluded that the opinion thatthe more simplified a macroeconometric model is, the more accurate is the forecasting
power of the model, is not necessarily correct at all. In particular, he showed, if the fixed
investment behavior is specified, based on the quasi-neoclassical optimization hypothesis
by including explicitly the neoclassical variable, then the time paths of the relevant varia­
bles in the extrapolation produced by a macroeconometric model of the postwar Japan
proved to be cyclical, while the corresponding time paths produced by an alternativemodel in which the fixed investment behavior is specified in more simplified (profitヽ
principle) form.
In the second session, the econometric treatment of the energy constraint in the ma ヽcroeconometric model construction, and also the synthesis of the regional econometricmodels were reported and discussed. Hajime WAGO and Takeshi SUZUKI (Tsukuba
University) and Mitsuo SAITO (Kobe University) and Hiroyuki OHNO (Kagawa Uni 、
versity) presented the energy econometrics, and Yoshi KURIBAYASHI (Tsukuba Uni、
versity) and others presented regional macroeconometric models.
In the theid session, Hiroyuki OH YA (Kyushu University) and others presented apaper on the national census and statistical circumstances. The next speaker considered
the discussions on the present stage of the social indicators. Shigeru YAMADA (Kyushu
University) extended the discussion further including comments on the definition, cover ヽage, design, survey method, estimation. Finally, Masaaki TAGURI (Chiba University)
reported a study on an application of the method of the optimal stratification to the oil
demand and supply statistics.
(Fumimasa HAMADA)-91-

JAPAN SOCIETY OF TRANSP ORTATION ECONOMICS
In 1981, our society held a national conference in the autumn as well as nine region­
al conferences in the Kanto area and eight in the Kansai area.
T he national conference was our fortieth and was convened on October 17 and 18
at Keio University in Tokyo. On the first day, the following seven reports were delivered
under the heading of general themes.
Comprehensive Transportation Systems and Terminals — Logical Diversions in Transporta­tion Theory
Toshiro KITAMI (Aoyama Gakuin University)
The Optimization of Urban Transportation Systems and P ricing Policy
Yoichi OBUCHI (Josai University)
Chikuho's Transportation Problem — Taking Advantage of JNR's Local Line Issue
Akio NODA (Kurume University)
Measuring the Rate Flexibility of the Shuto Expressway
Hirotada KONO (T sukuba University)
Masatoshi YOSHIDA (the Institute of Behavioral Science)
Yuji MAT SUMURA (do.)
New Developments in the Analysis of Transportation Demand
Mechanism Linking Activity— the Clarification of the

Katsunao KONDO (Fukuyama University)
Trucking Industry Issues — the Regulation Debate
Taro NAGAMINE (Nippon Express Research Institute)
Raising Funds for Urban Railways — a Comparison
Takahiko SAITO (Kinki University)
Each of the reports was discussed by a panel of commentators with additional reヽ
marks by the reports' authors. The commentators were Yoshiaki SADAI (Tokushima
University), Kazuo T SUJI (Seinan Gakuin University), Kiyoaki KOBAYASHI (Konan
University), Keisuke SUZUKI (Ryutsu Keizai University), Koji UNO (Osaka Sangyo Uni 、

versity), Mitsuhide IMASHIRO (Daito Bunka University), and Etsuko SHIBATA(Osaka City University).
On the second day of the conference, a symposium was held in conjunction withfour reports presented under the special theme of the "Reconsideration of a Comprehen ヽsive Transportation Policy
maries of these reports.

