Arthritic Japan : the slow pace of economic reform / Edward J. Lincoln.

Format:

Book

Author/Creator:

Lincoln, Edward J.

Language:

English

Subjects (All):

Japan--Economic conditions--1989-.

Japan.

Economic conditions.

Japan--Economic policy--1989-.

Economic policy.

Physical Description:

xii, 247 pages : illustrations ; 24 cm

Place of Publication:

Washington, D.C. : Brookings Institution Press, [2001]

Summary:

In the late 1980s, Japan's strong economic performance put it on the verge of becoming a major player in regional and global affairs. But nearly a decade of economic stagnation, a mountain of bad debts, and a continuing stream of scandals have tarnished the country's distinctive economic model. At the turn of the millennium, the Japanese economy remained mired in a pattern of stagnation. As this disappointing condition dragged on, the government pursued policies to restore economic health. Yet Japan has been slow to embrace the systemic reform on which a robust economic recovery depends.

In Arthritic Japan, Edward J. Lincoln examines the causes and implications of this weak response. Concluding that Japan is unlikely to pursue the vigorous reform necessary for economic growth, Lincoln warns of serious consequences: a stumbling economy bedeviled by recession and financial crisis, eroding leadership in economic and security issues, a continued defensive trade posture, and a disgruntled population that could turn toward a more nationalistic stance in foreign policy.

Contents:

2 The Postwar Economic System 16

Banking Bias and Horizontal Keiretsu 19

Corporate Governance 26

Vertical Keiretsu 31

Restrained Price Competition 34

Labor Markets 38

Industrial Policy 41

Attractiveness 50

Interconnections 52

3 The Argument for Change 56

The Macroeconomic Spur to Change 58

Inefficiencies 69

Inherent Flaws 77

Globalization 90

4 Vested Interests 94

The Rural Sector 98

Lifetime Employees 101

Government Workers 103

The Construction Sector 107

The Distribution Sector 109

Small Manufacturing Firms 113

Homeowners 115

5 Consistency with Society 121

Social Features 125

Implications for the Economic System 133

6 Weak Outcomes 153

Deregulation 154

Administrative Reform 164

Continuing Government Role in the Economy 173

Private-Sector Restructuring 186

7 Implications for American Policy 201

Implications for Bilateral Economic Relations 208

Diplomatic-Political Relations 213

Security 217.

Notes:

Includes bibliographical references (pages 223-238) and index.

ISBN:

0815700741

0815700733

OCLC:

47364049