JAPAN AND ALASKA
ECONOMIC PARTNERS ACROSS THE PACIFIC FACTS AND FIGURES 2OO2
JAPAN EXTERNAL TRADE ORGANIZATION
JETRO
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Table of Contents
History of the Japan and Alaska Relationship ............................................................................. 3 Advantages of the Japan and Alaska Economic Partnership......................................................... 4 Alaska's Economy ...................................................................................................................... 4 •Role of the Military in Alaska's Economy .................................................................................. 5 •Alaska's Native Corporations................................................................................................... 6 The Importance of Trade to Alaska's Economy. ........................................................................... 6 Alaska's Trade With Japan .......................................................................................................... 7 Brief Overview of Past Ten Years of Trade with Japan ................................................................. 7 Overview of Major Commodities Exported to Japan ..................................................................... 8 •Seafood ................................................................................................................................... 8 •Oil and Gas ............................................................................................................................. 9 •Wood ...................................................................................................................................... 10 Japanese Direct Investment in Alaska ......................................................................................... 11 •Japanese-Affiliated Companies in Alaska. ................................................................................ 11 •Manufacturing Plants. ............................................................................................................. 12 •Tourism. ................................................................................................................................. 14 U.S. Direct Investment in Japan .................................................................................................. 15 •The Effect of Japan’s Deregulation and Policy Initiatives. ......................................................... 15 •U.S. Direct Investment in Japan. .............................................................................................. 15 •Japan's Finance and Manufacturing Industries......................................................................... 16 Japan and Alaska Comparisons .................................................................................................. 16 •Demographics......................................................................................................................... 16 •GDP. ....................................................................................................................................... 17 Further Ties Between Alaska and Japan ..................................................................................... 18 ♦Sister City Relationships .......................................................................................................... 18 ♦Tourism Relationship ............................................................................................................... 18 ♦Cultural Organizations ............................................................................................................ 19 ♦Education................................................................................................................................. 19 ♦IARC Center. ............................................................................................................................ 20 Acknowledgements ..................................................................................................................... 21 ABOUT JETRO ............................................................................................................................. 22
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History of the Japan and Alaska Relationship In 1893, a Coast Guard ship sailing near the Alaskan coast got trapped in ice. Frank Yasuda, a Japanese cabin boy aboard this ship, went to the town of Barrow to obtain some food and supplies. Instead of continuing along with the rest of his crew once the ship was able to set sail, Yasuda stayed behind. He later founded the village of Beaver, and played an important role in its development. Since his time, many Japanese have settled in Alaska, playing important roles in various aspects of Alaskan life—culture, education, and business. Today, about 5931 Japanese and 20662 Japanese Americans live in Alaska. Alaska’s location and proximity to Japan have made it conducive for forging strong relations with Japan. The Alaska-Japan relationship has become especially important after World War II; Alaska was the first state to receive postwar Japanese investment when Alaska Pulp Corporation was established as the first Japanese-affiliated company in Alaska. By 1963, there was enough of a need for the voice of Japanese business interests in Alaska to be heard; a group of businessmen in Tokyo formed the Alaska-kai to fulfill this need. Two years later, Alaska responded to the growing importance of economic ties between Alaska and Japan by being the first state to open a trade office in Japan. In 1970, the Japanese government opened a consulate office in Anchorage to meet the demands of an increasingly important relationship. This office was upgraded to a Consulate General office in 1982, as the relationship flourished and gained even further significance. The Alaska-Japan relationship continues to be a stronghold from many dimensions— economic, cultural, educational, etc. Today the two economies are closely intertwined; Japan is Alaska’s largest trading partner. Alaska and Japan have collaborated on business, science and other research projects. On the education front, the University of Alaska Fairbanks has exchange agreements with Hokkaido University, Hokkaido University of Education, and Nagoya Gakuin University. Alaska has eight active sister city relationships with Japan. Given the proximity and economic interdependence, we can expect that relations between the two regions will continue to thrive.
