“Miti Contributed Significantly to Japan’s Economic Success”. Write Your Arguments for and Against to This Statement
Introduction:
The Ministry of International Trade and Industry (MITI) was one of the most powerful agencies of the Government of Japan. At the height of its influence, it effectively ran much of Japanese industrial policy, funding research and directing investment (Ito, 1997, p.196). Today Japan has the second largest economy in the world and its growth is the envy of most of the world. After the Second World War, Japan underwent a recovery and then experienced a period of extremely high economic growth. In fact, Japanese economy increased fifty five fold in the post war period from 1946 to 1976 (Johnson, 1982, p. 6). In the period of 1950 to 1973, the Japanese economy expanded by almost 10% a year (Alexander, 2008). However, Japan’s post-war economic recovery and growth has stimulated extensive discussion as to what was the source of the phenomenal growth. Because of the conception that Japan has a bureaucracy that dominates decision making, and the belief that the Ministry of International Trade and Industry (MITI) actually devised and directed the economic miracle. In particular, Chalmers Johnson (1982) stressed the role of the MITI and sparked a debate about Japan's success as a developmental state. Others were skeptical on the almost mythical power of foresight attributed to industrial policy of the MITI (Okimoto, 1989). This essay will evaluate the extent to which the Japanese Government main planning agency - MITI has contributed to Japan’s economic success. Further, some counterarguments will be discussed in this essay.
Positive impact of MITI
The Japanese economic bureaucracy, particularly MITI has been the leading player in the performance of the Japanese economy. In some studies, emphasis on the MITI is such that it is not simply a variable in the explanation of Japan’s ‘economic miracle’, it has become the explanation. As Chalmers Johnson claimed that “it appeared on a superficial reading to give substance to the allegation of monolithic
The Ministry of International Trade and Industry (MITI) was one of the most powerful agencies of the Government of Japan. At the height of its influence, it effectively ran much of Japanese industrial policy, funding research and directing investment (Ito, 1997, p.196). Today Japan has the second largest economy in the world and its growth is the envy of most of the world. After the Second World War, Japan underwent a recovery and then experienced a period of extremely high economic growth. In fact, Japanese economy increased fifty five fold in the post war period from 1946 to 1976 (Johnson, 1982, p. 6). In the period of 1950 to 1973, the Japanese economy expanded by almost 10% a year (Alexander, 2008). However, Japan’s post-war economic recovery and growth has stimulated extensive discussion as to what was the source of the phenomenal growth. Because of the conception that Japan has a bureaucracy that dominates decision making, and the belief that the Ministry of International Trade and Industry (MITI) actually devised and directed the economic miracle. In particular, Chalmers Johnson (1982) stressed the role of the MITI and sparked a debate about Japan's success as a developmental state. Others were skeptical on the almost mythical power of foresight attributed to industrial policy of the MITI (Okimoto, 1989). This essay will evaluate the extent to which the Japanese Government main planning agency - MITI has contributed to Japan’s economic success. Further, some counterarguments will be discussed in this essay.
Positive impact of MITI
The Japanese economic bureaucracy, particularly MITI has been the leading player in the performance of the Japanese economy. In some studies, emphasis on the MITI is such that it is not simply a variable in the explanation of Japan’s ‘economic miracle’, it has become the explanation. As Chalmers Johnson claimed that “it appeared on a superficial reading to give substance to the allegation of monolithic