TABLE 4 Added Value in Agriculture and Manufacturing (constant prices, local currency converted to U.S. dollars)

 

 

Compound Growth Rate Per Annum

Employment in Manufacturing (1970–1980 compound growth per annum)

Country

Period

Agriculture

Manufacturing

Australia

1970–1982

+0.51

+0.47

−1.1

Canada

1970–1983

+2.6

+0.94

+1.24

Hong Kong

1970–1982

−3.6

+4.8

Indonesia

1970–1984

−3.4

+8.4

+1.03

Japan

1970–1982

+3.4

+10.3

−0.6

South Korea

1970–1984

−3.8

+6.4

+8.9

Malaysia

1970–1984

+6.6

+16.5

Mexico

1970–1984

−14.3

−10.4a

−7.8a

Philippines

1970–1984

−3.6

−0.3

Singapore

1970–1984

+4.6

−11.6

+8.77

Thailand

1970–1984

+3.1

+7.9

United States

1970–1983

+0.34

+3.3

+0.53

aCurrency effects.

SOURCE: World Bank world tables, provided and compiled by Corinne Boyles, Australia-Japan Research Centre, Australian National University, Canberra, Australia.

1970s rising labor costs and environmental constraints in an overpopulated country made further emphasis on heavy industries less desirable. The Ministry of International Trade and Industry (MITI) introduced its “knowledge-intensive industrialization” strategy, which put a government policy stamp on the trend initiated by the private sector in the United States and later followed by all and sundry, with the catch-phrase “sunrise industry.” Yet large residues of protectionism for farmers—rice and grain—and a variety of nontariff devices remained and are being reversed only slowly in the 1980s. With economic success on almost all fronts in this decade, the liberalization that prosperity can afford is occurring. Government administrative guidance is being questioned and, following the U.S. example, original research and innovation are seen as the final driving force of industrialization.

Structural change in the other Pacific countries has been less dramatic than that in Japan and is at different stages, but it is nevertheless somewhat similar. The ways in which globalizing industries such as fertilizers, agricultural machinery, and pesticides affect agriculture have been similar in most countries; intensification and increased output and productivity have resulted in declines in employment. However, terms of trade in agricultural produce have deteriorated worldwide, and hence, growth in added value was smaller than that in manufacturing or was even negative (see Table 4).

Throughout the Pacific region, exports have been particularly important and closely linked to growth rates. Exports provide links to the developed



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