— the State of Policy and Intervention." T he following are sum­Comprehensive Transportation Policy in Retrospect and Its Outlook
Ken-ichi MASUI (Keio University)
Transportation services are instantaneous goods having a complex supplementary
relationship of mutual interchangeability while competing and supplementing each otherbased'on limits in time and space. Concerning the reasoning necessary to increase overall
economy and efficiency, there are simple comprehensive theories and specific theories,
equal footing, right-of-way cost analysis, cost benefit analysis, understanding of external-92-matters incluqing pollution, industrial organization theory approach, and secondary mea ヽsures. There is also the course of policy coordination.
The Structure of a Comprehensive Transportation System Theory
Kiyoshi OKADA (Seijo University)
How can the main external factors for change be checked? These include market
instability caused by the diversification of modes, coping with external changes by thetransportation sector, rate hikes, and energy and environmental problems. While being
aware of the problems of various transportation modes, some policy intervention is neces­sary in others. An important task is bringing about the simultaneous coordination amcing
transportation modes taking advantage of externality always with market theory as a basis.
Passenger Transportation in a Comprehensive Transportation System
Yataro FUJII (Keio University)
Regional trunk-line transportation investment should be distributed so as to make its
social marginal efficiency equal Rail-related improvement is best separated from infrastruc ヽ
ture buildup and superstructure operations. The role of buses in urban transportation
should be considered as a civil minimum. The introduction of a common fare system pre�sents countless problems. If a municipality or village operated bus system is not possiblefor depopulated areas, the use of a semi-public transportation system should be considered.
Comments of the New Comprehensive Transportation Policy Report
Atsushi ISEDA (Kagawa University)
As before, it was declared that market theory should be the basis, but at its core isplanning theory. While speaking of freedom, it actually supports controls. A big problem
is the imbalance in understanding between trunk-line and regional transportation. Finan、
cial resources and authority are given to local communities so that regional passenger trans­
portation systems could be determined independently. Regional transportation which is
closely tied to daily life should be given preference and then trunk lines should be added.

It is enough for the national government to paly the part of a regulator.
The leaders of the symposium were Yoshimasa SATAKE (Gakushuin University)and Shigeru SHOJI (Kansai University), its coordinator Yukihide OKANO (Tokyo Uni 、
versity), and panelists Ryohei KAKUMOTO (Waseda University), Yasuo SAKAKIBARA(Doshisha University), and Haruya HIROOKA (Hosei University).
These reports were all included in "Kotsugaku Kenkyu (Annual Report on Trans ヽ
portation Economics) 1981."
This journal, in addition, contains a forward by the JSTE president Genpachiro
KONNO (Tokai University) and the following articles.
Academic Outlook:
The Dynamics of the World's Shipping Economy and Technological Advancement
Kunio MIYASHITA (Kobe University)-93—Book Reviews:"Facility Investment on the Shipping Industry" by Kunio MIYASHITA
Hideo KOKURY O (Kobe Mercantile Marine University)"Japanese Airports" by Takeshi TSUZAKI
Junichi SUZUKI (Institute of Transportation Economics)
The following reports were made in the Kanta Region in 1981.
January 24

From the 1980 Transportation White Paper

March 14

The Public Nature of Transportation Modes

April 18

The Public Nature of Transportation Service

May 16

Trends in International Maritime Policy

June 20

Issues Concerning the New Law of the Sea

June 20

European Transportat1on m the 1980s

July 25

The Basic Direction for a Comprehensive Transportation Policy from a

Takeshi SASAKI (Transportation Ministry)
Mitsugu NAKAMURA (University of Tokyo)
Takeshi OKU (Odakyu Building Agency, Inc.)
Masao ODA (Tokyo Mercantile Marine University)S�ishiro MIYAMOTO (Senshu University)
Ryohei KAKUMOTO (Waseda University)
Long-term Point of View
Yasushi TANAHASHI (Transportation Ministry)
September 29

Transportation and Its Cultural Extent
Ryohei KAKUMOTO (Waseda University)

October 26

Transportation Public Enterprises and Management Principles
Taketoshi ISHII (Tokai University)

November 21

Highway Toll Pool System Issues
Takehiko SUGIYAMA (Hitotsubashi University)

The following reports were made in the Kansai Region in 1981
January 19

Current Transportation Theory Trends in England and the United States
Kunio KATAYAMA (Kobe University of Commerce)

February 20

A View of Post-War Transportation Regulation Theory
Takahiko SAITO (Kinki University)

April 3

The Course of Railway Economy in Canada

May 15

Recent Directions in Forecasting Transportation Demand

Shin MARUMO (Kansei Gakuin University)
Ken-ichi SHOJI (Kobe University)

June 5

Analysis of Transportation Demand and the Activity Approach
Katsunao KONDO (Fukuyama University)

