Adjustment to Stagflation and Neoliberal Reforms in Japan, the United Kingdom, and the United States

Abstract

This article explains why the stagflation and neoliberal reforms that reinforced party polarization in the United Kingdom and the United States instead led to party convergence in Japan. In Japan, industry-centered adjustment and bureaucratic coordination distributed the costs of policy changes across societal groups and facilitated party convergence, whereas the lack of such societal and state institutions in the United Kingdom and the United States led to policy changes with polarizing consequences. Focusing on industry-centered adjustment brings the unions back into Japanese politics and provides an alternative to the pluralism-neocorporatism dichotomy of organizing societal interests. Bureaucratic coordination not only includes the opposition in the framework but also provides a more nuanced view than is assumed in the debate over whether the ruling party of the bureaucracy dominates the Japanese state. When combined, these conceptualizations of market and state go a long way toward explaining the dynamics of party competition.