Government-business Relationship Research Articles

The Public Corporation: A Potent Japanese Policy Weapon

The Japan Electronic Computer Company (JECC) has no sales division, only a couple hundred employees, and at best earns profits of one to two million dollars a year; it is not surprising that few Japanese have ever heard of it. Yet, this quasi-private computer rental company has played a critical role in the development of a modern Japanese computer industry. Japan, like other industrialized nations, has used public corporations to provide important public services such as railroads and airlines. But the bureaucracy has also used an array of public corporations as operating arms of specific ministries to serve their purposes.' Some, like JECC, have been key players in Japan's efforts to target strategic industries. JECC, which was created by the Ministry of International Trade and Industry (MITI) to promote the development of an economically viable computer industry, has been the most important single institution spurring the industry's development. Analysis of how it was established and how it influenced the demand, supply, price, and technological sophistication of domestic computers offers new insight into Japan's government-business relationship and the ways in which state intervention can spur rather than stifle industrial development. To the all-star team of Japanese computer companies that jointly own JECC Fujitsu, Hitachi, NEC, Toshiba, Mitsubishi, and Oki -the rental company is a conduit for a generous flow of subsidized government loans. Between 1961 and 1981 the Japanese government poured some $2 billion in low-interest loans into

The Institutional Foundations of Japanese Industrial Policy

It is a common error to try to translate the concepts and basis for the Japanese governmentbusiness relationship into English-speaking terms and Anglo-American institutions. This article analyzes the unique history and functions of the Japanese institutions of government and business and examines the ways in which their interrelationship has been critical to Japan9s remarkable economic achievements in the past thirty years.

The Bureaucrat

America's dim view of the bureaucrat needs reassessment because professional standards review organizations (PSROs) and national health insurance will increase the amount of contact between physician and bureaucrat. Inevitable conflict between The Organization and the physician is aggravated by the government-business adversary relationship based on constitutionalism. With more public funds, the budget-based health institution may acquire more of the characteristics of bureaucracy. For better understanding, the bureaucrat is described, and his main types and natural history outlined. Contrasts between business and government as revealed by interchange of executives are reported. Remedies for better interaction are suggested, including liaison groups and use of the apolitical, career bureaucrat. Rules for dealing with bureaucracies are listed, including The Constituent's Letter.