1 2
As of October 2001. Source: Consulate General of Japan, Anchorage Source: msresearch.com; figure also found in the 1990 Census 3
Advantages of the Japan and Alaska Economic Partnership The greatest advantage of the Japan and Alaska relationship is the proximity between the two regions. A ship leaving Dutch Harbor, a port that 99 percent of Alaskan exports to Asia go through, can arrive in Yokohama in just under seven days3—almost half the time it takes for a ship to travel between Washington and Japan. Dutch Harbor is an ice-free port, making it readily accessible year-round. As trade partners, Japan and Alaska complement each other well; the bulk of Alaska’s trade economy comes from its seafood industry, and Japan is a great consumer of seafood. Although Alaska ranks 48th population-wise, it ranks in the middle third in terms of exports to Japan4. Trade between the two regions pours millions of dollars into both economies. In addition, there have been numerous joint investment projects, such as the Alaska North Slope natural gas development project with Marubeni Corporation and the Pogo Gold Mine Project with Sumitomo Metals5, which result in economic opportunities for both sides. Alaska’s Economy Alaska’s economy has enjoyed steady growth for the past thirty years. Natural resources—seafood, minerals and fuels, timber—have been the backbone of Alaska’s economy for over thirty years. In the sixties, seafood was Alaska’s main commodity. Although seafood production has multiplied manifold since then, today, oil is the most valuable commodity. There are two ways to measure the importance of an industry to an economy: one way is to see how much the industry contributes to gross (state or domestic) product; the other is to see how many jobs it creates. Oil is a capitalintensive industry, so while it contributes significantly to Alaska’s GSP (25 percent6), it does not create many jobs (3.5 percent). On the other hand, seafood and tourism are industries that require a lot of workers, so these contribute relatively less to GSP, while it contributes more jobs. Compared to the past, Alaska’s economy is well-diversified. Oil and gas constitute a quarter of Alaska’s GSP; services, trade & finance also compose 25 percent. Both federal and state governments are also big components of the state economy, comprising 14 percent and 12 percent of the GSP, respectively7.
3 4
Sources: Maersk and American President Source: Office of Trade and Economic Analysis 5 Source: www.embjapan.org/anchorage
6
Source: Institute of Social and Economic Research, University of Alaska, Anchorage: Trends in Alaska’s People and Economy. 7 Ibid.
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Alaska State GSP (in millions of USD)
GSP 1977 7,456 1978 9,051 1979 10,816 1980 15,007 1981 21,473 1982 23,133 1983 22,254 1984 23,560 1985 25,871 1986 18,637 1987 22,025 1988 21,354 1989 22,934 1990 24,774 1991 22,021 1992 22,372 1993 23,014 1994 23,104 1995 24,791 1996 25,774 1997 26,575 1998 25,008 1999 26,353 Source: Bureau of Economic Analysis Year
Al aska G SP
30,000 25,000 20,000 15,000 10,000 5,000 Year 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 0
$M
Composition of Alaska Gross State Product
Oil and Gas Seafood Tourism
25
4
2.5 4.5
25
12
14
12
Other Services, Trade, Finance
0%
20%
40%
60%
80%
100%
Source: Institute of Social and Economic Research, University of Alaska Anchorage: Trends in Alaska’s People and Economy
Utilities, T t ti
•Role of the Military in Alaska’s Economy
The military’s role in the Alaskan economy dates back to World War II. The military continues to contribute a significant amount to the Alaskan economy, despite the decline in personnel. Today, the military is responsible for about 18,000 jobs and contributes $7 for every $100 of Alaskan GSP.8
8
Source: Institute of Social and Economic Research, University of Alaska Anchorage: Trends in Alaska’s People and Economy
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•Alaska’s Native Corporations
One thing that is unique to Alaska’s economy is the role of Alaska Native corporations. Rather than set up Indian reservations, which have traditionally led to poverty in many other states, Congress passed a law to set up native corporations, in the hopes of better empowering the native population. In 1971, the Federal Government passed the Alaska Native Settlement Claims Act, which awarded 44 million acres and $962.5 billion to Alaska Natives. It also established thirteen regional, four urban, and over 200 village corporations to oversee the land and funds. This was in exchange for the permission to build the trans-Alaska pipeline from Prudhoe Bay to Valdez, without incurring a Native lands-claim lawsuit.9 Over thirty years later, this law seems to have achieved Congress’ goal; today, native corporations contribute significantly to the Alaskan economy. Native corporations are Alaska’s largest private landowners. These corporations own a total of twelve percent of Alaska lands, while all other private landowners own just one percent. Native corporations own