Dedade

1) What balance between state and market (political economy) does your case exhibit?
In the economic development of Japan during the 1980s and 1990s, there has emerged a distinct form of capitalism characterized by active state intervention in the economy and close state-business relations. As Japan even grew faster than the West, there has been considerable unease that Japan government has been much more intrusive and mercantilist than the advanced economies.  Soon Japan became the first Asian economy to join the ranks of industrial countries, and the Japanese government was quite keen to push the Japanese model of development, especially the positive role of the public sector.  

(2) (a) How extensive is the market system? (b) How does your state intervene in the market? (c) What fiscal, monetary, and regulatory polices does your country pursue? (d) What level of nationalization exists?
In the 1980s, the Japanese government financed a World Bank Study on the Asian Miracle. Indeed, without an active role of Japan governments in building up the infrastructure, devoting resources to education and health and providing political stability and protection of property rights, Asian markets could not have grown so fast.   The World Bank economists admitted that Japan state-market cooperation succeeded because the state “mimicked” the market. Japant’s idea of governments “picking the winners” did help selecting the key industries to develop, with crucial input from the market.  They did not pick winners from thin air, but worked with the market and had good feedback on when to advance and when to retreat.  
(3) In your case, does the market or the state play a greater role? How so?
We believe that the market play a greater role. As Japan could see the failure of central planning from some Asian countries, free market philosophy still gained dominance in Japan.  Throughout the advanced economies, the philosophy was to reduce the role of the state and roll back...