July 3

Trends in Transportation Economics in West Germany

September 4

The Formation and Development of Marxist Economics

Hiromi MIKAMI (Kansai University)
Atsushi ISEDA (Kagawa University)-94—

December 4

T he Calculation of an Average Fare Revision
Setsuo Nomura (Osaka Land Transportation Bureau)(Junichi SUZUKI)

-95—

-96—

List of Member Associations
THE JAPAN ACCOUNTING ASSOCIATION( NIHON KAIKEI KENKYU GAKKAI)• Established on December 24, 1937
• Number of members: 1,474●

President: Toshio IINO (Chuo University)●

Publication: Monthly bulletin, "Kaikei" (Accounting)●Liaison Office of the Japan Accounting ssociation
c/o Moriyama Co., Hayashi Building, 1-10, Nishiki-cho,Kanda Chiyoda-ku, Tokyo 101, JapanTHE AGRARIAN HISTORY SOCIETY(TOCHISEIDO SHI GAKKAI)• Established on June 26, 1948
• Number of members: 923●

Representative Director: Kaichiro OISHI (University of Tokyo)●

Publication: "Tochi Seido Shigaku (The Journal of Agrarian History)●

Agrarian Hisotry Society— quarterly

c/o Institute of Social Science, T he University of Tokyo
7-3-1, Hongo, Bunkyo-ku, Tokyo 113, JapanTHE AGRICULTURAL ECONOMIC SOCIETY OF JAPAN(NIPPOIN NOGYO KEIZAI GAKKAI)• Established on November 19, 1924
• Honorary members 19, regular members 1,059, associate members (students)
129, cooperative members 27●

Chairman: Seiji SAKIURA (Hokkaido University)●

Publication: Bulletin of the Society, "Nogyokeizai Kenkyu" (Journal of Rural●

T he Agricultural Economic Society of Japan

Economics)―quarterly
c/o Business Center for Academic Societies Japan2、4-16, Yayoi, Bunkyo-ku, Tokyo 113, Japan-97—

JAPAN ASSOCIATION FOR ASIAN POLITICAL
AND ECONOMIC S TUDIES
Established on May 5, 1953
Number of members: 600● President: Katsu YANAIHARA (Keio University)● Publication: "Asian Sutdies" ー quarterly● Japan Association for Asian Political and Economic Studies
c/o Professor Saburo YAMADA,
Institute of Oriental Culture, T he University of Tokyo
7-3-1, Hongo, Bunkyo-ku, Tokyo 113, Japan●●

JAPAN SOCIE TY FOR THE S TUDY OF
BUSINESS ADMINIS TRATION• Established on July 10, 1926
• Number of members: 1,788● President: Shigetaka MOHRI (Yamanashi Gakuin University)● Publication: "Keieigaku Ronshu" once a year
● Japan Society for the Study of Business Administration
c/o T he Institute of Business Research, Hitotsubashi University
Kunitachi, Tokyo 186, Japan—""函'""'匹'"'匹·JAPAN BUSINESS ENGLISH ASSOCIATION (JBEA)(NIHON SHOGYO EIGO GAKKAI)• Established on July 20, 1934
● Honorary members 1, regular members 172, supporting members 6,
totalling 179● Chairman: Mikito NAKAMURA (Kwansei Gakuin University)● Publication: "Nihon Shogyo Eigo Gakkai Kenkyu Nempo (The JBEA Annual
Studies)" once a year
● Japan Business English Association
c/o Professor Mikito NAKAMURA
Kwansei Gakuin University
Nishinomiya, Hyogo Ken 662, Japan

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-98—

BUSINESS H ISTORY SOCIETY OF JAPAN• Established in Autumn of 1964
• Number of members: personal 601, institution 44●

President: Keiichiro NAKAGAWA (Fukushima University)●

Publication: "Japan Business History Review"●

Business History Society of Japan— qua�erly

c/o Professor Moriaki TSUCHIYA
Faculty of Economics, T he University of Tokyo
7-3-1, Hongo, Bunkyo-ku Tokyo 113, Japan

JAPAN SOCIETY OF BUSINESS MATHEMATICS• Established on July 3, 1959
• Number of members: 75● President: Shinkichi SATO (Chiba University of Commerce)●

Publication:"Annual or Semi-Annual Report of Japan Society of Business●Japan Society of Business Mathematics,