about 125 businesses and are responsible for about 10,000 jobs. About 17 percent of Alaska’s top 100 private employers are native corporation run. 10 The Importance of Trade to Alaska’s Economy With the steady economic growth that Alaska has enjoyed for the past few decades, trade has become an increasingly essential part of the Alaskan economy. In particular, growth of trade and importance of trade relative to the overall economy has been especially remarkable in the past five years. In 199711, Alaska ranked third in the United States in terms of exports per capita and seventh in terms of exports as a percentage of GSP. Alaska ranked #1 in the United States for growth of exporting companies between 1992 to 1997. Trade constituted about 9.7 percent of the state GDP in 1999. In 2000, Alaska’s worldwide exports totaled $2.5 billion, a $100 million dollar decline from 1999. The importance of trade to Alaska’s economy is even more apparent when one looks at Alaska’s trade with Japan. Alaska’s trade with Japan has proliferated in the past three years; in terms of percentage change of trade with Japan, between 1997 and 2000, Alaska ranked 12th, at 28.3 percent.12
9
10
11 12
Source: http://juneaualaska.com/Project/stories/introduction.html Source for statistics given in this paragraph: Institute of Social and Economic Research, University of Alaska, Anchorage: Trends in Alaska’s People and Economy
Source for statistics given in this paragraph: U.S. Census Bureau Source: International Trade Administration, Department of Commerce website 6
Alaska’s Trade With Japan Japan was once again Alaska’s largest trading partner. Although dollar amounts of exports were down slightly (1.1 percent13) from 1999, exports to Japan still accounted for approximately 54 percent of Alaska’s total exports in 2000. Alaska exported $1.3 billion worth of goods and services to Japan in 2000.
Breakdown of Alaska’s Exports for 2000 by Country
Taiwan 2%
China 4% Belgium
4%
Other 11%
Canada 7%
Korea 18%
Japan 54%
Japan Korea Canada Belgium China Taiwan Other
Alaska Exports to Japan (by Year) in $M
2,500 2,000 1,500 1,000 500 0 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Brief Overview of Past Ten Years of Trade with Japan Alaska’s exports to Japan peaked in the early nineties, at $2.3 billion in 1992. Since then, it has been declining steadily, until the Asian economic crisis in 1998. After
13
Source: www.dced.state.ak.us 7
bottoming out at $867 million in 1998, exports to Japan have remained fairly stable at around $1.3 billion. There are several factors contributing to the overall decline in trade during the nineties. The first is the bursting of the bubble economy in Japan. Decline in trade figures has been fairly consistent with the decline in the Japanese economy. Another reason can be attributed to the nature of the seafood market, which comprises the bulk of Alaska’s trade to Japan. Ten years ago, Alaskan seafood comprised over 70 percent of the Japanese market share. Today, the Alaskan seafood market occupies less than 20 percent of the Japanese market share. Competition from other markets, as well as an overall decline in the Alaskan seafood supply have both contributed to the decline in market share. Overview of Major Commodities Exported to Japan14 Seafood, oil & gas and wood were the top three commodities exported to Japan. Together, they constituted over 90 percent of the exports to Japan. Seafood was Alaska’s top export commodity to Japan and comprised 54 percent of all exports. Oil and gas exports totaled 30 percent. Total export levels for 2000 were slightly lower than 1999 levels, but relatively constant. Compared to 1999, seafood export totals dropped $22 million to $710 million. Whereas seafood exports declined, oil and gas exports increased $42 million to $401 million. Wood exports declined the most—from $153 million to $118 million, a 23 percent decline.
Commodity Breakdown of Alaska’s Exports to Japan
4% 3% 9% Seafood Oil & Gas Wood Minerals Other
30%
54%
•Seafood Seafood has long been a valuable commodity in Alaska. Thirty years ago, seafood was the top commodity, and it enjoyed over 70 percent of the market share in Japan. Decline in supply, as well as competition from other nations, have had an adverse effect
14
Source for this entire section: Alaska Division of International Trade and Market Development, 2000 Annual Report
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on the seafood industry. However, despite such challenges, seafood continues to be an essential commodity in the Alaskan economy. Seafood is still Alaska’s top export commodity. In 2000, seafood exports totaled $1.03 billion. (This was the first time since 1996 for seafood exports to go over $1 billion.) Seafood accounted for 42 percent of Alaska’s total exports. Japan, the largest consumer of Alaska’s seafood, bought 69 percent of the total seafood. The year 2000 was a promising year for Pollock, which yielded 15 percent larger harvests than the previous year. On the other hand, Sockeye harvests declined (both in value and volume).
