MITI and the Japanese Miracle

MITI and the Japanese Miracle: The Growth of Industrial Policy, 1925-1975 (ISBN: 9780804712064) was written by Chalmers Johnson, published by Stanford University Press in 1982.

Industrial policy as economic nationalism

• "scientific management" (Frederick Taylor)
  • sharing technology, killing bad enterprises, etc.
• MITI believes domestic firms are too rigid, need intervention

Meiji Japan setup a strong PM and bureaucracy, weak emperor and parliament

• a power check against powerful provinces (Satsuma, Choshu)
• apolitical bureaucracy to broadcast 'European-ness'

Civil service exams are difficult but passing means a guaranteed career

• prestige of Todai Law
• Exam B passers become permanent staff
• Exam A passers circulate throughout bureaucratic division to gain experience
• typical age at retirement/amakudari: 50s
  • managed by vice ministers

Economic boom of 1930s resulted from MOF Takahashi Korekiyo's "reflation" expansive monetary policy.

SCAP broke up military, weakened parliament further, and put pressure on zaibatsu

• bureaucracy (except for Ministry of Home Affairs) left alone; now effectively an unchecked power
• bureaucracy grew 84% in 3 years
• policy written by shingikai
• ministers appointed by parliament; all other bureaucrats are careers
• Ministries of Agriculture and Education were politicized, but MITI avoided this

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