MITI and the Japanese Miracle: The Growth of Industrial

MITI and the Japanese Miracle: The Growth of Industrial

MITI and the Japanese Miracle: The Growth of Industrial Policy, 1925-1975 ❰KINDLE❯ ❆ MITI and the Japanese Miracle: The Growth of Industrial Policy, 1925-1975 Author Chalmers Johnson – Larringtonlifecoaching.co.uk The focus of this book is on the Japanese economic bureaucracy particularly on the famous Ministry of International Trade and Industry MITI as the leading state actor in the economy Although MITI was The the Japanese Miracle: The eBook í focus of the Japanese PDF È this book is on the Japanese economic bureaucracy particularly on the famous Ministry of International Trade and Industry MITI as the leading state actor in the economy Although MITI and PDF \ MITI was not the only important agent affecting the economy nor was the state as a whole always predominant I do not want to be overly modest about the importance of this and the Japanese MOBI õ subject The particular speed form and conseuences of and the Japanese Miracle: The MOBI :å Japanese economic growth are not intelligible without reference to the contributions of MITI Collaboration between the state and big business has long been acknowledged and the Japanese Miracle: The MOBI :å as the defining characteristic of the Japanese economic system but for too long the state's role in this collaboration has been either condemned as overweening or dismissed as merely supportive without anyone's ever analyzing the matterThe history of MITI is central to the economic and political history of modern Japan Eually important however the methods and achievements of the Japanese economic bureaucracy are central to the continuing debate between advocates of the communist type command economies and advocates of the Western type mixed market economies The fully bureaucratized command economies misallocate resources and stifle initiative; in order to function at all they must lock up their populations behind iron curtains or other or less impermeable barriers The mixed market economies struggle to find ways to intrude politically determined priorities into their market systems without catching a bad case of the English disease or being frustrated by the American type legal sprawl The Japanese of course do not have all the answers But given the fact that virtually all solutions to any of the critical problems of the late twentieth century—energy supply environmental protection technological innovation and so forth—involve an expansion of official bureaucracy the particular Japanese priorities and procedures are instructive At the very least they should forewarn a foreign observer that the Japanese achievements were not won without a price being paid.


8 thoughts on “MITI and the Japanese Miracle: The Growth of Industrial Policy, 1925-1975

  1. Oliver Kim Oliver Kim says:

    A book in dire need of an update only 18 tables in 320 odd pages and not a graph to be seenStill it's clear why this became The Book on Japanese postwar growth Johnson makes a convincing case for the centrality of the bureaucracy in Japan's economy and explains the intricacies of that institution in painstaking detail down to the biography of every last mid level bureaucrat It can make for hard reading but there's a reason this book has remained the go to reference about MITI for nigh on forty yearsWhat I wished for was a little analysis of the economic context There's almost no treatment of economic agents outside of MITI and little discussion of how Japan's economy might have evolved in a counterfactual MITIless world At the very least a simple chart of Japanese GDP with various MITI policy changes on top would have worked wonders for comprehensionFor economists I would recommend skipping chapters 2 4 which cover MITI's pre war roots It's interesting historical context but not vital to Johnson's argument MITI doesn't even pop up until page 191When I read economics I usually find myself demanding context institutional detail real world earthiness to ground the abstract modeling With this book I found myself craving precisely the opposite


  2. Chelsea Szendi Chelsea Szendi says:

    You probably won't be too pleased to have to read all those names of bureaucrats they really do break up the prose but I think we are all glad that they are there just in case we need to look for them someday An earnest and thorough work that was immune to the frenzy of the Japan as Number One moment in which it was writtenHow's this for restraint though Johnson deems it deeply impudent that MITI refers to 1935 1955 as its “Golden Era


  3. Stevenglinert Stevenglinert says:

    Was just thinking about this book todayThis was such a lifechangingly good bookImportant for anyone interested in economic development even it talks about the 70s


  4. Rakesh Rakesh says:

    Must read book on development economics which explains how Japanese state directed capitalism led to what became famous as 'The Japanese Miracle Japanese state interventionist policy came into existence after failed outcome of state controlled economy as well as Laissez faire As the title suggests book narrates the Japanese development process through evolution of its economic bureaucracy MITI which according to author played central role in Japanese developmentState directed economy ensured that national economic interests takes precedence over individual's profit maximizing tendencies Model was simple MITI will identify strategic sectors ensure maximum capital allocation technology absorption and provide protection from foreign capital and foreign firms Domestic consumption free from foreign competition allows firms to achieve economy of scale which makes them cost competitive Govt limited competition to 2 3 major players to prevent unhealthy misadventures of free market over capacity and price wars Once firms become internationally competitive open those sectors to take benefits of international trade and access to foreign markets There is nothing new in Japanese model mostly derived from Alexander Hamilton's protectionism Friedrich List's nationalist economy and German cartel systemWhat made Japanese experience uniue is successful implementation of model across large number of industries through co operative relationships with private sector who were uite willing for government assistance Johnson categorically rejects popular theory of attributing growth story to Japanese culture of co operation He argues co operation developed as public consensus from historical experiences of poverty and freuent wars Thus development took precedence over everything else Secondly MITI as an institution manned by best talent showed tremendous flexibility to adopt to changing external economic situations Success of MITI also highlights importance of developing next generation of leaders which provide continuity of policies over decades There are plethora of names mentioned in the book which sometimes become confusing Yoshino and Kishi discovered the policy in 1920s which was carried over to 1960s by their proteges Yamamoto Tamaki Hirai Ishihara Sahashi and othersHowever book remains totally silent on contribution of agriculture in initial phase of industrialization which is a let down because of important role Japanese agriculture had played in laying the foundation of industrialization


  5. Ray Hatta Ray Hatta says:

    Though dated the book is essential in understanding not only the modern economy of Japan but also its politics such as the infamous 'Iron Triangle' system amongst others Johnson attributes Japan's economic miracle almost solely on the developmental state which in light of the 1991 collapse of Japan's asset price bubble and ensuing 'Lost Decade' is a highly contentious view at bestDespite this I would definitely recommend the book not only for those wishing to understand Japan's economy but also the dynamics of the developmentalist stateAfter reading this book I would suggest Richard Katz's Japan the System that Soured which in contrast argued the developmental state was instead an obstacle to Japan's continued economic success


  6. Phil Eaton Phil Eaton says:

    An excellent if not disputed and a little dated introduction to the foundations of the modern Japanese economy


  7. morning Os morning Os says:

    This is a classic work in Japanese economic history and political economy in general The details probably exhaust you but it's an important work


  8. Jee Jay Jee Jay says:

    I read this as part of studies for my undergraduate degree in Japanese Difficult to understand but a fascinating subject of study I would like to read it again but have long gotten rid of it


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