Country Breakdown of Seafood Exports 2000
Canada 3% $1,034 China 7% Korea 13% Japan 69% Other 8%
Seafood Exports from Alaska (in millions)
$1,200 $1,000 $800 $600 $400 $200 $0 1996 1997 1998 1999 2000
$1,060 $868 $697
$990
Source: Alaska Division of International Trade and Market Development, 2000 Annual Report
•Oil and Gas Fossil fuels (oil, gas, liquid natural gas (LNG) and coal) were the number two export commodity for Alaska in the year 2000. Japan was also the top consumer for this product, and exported 70 percent of total production. Compared to 1999, total exports of fossil fuels declined 21 percent, from $722 to $572. (Crude) Oil production levels for 2000 remained the same as in 1999; however, most of it went to the domestic market rather than overseas, hence the decline in export values. In the overseas market, Japan bought $185 million worth of crude oil, while Korea bought $105 million worth. Japan is the exclusive customer for Alaska’s LNG market. In fact, this buyer-seller relationship began over 30 years ago, when Japan received the first LNG ocean transfer in 1969. LNG exports have remained fairly stable over the past few years. In 2000, they totaled $145 million.
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Fossil Fuel Exports (in millions)
Country Breakdown of Fossil Fuel Exports 2000 Canada Taiwan Other 2% 2% 1%
Singapore 4%
$800 $700 $600 $500 $400 $300 $200 $100 $0
$701 $589 $446
$722 $572
Korea 21%
Japan 70%
1996
1997
1998
1999
2000
Source: Alaska Division of International Trade and Market Development, 2000 Annual Report
•Wood Forest products are Alaska’s fourth largest export commodity. As with other top export commodities (except minerals), Japan was the number one consumer of forest products as well. Japan bought 56 percent of total exported forest products. The flip side of this large market share is that Japan’s weak economy has had a dramatic effect on Alaska’s forest product industry; exports are down to almost half the levels in 1996 and 1997. Also potentially affecting the demand (though not necessarily in a negative way) for forest products is the New Building Standards Law passed in Japan.
Forest Product Exports from Alaska (in millions)
$500 $400 $300 $200 $100 $0 1996 1997 1998 1999 2000
$172
Country Breakdown of Forest Product Exports 2000
Taiwan 4% Other 7%
$426
$403
Canada 16% $222 $210 Korea 17% Japan 56%
Source: Alaska Division of International Trade and Market Development, 2000 Annual Report
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Japanese Direct Investment in Alaska In addition to trade, foreign countries also contribute to the American economy via foreign direct investment. Foreign direct investment creates new jobs and stimulates the economy. Foreign investment fueled $28 billion into the Alaskan economy in 1998.15 Japan has had a long history as an investor and is one of the top investor countries in the U.S., as well as the world. The proximity of the Pacific Northwestern states to Japan (not to mention the complementarity of Alaska’s market supply of seafood to Japan’s market demand for seafood) makes states like Alaska an enticing market for Japan to invest in. Japanese direct investment is an essential component of Alaska’s economy. Two common ways to measure FDI include: the book value, which is the total value of property, plants and equipment owned, or affiliate employment, the number of (local) people a country’s affiliate16 companies employ. In 1999, foreign affiliated companies employed a total of 10,500 Alaskans. Japanese affiliated companies accounted for about 18 percent or 1900 of those jobs17. As for the book value of Japanese investment, Japan ranked second (after Canada) for total value of property, plants and equipment.
