They actually just allow a lot less space. We like to wait until the person is across the street, or other vehicle is across the intersection, before going. If they miss by a foot / 300mm they missed. This is one reason for accidents. If you have near misses all of the time, sooner or later you will hit.
It would actually be a good idea to have a flashing red light on your back, if you walk around the streets of these countries at night, so you can be seen. I am sure you would attract comments from those who think this is a bit extreme.
With so little space given, I wonder how motorists feel if someone "accidentally" scratched up the paint job on his luxury vehicle because he's so close. Maybe they don't care.