In 1603, a Tokugawa shogunate (military dictatorship) ushered in a long period of isolation from foreign influence in order to secure its power. For 250 years this policy enabled Japan to enjoy stability and a flowering of its indigenous culture. Following the Treaty of Kanagawa with the US in 1854, Japan opened its ports and began to intensively modernize and industrialize. During the late 19th and early 20th centuries, Japan became a regional power that was able to defeat the forces of both China and Russia. It occupied Korea, Formosa (Taiwan), and southern Sakhalin Island. In 1931-32 Japan occupied Manchuria, and in 1937 it launched a full-scale invasion of China. Japan attacked US forces in 1941 - triggering America's entry into World War II - and soon occupied much of East and Southeast Asia. After its defeat in World War II, Japan recovered to become an economic power and a staunch ally of the US. While the emperor retains his throne as a symbol of national unity, actual power rests in networks of powerful politicians, bureaucrats, and business executives. The economy experienced a major slowdown starting in the 1990s following three decades of unprecedented growth, but Japan still remains a major economic power, both in Asia and globally.

Geography

Location: Eastern Asia, island chain between the North Pacific Ocean and the Sea of Japan, east of the Korean Peninsula

Area: total: 377,835 sq km; land: 374,744 sq km; water: 3,091 sq km note: includes Bonin Islands (Ogasawara-gunto), Daito-shoto, Minami-jima, Okino-tori-shima, Ryukyu Islands (Nansei-shoto), and Volcano Islands (Kazan-retto)

Coastline: 29,751 km

Climate: varies from tropical in south to cool temperate in north

Terrain: mostly rugged and mountainous

Elevation extremes: lowest point: Hachiro-gata -4 m; highest point: Mount Fuji 3,776 m

Natural resources: negligible mineral resources, fish

People

Population: 127,433,494 (July 2007 est.)

Net migration rate: 0 migrant(s)/1,000 population (2007 est.)

Life expectancy at birth: total population: 82.02 years; male: 78.67 years; female: 85.56 years (2007 est.)

Ethnic groups: Japanese 98.5%, Koreans 0.5%, Chinese 0.4%, other 0.7% note: up to 230,000 Brazilians of Japanese origin migrated to Japan in the 1990s to work in industries; some have returned to Brazil (2004)

Religions: observe both Shinto and Buddhist 84%, other 16% (including Christian 0.7%)

Languages: Japanese

Government

Government type: constitutional monarchy with a parliamentary government

Capital: Tokyo

Administrative divisions: 47 prefectures; Aichi, Akita, Aomori, Chiba, Ehime, Fukui, Fukuoka, Fukushima, Gifu, Gunma, Hiroshima, Hokkaido, Hyogo, Ibaraki, Ishikawa, Iwate, Kagawa, Kagoshima, Kanagawa, Kochi, Kumamoto, Kyoto, Mie, Miyagi, Miyazaki, Nagano, Nagasaki, Nara, Niigata, Oita, Okayama, Okinawa, Osaka, Saga, Saitama, Shiga, Shimane, Shizuoka, Tochigi, Tokushima, Tokyo, Tottori, Toyama, Wakayama, Yamagata, Yamaguchi, Yamanashi
chief of state: Emperor AKIHITO (since 7 January 1989)

head of government: Prime Minister Shinzo ABE (since 26 September 2006)

Economy

Government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan advance with extraordinary rapidity to the rank of second most technologically powerful economy in the world after the US and the third-largest economy in the world after the US and China, measured on a purchasing power parity (PPP) basis. One notable characteristic of the economy has been how manufacturers, suppliers, and distributors have worked together in closely-knit groups called keiretsu. A second basic feature has been the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features have now eroded. Japan's industrial sector is heavily dependent on imported raw materials and fuels. The tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self sufficient in rice, Japan must import about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of overinvestment and an asset price bubble during the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. From 2000 to 2001, government efforts to revive economic growth proved short-lived and were hampered by the slowing of the US, European, and Asian economies. In 2002-06, growth improved and the lingering fears of deflation in prices and economic activity lessened. Japan's huge government debt, which totals 176% of GDP, and the aging of the population are two major long-run problems. Some fear that a rise in taxes could endanger the current economic recovery. Debate also continues on the role of and effects of reform in restructuring the economy, particularly with respect to the 2007-17 privatization of Japan Post, which has functioned not only as the national postal delivery system but also, through its banking and insurance facilities, as Japan's largest financial institution.

Labor force: 66.44 million (2006 est.)

Labor force - by occupation: agriculture: 4.6%; industry: 27.8%; services: 67.7% (2004)

Unemployment rate: 4.1% (2006 est.)

Industries: among world's largest and technologically advanced producers of motor vehicles, electronic equipment, machine tools, steel and nonferrous metals, ships, chemicals, textiles, processed foods.

information courtesy The World Factbook Spetember 2007