Top Foreign Investors in Alaska (by Employment)
Top Foreign Investors in Alaska by Book Value (in millions)
1400 1200
3000 2500 2000 1500 1000 500 0
3000 2100 1900 900 Canada U.K. Japan France
1000 800 600 400 200 0
1346
669 75 50
Canada Japan Germany France
Source: Bureau of Economic Analysis
•Japanese-Affiliated Companies in Alaska Another barometer for measuring the level of foreign direct investment is the number of foreign-affiliated companies. According to a survey conducted by the Consulate General office
in Anchorage, there are currently 1818 Japanese-affiliated companies in Alaska.
15 16
Source: ibid. An affiliate is any business enterprise owned or controlled—directly or indirectly—by another country. 17 Source: http://www.bea.doc.gov/bea/di/di1fdiop.htm 18 For the purposes of this section, companies with plants in more than one location are counted only once; in the manufacturing plant section however, each location is counted as a separate plant.
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List of Japanese-Affiliated Companies in Alaska
Classification
Branch Operations Office Affiliate (Headquarters)
Local Company
Japan Airlines Co., Ltd. Nippon Cargo Airlines Co., Ltd. Seibu Alaska, Inc. AIE, Inc. Alaska Network Tours Co., Ltd. (A&P) America & Pacific Tours, Inc. Sumitomo Metal Mining America, Inc. Kintetsu World Express Nippon Express USA, Inc. MOL Logistics (USA), Inc. N-I Energy Development, Inc.
Parent Company
Japan Airlines Nippon Cargo Airline Kokudo Alaska International Express Japan Network Tours (Privately owned) Sumitomo Metal Mining Kintetsu Express Nippon Express Mitsui O.S.K. Lines Nissho Iwai Nippon Suisan Maruha Maruha Maruha, Marubeni Marubeni Marubeni Nichiro
Affiliate (Branch)
Affiliate (Plant)
Unisea, Inc. Western Alaska Fisheries, Inc. Westward Seafoods, Inc. Alyeska Seafoods, Inc. North Pacific Processors, Inc. Bering Sea Fisheries, Inc. Peter Pan Seafoods, Inc.
Source: Consulate General of Japan in Anchorage
•Manufacturing Plants As of 2000, Alaska was home to 16 of the 2,126 Japanese affiliated manufacturing plants located in the U.S. While this is not a large sum, when expressed as a ratio of concentration of (Japanese) manufacturing plants relative to the size of the work force, Alaska ranks number one. Alaska has over five Japanese-affiliated manufacturing plants for every 10,000 workers. All sixteen manufacturing plants are food-processing plants.
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Number of Japanese Affiliated Manufacturing Plants by State 2000
Source: JETRO Survey 2000
Japanese Affiliated Manufacturing Plants Per 10,000 Workers
Rank per 10,000 employees 1 1 3 4 5 6 7 8 9 10 State Kentucky Alaska Indiana Tennessee Ohio Oregon Georgia Hawaii South Carolina North Carolina Labor force 1,969,791 315,209 3,077,612 2,818,851 5,749,099 1,760,442 4,088,008 594,810 1,961,962 3,874,423 Japaneseaffiliated plants 100 16 112 90 183 50 112 16 50 81 Plants per 10,000 workers 5.07 5.07 3.64 3.19 3.18 2.84 2.74 2.68 2.54 2.09
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List of Japanese-Affiliated Manufacturing Plants in Alaska U.S. Company Parent Company Alaska Pacific Seafoods Marubeni, Benirei Alyeska Seafoods, Inc. (Unalaska Plant) Maruha Kodiak Fishmeal Marubeni, Maruha North Pacific Processors, Inc. Marubeni, Benirei (Cordova Plant) North Pacific Processors, Inc. Marubeni, Benirei (Pederson Point Plant) Peter Pan Seafoods, Inc. Nichiro (Dillingham Plant) Peter Pan Seafoods, Inc. Nichiro (King Cove Plant) Peter Pan Seafoods, Inc. Nichiro (Port Moller Plant) Peter Pan Seafoods, Inc. (Valdez Plant) Nichiro Sitka Sound Seafoods, Inc. (Sitka) Marubeni, Benirei Sitka Sound Seafoods, Inc. (Yakutat) Marubeni, Benirei Togiak Fisheries Marubeni, Benirei Trans-Aqua International, Inc. Tomen Unisea, Inc. Nippon Suisan Western Alaska Fisheries, Inc. Maruha Westward Seafoods, Inc. Maruha
Source: JETRO Survey 2001
•Tourism Tourism is another big component of foreign direct investment. It is also a very essential component of the Alaskan economy; since 1990, it has created more new jobs than any other industry. From 1990-1999, tourism created over 4,70019 new jobs. Alaska sees about 1.2 million tourists each year. Alaska seems to be a popular tourism destination for Japanese people. Japan is the second largest market for international visitors. Last year, about 30,00020 Japanese visited Alaska. While this is not a significant percentage of the total number—about 2.5 percent—Japan is the only market that provides year-round business to the tourism industry. Whereas most visitors to Alaska come in the summertime, visitors from Japan visited both in the wintertime and summertime. Winter visitors from Japan come to Alaska to see the Northern Lights. For northern towns like Fairbanks, Japanese winter tourists are a vital part of sustaining the local economy.
