Download PDF by Bai Gao: Economic Ideology and Japanese Industrial Policy:

By Bai Gao

ISBN-10: 0521894506

ISBN-13: 9780521894500

Throughout the nice melancholy and global warfare II, the ideology of developmentalism--characterized by way of a nationalistic point of view, a construction orientation, and a strategic view of the economic climate, together with restraint of industry pageant and rejection of the revenue principle--emerged and strongly encouraged coverage innovation in Japan and institutional reforms in its economic system. Liberal capitalism within the postwar period eradicated the army nature of the japanese financial system, and compelled developmentalism to evolve to democratic political associations and the unfastened exchange regime.

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Additional resources for Economic Ideology and Japanese Industrial Policy: Developmentalism from 1931 to 1965

Example text

It includes no concept of an entity that deals with the economy as a collective actor, equivalent to the concept of the individual. Even when the collective actor is considered, the conceptualization in Western economics tends to be very abstract. Many countries engaged in economic planning between the two world wars. These plans were governed by neither the "absolute god" nor the "invisible hand," but rather by a group of human beings working under the name of the state. Without understanding the role of the state, one cannot interpret the operation of the modern economy.

With such a character, Jissen-ha economics distinguishes itself from two major factions in Japanese academic economics: marukei (Marxist economics) and kinkei (modern economics, including all non-Marxist economics developed since the "marginal revolution" except the German historical school and institutional economics) 18 Ideology of Japanese developmentalism 19 (Hayasaka, Masamura, Takeyama, Hamaguchi, Shibata, and Hoshino 1974:14-15). To a large extent, Jissen-ha economics represents the major propositions of Japanese developmentalism.

In other words, the state not only shapes the way in which economic actors perceive the world, it also deprives them of the power of independent judgment. By persuading economic actors to accept a "definition of the situation," the state gains some control over the outcomes because "how a problem is defined determines the nature of the solution" (Jacobsen 1995:292). As a result, these paradigms reflect both the wisdom and the cognitive constraints of the developmental state in each era, which reveal the historical nature of Japanese developmentalism.

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Economic Ideology and Japanese Industrial Policy: Developmentalism from 1931 to 1965 by Bai Gao


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