Ministry of International Trade and Industry

Introduction

The topic focuses on Ministry of International Trade and Industry Japan. It includes description about Ministry of International Trade and Industry along with the discussion of MITI within the Iron Triangle Debate. The topic further discusses about the actors that are more powerful in the Japanese political economy. Furthermore, the topic discusses MITI as a culturally-unique institution.

Discussion

Ministry of International Trade and Industry Japan

The development of MITI occurred in the year 1949. This was the same year when the foreign exchange and foreign trade control laws were introduced. These two laws gave MITI its first and most important means of influencing corporate decision-making by giving it the authority new ministry used the foreign exchange from exports and imports to accelerate the growth rate of preferential the newest technologies at almost no cost. In 1950, MITI acquired another important tool: the Foreign Capital Law. MITI used these three laws in developing the system of government intervention and participation in the management of Japanese businesses. This high-growth system - a fusion between the bureaucracies out the initial stepping stones for the postwar Economic the Ministry of Finance, founded the Japan Development Bank (1951), which drew upon an Investment plan came from the composite savings of the nation, postal savings system. Japan thus became known as a “developmental state” throughout this period, referring and development.

How MITI works

The economy of Japan was ruined after the World War II. Even, in the middle of the war, almost half of the capital of the country was ruined and the living standard in the country fell back to pre-World War I stages. In 1949, the government merged the Trade Agency and the Ministry of Commerce and Industry into one body. This body was formed in a desperate attempt to curb the postwar inflation and offer government assistance and leadership for the re-establishment of employment and industrial productivity. 60 years later in the 21st century, Japan has the world's second-largest economy and its growth is the desire of most of the world.

Many political and economic analysts believe that this outstanding economic growth is, in large part, due to MITI. They are convinced that MITI had decided what industries and economic lines the Japanese would capitalize on, and that MITI influenced other Japanese government ministries and agencies to use their coercive power to influence companies to go along (Johnson 21). This powerful role was possible because MITI held primary accountability for framing and effecting international trade policy. However, it did this by seeking an agreement among interested collaborators, including the Ministry of Finance and the Ministry of Foreign Affairs. Furthermore, MITI synchronized trade policy, on issues related their wellbeing, with the Bank of Japan, the Economic Planning Agency, and the ministries of forestry and fisheries, construction, agriculture, health and welfare, transportation, and posts and telecommunications.

Unlike other ministries in other countries, MITI was able to control almost all sectors of the economy (Jonson 26). Johnson notes that the particular consequences, form, and speed of ...