19 20
Source: Institute of Social and Economic Research, University of Alaska Anchorage, Trends in Alaska’s People and Economy
Source: www.dced.state.ak.us; www.gov.state.ak.us 14
U.S. DIRECT INVESTMENT IN JAPAN21 •The Effect of Japan’s Deregulation and Policy Initiatives As the world’s second largest economy, with one of the world’s highest per capita incomes, Japan is an immense potential market for U.S. FDI. Since June 1997, the governments of the U.S. and Japan have engaged in extensive efforts aimed at removing impediments to market access for competitive goods and services, enhancing consumers’ interests, and promoting economic activity. Already, regulatory reforms and policy initiatives undertaken by the Government of Japan have removed or liberalized most legal restrictions that apply to specific economic sectors and have led to an increase in FDI. Between 1993 and 1999, FDI inflows into Japan increased 700 percent, from 360 billion yen to 2,400 billion yen.
FOREIGN DIRECT INVESTMENT IN JAPAN
3,000 2,500 2,000 1,500 1,000 500 0 1994 1995 1996 1997 1998 1999
Source: FIND (Foreign Investment In Japan Development Corporation), www.fid.com
Number of Investments Amount of Investment (billions of yen)
• U.S. Direct Investment in Japan U.S. direct investment in Japan increased 55 percent from 1999 to 2000, to over $7.4 billion. Japan is now the fourth largest recipient of U.S. FDI, a move up from being the seventh largest recipient in 1999.
21
This entire section is taken from earlier JETRO state-to-state reports.
15
U.S. FOREIGN DIRECT INVESTMENT (MILLIONS OF U.S. DOLLARS)
Source: US DOC, Bureau of Economic Analysis
•Japan’s Finance and Manufacturing Industries U.S. direct investment in Japan reached a cumulative value of $47.8 billion in 1999, and remained heaviest in the finance and manufacturing industries. The leading investment sectors included finance/insurance/real estate ($14.9 billion), manufacturing ($13.3 billion), services ($7.1 billion), wholesale trade ($5.4 billion), and petroleum ($4.4 billion). By comparison, Japanese direct investment in the United States reached a cumulative value of $148.9 billion in 1999. The major investment sectors attracting Japanese FDI included wholesale trade ($49.5 billion), manufacturing ($47.3 billion), finance ($17.6 billion), real estate ($11.8 billion), services ($8.0 billion), and depository institutions ($7.5 billion).22 Japan and Alaska Comparisons •Demographics Japan and Alaska differ greatly in size and population. While Alaska is roughly four times larger than Japan, Japan is 200 times more populous than Alaska. Alaska’s population, though sparse compared to Japan or the rest of the U.S., has been growing at a steady rate of 1.3 percent per year since 199023.
Area (square miles) 600,000 500,000 400,000 300,000 200,000 100,000 0 Japan Alaska 145,887 571,951
140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 126,920
Population (Thousands)
627 Japan Alaska
Japan Source: Statistics Bureau and Statistics Center of Japan, preliminary count Alaska Source: U.S. Census Bureau 2000
22 23
Source: Bureau of Economic Analysis, U.S. Department of Commerce Source: DRI•WEFA, Inc.
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As for labor forces, although Alaska’s labor force is significantly smaller than that of Japan, —roughly 1/23 the size of Japan’s labor force—the relative ratio of labor force to total population is pretty similar. Alaska’s is slightly lower than 1:2, while Japan’s is slightly higher. However, if we compare the ratio of labor force population to the “working potential” population—i.e. the population of people over 16—Alaska’s ratio is quite high, at nearly 75 percent.
