The demographic profile of Japan can be summarized in two points ; First, people who live longer and second, have fewer children. As a consequences, the population is ageing quickly and the burden on the young and working age people increases. The social status of women in the Japanese society has not changed irrespectively of the higher educational levels, western influences or technological advances
2) Environmental problems
During the time of rapid economic growth and the development of heavy and chemical industries, little attention was given to possible negative externalities. Even when the symptoms of environmental degradation appeared, they were given little attention because because of the strategic importance of the industries, which cause it. Nowadays air, soil, water, noise pollution originates from factories, cars and high-speed trains.
3) Industrial reforms
The success of the Japanese industries was based on strong community relationships within and between large corporations. The high quality control movements and just-in-time production guaranteed cost reductions and high standards for mass production. However, other East Asian countries are now doing the same ,however , their wages are at much lower levels. Therefore, it is no longer its competitive advantage for Japan. Moreover, its industry sector needs to be reformed to allow for more competition and more flexibility which will allow new innovation to emerge.
