IDEAS home Printed from https://ideas.repec.org/p/tky/fseres/2000cf69.html
   My bibliography  Save this paper

Government-Firm Relationship in Postwar Japan: Success and Failure of the Bureau-Pluralism

Author

Listed:
  • Tetsuji Okazaki

    (Faculty of Economics, University of Tokyo)

Abstract

In this paper, we identify the common organizational and institutional factor behind the success and failure of the Japanese economy, focusing on the industrial policy and the government-firm relationship. The key concept is the bureau-pluralism. The bureau-pluralism in Japan is an outcome of path dependent evolution of the economic system. Based on the experiences during WWII, the bureau-pluralistic system, including deliberative councils and industrial associations, evolved, which worked efficiently to coordinate economic growth in 1950's and the high growth era. Its effectiveness was supported by the condition that industries were highly complementary in this period. Consequently, on one hand, there were few serious conflicts among industries and their counterparts in the bureaucracy, which made it possible to avoid the bad influence of the conservative bias, due to the vested interests of the existing industries. On the other hand, this complementarity was sources of numerous coordination failures in the various aspects of the economy. In order to detect and resolve these coordination failures quickly, the decentralized decision making and horizontal coordination of the bureau-pluralism worked efficiently. However, the same attribute of the bureau-pluralism impeded the Japanese economy to adapt to the change of the global economy since 1980's. First, the newly growing industrial fields as information and telecommunication, were across the border of existing industries and therefore the bureaucratic jurisdiction, which caused serious jurisdiction disputes among ministries. Second, the reforms necessary to adapt to the global change collided with the interests of the existing industries and ministries. Those jurisdiction disputes and the conflicts with the vested interests are difficult for the bureau-pluralism to resolve.

Suggested Citation

  • Tetsuji Okazaki, 2000. "Government-Firm Relationship in Postwar Japan: Success and Failure of the Bureau-Pluralism," CIRJE F-Series CIRJE-F-69, CIRJE, Faculty of Economics, University of Tokyo.
  • Handle: RePEc:tky:fseres:2000cf69
    as

    Download full text from publisher

    File URL: http://www.cirje.e.u-tokyo.ac.jp/research/dp/2000/2000cf69.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marcus Noland & Howard Pack, 2002. "Industrial Policies and Growth: Lessons From International Experience," Central Banking, Analysis, and Economic Policies Book Series, in: Norman Loayza & Raimundo Soto & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Editor) (ed.),Economic Growth: Sources, Trends, and Cycles, edition 1, volume 6, chapter 9, pages 251-308, Central Bank of Chile.
    2. W. R. Garside, 2012. "Japan’s Great Stagnation," Books, Edward Elgar Publishing, number 14624.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tky:fseres:2000cf69. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CIRJE administrative office). General contact details of provider: http://edirc.repec.org/data/ritokjp.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.