Industrial policy of Japan
The industrial policy of Japan was a complicated system devised by the
Administrative guidance (gyōsei shidō 行政指導) is a principal instrument of enforcement used extensively throughout the Japanese government to support a wide range of policies. Influence, prestige, advice, and persuasion are used to encourage both corporations and individuals to work in directions judged desirable. The persuasion is exerted and the advice is given by public officials, who often have the power to provide or to withhold
arrangements. The Japanese use administrative guidance to buffer market swings, anticipate market developments, and enhance market competition.Mechanisms used by the Japanese government to affect the economy typically relate to trade, labor markets, competition, and tax incentives. They include a broad range of trade protection measures, subsidies, de jure and de facto exemptions from antitrust statutes, labor market adjustments, and industry-specific assistance to enhance the use of new technology. Rather than producing a broad range of goods, the Japanese selected a few areas in which they could develop high-quality goods to produce in vast quantities at competitive prices. A good example is the camera industry, which since the 1960s has been dominated by Japan.
Historically, there have been three main elements in Japanese industrial development. The first was the development of a highly competitive manufacturing sector. The second was the deliberate restructuring of industry toward higher
Japan has few
After World War II, the initial industries that policy makers and the general public felt Japan should have were
Although industrial policy remained important in Japan in the 1970s and 1980s, thinking began to change. Government seemed to intervene less and become more respectful of price mechanisms in guiding future development. During this period, trade and direct foreign investment were liberalized, tariff and nontariff trade barriers were lowered, and the economies of the advanced nations became more integrated, as the result of the growth of international trade and international corporations. In the late 1980s, knowledge-intensive and high-technology industries became prominent. The government showed little inclination to promote such booming parts of the economy as fashion design, advertising, and management consulting. The question at the end of the 1980s was whether the government would become involved in such new developments or whether it would let them progress on their own.
See also
- Economy of Japan
- Government-business relations in Japan
- Amakudari: retired bureaucrats joining the ranks of Japanese companies
References
- This article incorporates text from this source, which is in the public domain. Country Studies. Federal Research Division. - Japan