Mathematics"
c/o Laboratory of Professor Kesato FUJISAWA
Kanagawa University
3-27, Rokkakubashi, Kanagawa-ku, Yokohama 22, Japan

JAPAN SOCIETY OF COMMERCIAL SCIENCES• Established on April 21, 1951●

Number of members: honoray 6, ordinary 582, supporting companies 10●

President: Ryusuke KUBOMURA (Nihon University)●

Publication: "Journal of Japan Society of Commercial Science"●

Japan Society of Commercial Sciences
Room 513, Graduate School Building of Meiji University
1-1 Kanda Surugadai, Chiyoda-ku, Tokyo 101, Japan— 99 —— annually

JAPAN SOCIETY FOR COMMODITY SCIENCE(NIHON SHOHIN GAKKAI)• Established on April 4, 1935
• Number of members: regular members 295, supporting members 7
Chairman: Saburo KITAHARA● Publication: Quarterly bulletin, "Shohin Kenkyu" (Studies on Commodities)● Japan Society for Commodity Science
c/o Professor Yoshiro IIJIMA
Department of Commerce, Waseda University
1-6-1, Nishiwaseda, Shinjyuku-ku, Tokyo, 160 Japan●THE SOCIETY FOR THE HISTORY OF ECONOMIC THOUGHT
Established on April 22, 1950
Number of members: 741● President: Kazuo MAZANE (Osaka City University)● Publication: "The annual bulletin of the society"once a year

●

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The Society for History of Economic T hought
c/o Professor Kazuo MAZANE
Faculty of Economics, Osaka City University
3ふ138 Sugimoto, Sumiyoshi-ku, Osaka 558, JapanTHE JAPAN ASSOCIATION OF ECONOMICS AND ECONOMETRICS• Established in October, 194 7
Number of members: 1,612● President: Tadao UCHIDA (University of Tokyo)● Publication: "Economic Studies Quarterly" three times a year
● The Japan Association of Economics and Econometrics● c/o Tokei Kenkyukai,
1-18-16 Shinbashi, Minato-ku, Tokyo 105, Japan●— 100 —

THE ASSOCIATION OF ECONOMIC GEOGRAPHERS(KEIZAI-CHIRI GAKKAI)• Established on April 29, 1954
• Ordinary members: 630 patronage members: 14●

President: Tetsuro KAWASHIMA (Osaka City Univesity)● Publication: Bulletin: "Keizai-Chiri Gaku Nempo" (Annals of the Association of
Economic Geographers)●— quaterly

The Association of Economic Geographers,
c/o Institute of Economic Geography,

Faculty of Economics, Hitotsubashi University,
Naka 2-1, Kunitachi City, Toky o 186, JAPANJAPAN ECONOMIC POLICY ASSOCIATION(NIPPON KEIZAI-SEISAKU GAKKAI)• Established on May 15, 1940●

Number of members: individuals 982, institutional organization 5●

President: Hiroshi KATO (Keio University)●

Publication: "Nippon Keizai Seisaku Gakkai Nenppo" (the Annual of the Japan
Economic Policy Association)●

Japan Economic Policy Association— annual

c/o Keio University
15-45, Mita 、 2, Minato-ku, Toky o 108, Japan

JAPANESE ASSOCIATION OF FISCAL SCIENCE• Established on October 26, 1940
• Number of members: 543●

Chairman: Masazo OHKAWA (Hitosubashi University)● Publication: "Annual Report of the Japanese Association of Fiscal Science"●

T he Japanese Association of Fiscal Sciencec/o Hitotsubashi University
Naka 2-1, Kunitachi-shi, Toky o 186, Japan-101-

JAPAN ACADEMY FOR FOREIGN TRADE (JAFT)● Established on September 29, 1961●

Number of members: 260●

Presidetn: Ryohei ASAOKA ( Waseda University)●

Publication: "The Annual Bulletin of the Japan Academy for Foreign Trade".

