PNG could learn a thing or two about supporting local entrepreneurs by studying the Japanese Monetary Systems.
A recent lecture comparing the monetary systems of PNG and Japan revealed that the Japanese monetary system is more focused on supporting its small local businesses than on making big profits.
The University of Papua New Guinea in collaboration with the Embassy of Japan recently presented the 2017 Vice-Chancellor’s Lecture Series, No. 3. Dr Kiyotsugu Yashihara from the Kyoto University’s Graduate School of Economics compared the PNG and Japanese Monetary Systems.
Japan’s Ambassador to PNG, Satoshi Nakajima, said when Japan’s economy was devastated in WWII, its now global companies like Honda and Sonny were just small factories at the time. But they developed very rapidly with the help of the banking sector which supported the young entrepreneurs.
Dr. Yoshihara shed light on how Japan was able literally rise from the ashes after WWII. But he began by emphasising that PNG has more natural wealth than Japan.
Dr. Yoshihara said the key is supporting micro-sized enterprises and start-up companies. He pointed out that Honda, Sony and even Toyota all started as one-man companies. He said Japan has localized banks that assist companies that are just starting up. In this way, they play a major role in growing the economy of the country.
Ambassador Nakajima said in a complex and closely connected world, people-to-people ties and intellectual exchange like this seminar are important.