these issues are being addressed by the government which is improving access to financial services for smaller enterprises and rural households and strengthening social safety nets but it will take time for the reforms to have an impact on household and corporate behaviour in japan productivity gains are difficult to achieve due to ageing and declining population size in the republic of korea relatively low productivity in nonmanufacturing sectors is a result of the favourable treatment given to the exportoriented manufacturing sector and this situation has yet to be adequately resolved