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Institute of Economic and Political Studies

This institute was founded in 1958 for the purpose of fostering vigorous academic research and contributing to the improvement and development of the national standard of living. As a center for joint research in the social sciences, with weight on interdisciplinary exchange and internationalization, the institute has taken up several research projects. Individual projects are undertaken by teaching staff selected from all faculties for a research period of two or four years.

At present, four research projects are conducted:
(1)BCM and East Asian Strategies of Family Businesses in Kansai
(2)Development of Modern Kansai Economy and Its History of International Economic Relations with Asia and Africa
(3)Public Finance and Public Accounting
(4)Sub-Saharan Policy Studies
(5)Renewal of democracy and the "Public Sphere” research group

Results of the research have been published in a series of bulletins, such as "Economic & Political Studies Series", "Survey & Data Series", and an "Annual Report" of public lectures and seminars.

In addition, this institute has a concurrent function as a specialized information center and is collecting basic research and statistical data as well as regular academic materials related to specialized fields of study.

Further, for the help and assistance of the local community, the institute holds open seminars on industry, public lectures, and public seminars.

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Research Activities

BCM and East Asian Strategies of Family Businesses in Kansai

Theme

Business Continuity Management (BCM), Business Succession, and East Asian Strategies by Manufacturing Family Businesses (FB) in Kansai in a Post-coronavirus Era

Goal

In 2020 the global economy has been impacted by the novel coronavirus infectious disease. One lesson that ought to be learned by Japan's economic and political actors from the coronavirus pandemic is that business continuity management (BCM) and the diversification of supply chains are absolutely indispensable. There is the postulate that in a globally competitive society, products with minimal added-value are produced in low cost countries such as China. However, the coronavirus pandemic has brought to light the risk that as a result of relying on the single country of China to produce raw materials, materials, and parts, Japanese companies may be unable to exert their capabilities, even if domestic production sites are sound. Domestic production lines have been shut down when even a single part fails to arrive from China. From the lessons of natural disasters such as the Great East Japan Earthquake, Japan has enhanced its ability to respond to emergencies with a central focus on visualizing its supply chains and BCM. But now that it finds itself in unforeseen circumstances as a result of this infectious disease, it is incurring losses, lost earnings opportunities, and additional costs from disease countermeasures.

Under an idealized manner of thinking, there is the perception that in the future it would be better from a risk management perspective to procure parts with highly specialized characteristics and long lead-times from within Japan. Even in cases where parts with little in the way of specialized characteristics are procured from overseas, this should be dispersed over several Asian countries, and suppliers capable of producing replacement parts within Japan should be readied, even if their costs are higher. In such cases, inventories can be thought of as a lifeline in the period up until alternative suppliers can be found and recovery can be achieved when emergencies occur. This is the ideal line of reasoning, but realistically it will incur costs and take time. Given the realistic constraints versus the ideal, a paradigm shift will likely be needed.

The challenge that has been thrust before Japan's economic and political actors against this backdrop is the question of how to deal adeptly with China, which is the world’s second largest economic powerhouse, in the future while at the same time coping with the risks of overconcentration on China that have been thrown into relief by the coronavirus pandemic, and deploying an East Asia-focused strategy of business continuity and succession. The objective of this series of studies is to study this question and offer societal proposals for it.

For this research strategy to prove successful, it will be necessary to narrow the focus in a precise manner. Therefore, this will not be research that is just slanted towards China alone, but will also focus on South Korea and Taiwan as well (research risk dispersal). The scope of Japanese companies is overly expansive, so the focus of the research will be restricted to manufacturing family businesses in Kansai (concentration of research resources). In addition, research proposals will be provided on modalities for business continuity management (BCM) and supply chains to ensure that this can contribute to reestablishing sustainability and safety management for companies that have experienced risks from the coronavirus pandemic (instantiating the research). BCM does not just carry connotations of business continuity in response to disasters, but also of business continuity as a shared challenge for family businesses in Kansai, many of which are small and medium-sized enterprises (combining research resources). BCM, which encompasses family businesses, business continuity, and infectious diseases, is an area of research that is required by the times (social contribution).

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Development of Modern Kansai Economy and Its History of International Economic Relations with Asia and Africa

Theme

Considering the Modern Kansai Economy from the International Relationship between Japan and Asia and Africa

Goal

People have long proclaimed the decline of the economy of the Kansai Region. Yet even so, despite claims that the number of companies has been gradually trending upward in recent years, it would have to be said that the difference in the scale of its economy compared with Tokyo’s has grown considerably large, and even more so when compared against its heyday. It could be argued that in thinking about the current state of the Kansai economy, there is enormous significance in shifting the focus of inquiry once again to the era in which the Kansai economy played the role of a driving force for the Japanese economy.

