Planning for Change: Industrial Policy and Japanese Economic Development 1945-1990

by James E. Vestal

Overview

In addition to providing an overview of Japanese development and industrial policy measures used during the 1945-1990 period, this book assesses the contribution that industrial policy made to Japan's phenomenal economic success. James Vestal concludes that a stable, gradual, and long term perspective was key to Japan's development, rather than "picking winners." Policy makers selectively blocked competition in inefficient sectors in order to maintain employment, which was necessary given that Japan's productive capital was decimated in the war. Barriers to competition were raised as the Japanese economy became able to provide full employment at above subsistence wages. Given the enormous upheaval associated with introducing a competitive market structure, the Japanese case has important lessons for Russia and Eastern European nations today.

Product Details

ISBN-13:	9780198288084
Publisher:	Oxford University Press
Publication date:	01/27/1994
Pages:	256
Product dimensions:	6.38(w) x 9.50(h) x 0.86(d)

About the Author

Keio University

Table of Contents

List of FiguresList of Tables1. Introduction2. Economic Recovery, Rapid Growth, and Industrial Policy2.1. Post-War Recovery and the Occupation of Japan (1945-1952)2.2. The Second Chance: Industry Rationalization, Modernization, and Growth (1952-1960)2.3. Trade Liberalization in a Maturing Economy (1961-1970)2.4. Fragmenting National Consensus and External Shocks (1970-1973)3. Methodological Issues in Evaluating Japanese Industrial Policy3.1. A Simple Dynamic Framework3.2. Policy Optimality, Policy Feasibility, and Policy Effectiveness3.3. Historical View of Industrial Policy4. Evidence on the Efficacy of Industrial Policy During the High-Growth Period4.1. The Rationality of Industrial Policy4.2. The Impact of Industrial Policy on Resource Allocation4.3. Policy Impact on Potential Growth4.4. Institutional Requirements for Policy Efficacy5. Industrial Policy and the Japanese Steel Industry (1945-1990)5.1. Priority Production and the Japanese Steel Industry (1946-1949)5.2. Rationalization and Modernization (1950-1960)5.3. Trade Liberalization, Mergers, and Excess Capacity (1961-1973)5.4. Industrial Policy Towards a Declining Steel Industry (1971-1990)5.5. Evaluating Industrial Policy Towards Steel6. Lessons for Developing Countries6.1. Policy Success and Failure: Economic Insights6.2. The Favours of History6.3. Implementing Industrial Policy in Other Developing Nations7. External Shocks, Industrial Policy, and the Search for Balanced Growth7.1. Adjusting to the Oil Crises (1973-1981)7.2. Administrative Reform, Export-Led Growth, and Trade Friction - the Search for Balanced Development (1981-1990)8. Evaluating Recent Industrial Policy (1973-1990)8.1. Reaction to the Oil Crises: Policy Rationality and Policy Impact in the 1970s8.2. Policy Rationality and Policy Impact in the 1980s8.3. Lessons for Industrialized Nations9. Japanese Industrial Policy, Past and Future9.1. Industrial Policy as an Explanation for Growth9.2. The Future Role of Industrial Policy in Japan9.3. Some QualificationsBibliographyIndex

Editorial Reviews

"This book is must reading for everyone interested in industrial policy...Anyone who thinks they are following the Japanese model for developing economies or for industrialized nations should read this book with care."—Manufacturing Competitiveness Frontiers

"Of particular relevance to the LDCs and to the ex-communist countries....The similarities and differences of problems, and the lessons for the former communist countries, struck this reviewer from the first pages of the book. Recommended to upper-division undergraduates, graduate students, researchers, and policy makers throughout the world."—Choice

"This book is must reading for everyone interested in industry policy. Japan is almost always used as the example of successful industrial planning. Everyone using the Japanese model seems to have a different understanding of the Japanese experience. In this well-documented book the author does an excellent job of putting the Japanese experience in perspective."—Manufacturing Competitiveness Frontier

From the Publisher