Social, cultural and political resources are known to promote the growth of human and institutional resources which in turn promote economic growth through their impact on business development opportunities. Examples of such resources include social capital of trust, human and knowledge networks, rule of law, equal opportunities for the access to the common pool of knowledge resources through education, democratic institutions such as independent Judiciary, free press , and civil societies engaged in protection of human rights and environmental and natural resources.
Both Japan and USA drew heavily upon their respective social, cultural and political resources to amass economic wealth at a rapid pace in the post war period. Their human and institutional resources have fuelled innovation and creativity that have been augmenting the productivity of their industrial economies and raising expectations of higher growth through trade and investments across their borders. However, business development opportunities in both these two developed economies have been steadily shrinking in recent years. While Japan has been facing economic stagnation since the bust of its bubble economy in the early 1990s, US economy’s growth bubble artificially propped up by the supply of excess liquidity seems to have busted since the onset of the financial crisis in 2008.
India’s social, cultural and institutional resources had undergirded its huge pre-industrial economy which, as documented by economic historian Prof. Angus Maddision in his famous book “The World Economy-A millennial Perspective”, was the largest economy in the world in 1700AD with 27% share of the world output. However, after about 200 years of colonial rule, India was left impoverished to rank among the poorest economies in the world. Yet, India is on the rise again. Over the last three decades, India’s spectacular economic growth at an average rate of 6% per annum has been unique in nature as it is fuelled largely by domestic consumption and unprecedented growth of its industrial and service enterprises. With its vast and good quality human capital resources, and demographic dividend of low median age of 25 years and very low dependency ratio of 7.5%, Indian market consisting of about half a billion middle and lower middle class consuming population presents a golden opportunity of strategic business development opportunities for capital and technology rich economies such as Japan and United States.
This research shall seek to explore how the three large democracies can use their respective social, cultural, political and economic resources to form productive business alliances that can create win-win-win outcomes for all. It shall aim to identify the legitimate foundations of such business alliances and explore how to develop sustainable business ventures that address the needs of their vulnerable populations. Earlier this month a brainstorming workshop was organized in Washington DC jointly by Kyoto University and US-Japan Research Institute where American and Japanese University scholars from different disciplines reflected on the potential and prospect of US-India-Japan Business Alliances (USINJA). The report of the workshop is enclosed as Appendix A. This research shall follow on the leads given by various scholars at the workshop.