The Planning Mind – The Spirit of Japan's Political Economy

Abstract

From the mid 1940s Japan's economy was transformed from semi-industrialised to a modern industrial state. In that time the economic drive was supported by almost thirty years of high growth and was then maintained through the subsequent steady growth environment following the oil crisis in 1972. But now in 1995 the economy is struggling to restore its once well defined purpose and closely sustained vitality.

There is pressure at home for Japan to deregulate and withdraw its public planning in favour of entrepreneurial spirits that some see as the only force able to lead the economy to the next stage of expansion. Abroad, there are similar pressures aiming to penetrate Japan's affluent market by reducing the government's influence in economic planning.

With such conjectures I interviewed 71 selected senior officers from the Ministry of International Trade and Industry (MITI) in Tokyo over the period from 1991 to 1993. I wanted to understand their own views on economic planning and reveal the intricacies of the ‘planning mind'. My analysis of the interviews is still in progress. However, I can report that the planning mind (at least in MITI) is still intact. It is searching for a new direction with the scope to make it effective in the changing policy environment. MITI officials are still searching for ways to maintain economic dynamism and growth, but MITI's traditional industry structure policy is being replaced with a new focus on restructuring norms across all aspects of life. The issues of the improvement of quality of life and creating wealth have become central to the well organised work process.

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