Kavan Choksi on the Agricultural Problem of Japan

 

Japan boasted a robust agricultural market during the imperial period. It had vast fields of crops and livestock, which traders distributed to local merchants nationwide. After the war, Japan shifted its focus to industrial developments.

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Although the industrial revolution paved the way for Japan's advanced technologies, Kavan Choksi shares that it also crippled the agricultural sector. As decades passed, Japan began importing more food resources. Statistics show that the country's self-sufficiency ratio plummeted to 37% in 2020.

Japan's Weakening Agricultural Sectors

Japan's agricultural sectors started declining in the 1960s. The Agricultural Basic Law passed in 1961 incentivized farmers to work full time with tax breaks and government subsidies. However, the problem is that most farmers worked part-time. They usually just worked on the weekends or after work, so the reformed laws didn't yield many benefits.

The Rapidly Aging Community

Kavan Choksi shares that farmers didn't teach their kids to farm. Instead of showing the ropes of the agricultural sector, they encouraged moving to the city and working as salarymen. Rural families eventually stopped tending to their farms. After just a few decades, the agricultural working population shrank from 12 million to 2 million.

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Lack of Livelihood Options in Rural Areas

Kavan Choksi shares that rural Japan doesn't offer many livelihood options. As mentioned above, the country exports most of its food resources, so farmers have little demand nationwide. Of course, locals can grow crops and raise livestock. However, they can't expect their profits to exceed what an average salaryman in the city makes.

Glut of Abandoned Houses in Rural Areas

Japan has a glut of abandoned homes. Although these properties are cheap, they require much renovation and repairs before meeting Japan's updated building codes. Locals don't find these offers appealing. Since they'd need to spend millions of yen to make abandoned houses habitable, they would rather rent an affordable apartment in the city.

Bottom Line

Don't get us wrong—Japan is one of the most technologically advanced countries in the world, but it relies too much on imports. Kavan Choksi that Japan should strive for self-sufficiency moving forward. It can improve its standing as a world superpower if it doesn't depend on foreign oil, food resources, and raw minerals.

Of course, self-sufficiency takes time. While Japan builds and develops its resources, it should maintain positive global relations to ensure a steady import of supplies. Again, territorial conflicts are hurting supply chains worldwide. Japan should prepare multiple lines of imports in case of emergencies.