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Unformatted text preview: 3-13-08
Lecture 16 Japan- Political Economy Political Economy of Japan Export orientates Egalitarian income distribution at home Small state Powerful government agencies Market conforming policies Miti Now Meti and MoF Ministry of economic trade industry Ministry of finance Key actors in economic policy Objectives Enhance competitiveness of firms in global markets Select future technology, firms, and sectors with competitive edge Facilitate restructuring of declining sectors 1950's 1960's Emphasize heavy industry, shipping, and steel Used control over foreign exchange and trade protectionism Captive firms dependant on Miti 60's and 70's Trade protectionism in heavy industry dismantled Oversee restructuring of declining industries Put technology on agenda Technology transfers as price to enter Japanese market 80's and 90's Further liberalization of the economy Specific elements Close cooperation between firms and ministries Firms cooperate on basic issues Compete in domestic market Technology transfers Publicly financed research consortium Two Riddles What role did the LDP play? And Japan has been in a recession for the last 12 years Economic Crisis Large firms are thriving Other side of the economy Small firms where everyone is employed Collapse of Asset Bubble Conclusion Odd political system Run by bureaucrats Who are blocked by politicians Difficult to address challenge LDP is tied too specific interest Bureaucrats cannot overrule LDP Appease Voters Alliance with construction companies Campaign financing ...
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