In 1603, a Tokugawa shogunate (military dictatorship) ushered in a long period of isolation from foreign influence in order to secure its power. For more than two centuries 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, elected politicians - with heavy input from bureaucrats and business executives - wield actual decisionmaking power. 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.
territorial sea: 12 nm; between 3 nm and 12 nm in the international straits - La Perouse or Soya, Tsugaru, Osumi, and Eastern and Western Channels of the Korea or Tsushima Strait contiguous zone: 24 nm exclusive economic zone: 200 nm
air pollution from power plant emissions results in acid rain; acidification of lakes and reservoirs degrading water quality and threatening aquatic life; Japan is one of the largest consumers of fish and tropical timber, contributing to the depletion of these resources in Asia and elsewhere
chief of state: Emperor AKIHITO (since 7 January 1989) head of government: Prime Minister Yasuo FUKUDA (since 26 September 2007) cabinet: Cabinet appointed by the prime minister elections: Diet designates prime minister; constitution requires that prime minister commands parliamentary majority; following legislative elections, leader of majority party or leader of majority coalition in House of Representatives usually becomes prime minister; monarch is hereditary election results: FUKUDA elected prime minister with 338 of 477 votes cast in the House of Representatives; he received 106 of 240 votes cast in the House of Councillors; vote of House of Representatives prevailed
bicameral Diet or Kokkai consists of the House of Councillors or Sangi-in (242 seats - members elected for six-year terms; half reelected every three years; 146 members in multi-seat constituencies and 96 by proportional representation) and the House of Representatives or Shugi-in (480 seats - members elected for four-year terms; 300 in single-seat constituencies; 180 members by proportional representation in 11 regional blocs) elections: House of Councillors - last held 29 July 2007 (next to be held in July 2010); House of Representatives - last held 11 September 2005 (next election by September 2009) election results: House of Councillors - percent of vote by party - NA; seats by party - DPJ 109, LDP 83, Komeito 20, JCP 7, SDP 5, others 18 : House of Representatives - percent of vote by party (in single-seat constituencies) - LDP 47.8%, DPJ 36.4%, others 15.8%; seats by party - LDP 296, DPJ 113, Komeito 31, JCP 9, SDP 7, others 24 (2007)
Democratic Party of Japan or DPJ [Ichiro OZAWA]; Japan Communist Party or JCP [Kazuo SHII]; Komeito [Akihiro OTA]; Liberal Democratic Party or LDP [Yasuo FUKUDA]; Social Democratic Party or SDP [Mizuho FUKUSHIMA]
chief of mission: Ambassador J. Thomas SCHIEFFER embassy: 1-10-5 Akasaka, Minato-ku, Tokyo 107-8420 mailing address: APO AP 96337-5004 telephone:  (03) 3224-5000 FAX:  (03) 3505-1862 consulate(s) general: Naha (Okinawa), Osaka-Kobe, Sapporo consulate(s): Fukuoka, Nagoya
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 55% 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 2002-07, growth improved and the lingering fears of deflation in prices and economic activity lessened, leading the central bank to raise interest rates to 0.25% in July 2006, up from the near 0% rate of the six years prior, and to 0.50% in February 2007. In addition, the ten-year 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, was completed in October 2007, marking a major milestone in the process of structural reform. Nevertheless, Japan's huge government debt, which totals 182% 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 increasing income disparities.
general assessment: excellent domestic and international service domestic: high level of modern technology and excellent service of every kind international: country code - 81; numerous submarine cables provide links throughout Asia, Australia, the Middle East, Europe, and US; satellite earth stations - 5 Intelsat (4 Pacific Ocean and 1 Indian Ocean), 1 Intersputnik (Indian Ocean region), and 1 Inmarsat (Pacific and Indian Ocean regions
total: 23,474 km standard gauge: 3,204 km 1.435-m gauge (3,204 km electrified) narrow gauge: 77 km 1.372-m gauge (77 km electrified); 20,182 km 1.067-m gauge (13,334 km electrified); 11 km 0.762-m gauge (11 km electrified) (2006)
total: 676 ships (1000 GRT or over) 10,386,894 GRT/11,689,142 DWT by type: bulk carrier 131, cargo 29, carrier 3, chemical tanker 23, container 10, liquefied gas 58, passenger 14, passenger/cargo 142, petroleum tanker 157, refrigerated cargo 2, roll on/roll off 52, vehicle carrier 55 registered in other countries: 2,692 (Bahamas 62, Belize 2, Bermuda 1, Burma 3, Cambodia 3, Cayman Islands 6, China 2, Cyprus 19, France 5, Honduras 4, Hong Kong 78, Indonesia 5, Isle of Man 4, South Korea 1, Liberia 111, Malaysia 4, Malta 3, Marshall Islands 5, Mongolia 1, Norway 1, Panama 2,151, Philippines 69, Portugal 10, Singapore 108, Sweden 1, Thailand 4, UK 1, Vanuatu 28, unknown 2) (2007)
the sovereignty dispute over the islands of Etorofu, Kunashiri, and Shikotan, and the Habomai group, known in Japan as the "Northern Territories" and in Russia as the "Southern Kuril Islands," occupied by the Soviet Union in 1945, now administered by Russia and claimed by Japan, remains the primary sticking point to signing a peace treaty formally ending World War II hostilities; Japan and South Korea claim Liancourt Rocks (Take-shima/Tok-do) occupied by South Korea since 1954; China and Taiwan dispute both Japan's claims to the uninhabited islands of the Senkaku-shoto (Diaoyu Tai) and Japan's unilaterally declared exclusive economic zone in the East China Sea, the site of intensive hydrocarbon prospecting