ROLE OF NONMOTORIZED TRANSPORTATION AND PUBLIC TRANSPORT IN JAPAN'S ECONOMIC SUCCESS

Abstract

The public policies in Japan that enabled the development of an urban transportation system dominated by nonmotorized transport and rail-based mass transit were studied. The key role played by public policies that discouraged automobile use, encouraged bicycle use, channeled investment into rail, and drove up the cost of land is highlighted. It is argued that this urban transportation system contributed to rapid economic growth in Japan since World War II by constraining consumption, encouraging savings, and reducing labor costs. Finally, it is argued that the Japanese experience could serve as a better guide to developing countries than does past U.S. policy.

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