Japanese Cooperative Legislation Impacting the Cooperative Structure and Culture

Abstract

AbstractJapanese cooperatives have grown to world-class organizations in some respects. However, they are institutionally and organizationally divided in Japan’s political economy, lacking the sense of identity as ‘one cooperative sector’. This phenomenon can be explained from the prevailing socio-economic environment while it is partly due to the peculiar legal framework, that has given impacts in the path-dependent evolution of cooperatives. This chapter gives an overview on Japan’s cooperative legislation to explain its characteristics, including fragmented cooperative legislation, elements of organizational law mingled with those of business laws, strong control and promotion by ministries in line with industrial policies, hindering the free establishment of cooperatives to meet new needs, delay in modernization of cooperative legislation. It describes some aspects of the Japanese cooperative legislation in the establishment, membership and activities. Then it analszes how it has impacted in forming the cooperative structure and culture. Finally, it concludes with some suggestions to improve cooperative legislation, thereby enhance the cooperative status in the political economy and its contribution to sustainable and resilient development.