In looking back once more on the era in which the Kansai economy developed, the fact that Kansai was able to develop its industries and grow its exports could be set forth as characteristic features. The expansion of exports to Asia and Africa in particular played a major role in the rebuilding of the Kansai economy in the post-war era. Back then, it was the general trading companies that spearheaded efforts to export goods from Kansai to Asia and Africa, as well as Chinese people living abroad who primarily established their headquarters in Kobe. When we reframed the contemporary status of the Kansai economy based on such examples of economic growth from the past, it enabled us to gain an understanding of an effective proposal regarding what sorts of points we should address. The importance of the relationships with Asia and Africa in particular are growing in importance compared with in the period immediately after the war, and so there is a strong need to relearn how to go about building close relationships with these regions from a historical perspective. In this sense, there is significance in having this research team work to address these points.

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Public Finance and Public Accounting

Theme

Research on Public Finance and Public Accounting and on their Mutual Alignment

Goal

In recent years, there has been a focus on public accounting in up-to-date analysis of regional finances and policy formulation, such that this information is now being made public in a standardized format used by the Ministry of Internal Affairs and Communications. The purpose of this research is to analyze current financial operations of regional organizations, and to consider future directions in financial operations.

Following the collapse of the asset-inflated “bubble economy” around the year 1990, public debt has steadily increased. Government spending reached its peak at the end of the 20th century. In the 2000s, the finances of the Japanese national government as well as regional organizations were increasingly characterized by movement toward restoration of robustness as well as sustainability. In the early 2000s, when focus was placed on administrative reform, a range of sound financial policies were developed.

Meanwhile, decentralization has become a policy issue, and a “trinity reform” system was implemented with a view to both achieving robust finances and decentralization. However, the progress of positive fiscal reform has been slow, and financial management is expected to be more problematic as of 2020, subsequent to the pandemic.

This research utilizes empirical analysis of regional financial reform that took place starting in the 2000s, including regional administrative reform, moves toward robust finances, and regional business creation, clarifying any impact of regional financial policy. This paper also considers financial operations and approaches to public accounting in the post-pandemic world.

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Sub-Saharan Policy Studies

Theme

Comprehensive Research on Japan's Sub-Saharan African Policy Focusing Official Development Assistance (ODA) and Private Investment

Goal

Africa has achieved economic growth rates that exceed the world average since 2000. And the UN report forecasts Africa's total population would reach nearly 2.5. billion by 2050 surpassing China and India respectively. Again, African Continental Free Trade Area (AFCFTA) initiated in 2021 January has further proliferated the potentiality of African common market.

However, Sub-Saharan Africa is still a region that has a serious poverty problem. According to the World Bank 2019, nearly half of the people under the poverty concentrate in five Sub-Saharan and South Asian countries (Democratic Republic Congo (DRC), Ethiopia, Nigeria, India and Bangladesh). Therefore, it is not an exaggeration to say that the success or failure of achieving the SDGs (Sustainable Development Goals) depends on whether Sub-Saharan Africa can develop a sustainable growth model or not.

Japan initiated the Tokyo International Conference on African Development (TICAD) for Africa’s transformation to growth in 1993. This initiative was established at the moment when Africa was facing the political and economic challenge. With passing of the time and Africa’s growth, since 2013, Japan has changed its position from aid donor to business partner for sustainable mutual growth. Almost after a decade, it is high time now to review the Japan's policy towards Sub Saharan Africa for strengthening the partnership.

Kansai University since 2015 has been admitting African students under the ABE Initiative (African Business Education Initiative for Youth) program implemented by JICA (Japan International Cooperation Agency). With the cooperation from the former ABE Initiative students from Ethiopia, DRC, Mozambique and Burundi, this research aims interdisciplinary analysis of Japan’s Sub-Saharan policy. These countries except Burundi have achieved an average annual economic growth of more than 6% for last 10 years (IMF) before Covid -19. And Burundi ranked as a lowest GDP per capita but with high potentiality of growth will also be included in this research.

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Renewal of democracy and the "Public Sphere” research group

Theme

Research on aiming to revitalize democracy, which is in a state of "self-destruction" due to the loss of common "space" and "facts", and to pioneer the theory of the "public sphere".

Goal

A situation has arisen that could be called the "self-destruction" of democracy. The first is the loss of common "space". The relationships that connect individuals (local organizations (neighborhood associations, neighborhood councils, women's associations, youth groups), trade associations (agricultural organizations, labor unions, commercial and industrial organizations), NPOs, traditional political parties, etc.) have been lost, and "individuals" have been transformed into "lone individuals. It has been pointed out that this transformation of society has enabled the rise of populist politics that criticizes established groups, parties, and politics and attracts the support of independents and unorganized voters. Second is the loss of common "facts". The falsification, concealment, and destruction of official documents have prevented discussions based on facts from taking place, and an atmosphere has even arisen in the Diet in which discussions themselves have lost their meaning due to dishonest answers. In addition, the "post-truth" situation and the flood of "fake news" have created a tendency to not even care about what is true, which has encouraged the fragmentation of society.

This study aims to pioneer a robust "public sphere" theory that confronts various issues in the state and society in order to explore ways to revitalize democracy. The "public sphere" theory is a study of the formation of public opinion in a free and autonomous civil society, as distinguished from institutional decision-making in the political sphere itself. It is the existence of this "public sphere" that makes the existence of the democratic state possible. This research project focuses on the various actors in the "public sphere" and pursues the possibility of a free space that is not distorted by the power of the state or capital.

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