2000 Civilian Labor Force % of total population 53.1% 46.9%
Japan Alaska
Labor Force (in millions) 67.4 2.9
% of population over 1524 years old 62.4% 74.7%
Source for Japan: The U.S. Department of State, March 2001 2000 Country Reports on Economic Policy and Trade Practices; JETRO Nippon 2001 Facts and Figures Alaska Source: DRI•WEFA; Census Bureau
GDP While Japan’s gross domestic product is more than 160 times greater than Alaska’s gross state product, Alaska’s per capita GSP is significantly higher than Japan’s per capita GDP. In fact, Alaska has one of the highest average per capita GSP’s25 in the nation. One reason for this is due to the relatively low population. Another factor accounting for the high per capita GSP is the lucrative oil industry. The oil and gas industry accounted for 25 percent of Alaska’s GSP. Also contributing significantly to Alaska’s economy is the trade and services sector, which also accounted for 25 percent of Alaska’s GSP26.
GDP-GSP 1999 (millions of U.S. dollars) Japan Alaska 4,346,922 26,353
Japan source: 2001 World Development Indicators database, World Bank, 4/11/2001; Alaska source: US Dept. of Commerce, Bureau of Economic Analysis
For Alaska, this column lists the population of persons over 16 years. Ranked 4th in the nation for per capita GSP, according to the AAAS Aug. 2001 report website, www.aaas.org/spp/R&D 26 Source: Institute of Social and Economic Research, University of Alaska, Anchorage: Trends in Alaska’s People and Economy.
25
24
17
Per Capita Gross Domestic Product/Gross State Product 1999
A Comparison of Per Capita GDP
Japan
40,000 30,000 20,000 10,000 0
34,283 42,030
$34,283 $34,063 $42,030
U.S. Alaska
Japan
Alaska
Further Ties Between Alaska and Japan ♦Sister City Relations Japan and Alaska have eight active sister city relationships. The two regions have enjoyed long years of close relations; 1999 marked the 30th anniversary of the ChitoseAnchorage relationship.
Alaska City Japanese City, Prefecture
Anchorage Homer Palmer Seward Sitka Kenai Peninsula Borough North Pole Ketchikan Wrangell* City of Fairbanks* ♦Tourism Relationship
Chitose, Hokkaido Teshiro, Hokkaido Saroma, Hokkaido Obihiro, Hokkaido Nemuro, Hokkaido Akita City, Akita Prefecture Itadori, Gifu Prefecture Kanayama, Gifu Prefecture Noshiro, Akita Prefecture Monbetsu, Hokkaido
In addition to these sister city relations, recently, Girdwood and Myokokogen in Nagano Prefecture have established a tourism relationship.
*
These two sister-city relationships are dormant according to the Consulate General of Japan in Anchorage
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♦Cultural Organizations •Alaska-kai: Alaska-kai is a group that was formed in Tokyo by Japanese businessmen who have business interests in Alaska. Formed in 1963, this organization continues to forge business and cultural relations between Alaska and Japan. •Alaska-Nippon-kai: The Alaska-Nippon-kai was the Alaska counterpart to the Alaskakai. It was formed in the 60’s as an attempt to forge business ties between individuals in Alaska and Japan. Recently, it has been “upgraded” to the current Japan-America Society. Before it became “upgraded”, it was actively involved in organizing events that promoted positive business and cultural interaction between the two regions. •Japan-America Society: The Japan-America Society is a relatively new organization, though formed out of old roots. Founded in September 2000 by former members of the Alaska-Nippon kai, its mission is to promote deepening cultural ties between Alaska and Japan. It also provides support to Japanese living in Alaska. It sponsors various cultural and educational events throughout the year. Most recently, the Japan-America Society sponsored a reception for the first generation of graduates of the Japanese Immersion Program in the Anchorage school systems. ♦Education27 Greater access to courses on Japan and Japanese classes has increased the awareness and interest of Alaskans towards Japan. Both University of Alaska Anchorage and University of Alaska Fairbanks offer Japanese Language classes, as well as a major and minor in Japanese Studies. During the 1999-2000 academic year, a total of 395 students (counting both universities) were enrolled in Japanese language classes. University of Alaska Fairbanks has an inter-university relationship with three universities in Japan: Hokkaido Kyoiku Daigaku, Hokkaido University, and Nagoya Gakuin University. In AY1999-2000, UAF sent 2 students to each of these three universities. At the K-12 level, the Anchorage public school system offers a Japanese language immersion course. This program was started in 1989 at the elementary school level (Sand Lake Elementary), and has been extended to middle school (Mears Middle School) and high school (Diamond High School), due to the curriculum’s popularity. Through this program, students have the opportunity to study their regular subjects (science, math, art, etc) in Japanese for half of the day, each day. In 1999, there were 331 elementary school students, 69 middle school students and 86 high school students enrolled in this program. ♦IARC Center The International Arctic Research Center is another example of flourishing AlaskaJapan relations. It was built in 1999 as part of a joint venture between Alaska and Japan. In 1995, it was designated by both the U.S. and Japanese governments as a
