Why Japan Can't Reform: Inside the System

At The Start Of The 1990s Japan's Post War Economic Success Came To An Abrupt End, And The Country Slid Into A Decade Long Recession From Which It Has, On Many Levels, Still Not Recovered. This Book Examines The Institutional Factors In The Japanese System Of Government Administration That Have Paralyzed The Decision-making Process And Prevented The System From Accommodating The Ever Changing Demands On The Domestic Front And The Global Political Economy. It Argues That The Current Model Defies Structural Reform And Frustrates The Implementation Of Economic And Social Policies That Can Resolve The Problems That Have Challenged The Japanese For Years. Excerpts From Interviews Conducted With Japanese Bureaucrats Reveal How Their Government Views The United States, Japan's Protector In The Pacific And Its Second-largest Trading Partner. The Interviews Are Particularly Relevant To The Economic Dilemma That The Japanese Are Facing Currently Due To Japan's Dependency On The United States. They Also Provide An Invaluable Insight Into Why Japan Has Yet To Integrate Into The International Community.--jacket. Part I The System -- Chartered Corporations 6 -- Window Of Opportunity For Structural Reforms 6 -- In Name Only 7 -- Why Reform? 8 -- Maintaining Territory 10 -- Japan's Foreign Direct Investment And The Implications Of Amakudari 10 -- The Image Of Reform 12 -- The Image Of Reform: Privatization Of The Japan Highway Corporation 13 -- The Image Of Reform: Dissolution Of The Japan National Oil Corporation 16 -- The Image Of Reform: Amakudari 17 -- Koizumi's Legacy: Privatization Of Japan Post 19 -- Koizumi's Legacy: 2004 Reform Of The State Social Security System At A Price 21 -- Social Insurance Agency: Special Corporations/iai 22 -- Koizumi's Legacy: An Increase In Public Debt 25 -- Koizumi's Legacy: What Fiscal Policies Perpetuated 25 -- Conservatism According To Abe: Japan Inc. Prevails 28 -- Accessing The Real Story: Research Methodology 32 -- The Book's Objectives 37 -- 2 The Development Of The System 39 -- The 'ruling Triad' 39 -- The Meiji Period (1868-1912): In The Beginning 40 -- Ministerial Cooperation With Family-owned Oligopolies (zaibatsu) 45 -- Taisho Period: The Age Of Liberalism 48 -- The Showa Period And The Empowerment Of Bureaucracy: An Enduring Relationship With The Oligopolies And The Development Of Industrial Policy 51 -- Second World War: The Intensification Of Ministerial Powers 54 -- Social Welfare And Corporate Culture 55 -- 3 The Elite Bureaucracy: The Image Of Reform 57 -- Japanese-style Democracy: A One-party System 61 -- Ministerial Policies 1971: The System Continues 64 -- Ministerial Policies 1974-: The System Continues 65 -- 4 Amakudari: The Ties That Bind The Bureaucracy With The Private And Public Sectors And Politics 69 -- Ministerial Manipulation Of Amakudari In Special Corporations/iais 71 -- Amakudari To Research Institutes 72 -- Amakudari To Central Government Advisory Panels 73 -- Amakudari To Public Office 73 -- Amakudari To The Private Sector 74 -- Amakudari And 'administrative Guidance' 75 -- Amakudari And 'window Guidance': Non-performing Loans 76 -- The Bureaucracy And Bid-rigging: Special Corporations/iai's At The Centre 79 -- The Post-war System Sustained 80 -- 5 Interpersonal Networks In The 'ruling Triad' 83 -- Pork-barrel Patronage In The Prefectures 84 -- The Bureaucracy, Big Business And The Ldp 86 -- The Boj And The Private Sector 87 -- The Bureaucracy And Big Business: The Ministry Of Defence And Trading Companies 89 -- The Bureaucracy And Bid-rigging 92 -- The Bureaucracy And Big-business: Meti's Network With Retailers And Manufacturers 93 -- Part Ii Inside The System -- 6 The Elite Bureaucracy: Prisoners Of The System 103 -- The Rigorous Path Of The Elite 105 -- Escape From The System: Temporary Relief From Constant Pressure From Peers And Superiors 106 -- The Asset-inflated Economy Spurs Expansion Abroad 108 -- Escape From Their System 111 -- Perspectives About America From Inside The System 112 -- 7 The Interviews 114 -- Impressions Of America During Childhood 116 -- Education About America 119 -- Initial Exposure To Foreigners 121 -- Introduction To American Society 122 -- American Society/japanese Society 124 -- Media Coverage Of Japan And The United States 131 -- Japan-us Trade Relations 133 -- Why Can't The Japanese Internationalize? 135 -- Too Little Too Late: What Ministerial Policies Have Wrought 139 -- At The Root Of The Problem: Institutional Paralysis 143 -- Why Can't Japan Reform? 145 -- Conservatism According To Koizumi And Abe: The Kishi Connection 145 -- The Future: Resignation And Fear? 147. Susan Carpenter. Includes Bibliographical References (p. 150-162) And Index.