●

Japan Academy for Foreign Trade(Annualy publication.) JAFT News, 3 times in a year
c/o Professor, I. Sakurai
Department of Commerce, Meiji University
Kanda-Surugadai, Chiyoda-ku, Tokyo, JapanTHE JAPANESE SOCIETY OF INSURANCE SCIENCE●

Established on November 24, 1940

• Honorary members 15 including two foreigners, ordinary members 767 including
20 foreigners, supporting members 56 organizations●

Chairman: Eiichi KIMURA (Hitotsubashi University)●

Publication: "Journal of Insurance Science" (Hoken-gaku Zasshi)―quarterly●

The Japanese Society of Insurance Science
c/o The Life Insurance Association of Japan
4-1, Marunouchi 3-chome, Chiyoda-ku, Tokyo 100, JapanTHE JAPAN SOCIETY OF INTERNATIONAL ECONOMICS●

Established on April 29, 1950

• Number of members: 1,000●

President: Taro WATANABE (Osaka University)● Publication: "The International Economy" ー yearly●

The Japan Society of International Economics
c/o Professor Ken'ichi ODAWARA,
Faculty of Economics, Jochi (Sophia) University,
7 Kioicho, Chiyoda-ku, Tokyo 102, Japanー102 —JAPAN SOCIETY OF MONETARY ECONOMICS• Established on June 17, 1943
• Number of members: 642
President: Ryuichiro TACHI (University of Tokyo)●● Publication: "Bulletin of the Japan Society of Monetary Economics"
Japan Society of Monetary Economics●— twice a year

c/o Tokyo Keizai Shinpo-sha
1-4, Hongoku-cho, Nihonbashi, Chuo-ku, Tokyo 110, Japan

ACADEMIC ASSOCIATION FOR ORGANIZATIONAL SCIENCE(SOSHIKI GAKKAI)• Established on September, 1959
• Number of members: individual members 953, company members 38●

President: Susumu TAKAMIYA, (Sophia University)●

Publication: "Organizational Science" ー quarterly●

Academic Association for Organizational Science
c/o Room #614, Department of Economics, T he University of Tokyo
7-3-1, Hongo, Bunkyo-ku, Tokyo 113, Japan

JAPAN SOCIETY FOR PERSONNEL AND LABOR RESEARCH●

Established on December 5, 1970

• Number of members: 427● Representative director: Tadashi MITO (Rikkyo University)●

Publication: "Series in Personnel and Labor Problems"●

Japan Society for Personnel and Labor Research— annual

c/o Professor Tadashi Mito
Department of Economics, Rikkyo University
3-34-1, Nishi 、 Ikebukuro, Toshima-ku, Tokyo 171, Japan-103—

JAPAN SO CIETY OF POLITIC AL ECONOMY• Established on May 10, 1959
● Number of members: over 1,000● Chief Representative: Kazuo NONOMURA (Chiba University of Commerce)● Publication: "The Annual Bulletin of the Society of Political Economy" annual● Japan Society of Political Economy
c/o Chiba University of Commerce
1-3-1, Konodai, Ichikawa, Chiba Prefecture 272, Japan—THE POPULATION ASSOCIATION OF JAPAN• Established in November 1948
• Members: 281, honorary members 6, special member 1● President: Nobuo SHINOZAKI (Foundation-Institute for Research of Population
Problems)● Publication: "Jinkogaku Kenkyu" (The Journal of Population Studies)● Population Association of Japan
c/o Institute of Population Problems
Ministry of Health and Welfare
2 、2, 1-chome, Kasumigaseki, Chiyoda-ku, Tokyo 100, JapanTHE JAPAN SOCIETY OF PUBLIC U TILITY ECONOMICS(KOEKI JIGYO GAKK.AI}• Established on January, 24● Number of members: regular member 280, corporation member 70● Deputy Chairman: Hisao SEKIJIMA (Seikei University)● Publication: "Journal of Public Utility Economics"● Koeki Jigyo Gakkai(The Japan Society of Public Utility Economics)
Nikoo Gotanda Bldg.
2,29,5 Nishigotanda, Shinagawa-ku, Tokyo 141, Japan-104—

THE JAPANE SECTION OF THE REGIONAL SCIENCEASSOCIATION• Established on June 19, 1962●

Number of members: 493●

President: Hirotada KOHNO (University of Tsukuba)●

Publication: "Studies in Regional Science●

The Japan Section of the Regional Science Association,— the Papers and Proceedings of the Japan