27
Source for this entire section: www.embjapan.org/anchorage
19
Common Agenda item, which is the highest priority level rating that can be assigned to joint U.S.-Japan projects28. Although projects at the IARC are currently not joint venture, IARC is in the process of trying to establish future joint ventures.
28
Formally called the Common Agenda for Cooperation in Global Perspective, this is a government-to-government agreement which was initiated in 1993 by Prime Minister Miyazawa and President Clinton as an effort to foster collaboration between Japan and the U.S. to address global issues such as environment, healthcare, and conservation. For more information about this program, please refer to the Ministry of Foreign Affairs website at: http://www.mofa.go.jp/region/n-america/us/agenda/
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Acknowledgements
This project started as an effort to revitalize JETRO’s relationship with Alaska State, and by corollary, Alaska-Japan relations. It is the product of the collaboration of many efforts. There were many people who were very generous with their time and expertise that I would like to thank. Special thanks to the following individuals and organizations for their help in finding information and imparting their expertise: Rudy Tsukada at the Alaska State Department of Community and Economic Development, The Consulate General of Japan, Patrick Rumley and Mead Treadwell at the Japan-Alaska Society of Alaska, and Syun-ichi Akasofu at the International Arctic Research Center. Other people whose names I did not bother asking during our brief conversations include: people working for the ports at various cities in Alaska, workers at Maersk Sealand freight company and APL, and several people at the reference section of the Alaska State Library. If I inadvertently left someone out, I apologize.
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ABOUT JETRO Established in 1958, JETRO is a nonprofit, Japanese government-supported organization dedicated to promoting mutually beneficial trade and economic relationships between Japan and other nations. Headquartered in Tokyo, JETRO has an international network of 33 offices within Japan and 80 overseas offices located in 58 countries. In the United States, JETRO maintains offices in New York, Atlanta, Chicago, Houston, Denver, San Francisco and Los Angeles. Each is a comprehensive information center regarding U.S.-Japan economic relations, offering American business people assistance on any aspect of U.S.-Japan business. JETRO activities in the U.S. are focused upon assisting American companies in developing exports to and investment in Japan. JETRO Senior Trade Advisors are stationed throughout the country to provide personal assistance and advice to U.S. companies interested in doing business with Japan. Services include free business consultations at any JETRO office. JETRO Business Support Centers located in Tokyo, Yokohama, Osaka, Nagoya, Kobe and Fukuoka provide free temporary office space to U.S. companies seeking to establish or expand their markets in Japan. JETRO also offers the “JETRO Business Japanese Proficiency Test,” designed to measure and evaluate one’s comprehension of the Japanese language within the business environment, which furthers JETRO’s goal of promoting better understanding and improved communications between the U.S. and Japan. Over the years, JETRO has become a valued resource for thousands of American companies, particularly small and medium-sized businesses new to the Japanese market. In addition to cooperating with national, state, and local economic development agencies, JETRO maintains close relations with industrial trade organizations seeking to promote exports to Japan. JETRO San Francisco is the Japan External Trade Organization’s (JETRO) representative office in Northern California that represents the State of Alaska. For more information on JETRO programs or information on doing business with Japan, please contact your nearest JETRO office.
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