Consequences of the Fukushima Daiichi nuclear disaster

The Fukushima nuclear disaster is maybe the most poignant event of this early twenty-first century. It deeply changed Japanese relations with foreign countries and the public opinion and perception of nuclear energy. 

Before the storm

Prior to the disaster, the Fukushima prefecture was a peaceful rural area specialised in agriculture. With approximately 70,000 farmers, it was considered as the granary of Japan, providing food to millions of people all over the country.
The prefecture was also famous for its numerous landmarks and monuments. For example, the childhood home of Hideyo Noguchi (a bacteriologist known for his tremendous contribution to modern medicine, who has been printed on the ¥1000 banknotes since 2004) and the Tsuruga castle are both important cultural heritage. That is why the prefecture was one of the favourite destinations for domestic tourism.

Background

Japan was hit by the biggest natural disaster in its history on Friday 11 March 2011. The Fukushima Daiichi Nuclear Power plant was severely damaged by the catastrophe, leading to the second nuclear disaster of our century after Chernobyl.

This catastrophe had dramatic economic, environmental, and social consequences. Official casualty figures stand at more than 20,000 people killed and thousands heavily contaminated by radiation.
A chain of solidarity was naturally set up. The central government, which was already very indebted, had to borrow a substantial amount of money to support the victims in the terrible ordeal they were going through.

Energy transition

Consequently, the Japanese asked for an immediate withdrawal from nuclear energy and large demonstrations erupted across the country. As protests grew day by day, the Japanese government was forced to change its pro-nuclear policy in haste.

Nevertheless, Japan was the world’s third largest nuclear energy producer. Despite this, it was very difficult for its economy to adapt to such a change. Prior to the disaster, nuclear energy accounted for approximately 30% of the energy production of the country and the government was planning to increase the share of nuclear energy in the coming years, aiming to reach 50% by 2030.

Why such interest in nuclear energy?

For decades, the worst nightmare of the Japanese people was to become dependent on other countries. Nuclear energy was by far the best way to maintain its independence, providing a tremendous amount of energy to sustain the needs of energy of national companies.
Unfortunately, it’s because of this same source of energy that Japan became fully dependent on foreign countries. In fact, the country has to import a large amount of oil and natural gas from the Middle-Eastern countries and has to deal with daily cost variations.

Aftermath

In the wake of the disaster, the Japanese economy entered into a period of strong recession. Almost all sectors of the economic activity were hit by the crisis. The industrial production was severely impacted as the Fukushima power plant was the main energy source of the Kantô region, which accounts for approximately 45% of the national GDP. 

• Major Japanese companies have been heavily affected. For instance, Toyota lost its leadership in the automotive sector to the American giant General Motors. The company’s “just-in-time” strategy revealed its biggest weakness as damages caused by the disaster paralyzed the whole production line.
• It has also had a very strong impact on international trade. Renesas Electronics, the world’s largest automobile semiconductor maker lost several key factories. As Asian economies are deeply interconnected, countries such as Malaysia have experienced falls in production. 
• Fukushima accounted for approximately 40% of the Japanese food production. Consequently, as the prefecture was now irradiated, the country had to find new procurement methods and started to massively import foodstuffs from China. Even nowadays the country is greatly dependent on its Chinese neighbours.

Nevertheless The Fukushima disaster is not the sole source of economic problems. Japan has been in a deep crisis since the explosion of the "real-estate bubble" in the early 90s.

Written by ARRIGHI V.