Fettered by the past in the march forward: ideology as an explanation for today's malaise in Japan

Abstract

Japan's ‘lost decade’ of the 1990s is more than 10 years of economic downturn. The fact that a further decade later the malaise continues suggests that this is more than just an extended bad patch. Measures have been implemented to revitalize the economy however, the Japanese economy continues to wither. Why is this the case? This is an historical institutionalist's argument drawn from D.C. North's work that reform measures fall short of their aims if they are not underpinned by a complementary ideology. And, effectively, Japan is a case in point. Japanese-language records of debates between policy makers in 1999, after a decade of reform, show that they continued hold to a ‘mental model’ of a political economy that was of the preceeding high growth period and, indeed, much further in Japan's past. Such key figures as Prime Minister Obuchi Keizō argued both for the inculcation of greater market competition and, at the same time, lamented the loss of Japan's former ‘virtuous capitalism’. In other words, fettered by the past, they prepared Japan for the future.

Keywords:

• D.C. North
• historical institutionalism
• Japan
• ideology
• ‘lost decade’
• shingikai

Notes

1. For an overview of institutional theory in political science see Peters (2005) and for the field of political economy consult Weingast and Wittman (2006).

2. The list included the following bills:

•	Partial Revision of the Cabinet Law (Naikaku Hō no Ichibu wo Kaisei Hōritsuan)
•	Partial Revision of the National Administrative Law (Kokka Gyōsei Soshikihō no Ichibu wo Kaisei Suru Hōritsuan)
•	Establishment of the Cabinet Office (Naikakufu Setchhi Hōan)
•	Local Government Reform (Chūōshōfutō Kaiaku no tame no Kuni no Gyōsei Soshiki Kankei Hōritsu no Setsubitō ni kan suru Hōritsuan)

Also, bills were submitted that deal with or the creation of the following ministries or agencies:

•	Ministry of Internal Affairs and Communication (Sōmushō Setchi Hōan)
•	Postal Services Agency (Yūsei Jigyōfu Setchi Hōan)
•	Ministry of Justice (Hōmushō Setchi Hōan)
•	Ministry of Foreign Affairs (Gaimushō Setchi Hōan)
•	Ministry of Finance (Zaimushō Setchi Hōan)
•	Ministry of Education, Sports, Science and Technology (Bunbu Kagakushō Setchi Hōan)
•	Ministry of Health, Labor and Welfare (Kōsei Rōdōshō Setchi Hōan)
•	Ministry of Agriculture, Forestry and Fisheries (Nōrin Suisanshō Setchi Hōan)
•	Ministry of Economy, Trade and Industry (Keizai Sangyōshō Setchi Hōan)
•	Ministry of Land, Infrastructure, Transport and Tourism (Kokudō Kōtsūshō Setchi Hōan)
•	Ministry of Environment (Kankyōshō Setchi Hōan)
•	Independent Administrative Cooperative Body (Dokuritsu Gyōsei Hōjin Tsūsoku Hōan)

3. For further details on post-1945 shingikai, see Schwartz (1998).