Section of R.S.A. —" (℃hiikigaku Kenkyu" in Japanese) — once a year.

c/o Institute of Socio-Economic Planning
The University of Tsukuba
Sakura, lbaraki, 305, Japan

SOCIETY FOR THE ECONOMIC STUDIES OF SECURITIES●Established on November 21, 1966●

Number of members: 321●

Representative: Masuzo KIMURA (Aoyamagakuin University)●

Publication: "Annals of Society for the Economic Studies of Securities"●

Society for the Economic Studies of Securities— annual

c/o Japan Securities Research InstituteTokyo Shoken Kaikan
5-8, Nihonbashi-Kayabacho 1 Chome, Chuo-ku, Tokyo 103, JapanASSOCIATION FOR THE STUDY IN SOCIALIST ECONOMIES• Established on November 14, 1963●

Numbers of members: 209●

Chief Representative: Heihachiro OSAKI (Yokohama National University)●

Publication: Bulletin of The Association for the Study in Socialist Economies" ー●Association for the Study in Socialist Economies

annualc/o Associate Professor Yoshiaki NISHIMURA
Hitotsubashi University
Naka 2-1, Kunitachi-shi 186, Japan-105—

SOCIETY FOR THE STUDY OF SOCI AL POLICY(SHAKAI SEISAKU GAKKAI)• Established on July 1950
● Numbers of members: 757● Representative manager: Ken KURITA (Meiji University)● Publication: The Society's "Annual Reports"● Society for the Study of Scocial Policy
c/o Professor Ken KURITA
Meiji University
1-1 Surugadai, Kanda, Chiyoda-ku, Tokyo 101, JapanSOCIO-ECONOMIC HISTORY SOCIETY(SHAKAI KEIZAISHI GAKKAI)• Established on December 27, 1930
● Number of members: 1018
● Representative Director: Kenichiro SHODA ( Waseda University)● Publication: "Shakai-Keizai-Shigaku" (Socio-Economic History)-by-monthly● Shakai Keizaishi Gakkai (Socio-Economist History Society)c/o Graduate School of Economics
Waseda University
1-6-1, Nishi-Waseda, Shinjuku-ku, Tokyo 160, Japan

JAPAN STATISTICAL SOCIETY(NIHON TOHKEI GA KKAI}• Established on April 27, 1931
● Number of members: 1120

President: Junjiro OGAWA (Institute of Statistical Mathematics)
Publication: "Journal of the Japan Statistical Society" twice a year,● Japan Statistical Society
c/o The Institute of Statistical Mathematics
4-6、7 Minami-Azabu, Minato-ku, Tokyo 106, Japan

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JAPAN SOCIE TY OF TRANSPORTATION ECONOMICS● Established on 1941,• Number of members: 352 regular members including one honorary member (individuals) and 35 special members (corporations)● President: Genpachiro KONNO (Tokai University)● Publication: "Kotsugaku Kenkyu" (Annual Report on Transportation Economics)● T he Japan Society of Transporation Economics, (Nihon Kotsu Gakkai)
c/o Unyu-Chosa-Kyoku,
2-5-6, Kokubunji, Tokyo, Japanー 107-

�ew membership 1982

THE SOCIETY OF ECONOMIC SOCIOLOGYDATE OF ESTABLISHMENT●

February 13, 1966.

THE PURPOSE OF ESTABLISHMENT● The comprehensive and integrative study in various forms of economic and social
life based on the mutual correlation of Economics and Sociology.
REPRESENTATIVE●

President: Yukio KITANO (Kobegakuin University)

MEMBERSHIP• Number of members: 310
THE NUMBER OF A NNUAL MEETING• Once a year
PUBLICATIONS:●The A nnual of the Society of Economic Sociology.

Vol. 1 . Economic System and Freedom,
Shin-Hyoron, Tokyo, May, 1976.
Vol. 2. Historical Development of Economic Sociology,
Shin 、 Hyoron, Tokyo, November, 1978.
Vol . 3. Problems around Economic Sociology,
Shin-Hyoron, Tokyo, January, 1980.
ADDRESS●The Society of Economic Sociology
clo The Faculty of Economics, Kobe University
2-1, Rokko-Daicho, Nada-ku, Kobe 657, Japanー108—